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    Shikun & Binui (TASE:SKBN) Jumped, What Is Behind The Fresh Attention?

    Simply Wall St·09/02/2026 15:14:34
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    Why Shikun & Binui’s Latest Earnings Are Drawing Fresh Attention

    Shikun & Binui (TASE:SKBN) moved into focus after its second quarter 2026 earnings, where net income and earnings per share increased compared with last year, even as quarterly sales were lower.

    The earnings release appears to have shifted sentiment around Shikun & Binui, with the ₪19.25 share price now reflecting a sharp 8.09% 1 day share price return and 15.27% 7 day share price return. The 35.56% 1 year total shareholder return and 101.04% 3 year total shareholder return point to momentum that has been building over time despite a 90 day share price return that declined 11%.

    Scan how Shikun & Binui’s earnings momentum compares with other infrastructure focused plays by reviewing our hand picked list of solid balance sheet and fundamentals (439 results) in similar capital intensive sectors.

    Bulls see Shikun & Binui’s stronger quarterly earnings and recent share price jump as confirmation of a healthier business. Bears point to softer sales and a recent 90 day pullback. Which case does current pricing support?

    Preferred Price-to-Sales Multiple of 1.2x: Is It Justified?

    With Shikun & Binui now back in profit and the share price at ₪19.25, valuation questions naturally turn to what investors are paying for its sales base. The current preferred metric is the P/S ratio, which sits at 1.2x and is described as expensive compared with both peers and the wider Israel construction sector.

    The P/S ratio compares the company’s market value with its revenue. For a business like Shikun & Binui, which operates across long term infrastructure and real estate projects, this metric can be useful when earnings are affected by one off items or recent swings in profitability. It tells you how much investors are currently willing to pay for each ₪1 of revenue, regardless of short term profit volatility.

    In this case, Shikun & Binui’s P/S ratio of 1.2x is higher than the peer average of 1.1x and also higher than the Israel construction industry average of 1.1x. That suggests the stock is pricing in stronger fundamentals or a different risk profile than the typical construction peer, even though the company has only recently become profitable and has a history of earnings declining 18.4% per year over the past 5 years. Investors considering the current move in the share price may want to weigh that premium carefully against the company’s earnings quality, which includes large one off items, and its interest cover that is described as weak.

    For readers who want to see how this premium looks when broken down in more detail across different valuation checks and scenarios, the valuation breakdown for Shikun & Binui is available in full through See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-Sales of 1.2x (OVERVALUED)

    However, Shikun & Binui’s weak interest cover and reliance on large one off items leave the current P/S premium exposed if earnings quality comes under pressure.

    Find out about the key risks to this Shikun & Binui narrative.

    Next Steps

    If this mix of optimism and concern around Shikun & Binui feels familiar, use the data to test your own view rather than relying on headlines. A useful place to start is by weighing the balance of its 1 key reward and 3 important warning signs

    Looking For More Ideas Beyond Shikun & Binui?

    If Shikun & Binui has sharpened your focus on valuation and risk, now is a good time to broaden your watchlist with other well screened 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.