Ellomay Capital Ltd. — financial distress indicators
Financial-health summary
Ellomay Capital Ltd.'s reported numbers place it in the 'Watch' financial-health band (distress score 48/100). The main indicators are operating profit does not cover interest, very high leverage and ohlson o-score signals likely failure. Independently, the Ohlson accounting model puts its 1-year failure probability at 83% and the market-implied (Merton) default probability is 0.9%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Interest coverage (EBIT / interest) is 0.12×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Total debt is 45.2× EBITDA.
Debt above ~6× EBITDA is deep sub-investment-grade territory; refinancing becomes difficult when rates or earnings move against the company.
O-score 1.59 → model probability 83%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (75%) aligns management with survival.
📰 Recent news scan
- Ellomay Announces Receipt of a 22.2 MW / 100.3 MWh (4.5-hour) Battery Storage Grid Access and Connection Permit by Ellomay SolarYahoo Finance · 2026-09-29
- Ellomay Capital Reports Results for the Three and Six Months Ended June 30, 2026Yahoo Finance · 2026-08-18
- Ellomay Capital Consummates the Sale of its Indirect Holdings in Dorad Energy Ltd.Yahoo Finance · 2026-05-10
- Ellomay Capital Announces the Filing of the Annual Report on Form 20-F for 2025Yahoo Finance · 2026-05-01
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Ellomay Capital Ltd.'s financial-health indicators show?
As of 2026-10-08, Ellomay Capital Ltd.'s public financial data places it in the 'Watch' band with a distress score of 48/100, driven by operating profit does not cover interest, very high leverage and ohlson o-score signals likely failure. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Ellomay Capital Ltd.'s financial distress score?
48/100 ('Watch'). Ohlson O-score 1.59 (model 1-year failure probability 83%). Merton distance-to-default 2.38 σ (model default probability 0.9%).
What works in Ellomay Capital Ltd.'s favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (75%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Utilities & Power companies with distress indicators
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- PowerBank Corporation (PBK)Weak 68/100
- Abundia Global Impact Group Inc (AGIG)Weak 60/100
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.