Ellomay Capital Ltd Ordinary Shares (Israel) (ELLO)

FairStock Score: 50/100 — MIXED

Key Financials

Concerns

• High leverage at 3.86x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Ellomay Capital Ltd Ordinary Shares (Israel) is a micro-cap utilities company valued at $344 million. The business generates $43 million in annual revenue with a 9.0% net margin. From a quality standpoint, Ellomay shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.4 warrants caution. Growth dynamics show revenue growing at 3.2% and profit growth of 65.9%. Our composite FairStock Score of 50/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 3.9x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer