C. Mer Industries Ltd. (IL:CMER)
TASE:CMER
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Mer
(TASE:CMER)
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Rating:71Outperform
Price Target:
4,685.00
▲(35.21% Upside)
Action:ReiteratedDate:03/27/26
Score is driven primarily by improving financial performance (profitability, stronger 2025 cash generation, and meaningful deleveraging) and supported by a low P/E valuation. Technical indicators are mixed, with neutral momentum and a negative MACD, which tempers the overall rating.
Positive Factors
Improved Cash Generation
The sharp improvement in operating and free cash flow in 2025 materially strengthens the company's self-funding ability. Higher and more reliable FCF supports debt paydown, reinvestment, and potential shareholder returns, and FCF tracking ~94% of net income indicates improved earnings quality and durable cash conversion.
Negative Factors
Sharply Slowing Revenue Growth
A drop to near-zero top-line growth after prior expansion signals market saturation, tougher competition, or softer demand. Limited organic revenue momentum constrains profit expansion via scale, reducing the runway for margin-driven growth and forcing reliance on cost cuts, new offerings, or M&A for further upside.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved Cash Generation
The sharp improvement in operating and free cash flow in 2025 materially strengthens the company's self-funding ability. Higher and more reliable FCF supports debt paydown, reinvestment, and potential shareholder returns, and FCF tracking ~94% of net income indicates improved earnings quality and durable cash conversion.
Read all positive factors
Mer (CMER) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪566.35M
Dividend YieldN/A
Average Volume (3M)4.55K
Price to Earnings (P/E)11.2
Beta (1Y)0.80
Revenue Growth-1.73%
EPS Growth28.58%
CountryIL
Employees654
SectorIndustrials
Sector Strength72
IndustryCommunication Equipment
Share Statistics
EPS (TTM)N/A
Shares Outstanding13,335,242
10 Day Avg. Volume3,934
30 Day Avg. Volume4,554
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)2.81
Price to Sales (P/S)0.69
P/FCF Ratio6.18
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Mer Business Overview & Revenue Model
Company Description
C. Mer Industries Ltd. engages in the consults, engineers, develops, manufactures, integrates, and implements technology based solutions and end-to-end services in Israel, Latin America, the United States, Africa, the United Kingdom, and Asia. The...
How the Company Makes Money
null...
Mer Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 666.36M | 663.70M | 646.15M | 513.26M | 435.19M |
| Gross Profit | 124.07M | 118.67M | 100.73M | 76.85M | 70.16M |
| EBITDA | 80.01M | 77.53M | 60.07M | 32.61M | 39.84M |
| Net Income | 41.25M | 34.43M | 16.28M | -5.64M | 2.60M |
Balance Sheet | |||||
| Total Assets | 539.91M | 523.77M | 473.88M | 444.46M | 410.50M |
| Cash, Cash Equivalents and Short-Term Investments | 67.70M | 52.53M | 43.28M | 44.88M | 20.21M |
| Total Debt | 124.34M | 170.57M | 216.97M | 193.26M | 201.82M |
| Total Liabilities | 375.37M | 402.58M | 379.49M | 367.70M | 329.67M |
| Stockholders Equity | 164.55M | 121.19M | 94.40M | 76.76M | 80.83M |
Cash Flow | |||||
| Free Cash Flow | 74.90M | 35.26M | 24.57M | 49.55M | 37.99M |
| Operating Cash Flow | 79.38M | 45.52M | 31.58M | 53.96M | 42.36M |
| Investing Cash Flow | -11.56M | -9.92M | -6.52M | -3.97M | -2.93M |
| Financing Cash Flow | -52.77M | -24.32M | -26.68M | -25.94M | -40.70M |
Mer Technical Analysis
Positive
3465.00
Price Trends
4258.12
Negative
3742.08
Positive
3379.71
Positive
Market Momentum
-9.72
Negative
53.76
Neutral
68.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:CMER, the sentiment is Positive. The current price of 3465 is below the 20-day moving average (MA) of 4218.65, below the 50-day MA of 4258.12, and above the 200-day MA of 3379.71, indicating a neutral trend. The MACD of -9.72 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 68.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:CMER.
Mer Peers Comparison
UnderperformOutperform
Sector (63)
IL:CMER
Mer
4,247.00
646.00
17.94%
IL:RPAC
Rapac
8,451.00
4,756.00
128.71%
IL:AVGL
Avgol
121.00
-26.60
-18.02%
IL:BRIH
Rav Bariach
102.50
35.40
52.76%
IL:JEEN
Jeen Tech Ai
489.30
217.30
79.89%
IL:MSLA
Maslavi
1,568.00
368.00
30.67%
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.