Elco (TASE:ELCO) just posted its FY 2025 third quarter numbers with revenue of ₪5.8b and basic EPS of ₪1.63, while trailing twelve month revenue sits at ₪22.3b and EPS at ₪4.43. Over recent quarters the company has seen revenue range between ₪4.8b and ₪5.8b with quarterly basic EPS moving from a loss of ₪0.21 to earnings of ₪1.63. This puts the focus squarely on how sustainable these margins really are.
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The next step is to set these results against the widely followed narratives around Elco to see which stories the numbers support and which they start to challenge.
Curious how numbers become stories that shape markets? Explore Community Narratives
TASE:ELCO Earnings & Revenue History as at Mar 2026 TTM profit helped by ₪175m one off Over the last 12 months Elco reported ₪119m in net income (excluding extra items) and basic EPS of ₪4.43, but that includes a ₪175m one off gain that significantly affects how sustainable that profit looks. What stands out for a cautious, bearish view is that this one off gain sits against a five year earnings decline of 35.4% per year.
Trailing twelve month EPS moved from a loss of ₪4.63 one year ago to a profit of ₪4.43 now, while net income excluding extra items went from a loss of ₪125.1m to a profit of ₪119m. This shift back into profit challenges a simple bearish claim that the business cannot generate earnings, but the heavy reliance on a ₪175m gain and the multi year earnings decline both support concerns about the quality and durability of that profit. Revenue steadier than earnings swings Quarterly revenue has moved in a relatively tight band from ₪4.8b in FY 2024 Q2 to ₪5.8b in FY 2025 Q3, while basic EPS over the same stretch swung from a loss of ₪1.88 per share to a profit of ₪1.63 per share. For investors leaning bullish, this combination of stable top line and volatile EPS invites a closer look at how the business is absorbing costs.
Over the last six reported quarters, revenue ranged between ₪4.8b and ₪5.8b, yet net income excluding extra items ranged from a loss of ₪51m to a profit of ₪44m, which suggests that cost, financing or one off items have had a bigger impact on profitability than demand. That pattern can support a bullish argument that if management keeps revenue near current levels and reduces below the line hits, earnings could track closer to the recent positive quarters, although the five year earnings decline of 35.4% per year shows that this has not been the case over a longer stretch. Curious how numbers become stories that shape markets? Explore Community NarrativesRich P/E against weak interest cover The shares trade on a P/E of 28.7x, above the Asian Construction industry average of 13.5x and slightly below the peer average of 30.9x, while a DCF fair value of ₪19.53 sits far below the current share price of ₪127. Bears point to this valuation together with weak interest coverage as a key risk to the equity story.
The DCF fair value of ₪19.53 compared with a ₪127 share price and a recent TTM net income of ₪119m suggests the market is paying a high multiple relative to both modeled cash flows and current profitability. On top of that, the data notes that interest payments are not well covered by earnings, so anyone worried about leverage can argue that a 28.7x P/E and a price many times above DCF fair value leave little room if earnings or financing costs move against the company. Next Steps
Don’t just look at this quarter; the real story is in the long-term trend. We’ve done an in-depth analysis on Elco’s growth and its valuation to see if today’s price is a bargain. Add the company to your watchlist or portfolio now so you don’t miss the next big move.
With all this in mind, the picture around Elco is mixed. Treat these figures as a starting point and move fast to build your own view using the 1 key reward and 3 important warning signs.
See What Else Is Out There
Elco combines a rich 28.7x P/E, a share price far above DCF fair value, earnings supported by a ₪175m one off gain and weak interest cover.
If that mix of high valuation, one off driven earnings and fragile interest coverage makes you uneasy, compare it with companies screened for stronger financial footing through the 261 resilient stocks with low risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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