G City Ltd (GCT) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 5.03%
• Average Volume (3M): 373.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• 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: 13.83
• Enterprise Value/Revenue: 12.51
• Enterprise Value/Gross Profit: 18.21
• Enterprise Value/Ebitda: 23.41
• 1Y Price Target: $1,597.35
• Price Target Upside: 62.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: 885.00 ▼(-10.23% Downside)

G City Ltd faces significant challenges, primarily due to its high leverage and negative profitability, which are reflected in its financial performance score. The technical analysis indicates bearish momentum, further weighing down the overall score. While the dividend yield offers some appeal, the negative P/E ratio highlights ongoing valuation concerns. These factors collectively result in a below-average overall stock score.

Positive Factors

Operational Efficiency

G City Ltd's strong gross and EBIT margins indicate robust operational efficiency, which is crucial for maintaining profitability and competitiveness in the real estate sector.

Cash Flow Generation

The positive trend in free cash flow growth demonstrates G City's ability to generate cash, which is vital for funding operations and reducing reliance on external financing.

Sustainable Practices

G City's focus on sustainable living solutions and innovation positions it well for long-term growth, aligning with global trends towards eco-friendly urban development.

Negative Factors

High Leverage

The high debt-to-equity ratio indicates significant leverage, posing financial risks and potential challenges in adverse market conditions, impacting long-term stability.

Profitability Challenges

Ongoing profitability challenges, as evidenced by a negative net profit margin, could hinder G City's ability to reinvest in growth and compete effectively.

Declining Revenue

The decline in revenue suggests potential market or operational issues, which could impact G City's growth prospects and market positioning over time.

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 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	2.44B	2.53B	2.44B	2.30B	2.30B	2.41B
Gross Profit	1.68B	1.73B	1.67B	1.58B	1.58B	1.65B
EBITDA	1.30B	1.43B	16.00M	-318.00M	2.67B	-322.00M
Net Income	-210.00M	52.00M	-1.20B	-1.34B	646.00M	-653.00M
Balance Sheet
Total Assets	35.20B	36.02B	38.87B	39.40B	41.07B	40.39B
Cash, Cash Equivalents and Short-Term Investments	1.02B	2.03B	664.00M	1.55B	4.23B	1.44B
Total Debt	20.78B	23.27B	23.25B	24.12B	24.17B	24.76B
Total Liabilities	24.81B	25.92B	27.54B	27.35B	27.52B	27.81B
Stockholders Equity	4.11B	4.18B	4.84B	5.02B	5.31B	5.56B
Cash Flow
Free Cash Flow	679.00M	688.00M	621.00M	625.00M	441.00M	382.00M
Operating Cash Flow	685.00M	696.00M	650.00M	648.00M	461.00M	397.00M
Investing Cash Flow	1.41B	1.23B	62.00M	589.00M	-680.00M	-277.00M
Financing Cash Flow	-1.99B	-470.00M	-1.37B	-2.00B	3.12B	-385.00M

G City Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 985.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 985.9 is below the 20-day moving average (MA) of 992.63, below the 50-day MA of 1106.57, and below the 200-day MA of 1197.33, indicating a bearish trend. The MACD of -25.75 indicates Negative momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 52.19 is Neutral, 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	74 Outperform	2.64B	12.79	―	―	26.77%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GCT	42 Neutral	$2.21B	-10.57	-4.44%	5.03%	-7.27%	49.41%
ELCRE	41 Neutral	2.93B	―	―	―	-4.06%	65.26%