Globrands (GLRS) AI Stock Analysis

• Market Cap: 637.20M
• Dividend Yield: 6.97%
• Average Volume (3M): 246.00
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.76
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 302
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 60.30
• Shares Outstanding: 1,237,041
• 10 Day Avg. Volume: 300
• 30 Day Avg. Volume: 246
• PEG Ratio: 0.32
• Price to Book (P/B): 7.54
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 63.65
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 51,469.00 ▲(10.97% Upside)

The overall stock score is primarily influenced by financial performance challenges, including high leverage and declining revenue growth. Technical analysis indicates bearish momentum, further impacting the score. However, the stock's valuation is attractive due to a low P/E ratio and high dividend yield, which provides some support to the overall score.

Positive Factors

Consistent Margins

Consistent margins indicate effective cost management and pricing power, which are crucial for maintaining profitability over time.

Strong Return on Equity

High ROE reflects efficient use of equity to generate profits, indicating strong management performance and shareholder value creation.

Free Cash Flow Conversion

Effective conversion of profits into free cash flow supports long-term investments and financial flexibility, crucial for sustainable growth.

Negative Factors

High Leverage

Significant leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Operating Cash Flow

Negative cash flow from operations can strain liquidity and hinder the company's ability to fund operations and growth initiatives sustainably.

Declining Revenue Growth

Declining revenue growth can signal weakening demand or competitive pressures, potentially impacting long-term market position and profitability.

Globrands Business Overview & Revenue Model

Company Description

Globrands Ltd. imports, distributes, markets, and sells tobacco, and food and confectionery products primarily in Israel. It operates in Smoking Products, and Confectionery and Snacks divisions. The company imports and distributes cigarettes under the Kent, Pall Mall, Vogue, Rotmans, and Lucky Strike brand names. It serves primarily retail customers and multinational corporations. The company was founded in 2000 and is based in Tel Aviv, Israel.

How the Company Makes Money

Globrands makes money through a diversified revenue model that includes the sale of consumer goods across multiple retail channels, such as supermarkets, online marketplaces, and direct-to-consumer platforms. Key revenue streams include product sales, licensing agreements, and strategic partnerships with retailers and distributors to expand market reach. The company also invests in research and development to innovate new products that meet emerging consumer trends, enhancing its competitive edge and driving sales growth. Additionally, Globrands leverages its brand strength to negotiate favorable terms with suppliers and retailers, optimizing supply chain efficiency and profitability.

Globrands Financial Statement Overview

Summary

Globrands shows solid profitability with consistent margins but faces challenges with declining revenue growth and high leverage. The company's ability to generate cash flow is under pressure, as indicated by negative operating cash flow in the latest period. While the return on equity is strong, the high debt levels pose a risk to financial stability.

Income Statement

Globrands shows stable gross profit margins around 31-33% over the years, indicating consistent cost management. However, the recent TTM data reveals a slight decline in revenue growth rate (-1.51%), which could be a concern if it continues. The net profit margin remains healthy at around 9-13%, suggesting good profitability despite revenue challenges.

Balance Sheet

The company has a high debt-to-equity ratio, peaking at 5.53 in 2023, which indicates significant leverage and potential financial risk. However, the return on equity is strong, exceeding 80% in the TTM period, reflecting efficient use of equity to generate profits. The equity ratio is relatively low, suggesting reliance on debt financing.

Cash Flow

Globrands faces challenges in cash flow management, with negative operating cash flow in the TTM period. Despite this, free cash flow to net income ratio is high, indicating that the company can convert its profits into free cash flow effectively. However, the negative free cash flow growth in prior years raises concerns about cash sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	739.59M	753.78M	664.83M	596.02M	549.10M	520.81M
Gross Profit	237.29M	228.67M	197.17M	193.47M	183.56M	178.79M
EBITDA	113.82M	122.75M	101.22M	106.63M	109.08M	107.29M
Net Income	62.58M	74.10M	59.46M	70.27M	72.74M	72.17M
Balance Sheet
Total Assets	636.39M	576.14M	493.53M	427.24M	269.05M	273.51M
Cash, Cash Equivalents and Short-Term Investments	14.27M	11.11M	11.58M	13.41M	13.92M	8.43M
Total Debt	394.99M	378.21M	318.86M	336.75M	188.71M	195.41M
Total Liabilities	555.79M	514.86M	445.76M	371.68M	213.44M	221.68M
Stockholders Equity	99.15M	76.52M	57.62M	58.41M	55.62M	51.83M
Cash Flow
Free Cash Flow	-61.94M	9.07M	16.50M	-55.68M	75.60M	58.89M
Operating Cash Flow	-49.43M	26.23M	34.10M	-52.43M	83.40M	63.54M
Investing Cash Flow	-43.63M	-14.94M	-16.65M	-3.88M	-6.49M	-4.29M
Financing Cash Flow	99.88M	-11.72M	-19.27M	55.38M	-71.43M	-56.21M

Globrands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46380.00
• 50DMA: Positive
• 100DMA: Positive
• 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:GLRS, the sentiment is Positive. The current price of 46380 is below the 20-day moving average (MA) of 47748.50, below the 50-day MA of 49087.68, and below the 200-day MA of 51887.25, indicating a neutral trend. The MACD of 516.47 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 90.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:GLRS.

Globrands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTO	72 Outperform	916.21M	12.19	―	―	8.20%	-12.69%
TTAM	67 Neutral	1.24B	18.38	―	1.69%	9.07%	38.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VCTR	62 Neutral	807.59M	27.31	―	3.30%	-1.61%	-45.19%
HLMS	59 Neutral	692.51M	20.78	―	5.30%	7.70%	-34.56%
GLRS	56 Neutral	637.20M	10.13	―	6.97%	―	―