Generation Cap (GNRS) AI Stock Analysis

• Market Cap: ₪2.34B
• Dividend Yield: 2.54%
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.17
• Revenue Growth: 62.82%
• EPS Growth: -15.94%
• Country: IL
• Employees: 1
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 3.40
• Shares Outstanding: 1,528,856,800
• 10 Day Avg. Volume: 2,652,548
• 30 Day Avg. Volume: 2,932,052
• PEG Ratio: -0.16
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 8.92
• P/FCF Ratio: 19.01
• 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: 77 Outperform
• Price Target: 180.00 ▲(28.02% Upside)

Generation Cap's strong financial performance, coupled with positive technical indicators and reasonable valuation, contribute to a solid overall stock score. The company's robust revenue growth and effective cash management are significant strengths, while potential operational volatility and reliance on debt are areas to monitor.

Positive Factors

Fee-based revenue model

A diversified fee-based model (management and performance fees) provides durable, recurring revenue tied to AUM and long-term fund performance. Management fees create stable baseline cash inflows while performance fees align incentives and can materially boost revenue during multi‑period outperformance.

Strong free cash flow

Consistent and growing free cash flow strengthens the firm's financial flexibility to fund investments, cover distributions, and support operations without external financing. Durable cash generation reduces refinancing risk and allows reinvestment in deal sourcing and advisory capabilities critical for asset managers.

Robust revenue growth and margins

High multi‑period revenue growth and sustained gross/net margins indicate successful fund raising, deal execution, and fee capture. These trends support scalable economics: stronger revenues expand management fee base and, if margins hold, improve internal capital generation and long‑term returns to investors.

Negative Factors

Reliance on debt financing

Dependence on debt increases financial leverage and sensitivity to rate changes or credit conditions. Over time this can constrain strategic flexibility, raise interest costs, and amplify downside in stressed markets, making careful liability management essential for durable stability.

Operational efficiency volatility

Elevated margins that vary materially can reflect concentrated revenue streams or cost structures that are sensitive to deal timing. Persistent margin volatility undermines predictability of fee generation and performance fees, complicating cashflow planning and investor return consistency over medium term horizons.

Negative EPS growth

Declining EPS growth signals earnings pressure or one-off impacts that may persist if structural issues remain. For an asset manager, negative EPS trends can reflect margin compression, higher costs, or variability in performance fees, which risks investor confidence and slows AUM expansion over several quarters.

Generation Cap Business Overview & Revenue Model

Company Description

Generation Capital Ltd was founded in 2018 and is headquartered in Herzliya, Israel.

How the Company Makes Money

Generation Cap generates revenue through multiple channels, primarily by managing investment funds that charge management fees and performance fees based on the returns generated for investors. The company earns management fees as a percentage of the assets under management (AUM), providing a steady income stream. Additionally, GNRS benefits from performance fees, which are calculated based on the profits generated by the funds, incentivizing the firm to achieve high returns for its clients. Significant partnerships with corporations and governmental organizations in the renewable energy sector enhance its investment opportunities and provide access to exclusive projects, further contributing to GNRS's revenue. The firm's expertise in ESG criteria attracts a growing number of socially-conscious investors, expanding its client base and revenue potential.

Generation Cap Financial Statement Overview

Summary

Generation Cap demonstrates strong financial health with robust revenue growth and profitability. The balance sheet reflects a balanced approach to leverage, while cash flow metrics underscore effective cash management. However, potential volatility in operational efficiency and reliance on debt financing are noted.

Income Statement

Generation Cap has demonstrated strong revenue growth with a 19% increase in TTM, alongside robust gross and net profit margins. However, the high EBIT and EBITDA margins suggest potential volatility in operational efficiency. The company has shown resilience with consistent revenue growth, except for a dip in 2022.

Balance Sheet

The company maintains a moderate debt-to-equity ratio, indicating balanced leverage. Return on equity is improving, reflecting efficient use of equity capital. However, the equity ratio suggests a reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Generation Cap has shown impressive free cash flow growth, particularly in the TTM period. The operating cash flow to net income ratio indicates solid cash generation relative to earnings, supporting financial stability. The consistent free cash flow to net income ratio of 1.0 highlights effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.01M	106.97M	121.81M	103.89M	130.33M	8.25M
Gross Profit	140.88M	83.88M	80.08M	69.90M	106.05M	-7.14M
EBITDA	184.67M	132.50M	371.82M	223.35M	303.20M	336.79M
Net Income	130.00M	90.11M	277.20M	175.45M	229.87M	256.07M
Balance Sheet
Total Assets	4.43B	4.24B	4.05B	3.48B	2.58B	1.61B
Cash, Cash Equivalents and Short-Term Investments	24.80M	50.30M	96.00M	253.24M	72.64M	174.09M
Total Debt	1.79B	1.76B	1.72B	1.48B	738.70M	174.94M
Total Liabilities	2.12B	2.04B	1.97B	1.68B	900.89M	276.45M
Stockholders Equity	2.31B	2.20B	2.08B	1.81B	1.68B	1.33B
Cash Flow
Free Cash Flow	121.36M	50.18M	24.28M	33.23M	85.93M	-9.39M
Operating Cash Flow	121.36M	50.18M	24.28M	33.23M	85.93M	-9.39M
Investing Cash Flow	-74.75M	-98.04M	-358.68M	-481.09M	-852.17M	-394.79M
Financing Cash Flow	-55.80M	2.16M	177.16M	628.47M	664.80M	258.82M

Generation Cap Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 140.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GNRS, the sentiment is Positive. The current price of 140.6 is below the 20-day moving average (MA) of 152.07, below the 50-day MA of 140.88, and above the 200-day MA of 111.98, indicating a bullish trend. The MACD of 4.49 indicates Positive momentum. The RSI at 64.58 is Neutral, neither overbought nor oversold. The STOCH value of 67.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:GNRS.

Generation Cap Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNRS	77 Outperform	₪2.34B	14.94	―	2.54%	62.82%	-15.94%
MPP	73 Outperform	₪1.92B	29.55	―	2.79%	19.74%	19.79%
MRIN	70 Neutral	₪3.67B	32.24	―	2.95%	26.35%	48.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALTF	58 Neutral	₪1.26B	11.10	―	5.43%	0.65%	-0.83%