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Lacklustre Performance Is Driving Albaad Massuot Yitzhak Ltd's (TLV:ALBA) Low P/E

Simply Wall St · 2d ago

With a price-to-earnings (or "P/E") ratio of 12.2x Albaad Massuot Yitzhak Ltd (TLV:ALBA) may be sending bullish signals at the moment, given that almost half of all companies in Israel have P/E ratios greater than 17x and even P/E's higher than 27x are not unusual. However, the P/E might be low for a reason and it requires further investigation to determine if it's justified.

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Albaad Massuot Yitzhak has been doing a good job lately as it's been growing earnings at a solid pace. One possibility is that the P/E is low because investors think this respectable earnings growth might actually underperform the broader market in the near future. If that doesn't eventuate, then existing shareholders have reason to be optimistic about the future direction of the share price.

Check out our latest analysis for Albaad Massuot Yitzhak

pe-multiple-vs-industry
TASE:ALBA Price to Earnings Ratio vs Industry December 23rd 2025
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on Albaad Massuot Yitzhak's earnings, revenue and cash flow.

What Are Growth Metrics Telling Us About The Low P/E?

Albaad Massuot Yitzhak's P/E ratio would be typical for a company that's only expected to deliver limited growth, and importantly, perform worse than the market.

Retrospectively, the last year delivered a decent 9.4% gain to the company's bottom line. Still, EPS has barely risen at all in aggregate from three years ago, which is not ideal. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.

Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 23% shows it's noticeably less attractive on an annualised basis.

With this information, we can see why Albaad Massuot Yitzhak is trading at a P/E lower than the market. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the bourse.

What We Can Learn From Albaad Massuot Yitzhak's P/E?

While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.

We've established that Albaad Massuot Yitzhak maintains its low P/E on the weakness of its recent three-year growth being lower than the wider market forecast, as expected. Right now shareholders are accepting the low P/E as they concede future earnings probably won't provide any pleasant surprises. If recent medium-term earnings trends continue, it's hard to see the share price rising strongly in the near future under these circumstances.

And what about other risks? Every company has them, and we've spotted 4 warning signs for Albaad Massuot Yitzhak (of which 2 are potentially serious!) you should know about.

It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).