Ya'acobi Brothers Group (YSB) Ltd operates in the engineering and construction sector, primarily focusing on infrastructure projects in Israel. The company is distinguished by its long-standing relationships with government entities and a portfolio that includes significant public works contracts, which provide a competitive edge in securing future projects.
IndustrialsEngineering & Constructionmoderate - YSB's cost structure includes both fixed and variable costs, with significant overhead related to project management and labor, which can impact margins during downturns.
Business Overview
01Public infrastructure projects (estimated 70%)
02Private construction contracts (estimated 20%)
03Maintenance and repair services (estimated 10%)
YSB generates revenue through a mix of public and private sector contracts, leveraging its established reputation and relationships to secure large-scale projects. The company's competitive advantages include a strong local presence, expertise in navigating regulatory environments, and a focus on quality and reliability, which allows for premium pricing on specialized services.
What Moves the Stock
Government infrastructure spending in Israel
Changes in regulatory frameworks affecting construction
Competitive bidding outcomes for large contracts
Market sentiment regarding the Israeli economy
Watch on Earnings
Contract backlog growthGross margin on new projectsRevenue from public sector contracts
Risk Factors
Potential for regulatory changes that could impact project timelines and costs
Economic downturns leading to reduced government spending on infrastructure
Increased competition from larger multinational construction firms
Emergence of new local players with aggressive pricing strategies
Moderate debt levels (Debt/Equity at 0.88) could constrain financial flexibility
Negative net margin (-1.3%) raises concerns about profitability sustainability
StructuralCompetitiveBalance Sheet
Macro Sensitivity
Economic Cycle
high - YSB's performance is closely tied to GDP growth and public spending, as infrastructure projects are often funded by government budgets.
Interest Rates
Higher interest rates can increase financing costs for projects, potentially reducing the number of contracts awarded and impacting profit margins.
Credit
minimal - YSB is not heavily reliant on credit for operations, but access to financing can influence project bidding capabilities.
Live Conditions
Dow Jones FuturesS&P 500 FuturesRussell 2000 Futures
Profile
value - investors may be drawn to YSB's low valuation metrics (Price/Sales at 0.8x) and potential for recovery as infrastructure spending increases.
moderate - historical volatility is influenced by project cycles and government spending patterns.