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C. Mer Industries Ltd. (IL:CMER)
TASE:CMER
Israel Market
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Mer (CMER) AI Stock Analysis

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IL:CMER

Mer

(TASE:CMER)

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Outperform 75 (OpenAI - 5.2)
Rating:75Outperform
Price Target:
6,364.00
▲(83.67% Upside)
Action:Reiterated
Date:05/30/26
The score is driven primarily by improved financial performance (profitability turnaround, strong TTM revenue growth, and robust free cash flow) and supportive technical strength (price above key moving averages with positive momentum). Valuation is neutral-to-slightly positive at a 17.9 P/E, but the lack of dividend yield data limits additional support.
Positive Factors
Free Cash Flow Strength
Consistent, sizable operating and free cash flow (TTM OCF ~119M; FCF ~111M) indicates high cash conversion from operations. This durable cash generation supports reinvestment, debt reduction, and capital allocation flexibility, improving financial resilience over a multi‑quarter horizon.
Negative Factors
Historic High Leverage Risk
Although leverage has fallen, the company operated with very high debt levels for multiple years, implying sensitivity to adverse earnings shocks. Prior high leverage can constrain strategic flexibility and means balance sheet metrics should be watched for signs of regression if cash flow softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistent, sizable operating and free cash flow (TTM OCF ~119M; FCF ~111M) indicates high cash conversion from operations. This durable cash generation supports reinvestment, debt reduction, and capital allocation flexibility, improving financial resilience over a multi‑quarter horizon.
Read all positive factors

Mer (CMER) vs. iShares MSCI Israel ETF (EIS)

Mer Business Overview & Revenue Model

Company Description
C. Mer Industries Ltd. is a global technology firm that designs, develops, manufactures, integrates, and deploys comprehensive solutions and services across Israel, Latin America, the United States, Africa, the United Kingdom, and Asia. The compan...
How the Company Makes Money
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Mer Financial Statement Overview

Summary
Strong improvement in fundamentals: sharp TTM revenue growth (+66.6%), higher margins (TTM gross ~19.9%, operating ~10.2%, net ~6.2%), and robust cash generation (TTM OCF ~119M, FCF ~111M). Balance sheet leverage has de-risked to ~0.76x debt/equity, though prior high leverage and the flat 2025 growth before the TTM surge add some cyclicality/volatility risk.
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
83
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue670.79M666.36M663.70M646.15M513.26M435.19M
Gross Profit135.43M124.07M118.67M100.73M76.85M70.16M
EBITDA84.98M80.01M77.53M60.07M32.61M39.84M
Net Income45.20M41.25M34.43M16.28M-5.64M2.60M
Balance Sheet
Total Assets497.30M539.91M523.77M473.88M444.46M410.50M
Cash, Cash Equivalents and Short-Term Investments64.04M67.70M52.53M43.28M44.88M20.21M
Total Debt78.56M124.34M170.57M216.97M193.26M201.82M
Total Liabilities327.06M375.37M402.58M379.49M367.70M329.67M
Stockholders Equity170.24M164.55M121.19M94.40M76.76M80.83M
Cash Flow
Free Cash Flow110.72M74.90M35.26M24.57M49.55M37.99M
Operating Cash Flow118.73M79.38M45.52M31.58M53.96M42.36M
Investing Cash Flow-12.59M-11.56M-9.92M-6.52M-3.97M-2.93M
Financing Cash Flow-99.39M-52.77M-24.32M-26.68M-25.94M-40.70M

Mer Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3465.00
Price Trends
50DMA
5127.08
Positive
100DMA
4691.82
Positive
200DMA
3903.70
Positive
Market Momentum
MACD
31.89
Positive
RSI
47.74
Neutral
STOCH
53.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:CMER, the sentiment is Neutral. The current price of 3465 is below the 20-day moving average (MA) of 5428.60, below the 50-day MA of 5127.08, and below the 200-day MA of 3903.70, indicating a neutral trend. The MACD of 31.89 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 53.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:CMER.

Mer Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
₪715.57M15.831.06%23.72%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
49
Neutral
₪293.88M-21.89-2.32%-457.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:CMER
Mer
5,344.00
2,739.00
105.14%
IL:RPAC
Rapac
8,268.00
4,010.00
94.18%
IL:AVGL
Avgol
96.80
-50.20
-34.15%
IL:BRIH
Rav Bariach
111.00
14.10
14.55%
IL:JEEN
Jeen Tech Ai
434.90
52.30
13.67%
IL:MSLA
Maslavi
1,256.00
-451.00
-26.42%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 30, 2026