Alony Hetz stock at a 30% discount: Analysis of the report
The holding company's quarterly loss was primarily driven by accounting write-downs in the British Brockton Everlast and Energix, while operational results of held companies rose by 14%. The stock trades at 30 shekels against a Net Asset Value (NAV) of 42.5 shekels. Is the discount justified?
Alony Hetz Group, one of the oldest holding companies on the Tel Aviv Stock Exchange, concluded the second quarter of 2026 with a loss of about 179 million shekels attributable to shareholders, compared to a profit of about 134 million shekels in the same quarter last year.
However, behind this figure lies a more complex picture: the loss is almost entirely due to accounting write-downs in the held companies, while their ongoing operations actually recorded an improvement. At the same time, the stock is trading at a discount of about 30% to its Net Asset Value (NAV).
To understand the report, one must separate two layers. The first layer is the operational activity of the held companies: Alony Hetz's share in these results, excluding real estate revaluations and write-downs, rose in the second quarter by about 14% to approximately 98 million shekels. In the first half of the year, the pace was even more impressive, with an increase of about 20% to 254 million shekels. In other words, the group's business core is growing.
The second layer is the accounting write-downs, which turned the bottom line red. During the quarter, impairment losses of about 188 million shekels were recorded, mainly due to the reduction in the value of land for development in the British subsidiary Brockton Everlast, and a write-off recorded by Energix on the Aran project.
These are "on paper" write-offs that do not affect cash flow, but they hurt the reported result. For the half-year as a whole, a loss of about 102 million shekels was recorded, compared to a profit of about 201 million shekels last year.
Equity per share based on tradable NAV (before deferred taxes) stands at 42.5 shekels, while the stock is trading around 30 shekels, reflecting a company value of about 6.79 billion shekels after a decline of about 22% since the beginning of the year. The market is pricing Alony Hetz at a discount of about 30% on the value of its assets.
This is not an unusual phenomenon. Holding companies almost always trade at a discount to NAV, as the market assumes it is difficult to "unlock value" when managing several companies simultaneously, and that a portion of the theoretical value may never be realized. Additionally, there is a separate management layer with its own expenses, and investors can buy assets like Amot and Energix directly, leading to a demand for a "discount" on the holding company.
The central asset in Israel is Amot (51.17%), one of the largest income-producing real estate companies. The company reports advanced negotiations on new areas and is raising its 2026 forecasts: NOI in the range of 1.07–1.08 billion shekels, and FFO of 790–800 million shekels.
Energix (49.4%) reaffirmed its 2027 target of 4GW and 2GWh of storage. Despite the Aran project write-off, it continues to acquire projects in the USA and Lithuania. In the UK, Brockton Everlast (85.6%) recorded a write-down of about 66 million pounds due to rising 10-year bond yields. In the US, Carr (80.8%) is promoting residential projects with an expected profit of about 95 million dollars.
Despite the loss, Alony Hetz maintains its distribution policy, announcing a quarterly dividend of 25 agorot per share (about 57 million shekels). The economic leverage ratio stands at about 38%.
CEO Nathan Hetz stated: "We are concluding the quarter with progress and growth in all territories where we operate. We intend to continue to act in accordance with the long-term strategic plans in all held companies."
