M
ivne Real Estate (K.D) Ltd's latest earnings release has left investors underwhelmed. A closer look at the numbers reveals some concerning trends. The US oil and gas sector is poised for growth, with 15 stocks set to benefit from Trump's pledge to "unleash" American energy production.

    One key issue with Mivne Real Estate (K.D)'s earnings is its reliance on non-operating revenue. This type of income, often in the form of government grants or one-time payments, can create an unsustainable boost to profit. In the last year, non-operating revenue surged from ₪174.5m to ₪494.0m, making up a significant portion of the company's total profit.

    When non-operating revenue is unusually high, it can mask underlying issues with a company's core business. Excluding these boosts can provide a more accurate picture of a company's earnings potential. It's also essential to examine a company's balance sheet strength, which we recommend checking here.

    Mivne Real Estate (K.D)'s profit was also bolstered by unusual items worth ₪450m in the last twelve months. While this may seem positive, significant unusual items are often not repeated, and their impact can be short-lived. This means that the company's statutory profit may be artificially inflated, giving investors an overly optimistic view of its financial health.

    Considering these factors, we believe Mivne Real Estate (K.D)'s profit performance is low quality and may not be sustainable in the long term. Our analysis highlights three warning signs for the company, including two that raise significant concerns. We recommend investigating these issues before investing.