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Why Alrov Properties And Lodgings (TASE:ALRPR) Is Getting Attention Today

Simply Wall St · 2d ago

Alrov Properties and Lodgings earnings draw investor attention

Alrov Properties and Lodgings (TASE:ALRPR) has drawn fresh scrutiny after reporting second quarter 2026 results, with revenue and net income both lower than the same period last year.

The company posted second quarter sales of ₪283.28 million and revenue of ₪508.64 million, compared with ₪330.64 million and ₪1,113.87 million a year earlier. Net income was ₪119.91 million, compared with ₪552.49 million.

For the first half of 2026, sales came in at ₪529.5 million and revenue at ₪967.66 million, down from ₪586.8 million and ₪1,609.36 million in the prior year period. Net income declined to ₪211.69 million from ₪673.77 million.

Alrov Properties and Lodgings shares trade at ₪248.8 after a 90 day share price return that fell 20.31% and a 1 year total shareholder return that declined 5.96%. However, the 3 and 5 year total shareholder returns of about 70% suggest longer term holders have still seen strong overall gains.

Compare Alrov Properties and Lodgings with other real estate focused stocks that have held up better on recent results by reviewing the hand picked list of solid balance sheet and fundamentals (439 results)

After a sharp 90 day pullback, and with intrinsic value estimates sitting only slightly below the current ₪248.8 price, where does fair value for Alrov Properties and Lodgings really land in this wide range of views?

Preferred P/E multiple of 6.1x for Alrov Properties and Lodgings: Is it justified?

On a P/E of 6.1x at a last close of ₪248.8, Alrov Properties and Lodgings trades at a sizable discount compared with both the wider Israel market and its real estate peers.

The P/E ratio compares the current share price with earnings per share, so a lower P/E often means investors are paying less for each unit of current earnings. For a real estate investment business with segments spanning investment properties, hotels and securities, this can reflect how the market weighs its earnings quality, balance sheet and income mix.

Alrov Properties and Lodgings has high quality earnings and its profits have grown strongly on average over the past five years, although earnings declined 24.7% over the last year and net profit margins eased from 41.9% to 36.1%. Against that backdrop, a P/E of 6.1x compared with 14.3x for the Israel real estate industry and 15.3x for the overall Israel market suggests investors are currently pricing in weaker prospects or higher perceived risk than for peers.

That discount is also apparent against a peer average P/E of 9.5x, which implies the market is valuing Alrov Properties and Lodgings earnings more cautiously than similar companies. If sentiment on the stock or its earnings profile were to move closer to the wider group, the P/E could also move toward those levels.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Earnings of 6.1x (UNDERVALUED)

However, Alrov Properties and Lodgings still faces clear risks if earnings softness persists or if hotel and investment property income come under further pressure.

Find out about the key risks to this Alrov Properties and Lodgings narrative.

Another view on Alrov Properties and Lodgings valuation

While the 6.1x P/E points to Alrov Properties and Lodgings trading on a low earnings multiple, the SWS DCF model presents a different view. It values future cash flows at ₪47.89 per share, so the current ₪248.8 price appears significantly higher than that valuation. Which signal do you consider more informative over a longer investment horizon?

Look into how the SWS DCF model arrives at its fair value.

ALRPR Discounted Cash Flow as at Sep 2026
ALRPR Discounted Cash Flow as at Sep 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Alrov Properties and Lodgings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 258 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals around Alrov Properties and Lodgings valuation and outlook, it may be useful to independently review the numbers. Weigh the potential upside against the clear concerns by checking the 1 key reward and 1 important warning sign.

Looking for more investment ideas beyond Alrov Properties and Lodgings?

If you are reassessing Alrov Properties and Lodgings, this is a good moment to widen your watchlist and compare it with other stocks that meet clear, disciplined criteria.

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.