Generation Cap (GNRS) AI Stock Analysis

• Market Cap: 2.03B
• Dividend Yield: 2.53%
• Average Volume (3M): 2.93M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.15
• 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: 1,505,892,800
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: 149.00 ▲(9.40% 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

Revenue Growth

The company's robust revenue growth indicates expanding market reach and successful investment strategies, enhancing long-term value creation.

Cash Generation Ability

Strong cash generation supports financial stability and provides flexibility for future investments and strategic initiatives.

ESG Focus

A focus on ESG criteria aligns with structural industry trends, attracting more investors and enhancing the firm's market position.

Negative Factors

Operational Volatility

Operational volatility can impact profitability and predictability, posing risks to consistent financial performance.

Reliance on Debt

Dependence on debt can limit financial flexibility and increase risk, especially in adverse economic conditions.

EPS Decline

A decline in EPS growth indicates challenges in maintaining profitability, which could affect investor confidence and long-term growth prospects.

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 revenue growth and profitability, with robust EBIT and net profit margins. The balance sheet reflects a solid equity position, though increasing leverage could be a concern. Cash flow management has improved, but there is room for better alignment with net income.

Income Statement

Generation Cap has shown significant revenue growth over the years, with a notable increase in total revenue from $8.25M in 2020 to $106.97M in 2024. However, the gross profit margin has been inconsistent, with a negative margin in 2020, improving to 78.42% in 2024. Net profit margin has been strong, reaching 84.23% in 2024, indicating efficient cost management. EBIT and EBITDA margins have also been robust, reflecting strong operational performance. Despite these strengths, the volatility in revenue and profit margins poses some risk.

Balance Sheet

The company's balance sheet shows a healthy equity base, with stockholders' equity increasing from $933.50M in 2019 to $2.20B in 2024. The debt-to-equity ratio has increased, reaching 0.80 in 2024, indicating higher leverage, which could pose risks if not managed properly. The equity ratio remains strong at 51.85% in 2024, suggesting a solid financial structure. Return on equity has been impressive, although it has shown some decline, reflecting potential challenges in maintaining high profitability levels.

Cash Flow

Operating cash flow has been positive, with a notable increase to $50.18M in 2024. Free cash flow has also improved, indicating better cash management. However, the free cash flow to net income ratio suggests that cash generation relative to net income could be improved. The company has shown resilience in generating cash despite fluctuations in investing and financing activities.

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: 136.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 136.2 is above the 20-day moving average (MA) of 130.06, above the 50-day MA of 125.21, and above the 200-day MA of 101.86, indicating a bullish trend. The MACD of 3.52 indicates Negative momentum. The RSI at 76.98 is Negative, neither overbought nor oversold. The STOCH value of 86.88 is Negative, 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	2.03B	13.21	―	2.53%	62.82%	-15.94%
MPP	73 Outperform	2.05B	31.72	―	2.79%	19.74%	19.79%
MRIN	70 Neutral	4.08B	35.88	―	2.82%	26.35%	48.62%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALTF	58 Neutral	1.58B	13.99	―	5.37%	0.65%	-0.83%