Azrieli Group (TASE:AZRG) Stock Faces Debt Strain Behind High Margins

Azrieli Group stock came into today on the back foot, with the share price down about 13% over the past three months and 7% over the past month. That set the stage for an earnings release that puts one issue front and center for investors. Reported earnings look strong and the trailing net profit margin sits near 48%, yet interest coverage is weak and the balance sheet is doing more of the heavy lifting than many holders might like.

The market now has to decide whether a premium P/E of about 24x still makes sense once that financing strain and the sizeable 1.2b shekel one off gain are stripped out. The short term price move indicates how traders are reacting, while the full earnings story highlights what the debt and cash flows can really support.

Love Azrieli Group’s high net margin but concerned about the weak interest coverage and reliance on a one off gain? Take a look at our list of solid balance sheet and fundamentals stocks (434 results).

Q2 2026 Earnings Summary

• Revenue, TTM to Q1 2026 vs. TTM to Q4 2024: ₪4,082m vs. ₪3,281m (change reflects higher trailing revenue)
• Net Income from Continuing Operations, TTM to Q1 2026 vs. TTM to Q4 2024: ₪1,971m vs. ₪1,482m (change reflects higher trailing earnings, including a ₪1.2b one off gain)
• Basic EPS, TTM to Q1 2026 vs. TTM to Q4 2024: ₪16.25 vs. ₪12.18 (change reflects higher earnings per share over the trailing period)
• Net Profit Margin, TTM to Q1 2026 vs. Prior Year TTM: 48.3% vs. 42.4% (margin higher, with trailing results affected by a large one off gain)

Prefer clean visuals instead of sorting through another wall of earnings tables and footnotes? View a clear, chart-based overview of Azrieli Group’s balance sheet strength and debt profile through our company report for Azrieli Group.

Azrieli Group’s Earnings Still Support a Positive Angle

For investors leaning positive on Azrieli Group, the latest numbers give some support. Trailing revenue and net income are higher, and the trailing net margin near 48% aligns with the story of a profitable, diversified platform. Q2 shows steady NOI and FFO, with underlying same property NOI up a few percent once currency is stripped out. Malls, senior housing and data centers each contribute to that resilience. The data center rollout and recent customer wins also indicate that newer segments are already feeding into contracted cash flow, not just future plans.

Debt Costs, FX And One Offs Temper The Story

The more cautious narrative also finds backing in the results. Interest coverage is weak and a large ₪1.2b one off gain inflates trailing earnings, which makes the current margin look cleaner than it really is. Q2 FFO is flat once FX and senior housing are considered, so cash generation is broadly in line with financing needs. Reported NOI in data centers and offices is affected by currency and prior one time items. That mix suggests the balance sheet and fair value gains are carrying more weight than underlying cash flow growth at this stage.

Compare Azrieli Group’s strong trailing margin story with how analysts are weighing the weak interest coverage and reliance on a 1.2b shekel one off gain. See the consensus price target analysis for Azrieli Group to check whether the street’s expectations align with that mixed earnings picture.

Take Control Of Your Next Move

If Azrieli Group’s mix of high trailing margins, weak interest coverage and one off gains has caught your attention, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and wait for a setup that fits your plan. Once you decide to build a position, use the Portfolio Command Center to cut through market noise and focus on the key updates that matter for your holdings. For longer term conviction, tap into thousands of perspectives through the Community and see how other investors are interpreting the same numbers. By spotting hidden catalysts and risks early, you can act with confidence and stay a step ahead of the market.

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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
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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