Baran (BRAN) AI Stock Analysis

• Market Cap: 557.94M
• Dividend Yield: 6.92%
• Average Volume (3M): 44.23K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.51
• Revenue Growth: -2.68%
• EPS Growth: -57.38%
• Country: IL
• Employees: 1,041
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 34.00
• Shares Outstanding: 24,002,740
• 10 Day Avg. Volume: 51,353
• 30 Day Avg. Volume: 44,234
• PEG Ratio: -0.60
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.48
• P/FCF Ratio: 22.24
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 2,411.00 ▼(-1.63% Downside)

Baran's stock is supported by strong technical indicators and a solid valuation, with a high dividend yield enhancing its appeal. However, financial performance is hindered by cash flow challenges and rising debt, which could impact future stability.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong sales performance and market demand, supporting long-term business expansion and stability.

Operational Efficiency

Efficient operations as indicated by healthy margins suggest effective cost management, enhancing profitability and competitive positioning.

Diversified Revenue Streams

Diversified revenue streams reduce dependency on a single market, providing resilience against sector-specific downturns and supporting steady growth.

Negative Factors

Cash Flow Challenges

Negative cash flow suggests liquidity constraints, which could limit investment in growth opportunities and strain financial flexibility.

Rising Debt Levels

Rising debt levels can increase financial risk and interest burden, potentially impacting long-term financial health and investment capacity.

Declining Profit Margins

A decline in profit margins may indicate rising costs or pricing pressures, which could erode profitability and competitive advantage over time.

Baran Business Overview & Revenue Model

Company Description

Baran Group Ltd provides engineering, technology, telecommunication, and construction solutions worldwide. The company's solutions include feasibility studies, engineering and design, permitting and validation, construction and site management, procurement and construction management, project management and control, turnkey, project financing, and related services. It serves various industries, such as manufacturing, industrial process, power generation and distribution, petroleum production, water supply, sewerage and hazardous waste treatment, general building, construction, transportation, telecommunications, and other. Baran Group Ltd was founded in 1979 and is headquartered in Beit Dagan, Israel.

How the Company Makes Money

Baran generates revenue through multiple streams, including the sale of networking hardware, subscription-based cloud services, and cybersecurity solutions. The company also earns income from consulting services aimed at optimizing network infrastructures for businesses. Key revenue drivers include long-term contracts with enterprise clients, partnerships with technology providers for integrated solutions, and a growing customer base in the IoT market. Additionally, Baran benefits from strategic collaborations that expand its service offerings and enhance its market reach.

Baran Financial Statement Overview

Summary

Baran demonstrates moderate financial health with stable revenue growth and profitability. The balance sheet reflects a balanced leverage position, but cash flow challenges pose potential liquidity risks. Continued focus on improving cash flow and maintaining profitability margins will be crucial for future stability.

Income Statement

Baran shows a steady revenue growth rate with a TTM increase of 2.7%. The gross profit margin is stable at 13.9%, and the net profit margin is 4.9%, indicating moderate profitability. However, there is a slight decline in margins compared to previous years, which could be a concern if the trend continues.

Balance Sheet

The company's debt-to-equity ratio is 0.84, reflecting a balanced leverage position. Return on equity is 12.5%, showing decent profitability from shareholders' investments. However, the equity ratio is not provided, which limits a full assessment of asset financing.

Cash Flow

Baran's cash flow situation is challenging, with negative free cash flow and a low operating cash flow to net income ratio of 0.04. The free cash flow growth is high at 912.6%, but this is due to a significant negative base, indicating volatility and potential liquidity risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	719.00M	684.62M	680.70M	386.90M	373.42M	362.53M
Gross Profit	92.71M	99.69M	87.62M	47.95M	58.43M	68.70M
EBITDA	88.80M	77.26M	67.18M	41.20M	17.94M	32.51M
Net Income	25.40M	41.92M	42.80M	14.17M	15.23M	9.92M
Balance Sheet
Total Assets	908.61M	784.19M	729.74M	556.09M	335.42M	351.60M
Cash, Cash Equivalents and Short-Term Investments	90.91M	129.61M	71.35M	67.66M	80.92M	70.52M
Total Debt	285.65M	196.84M	178.57M	158.69M	97.14M	131.19M
Total Liabilities	620.96M	497.57M	495.33M	365.30M	203.80M	228.33M
Stockholders Equity	266.44M	264.29M	208.75M	165.44M	129.73M	121.19M
Cash Flow
Free Cash Flow	-70.03M	14.63M	6.92M	34.87M	24.77M	11.98M
Operating Cash Flow	-25.40M	36.55M	23.38M	68.24M	26.64M	13.89M
Investing Cash Flow	-33.83M	11.53M	-9.54M	-121.27M	13.41M	-5.63M
Financing Cash Flow	17.69M	9.39M	-12.02M	55.72M	-42.77M	45.91M

Baran Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2451.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BRAN, the sentiment is Positive. The current price of 2451 is above the 20-day moving average (MA) of 2170.15, above the 50-day MA of 2012.10, and above the 200-day MA of 1678.90, indicating a bullish trend. The MACD of 86.06 indicates Negative momentum. The RSI at 84.81 is Negative, neither overbought nor oversold. The STOCH value of 96.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:BRAN.

Baran Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRAN	76 Outperform	557.94M	21.68	11.23%	6.92%	-2.68%	-57.38%
LUDN	66 Neutral	144.87M	7.75	―	8.27%	-21.65%	-30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%