Ellomay Capital Ltd Ordinary Shares (Israel) (ELLO)

FairStock Score: 50/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor who wants durable assets, honest accounting, and a margin of safety. Ellomay owns renewable and clean-energy projects—five PV plants in Spain, a dual-fuel plant in Ashkelon, a hydro project under construction, and anaerobic digestion—but at the close on 2026-10-13 the numbers do not yet show a high-quality compounder. In the quarter labeled 2026-Q2, revenue was $12.4M and net income was $72.3M, a 582.45% margin, which is so unusual it must be treated as a one-time or accounting event until proven recurring. The trailing figures are negative: EPS of $-2.00 and a FairStock-calculated P/E of -12.20. Returns on capital are poor, with ROCE at 0.15% and ROE at -15.77%. The growth figures are also weak, with revenue growth of -2.20% and profit growth of -230.64%. The balance sheet worries me more: debt-to-equity is 2.86, Altman Z-Score is 0.42, and trailing free cash flow is -$137.7M, a -40.0% FCF yield. That is heavy cash burn for a $344.5M market cap. A Piotroski F-Score of 6/9 and a FairStock Score of 50/100 suggest some stabilizing factors, but I cannot call it a bargain simply because the FairStock-calculated P/B is 1.38 when book value is being eroded by losses. The computed Lynch category is none, because there are only 0 years of filed results and three are needed. I would need evidence of recurring cash generation, lower leverage, and a clearer moat before finding a margin of safety at $24.41.

In plain English: Ellomay builds and operates clean energy projects, including solar plants in Spain and a power plant in Israel. The business looks weak right now: revenue slipped and it is losing money overall while using a lot of debt and cash. At $24.41, the price does not look clearly cheap compared with its shrinking sales and losses.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer