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    Azorim Investment Development And Construction (TASE:AZRM) Reported Fresh Earnings, Is The Valuation Still About Right?

    Simply Wall St·09/01/2026 14:27:55
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    What Azorim-Investment Development & Construction’s Latest Earnings Tell You

    Azorim-Investment Development & Construction (TASE:AZRM) recently reported its Q2 and first half 2026 results, giving investors fresh detail on revenue, sales and earnings per share from its ongoing operations.

    The company posted Q2 revenue of ₪375.72 million and net income of ₪53.9 million, with basic EPS from continuing operations of ₪0.25. Sales for the quarter were ₪28.75 million.

    Over the first six months of 2026, Azorim-Investment Development & Construction reported revenue of ₪792.83 million and net income of ₪74.56 million. Basic and diluted EPS from continuing operations came in at ₪0.34.

    Azorim-Investment Development & Construction’s latest earnings release on 23 August arrived alongside a sharp turn in recent share price momentum, with a 1-day share price return of 1.32% and a 7-day share price return of 12.10% at a latest share price of ₪16.86.

    That short-term strength, including a 30-day share price return of 16.92%, sits against a year-to-date share price return that declined 9.55% and a 1-year total shareholder return that declined 14.79%, while the 3-year total shareholder return of 52.36% suggests longer term holders have still seen gains overall.

    Spot 263 high quality undervalued stocks that, like Azorim-Investment Development & Construction after its latest earnings, may be poised for a shift in sentiment.

    After that sharp short term move in Azorim-Investment Development & Construction, the share price and the range of value estimates are not perfectly aligned. So where does fair value really sit in this spread?

    Preferred P/E of 16.4x for Azorim-Investment Development & Construction: Is it justified?

    Azorim-Investment Development & Construction trades on a P/E of 16.4x, which sits below its direct peer group average of 37.9x but slightly above the wider Asian Consumer Durables industry average of 16x.

    The P/E ratio compares the company’s share price to its earnings per share. For Azorim-Investment Development & Construction, this helps you see how the market is currently pricing its earnings from residential development and income producing real estate relative to similar companies.

    A lower P/E than close peers can point to the market placing a more cautious value on the company’s earnings, even with recent earnings growth of 45.7% over the past year and current net profit margins of 13.3% compared with 7.9% last year. At the same time, the company’s own track record includes earnings declining 8.8% per year over the past 5 years and a Return on Equity of 8.7%, which is described as low, so the current P/E may also reflect some doubt about how repeatable the recent improvement is, particularly with large one off gains of ₪111.2m affecting the last 12 months.

    Compared with the broader Asian Consumer Durables industry average P/E of 16x, Azorim-Investment Development & Construction trades at only a modest premium. That narrow gap suggests the market is valuing the stock roughly in line with the wider sector, rather than assigning it a distinctly higher or lower rating based on its specific risk and growth profile.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-Earnings of 16.4x (ABOUT RIGHT)

    However, investors still need to weigh risks such as Azorim-Investment Development & Construction’s reliance on residential construction in Israel and the impact of any future swings in property demand.

    Find out about the key risks to this Azorim-Investment Development & Construction narrative.

    Another View on Azorim-Investment Development & Construction’s Valuation

    While the 16.4x P/E for Azorim-Investment Development & Construction looks low compared with its 37.9x peer group, our model comparing that same P/E to the broader Asian Consumer Durables average of 16x presents a different perspective. The stock screens as slightly expensive, which raises a simple question. Is the recent earnings strength enough for you to accept that additional valuation risk?

    See what the numbers say about this price — find out in our valuation breakdown.

    TASE:AZRM P/E Ratio as at Sep 2026
    TASE:AZRM P/E Ratio as at Sep 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Azorim-Investment Development & Construction for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 263 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    If this mix of signals around Azorim-Investment Development & Construction feels uncertain, that is exactly why it helps to move fast and test the numbers for yourself. To see how the balance of risks and potential rewards currently stacks up, take a closer look at the 1 key reward and 3 important warning signs.

    Looking for more investment ideas beyond Azorim-Investment Development & Construction?

    If Azorim-Investment Development & Construction has caught your attention, do not stop here. Fresh ideas across different styles can sharpen your watchlist and widen your opportunities.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.