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Shapir Engineering And Industry (TASE:SPEN) Stock Can Margin Gains Justify A 45.6x P E

Simply Wall St · 3d ago

Shapir Engineering and Industry shares closed at ₪42.61 on Tuesday, after a mixed few months that left the stock down over the past quarter. The latest Q2 numbers landed into that cautious backdrop and put profitability under the spotlight.

For a company often viewed as a long term infrastructure compounder, the focus is on margin and earnings quality. Trailing net profit margin sits at 5.1% compared with 3.6% a year earlier and reported earnings over the past year look much stronger, yet a ₪120.0m one off gain does a lot of the heavy lifting.

Is Shapir Engineering and Industry now priced for a durable earnings reset, or is a 45.6x P/E on margin gains and one off income too much optimism in the share price? See how that trade off stacks up in the detailed valuation analysis for Shapir Engineering and Industry

Q2 2026 Earnings Summary

  • Revenue (Q2 2026 vs Q2 2025): ₪1,684m vs. ₪1,392m (up about 21%)
  • Net Income excl. extra items (Q2 2026 vs Q2 2025): ₪108m vs. ₪47m (up about 130%)
  • Basic EPS (Q2 2026 vs Q2 2025): ₪0.30 vs. ₪0.13 (up about 131%)
  • Trailing net profit margin (Last 12 months vs Prior 12 months): 5.1% vs. 3.6% (higher margin, with a ₪120m one off gain lifting reported profitability)

Prefer clear visuals instead of picking through raw earnings tables and margin figures? See Shapir Engineering and Industry's full financial picture with a simple valuation snapshot at a glance in the company report for Shapir Engineering and Industry.

TASE:SPEN Trailing 12-Month Earnings & Revenue History as at Aug 2026
TASE:SPEN Trailing 12-Month Earnings & Revenue History as at Aug 2026

Stronger Q2 Underscores Shapir’s Infrastructure Appeal

For investors leaning positive on Shapir Engineering and Industry, the latest quarter broadly backs the idea of a resilient infrastructure platform. Revenue reached ₪1,684m compared with ₪1,392m a year earlier, and net income excluding extra items rose to ₪108m from ₪47m. Basic EPS moved to ₪0.30 from ₪0.13. That combination points to healthier earnings power from the underlying projects and concessions. This fits the narrative of a diversified group that can benefit when its mix of construction, materials and long term concessions performs well at the same time.

One Off Gains And Share Drifts Keep Bears Engaged

The cautious view on Shapir Engineering and Industry also finds support in these results. The trailing net margin of 5.1% compares with 3.6% a year earlier, but a ₪120m one off gain plays a meaningful role. This raises fair questions about how repeatable the uplift is. The share price is down over the past 30 and 90 days despite the stronger Q2 headline numbers. Combined, that suggests investors still want clearer evidence that recent profitability and cash generation trends can hold without relying on exceptional items.

After a ₪120.0m one off gain and weaker interest cover, are these earnings questions just the start? Review the risk analysis for Shapir Engineering and Industry which shows 3 important warning signs

Take Control Of Your Next Move

If the mix of one off gains and underlying margin questions around Shapir Engineering and Industry has you watching for a better entry point, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and key earnings updates. After you decide to buy or sell, keep your decisions disciplined with the Portfolio Command Center that focuses your view on the most important developments across all your holdings. For a longer term perspective, tap into what other investors are seeing through the Community and weigh different viewpoints against your own thesis. By spotting potential catalysts and risks early, you give yourself a better chance of staying ahead of the market.

Seeking Alternatives Beyond Shapir Engineering And Industry?

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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.