Key details from Equital’s latest earnings release
Equital (TASE:EQTL) reported second quarter and half year 2026 results on 31 August, with quarterly figures showing higher sales and net income, while overall revenue and half year net income moved in the opposite direction.
For the quarter, the company reported sales of ₪275.98 million compared with ₪259.42 million a year earlier. Revenue was ₪837.22 million versus ₪905.48 million, while net income was ₪157.66 million compared with ₪136.01 million.
Basic and diluted earnings per share from continuing operations for the quarter were both reported at ₪4.9, compared with ₪4.3 a year ago. These figures provide a snapshot of how Equital balanced its mix of activities across real estate and oil and gas during the period.
Across the first half of 2026, sales were ₪543.9 million versus ₪526.48 million a year earlier. Revenue for the six months was ₪1,622.86 million compared with ₪1,836.16 million, and net income was ₪246 million versus ₪265.42 million.
Half year basic and diluted earnings per share from continuing operations were both reported at ₪7.8, compared with ₪8.4 a year earlier. This combination of higher quarterly profitability alongside softer revenue over six months provides important context for anyone following Equital’s stock performance.
Equital’s latest report landed alongside a modest 0.75% 1 day share price gain and a 3.45% 7 day share price return, although the stock is still down 5.93% over 30 days and has fallen 34.11% on a year to date share price basis. The 1 year total shareholder return is down 25.35%. However, the 5 year total shareholder return of 20.02% shows that long term holders have still seen a positive outcome despite the recent weaker momentum around the mixed earnings picture.
Scan how Equital compares with other asset heavy and cash generative businesses by reviewing the hand picked list of solid balance sheet and fundamentals (437 results).After a sharp year to date share price decline but a 5 year total return that is still positive, the key issue for Equital is whether most of the re rating is already behind the stock or still ahead.
Price-to-Earnings of 6.8x for Equital: Is it justified?
On a simple headline measure, Equital trades on a P/E of 6.8x, which puts its ₪107.8 share price well below where many peers are priced on earnings.
The P/E ratio compares what you pay today for each unit of current earnings. For a company like Equital, which combines income producing real estate with oil and gas operations, this measure helps you see how the market is pricing its profit stream relative to similar businesses.
EQTL is described as good value on this basis compared with both the Asian oil and gas industry average P/E of 12.1x and a peer group average of 14.2x. That is a wide gap, so the key question for you is whether the market is discounting Equital because of its earnings profile and balance sheet risks, or whether it is pricing in too little credit for the recent 25.7% earnings growth and higher profit margins.
Compared with its industry and peer averages, Equital’s current P/E looks materially lower, which points to the market assigning a cheaper earnings tag to this stock than to similar oil and gas companies. If that gap ever narrows towards peer levels, it would reflect a very different view of the company’s earnings power than the one implied by today’s ratio.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 6.8x (UNDERVALUED).
Alongside the P/E comparison, the SWS DCF model estimates a future cash flow value of ₪327.33 per share for Equital against the current ₪107.8 price. The model projects Equital’s future cash flows and discounts them back to today using a required rate of return, which gives a single estimate for what those future streams might be worth in present terms.
This kind of cash flow based view can be useful for a company that mixes asset backed rental income with oil and gas exposure, where reported earnings may be affected by one off items or accounting choices. It gives you another lens on whether the current share price lines up with the cash the business is expected to generate over time.
Look into how the SWS DCF model arrives at its fair value.
Result: DCF Fair value of ₪327.33 (UNDERVALUED).
However, Equital’s heavy exposure to real estate and oil and gas, along with the sharp year to date share price decline, could challenge any simple undervaluation story.
Find out about the key risks to this Equital narrative.
Another view on Equital’s valuation
The SWS DCF model takes a different angle on Equital. It values the stock at ₪327.33 per share based on projected future cash flows, versus the current ₪107.8 price, which points to a wide gap that could reflect either mispricing or meaningful business risks that still worry the market.
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Equital 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 263 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
Does the mix of pressure and potential around Equital leave you cautious or curious about what comes next? Act while the numbers are fresh in mind, and weigh the trade off between what could go wrong and what could go right by reviewing the 2 key rewards and 3 important warning signs.
Looking for more investment ideas beyond Equital?
If Equital has your attention, do not stop here. Broaden your watchlist now so you are not relying on a single story to shape your portfolio.
- Target steadier potential by scanning companies that score well on financial resilience and modest risk using the 302 resilient stocks with low risk scores.
- Hunt for stronger value opportunities by reviewing the 263 high quality undervalued stocks that combine healthier cash flows with more robust balance sheets.
- Spot earlier stage potential by checking the 213 elite penny stocks with strong financials that already show stronger fundamentals than many of their peers.
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.
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