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    Paz Retail And Energy (TASE:PAZ) Posts Stronger Earnings And A Dividend, Is It Still Below Fair Value?

    Simply Wall St·08/27/2026 17:32:14
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    Recent earnings and dividend move draw attention to Paz Retail And Energy

    Paz Retail And Energy (TASE:PAZ) has come into focus after reporting higher second quarter and first half 2026 sales and net income, alongside a new cash dividend declaration.

    The company reported second quarter 2026 sales of ₪3,030 million compared with ₪2,675 million a year earlier. Net income for the quarter was ₪158 million compared with ₪139 million, with basic earnings per share from continuing operations at ₪14.5 versus ₪12.8.

    For the six month period to June 30, 2026, Paz Retail And Energy reported sales of ₪5,714 million compared with ₪5,460 million in the prior year period. Net income was ₪321 million compared with ₪295 million, with basic earnings per share from continuing operations at ₪29.8 versus ₪27.6.

    Alongside these results, the company announced a cash dividend of ₪12.0742279 per share on ordinary shares with a par value of ₪5 each. The record date and ex dividend date are both set for September 14, 2026, with payment scheduled for October 7, 2026.

    Paz Retail And Energy's latest earnings and dividend announcement comes after a period of firm share price momentum, with a 30 day share price return of 3.14% and an 18.16% year to date share price return. The 1 year total shareholder return of 50.61% and 5 year total shareholder return of 387.67% indicate that recent interest is building on a much longer period of strong investor gains.

    Spot similar momentum and dividend stories by scanning our hand picked 269 high quality undervalued stocks, which currently features companies that combine stronger balance sheets with pricing that may still be lagging recent interest.

    After this mix of higher recent returns and a fresh dividend from Paz Retail And Energy, the next piece to weigh is whether the current valuation still leaves enough potential reward to justify the risks for new buyers.

    Price-to-earnings of 15.8x for Paz Retail And Energy: Is it justified?

    Paz Retail And Energy is currently trading at ₪886, and based on recent analysis its P/E of 15.8x is described as expensive relative to both peers and the wider Asian oil and gas industry. That P/E level is a key piece of the puzzle when you weigh up whether the recent share price strength and dividend are already well reflected in the valuation.

    The P/E ratio compares the current share price with earnings per share, so it reflects how much investors are paying for each unit of current profit. For a company like Paz Retail And Energy, which operates across fuel retailing, energy for transportation, gas and renewable activities, and food retail, the P/E is often used as a quick check on how the market is pricing its earnings compared with other oil and gas related stocks.

    Current data points to Paz Retail And Energy trading at a 15.8x P/E compared with a 15x average for its direct peers. When set against the broader Asian oil and gas industry, where the average P/E is 12x, the premium looks more pronounced. That higher multiple suggests investors are currently willing to pay more for each shekel of earnings than they are for the typical peer, which may reflect confidence in the company’s recent 21.5% earnings growth and 5.3% net profit margin, but also means expectations carried in the price are higher than the sector norm.

    Result: Price-to-earnings of 15.8x (OVERVALUED).

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

    However, Paz Retail And Energy still faces risks if fuel demand weakens, or if margins in food retail, energy for transportation, or renewables come under pressure.

    Find out about the key risks to this Paz Retail And Energy narrative.

    Another view on Paz Retail And Energy valuation

    The P/E of 15.8x makes Paz Retail And Energy look expensive next to peers, yet the SWS DCF model points in the opposite direction. On that view Paz Retail And Energy at ₪886 is trading at roughly a 50% discount to an estimated fair value of ₪1,775.44. Which signal do you treat as more important?

    Look into how the SWS DCF model arrives at its fair value.

    PAZ Discounted Cash Flow as at Aug 2026
    PAZ Discounted Cash Flow as at Aug 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Paz Retail And Energy 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 269 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

    The mix of firm recent returns and a premium P/E for Paz Retail And Energy leaves the overall picture balanced between optimism and caution. It makes sense to look through the details yourself now and weigh both sides of the story. To see the key concerns alongside the potential upsides in one place, review the 2 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Paz Retail And Energy?

    If Paz Retail And Energy has your attention, do not stop here. Broader research can help you compare this opportunity with other stocks that may better match your goals.

    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.