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    Fattal Holdings (1998) (TASE:FTAL): Assessing Valuation After Sharp Profit Decline and Strong Recent Share Price Gains

    Simply Wall St·12/14/2025 08:15:17
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    Third quarter earnings jolt investor expectations

    Fattal Holdings (1998) (TASE:FTAL) just reported a steep drop in profitability, with third quarter and nine month net income and earnings per share falling sharply from last year. This is forcing investors to reassess the stock’s risk profile.

    See our latest analysis for Fattal Holdings (1998).

    Despite the earnings setback, the share price at ₪620.4 still reflects a solid 90 day share price return of 17.43 percent. The three year total shareholder return of 88 percent suggests longer term holders have been well rewarded, hinting that momentum has softened but not disappeared.

    If this earnings wobble has you reassessing your watchlist, it could be a good moment to explore fast growing stocks with high insider ownership as potential fresh ideas for your next move.

    With profits under pressure but the share price still riding strong long term gains, should investors treat Fattal Holdings as a mispriced value play, or assume the market is already baking in its future growth?

    Preferred Price-to-Sales Ratio of 1.3x: Is it justified?

    Based on its current share price of ₪620.4 and revenues of ₪7.64 billion, Fattal Holdings trades on a modest 1.3 times sales, slightly below its hospitality peers.

    The price to sales ratio compares a company’s market value to the revenue it generates. This can be useful for hotel operators where earnings are volatile and impacted by one off items. For Fattal Holdings, this lens helps strip out recent profit noise and focuses instead on the scale of its hotel platform.

    With earnings swinging sharply lower over the past year and interest costs poorly covered, a discounted sales multiple suggests the market is tempering expectations, yet not writing off the business entirely. The fact that Fattal screens as good value versus both the Asian hospitality average and a much higher peer group multiple implies investors may be underpaying for its revenue base if profitability normalises.

    Compared to the Asian hospitality industry average price to sales ratio of 1.5 times and a peer average of 10.6 times, Fattal’s 1.3 times figure looks notably conservative, hinting at a sizeable valuation gap if sentiment or margins recover.

    See what the numbers say about this price — find out in our valuation breakdown.

    Result: Price-to-Sales of 1.3x (UNDERVALUED)

    However, risks remain, including sustained margin pressure from higher financing costs and any downturn in travel demand that stalls revenue recovery.

    Find out about the key risks to this Fattal Holdings (1998) narrative.

    Build Your Own Fattal Holdings (1998) Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a bespoke view in just a few minutes: Do it your way.

    A great starting point for your Fattal Holdings (1998) research is our analysis highlighting 3 important warning signs that could impact your investment decision.

    Ready for your next investing move?

    Before you move on, you can look for fresh opportunities using Simply Wall St’s powerful screener, where data backed ideas are already available.

    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.