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Group 107 Ltd. (IL:G107)
:G107
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Group 107
(G107)
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Rating:52Neutral
Price Target:
120.00
▼(-4.91% Downside)
The overall stock score is primarily impacted by financial performance concerns, including high leverage and negative profitability. Technical analysis provides some positive momentum, but the lack of profitability and valuation challenges weigh heavily on the score.
Positive Factors
Revenue Growth
The moderate revenue growth indicates a positive trend in market demand for G107's products and services, supporting long-term expansion.
Free Cash Flow Improvement
Improvement in free cash flow suggests better cash generation, providing G107 with more resources for reinvestment and debt management.
Diversified Revenue Streams
Diversified revenue streams across sectors reduce dependency on a single market, enhancing resilience against sector-specific downturns.
Negative Factors
High Leverage
High leverage indicates significant reliance on debt, which can strain financial stability and limit future investment capacity.
Negative Profitability
Ongoing negative profitability highlights challenges in cost management and achieving sustainable earnings, impacting long-term viability.
Negative Operating Cash Flow
Negative operating cash flow indicates potential liquidity issues, which can hinder the company's ability to fund operations and growth.
Group 107 (G107) vs. iShares MSCI Israel ETF (EIS)
Market Cap
35.09M
Dividend YieldN/A
Average Volume (3M)60.21K
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth26.93%
EPS Growth71.40%
CountryIL
Employees221
SectorServices
Sector StrengthN/A
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.80
Shares Outstanding29,342,375
10 Day Avg. Volume39,586
30 Day Avg. Volume60,213
Financial Highlights & Ratios
PEG Ratio0.12
Price to Book (P/B)23.23
Price to Sales (P/S)0.35
P/FCF Ratio-22.52
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
Group 107 Business Overview & Revenue Model
Company DescriptionGroup 107 Ltd. provides software solutions and services in Israel. The company offers Levent, a cloud-based solution designed to work as an algo-trading system for banks, hedge funds, and brokers; and Borsa Live, a real time stocks tracking app. It also provides IT outsourcing services in the areas of clickable prototypes, AWS hosting as a service, DevOps, cyber security, artificial intelligence, blockchain, bigdata, Internet of things, business intelligence, and data science, as well as supplies offshore software development teams. The company is based in Tel Aviv, Israel.
How the Company Makes MoneyG107 generates revenue through multiple streams, primarily from the sale of its software applications and medical devices, which are marketed to both businesses and consumers. The company also earns income from long-term contracts with healthcare institutions and government agencies for the provision of advanced medical technology and support services. Additionally, G107 has established strategic partnerships with key players in the renewable energy sector, allowing it to monetize its innovations in sustainable energy solutions through licensing agreements and joint ventures. These partnerships not only enhance G107's market reach but also provide additional revenue through shared projects and collaborative research initiatives.
Group 107 Financial Statement Overview
Summary
Group 107 is experiencing moderate revenue growth, but profitability and leverage remain significant concerns. The company faces challenges in achieving positive net income and managing high debt levels, which could impact long-term financial stability. While there is improvement in free cash flow, negative operating cash flow suggests liquidity management issues that need addressing.Income Statement
Group 107 shows a moderate revenue growth rate of 6.44% TTM, but profitability remains a concern with negative net profit and EBIT margins. The gross profit margin is relatively stable at 30.48% TTM, indicating some efficiency in cost management. However, the consistent negative net income highlights ongoing challenges in achieving profitability.Balance Sheet
The company's balance sheet reveals high leverage with a debt-to-equity ratio of 2.74 TTM, indicating significant reliance on debt financing. The negative return on equity of -88.55% TTM suggests that the company is not generating sufficient returns on shareholder investments. The equity ratio is not provided, but the high debt levels pose a risk to financial stability.Cash Flow
Cash flow analysis shows improvement in free cash flow growth at 43.58% TTM, but operating cash flow remains negative, indicating cash management challenges. The free cash flow to net income ratio of 1.21 TTM suggests that cash generation is better than net income figures, yet the negative operating cash flow coverage ratio points to potential liquidity issues.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.46M | 33.81M | 30.36M | 29.20M | 16.18M | 7.11M |
| Gross Profit | 11.72M | 8.84M | 6.44M | 5.20M | 4.45M | 2.51M |
| EBITDA | 386.00K | -148.00K | -2.94M | -6.75M | -10.88M | -1.62M |
| Net Income | -588.00K | -1.33M | -3.88M | -8.12M | -10.22M | -802.00K |
Balance Sheet | ||||||
| Total Assets | 11.30M | 11.32M | 4.07M | 6.71M | 12.94M | 621.00K |
| Cash, Cash Equivalents and Short-Term Investments | 912.00K | 1.77M | 1.02M | 1.85M | 10.56M | 92.00K |
| Total Debt | 2.24M | 1.82M | 1.31M | 1.58M | 1.14M | 2.27M |
| Total Liabilities | 9.01M | 9.04M | 5.26M | 5.53M | 3.74M | 4.19M |
| Stockholders Equity | 819.00K | 509.00K | -1.20M | 1.18M | 9.20M | -3.57M |
Cash Flow | ||||||
| Free Cash Flow | -1.34M | -525.00K | -1.74M | -7.73M | -9.17M | -614.00K |
| Operating Cash Flow | -1.10M | -436.00K | -1.71M | -7.30M | -7.75M | -385.00K |
| Investing Cash Flow | -4.00K | 842.00K | 53.00K | -504.00K | -1.65M | -229.00K |
| Financing Cash Flow | -869.00K | 335.00K | 939.00K | -918.00K | 19.64M | 721.00K |
Group 107 Technical Analysis
Positive
126.20
Price Trends
111.23
Positive
Market Momentum
2.87
Positive
56.50
Neutral
52.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:G107, the sentiment is Positive. The current price of 126.2 is above the 20-day moving average (MA) of 117.25, above the 50-day MA of 111.23, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 2.87 indicates Positive momentum. The RSI at 56.50 is Neutral, neither overbought nor oversold. The STOCH value of 52.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:G107.
Group 107 Peers Comparison
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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.