Baran (BRAN) AI Stock Analysis

• Market Cap: ₪652.80M
• Dividend Yield: 6.92%
• Average Volume (3M): 44.23K
• Price to Earnings (P/E): 25.4
• Beta (1Y): 0.44
• 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: 67 Neutral
• Price Target: 3,035.00 ▲(10.24% Upside)

The score is primarily supported by solid revenue growth and operating margins, but capped by negative operating/free cash flow and increasing debt risk. Technically, the uptrend is strong, yet extremely overbought readings raise pullback risk. Valuation is mixed: an attractive dividend yield is offset by a relatively high P/E.

Positive Factors

Diversified revenue streams

Multiple revenue pillars—hardware sales, subscription cloud services, cybersecurity, and consulting—provide durable revenue diversification. Recurring subscriptions and service contracts smooth cash flow, reduce exposure to a single market cycle, and support long-term resilience.

Long-term contracts and technology partnerships

Established long-term enterprise contracts and strategic technology partnerships increase revenue visibility and retention. These relationships enable integrated solutions, improve customer stickiness, and create a stable base for cross-sell and up-sell, supporting multi‑quarter stability.

Operational margins and efficiency

Positive gross and EBITDA margins signal that core operations generate returns and the business model can cover fixed costs. Sustained EBIT/EBITDA margins support reinvestment in R&D and service expansion, underpinning medium-term competitiveness in networking and cybersecurity.

Negative Factors

Negative operating and free cash flow

Persistent negative operating and free cash flow erode liquidity and force reliance on external financing or asset sales. Over months, this constrains capital allocation for capex, R&D, dividends, or debt reduction, weakening the firm’s ability to fund growth internally.

Rising debt levels

A near‑1.0 debt-to-equity ratio and rising total debt increase interest burden and reduce financial flexibility. If cash generation remains weak, higher leverage raises refinancing and solvency risk and limits capacity to invest or weather industry cyclicality over the coming quarters.

Sharp EPS decline

A large negative EPS growth rate indicates meaningful pressure on earnings power, whether from margin compression, one-time charges, or operational setbacks. Sustained EPS decline undermines reinvestment capacity, dividend sustainability, and investor confidence in long‑term profitability.

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

Solid income statement strength (revenue growth 5.47% TTM; healthy EBIT/EBITDA margins), but the overall financial picture is held back by weak cash generation (negative operating cash flow and negative free cash flow) and rising leverage risk (debt increasing; ROE down vs. prior year).

Income Statement

Baran's income statement shows a positive trajectory with a revenue growth rate of 5.47% in the TTM, indicating strong sales performance. The gross profit margin of 12.98% and net profit margin of 3.25% are stable, though slightly below industry averages. The EBIT margin of 8.00% and EBITDA margin of 11.43% reflect efficient operations. However, the declining gross profit margin from the previous year suggests potential cost management issues.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.89, indicating a balanced approach to leveraging. Return on equity at 8.36% shows reasonable profitability, though it has decreased from the previous year. The equity ratio of 29.33% suggests a solid equity base, but the increase in total debt over the period could pose future risks if not managed properly.

Cash Flow

Baran's cash flow statement highlights challenges with negative operating cash flow in the TTM, indicating potential liquidity issues. Despite a significant free cash flow growth rate of 51.27%, the negative free cash flow suggests cash management concerns. The operating cash flow to net income ratio is negative, reflecting inefficiencies in converting income to cash.

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: Neutral
• Last Price: 2753.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 2753 is below the 20-day moving average (MA) of 2771.35, above the 50-day MA of 2467.06, and above the 200-day MA of 1866.54, indicating a neutral trend. The MACD of 78.85 indicates Positive momentum. The RSI at 61.84 is Neutral, neither overbought nor oversold. The STOCH value of 54.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:BRAN.

Baran Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRAN	67 Neutral	₪652.80M	25.36	11.23%	6.92%	-2.68%	-57.38%
LUDN	66 Neutral	₪129.19M	6.91	―	8.27%	-21.65%	-30.92%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%