G City Ltd (GCT) AI Stock Analysis

• Market Cap: 1.73B
• Dividend Yield: 5.88%
• Average Volume (3M): 373.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• 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: 1,593.56
• Price Target Upside: 71.35% 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: 907.00 ▼(-2.47% Downside)

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

High gross and healthy operating margins

Sustained high gross and healthy operating margins indicate efficient construction and cost controls in development projects. Durable margin strength provides a buffer against cyclical revenue swings, supports reinvestment into projects and helps absorb financing costs over the medium term.

Diversified revenue model and strategic partnerships

A mix of property sales, leasing and management creates both transaction and recurring income, reducing reliance on one revenue source. Public and private partnerships improve access to funding and land, lowering execution risk and supporting steady project pipelines over multiple cycles.

Cash generation relative to reported losses

Despite reported net losses, meaningful operating cash conversion and FCF near net income show underlying cash generation. This conversion ability supports debt servicing and working capital needs, providing financial breathing room to stabilize operations and pursue selective projects.

Negative Factors

Very high leverage

Extremely high debt relative to equity significantly limits financial flexibility. In real estate, leverage amplifies cyclical exposure and increases interest and refinancing risk, potentially forcing asset sales or equity dilution if market conditions deteriorate over the medium term.

Negative net income and weak shareholder returns

Persistent net losses and negative margins erode equity and constrain retained earnings. Over time this reduces capacity to invest, pay sustainable dividends or attract new equity, and can increase funding costs, limiting strategic options and shareholder value creation.

Declining free cash flow growth

Falling FCF growth undermines the company’s ability to fund capex, service debt, and sustain distributions. In a highly leveraged real estate firm, declining cash generation raises refinancing and liquidity risks, which can force project delays or distressed asset dispositions over the medium term.

G City Ltd Business Overview & Revenue Model

Company Description

G City Ltd, through its subsidiaries, owns, develops, manages, and operates supermarket-anchored urban shopping centers and retail-based mixed-use properties in North America, Brazil, Israel, the United States, Europe, and internationally. The company was formerly known as Gazit-Globe Ltd. and changed its name to G City Ltd in May 2022. G City Ltd was incorporated in 1982 and is headquartered in Tel Aviv, Israel. G City Ltd is a subsidiary of Norstar Holdings Inc.

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 faces challenges with profitability and high leverage. While operational efficiency is evident from strong gross and EBIT margins, the negative net income and high debt levels pose significant risks. Cash flow management shows some resilience, but declining free cash flow growth is a concern.

Income Statement

G City Ltd's income statement shows a mixed performance. The TTM gross profit margin is strong at 68.70%, indicating efficient cost management. However, the net profit margin is negative at -8.61%, reflecting a net loss situation. Revenue growth is modest at 2.50% TTM, but the negative net income is a concern. EBIT and EBITDA margins are healthy, suggesting operational efficiency, but the overall profitability is impacted by significant net losses.

Balance Sheet

The balance sheet of G City Ltd reveals high leverage with a debt-to-equity ratio of 5.06 TTM, indicating significant reliance on debt financing. The return on equity is negative at -4.78%, reflecting poor returns for shareholders. The equity ratio is relatively low, suggesting a high level of liabilities compared to assets. These factors highlight potential financial risk and limited financial flexibility.

Cash Flow

G City Ltd's cash flow statement shows a decline in free cash flow growth at -14.29% TTM, which is concerning. However, the operating cash flow to net income ratio is 0.30, indicating some level of cash generation relative to net income. The free cash flow to net income ratio is nearly 1, suggesting that the company is generating cash flow close to its net income, despite the negative net income.

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: Positive
• Last Price: 930.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GCT, the sentiment is Positive. The current price of 930 is above the 20-day moving average (MA) of 849.32, above the 50-day MA of 906.93, and below the 200-day MA of 1108.50, indicating a neutral trend. The MACD of -3.30 indicates Negative momentum. The RSI at 60.23 is Neutral, neither overbought nor oversold. The STOCH value of 92.30 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	3.04B	11.29	―	―	26.77%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ELCRE	48 Neutral	4.06B	-27.21	―	―	-4.06%	65.26%
GCT	45 Neutral	1.73B	-20.67	-4.44%	5.88%	-7.27%	49.41%