Baran (BRAN) AI Stock Analysis

• Market Cap: 376.76M
• Dividend Yield: 10.77%
• Average Volume (3M): 28.98K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.38
• Revenue Growth: -11.01%
• EPS Growth: -44.84%
• Country: IL
• Employees: 1,041
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 35.00
• Shares Outstanding: 23,952,557
• 10 Day Avg. Volume: 37,022
• 30 Day Avg. Volume: 28,975
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 1,749.81
• Price Target Upside: 11.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: 1,749.00 ▲(10.98% Upside)

Baran's overall stock score is primarily supported by its strong valuation, with an attractive P/E ratio and high dividend yield. Financial performance is stable but faces challenges with declining revenue and negative free cash flow. Technical analysis indicates a lack of strong upward momentum, which tempers the overall score.

Baran Business Overview & Revenue Model

Company Description

Baran (BRAN) is a diversified technology company specializing in the development and integration of advanced digital solutions across various sectors, including telecommunications, cybersecurity, and cloud computing. With a focus on innovation, Baran provides a range of products and services that enhance connectivity, protect digital assets, and optimize cloud infrastructure for businesses of all sizes.

How the Company Makes Money

Baran generates revenue through multiple streams, including the sale of proprietary software solutions, subscription-based services, and consulting fees. Its primary revenue model includes licensing its technology to enterprises, which allows clients to leverage Baran's platforms for improved operational efficiency and security. Additionally, Baran earns income from long-term contracts with government and large-scale corporate clients for managed services and infrastructure support. The company has also established strategic partnerships with major tech firms, enhancing its credibility and market reach, which significantly contributes to its earnings.

Baran Financial Statement Overview

Summary

Baran shows operational strength with healthy EBIT and EBITDA margins but struggles with revenue growth and cash flow management. The increased leverage presents financial risks, although improvements in equity financing are noted.

Income Statement

Baran's income statement shows a mixed performance. Gross profit margins are stable, indicating good control over cost of goods sold. However, the net profit margin has declined to 4.93% in TTM from 6.12% in 2024, suggesting challenges in managing other expenses. Revenue growth was negative in the latest period, showing a contraction of 3.04% compared to 2024. Despite these challenges, EBIT and EBITDA margins remain healthy at 6.80% and 10.88%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio increased to 0.84 in TTM, pointing to higher leverage, which could pose financial risk if interest rates rise. ROE declined to 12.74% in TTM from 15.86% in 2024, indicating reduced profitability from equity. However, the equity ratio improved to 31.08% in TTM, showcasing a better capital structure with increased equity financing.

Cash Flow

Baran's cash flow statement highlights some concerns. Free cash flow turned negative in TTM, suggesting operational cash is not sufficient to cover capital expenditures. Moreover, the operating cash flow to net income ratio is 0.56 in TTM, indicating a weak conversion of net income into operating cash. The free cash flow to net income ratio is negative, reflecting challenges in cash generation relative to net income. These factors suggest potential liquidity issues.

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

Baran Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1576.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BRAN, the sentiment is Negative. The current price of 1576 is below the 20-day moving average (MA) of 1581.25, below the 50-day MA of 1615.60, and above the 200-day MA of 1464.69, indicating a neutral trend. The MACD of -1.64 indicates Negative momentum. The RSI at 43.00 is Neutral, neither overbought nor oversold. The STOCH value of 34.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:BRAN.

Baran Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUDN	80 Outperform	265.07M	9.82		13.48%	-5.16%	1.84%
BRAN	72 Outperform	376.76M	10.65	14.05%	10.77%	-11.01%	-44.84%
Sector *	64 Neutral	$10.70B	16.30	6.50%	2.13%	2.67%	-20.48%

Baran Corporate Events

Baran Company Schedules Extraordinary General Meeting for March 2025

Baran Company has announced an Extraordinary General Meeting (EGM) to be held on March 6, 2025, at its headquarters in Tel Aviv. The meeting will address several key agenda items, including the review of financial statements for the year ending December 31, 2023, the appointment of a new director to replace Mr. Ilan Ariel, approval of Mr. Ariel’s remuneration package, the internal audit plan for 2025, and updates on the company’s strategic initiatives and future plans. Shareholders are encouraged to attend to participate in these significant discussions.