G City Ltd (GCT) AI Stock Analysis

• Market Cap: 1.51B
• Dividend Yield: 6.13%
• Average Volume (3M): 373.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -7.27%
• EPS Growth: 49.41%
• Country: IL
• Employees: 467
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Diversified
• EPS (TTM): -5.90
• Shares Outstanding: 186,114,690
• 10 Day Avg. Volume: 403,604
• 30 Day Avg. Volume: 373,526
• PEG Ratio: -0.46
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.99
• P/FCF Ratio: 3.65
• 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: 1,603.53
• Price Target Upside: 98.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: 839.00 ▲(3.71% Upside)

G City Ltd's overall stock score is primarily influenced by its financial performance and technical analysis. The company's high leverage and negative net income are significant concerns, impacting its financial stability. Technical indicators suggest bearish momentum, with the stock trading below key moving averages and approaching oversold conditions. While the dividend yield is attractive, the negative P/E ratio reflects underlying profitability issues.

Positive Factors

Operational Efficiency

A strong gross profit margin indicates effective cost management, suggesting the company can maintain operational efficiency over time.

Cash Generation Ability

The ability to generate cash flow close to net income, despite negative net income, shows resilience in cash management, supporting long-term operations.

Partnerships and Funding

Strong partnerships provide funding and support for large-scale projects, reducing risks and enhancing profitability, crucial for sustainable growth.

Negative Factors

High Leverage

High leverage indicates significant reliance on debt, which can strain financial flexibility and increase risk, impacting long-term stability.

Negative Net Income

A negative net income reflects profitability challenges, which can hinder reinvestment and growth opportunities, affecting future performance.

Declining Free Cash Flow

Declining free cash flow growth limits the company's ability to invest in new projects and manage debt, posing a risk to long-term financial health.

G City Ltd Business Overview & Revenue Model

Company Description

G City Ltd (GCT) is a dynamic company operating primarily in the real estate sector, focusing on urban development and sustainable living solutions. The company specializes in the development of mixed-use properties that combine residential, commercial, and recreational spaces, aiming to create vibrant communities. GCT is committed to innovation in design and construction, leveraging modern technology and sustainable practices to enhance the quality of life for residents and users of its properties.

How the Company Makes Money

G City Ltd generates revenue through several key streams, including the sale and leasing of residential and commercial properties developed by the company. The primary revenue model is based on property development, where GCT acquires land, develops it into mixed-use facilities, and then sells or rents out the units. Additionally, the company earns income from property management services for its developments, ensuring a steady cash flow from leasing operations. Significant partnerships with local government bodies and private investors also contribute to GCT's financial success, providing funding and support for large-scale projects, which helps in mitigating risks and enhancing profitability.

G City Ltd Financial Statement Overview

Summary

G City Ltd demonstrates operational efficiency with strong gross and EBIT margins, but faces profitability challenges with consistent net losses. The high leverage poses financial risks, although the company shows improvement in cash flow generation. Overall, while there are strengths in operational efficiency and cash flow, the financial health is constrained by high debt levels and negative returns on equity.

Income Statement

G City Ltd's income statement shows a mixed performance. The TTM data indicates a negative net profit margin of -4.72%, reflecting ongoing profitability challenges. Revenue has slightly declined by 1.73% in the TTM period, indicating potential market or operational issues. However, the company maintains a strong gross profit margin of 68.56%, suggesting efficient cost management. The EBIT and EBITDA margins are healthy at 53.49% and 54.45% respectively, indicating strong operational efficiency despite the net losses.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 4.85, indicating significant leverage and potential financial risk. The return on equity is negative at -2.54%, highlighting challenges in generating returns for shareholders. The equity ratio stands at 11.67%, suggesting a relatively low proportion of equity financing compared to total assets, which could pose risks if market conditions worsen.

Cash Flow

Cash flow analysis shows a positive trend with a free cash flow growth rate of 17.68% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.21, reflecting moderate cash flow efficiency. The free cash flow to net income ratio is high at 0.99, suggesting that the company is effectively converting its earnings into cash, despite the net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.50B	2.53B	2.44B	2.30B	2.30B	2.41B
Gross Profit	1.65B	1.73B	1.67B	1.58B	1.58B	1.65B
EBITDA	1.25B	1.43B	16.00M	-318.00M	2.67B	-322.00M
Net Income	-90.00M	52.00M	-1.20B	-1.34B	646.00M	-653.00M
Balance Sheet
Total Assets	34.59B	36.02B	38.87B	39.40B	41.07B	40.39B
Cash, Cash Equivalents and Short-Term Investments	823.00M	2.03B	664.00M	1.55B	4.23B	1.44B
Total Debt	22.26B	23.27B	23.25B	24.12B	24.17B	24.76B
Total Liabilities	24.71B	25.92B	27.54B	27.35B	27.52B	27.81B
Stockholders Equity	3.88B	4.18B	4.84B	5.02B	5.31B	5.56B
Cash Flow
Free Cash Flow	582.00M	688.00M	621.00M	625.00M	441.00M	382.00M
Operating Cash Flow	587.00M	696.00M	650.00M	648.00M	461.00M	397.00M
Investing Cash Flow	1.32B	1.23B	62.00M	589.00M	-680.00M	-277.00M
Financing Cash Flow	-2.05B	-470.00M	-1.37B	-2.00B	3.12B	-385.00M

G City Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 809.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GCT, the sentiment is Negative. The current price of 809 is below the 20-day moving average (MA) of 929.67, below the 50-day MA of 995.88, and below the 200-day MA of 1131.00, indicating a bearish trend. The MACD of -48.08 indicates Positive momentum. The RSI at 32.31 is Neutral, neither overbought nor oversold. The STOCH value of 7.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:GCT.

G City Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARGO	68 Neutral	2.79B	10.44	―	―	26.77%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GCT	45 Neutral	1.51B	-18.27	-4.44%	6.13%	-7.27%	49.41%
ELCRE	44 Neutral	3.06B	-20.40	―	―	-4.06%	65.26%