Risk factor
Very poor trading liquidity
Profitability factor
Undervalued vs peers
About
Afcon Holdings Ltd is an international enterprise engaged across diverse sectors: building and infrastructure, control and automation, trade, and advanced communication technologies. The company delivers comprehensive multi-system infrastructure projects, encompassing general construction and finishing work, specialized installation of electromechanical and electrical systems for industrial applications, and the production and deployment of high, medium, and low voltage switchgear for various settings. They also provide natural gas engineering services and undertake the construction and setup of renewable energy sites, such as wind and photovoltaic farms, alongside other critical infrastructure facilities. Their control and automation expertise extends to intelligent solutions for industrial processes, sophisticated building monitoring and management systems, robust security protocols, advanced fire protection and safety mechanisms, efficient parking systems, and remote water utility metering. In the realm of communication, Afcon oversees the full lifecycle of unified communication and collaboration platforms, covering the design, development, manufacturing, marketing, installation, distribution, servicing, and ongoing maintenance of digital IP-based switchboards, enterprise-grade communication servers, contact and call centers, interfaces for both exchanges and mobile devices, and business data networks. The company's trading activities involve the distribution of essential switching and electrical hardware, equipment for control and instrumentation, and various electronic components and packaging solutions. Complementing these offerings, Afcon provides critical digital services such as cyber and network security, comprehensive network management, cloud services, and specialized customer engagement solutions, all supported by tailored maintenance contracts. Afcon serves a broad client base that includes the energy, transportation (ports, airports), fuel, gas, water, telecommunications, industry, and defense sectors, along with public institutions, governmental bodies, and municipal organizations. Established in 1945 as Afcon Industries Group, this Petah Tikva, Israel-based company operates as a subsidiary of Shlomo Group.
Company Valuation
From both historical and forecast perspectives, the stock is underpriced compared to similar stocks. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITDA