Shikun & Binui Energy (TASE:SBEN) recently signed a build operate transfer agreement with the State of Israel to develop a 150 MW solar power plant with around 460 MWh of storage in the Negev.
The Ashalim project is intended to support Israel’s renewable energy goals and grid stability by combining solar generation with storage systems that use existing infrastructure. This gives investors a concrete project to track in the coming years.
See our latest analysis for Shikun & Binui Energy.
At a latest share price of ₪3.997, Shikun & Binui Energy has seen strong recent momentum, with a 30 day share price return of 49.59% and a 1 year total shareholder return of 62.35%. This suggests the Ashalim announcement is feeding into a shift in how the market is weighing its growth potential and risks.
If projects like Ashalim have caught your attention, it could be worth broadening your search and checking out fast growing stocks with high insider ownership as another way to spot potential opportunities.
With the share price up 49.59% over 30 days and a 1 year total return of 62.35%, investors now have to ask: is Shikun & Binui Energy still mispriced, or is the market already baking in future growth?
At a last close of ₪3.997, Shikun & Binui Energy is trading on a P/S ratio of 15.1x, which is high compared with both peers and its industry.
The P/S multiple compares the company’s market value to its revenue, so a higher ratio usually reflects strong expectations around future sales or profitability. For a business that is currently reporting a net loss of ₪203.211m on revenue of ₪242.393m, that kind of premium suggests investors are placing meaningful weight on future project pipelines and potential margin improvement rather than current earnings.
According to the statements, SBEN is described as expensive on this measure versus a peer average P/S of 3.2x, and also versus the Israel Construction industry average of 1.1x. That is a very wide gap, which implies the market is valuing each shekel of SBEN’s revenue at several times what it values revenue at comparable companies.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Sales of 15.1x (OVERVALUED)
However, you also need to keep an eye on execution risk around large projects like Ashalim, as well as the current net loss of ₪203.211m on ₪242.393m revenue.
Find out about the key risks to this Shikun & Binui Energy narrative.