Castro (CAST) AI Stock Analysis

• Market Cap: 1.70B
• Dividend Yield: 16.2%
• Average Volume (3M): 14.22K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.52
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 3,041
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Retail
• EPS (TTM): 260.40
• Shares Outstanding: 8,568,135
• 10 Day Avg. Volume: 12,800
• 30 Day Avg. Volume: 14,219
• PEG Ratio: 0.03
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 4.58
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 20,454.00 ▲(8.22% Upside)

The overall stock score of 71 reflects a balance between strong technical momentum and reasonable valuation against financial performance challenges. The stock's bullish technical indicators and high dividend yield are significant positives, but financial risks and liquidity concerns weigh on the score.

Castro Business Overview & Revenue Model

Company Description

Castro Model Ltd. engages in the retail sale of fashion products, home fashion, fashion accessories, and cosmetics and grooming products through a chain of stores in Israel. The company's products portfolio includes putters and knitwear, jeans, jackets and coats, shirts, shoes, dresses, skirts, lingeries, pajamas and slippers, swimwear, bags and accessories, potters, T-shirts, underwears, cases and garden suits, pants and tights, and bodysuits. It also offers home wear, cushions, blankets, and linen products; carpets and rugs and fragrance and decoration products; bath rugs, towels, and bath accessories; and napkins, cooking accessories, cake stands, realizers, and bowels, as well as gift cards. The company provides its products for women, men, boys, girls, and babies. Castro Model Ltd. is based in Bat Yam, Israel.

How the Company Makes Money

Castro generates revenue primarily through a subscription-based model, offering premium features and content to users for a monthly fee. This includes exclusive access to certain podcast episodes, enhanced analytics tools for creators, and advanced content management capabilities. Additionally, the company monetizes through partnerships with advertisers, allowing brands to promote their products within the platform. Revenue also comes from affiliate marketing, where Castro earns a commission for referrals to third-party services and products. Key partnerships with media companies and content creators further bolster its earnings by providing cross-promotional opportunities and shared revenue agreements.

Castro Financial Statement Overview

Summary

Castro's financial performance shows mixed results. While the gross profit margin is stable, declining revenue growth and profitability margins indicate market or operational challenges. High leverage on the balance sheet poses financial risks, and cash flow metrics highlight liquidity concerns with significant declines in free cash flow growth.

Income Statement

Castro's income statement reveals a mixed performance. The company has maintained a stable gross profit margin around 56-57%, indicating efficient production and sales processes. However, the net profit margin has declined to 4.7% in the TTM, down from 6.5% in 2024, reflecting challenges in controlling costs or pricing strategies. Revenue growth has been negative recently, indicating potential market challenges or competitive pressures. The EBIT and EBITDA margins have also seen a decline, suggesting reduced operational efficiency.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.43 in the TTM, which, although improved from previous years, still indicates significant leverage and potential financial risk. The return on equity has decreased to 13.4% from 20.2% in 2024, suggesting reduced profitability from shareholders' investments. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity financing.

Cash Flow

Cash flow analysis indicates a significant decline in free cash flow growth, down by 64% in the TTM, which raises concerns about the company's ability to generate cash from operations. The operating cash flow to net income ratio is low at 0.28, indicating potential issues in converting income into cash. The free cash flow to net income ratio is also relatively low, suggesting challenges in maintaining liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.09B	2.08B	1.76B	1.67B	1.60B	1.20B
Gross Profit	1.18B	1.19B	987.53M	930.52M	950.26M	661.30M
EBITDA	435.73M	451.88M	340.20M	160.46M	294.90M	165.47M
Net Income	98.38M	135.40M	42.52M	-1.12M	108.02M	-10.47M
Balance Sheet
Total Assets	2.70B	2.30B	2.15B	2.06B	2.15B	2.05B
Cash, Cash Equivalents and Short-Term Investments	499.95M	170.49M	270.70M	233.88M	394.71M	349.40M
Total Debt	1.29B	1.24B	1.29B	1.25B	1.24B	1.28B
Total Liabilities	1.57B	1.63B	1.56B	1.50B	1.51B	1.51B
Stockholders Equity	900.73M	669.53M	595.48M	554.15M	638.09M	533.13M
Cash Flow
Free Cash Flow	43.22M	184.93M	187.02M	95.94M	37.42M	112.19M
Operating Cash Flow	143.73M	256.40M	246.32M	116.67M	82.32M	137.33M
Investing Cash Flow	-100.44M	-74.05M	-61.56M	51.02M	-83.45M	149.88M
Financing Cash Flow	246.29M	-282.55M	-147.95M	-149.22M	-111.45M	-48.75M

Castro Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18900.00
• 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:CAST, the sentiment is Positive. The current price of 18900 is below the 20-day moving average (MA) of 18996.50, above the 50-day MA of 16990.28, and above the 200-day MA of 13269.11, indicating a neutral trend. The MACD of 677.49 indicates Positive momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 26.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:CAST.

Castro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLMS	73 Outperform	766.73M	19.88	―	8.07%	9.24%	-20.24%
CAST	71 Outperform	1.70B	17.15	―	16.20%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RTLS	56 Neutral	3.04B	37.55	―	3.70%	17.18%	-19.36%