Golf (GOLF) AI Stock Analysis

• Market Cap: 328.46M
• Dividend Yield: 15.68%
• Average Volume (3M): 8.61K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.87
• Revenue Growth: 13.41%
• EPS Growth: 70.30%
• Country: IL
• Employees: 1,818
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 19.50
• Shares Outstanding: 44,279,200
• 10 Day Avg. Volume: 4,311
• 30 Day Avg. Volume: 8,613
• PEG Ratio: -0.02
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 2.20
• 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: 75 Outperform
• Price Target: 827.00 ▲(12.89% Upside)

IL:GOLF's strong valuation, characterized by a low P/E ratio and high dividend yield, is the most significant factor driving the score. The technical analysis supports a positive outlook with bullish momentum. Financial performance is solid but tempered by high leverage, which poses a risk. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling investment in growth opportunities and debt reduction.

Gross Profit Margin

High gross margins reflect efficient cost management and pricing power, contributing to sustainable profitability.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially impacting stability if earnings fluctuate or interest rates rise.

Net Profit Margin

Declining net margins suggest challenges in managing non-operating costs, which could affect overall profitability.

Leverage Management

Effective leverage management is crucial to maintain financial health and avoid constraints on future growth initiatives.

Golf Business Overview & Revenue Model

Company Description

Golf & Co Group Ltd operates as a retail company in the field of fashion, home styling, and apparel in Israel. The company offers home ware products, such as kitchen-ware, dining-ware, home textile, and spa products; home textile products, including bed linens, blankets, towels, and other products; fashion apparel and accessories for men and women; intimate wear, including lingerie, night wear, leisure clothing, and swimwear; and basic and fashionable collections for children and babies. It operates stores primarily under the GOLF, TSUMI, MAX MORETTI, DANIEL HECHTER, TOPSHOP, KITAN, POLGAT, ROYAL SATEEN, and Adika brand names, as well as online stores, such as golfco.co.il, golfkids.co.il, il.topshop.com, www.intima-il.co.il, and adikastyle.com. The company was incorporated in 1961 and is based in Netanya, Israel. Golf & Co Group Ltd is a subsidiary of Clal Industries Ltd.

How the Company Makes Money

Golf generates revenue through multiple streams, primarily from the sale of its golf equipment and apparel. The company sells its products directly to consumers via its online platform and through partnerships with retail stores and golf pro shops. This direct-to-consumer approach allows Golf to capture a larger margin on its products. Additionally, Golf earns revenue through licensing agreements for its brand, allowing third-party manufacturers to produce golf-related merchandise. The company may also generate income from partnerships with golf courses and events, where it could provide equipment and sponsorships. Significant collaborations with sports figures and endorsements further enhance brand visibility, driving sales and contributing to overall revenue.

Golf Financial Statement Overview

Summary

The company demonstrates strong revenue growth and profitability, with a robust gross profit margin. However, high leverage and pressure on cash conversion are concerns. Continued focus on managing debt and enhancing cash flow efficiency is crucial.

Income Statement

The company shows strong revenue growth in the TTM period with a 17% increase, indicating a positive trajectory. Gross profit margin remains robust at over 61%, reflecting effective cost management. However, the net profit margin has slightly decreased compared to the previous year, suggesting some pressure on profitability. The EBIT and EBITDA margins are healthy, indicating operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.42, indicating significant leverage which could pose a risk if not managed properly. Return on equity is strong at 31.97%, showing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

The cash flow statement shows a positive free cash flow growth rate of 30.9% in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting reasonable cash conversion efficiency. However, the free cash flow to net income ratio has decreased, indicating potential challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	920.41M	871.49M	852.16M	953.82M	958.59M	835.84M
Gross Profit	559.99M	536.50M	501.73M	556.22M	574.40M	496.66M
EBITDA	208.33M	202.06M	101.50M	110.43M	163.18M	157.40M
Net Income	41.80M	64.87M	-44.78M	-34.55M	28.10M	16.17M
Balance Sheet
Total Assets	1.07B	888.38M	814.15M	1.01B	1.02B	1.06B
Cash, Cash Equivalents and Short-Term Investments	31.52M	45.27M	87.86M	50.95M	127.12M	132.09M
Total Debt	711.46M	496.69M	495.60M	608.43M	546.33M	588.17M
Total Liabilities	864.76M	667.27M	657.85M	806.45M	760.50M	807.94M
Stockholders Equity	202.63M	221.11M	156.30M	199.94M	233.49M	220.63M
Cash Flow
Free Cash Flow	139.61M	131.94M	172.39M	20.40M	125.86M	159.43M
Operating Cash Flow	187.94M	156.30M	192.34M	49.13M	140.55M	196.94M
Investing Cash Flow	-30.84M	5.46M	-13.52M	-34.37M	-11.37M	-39.80M
Financing Cash Flow	-166.53M	-178.55M	-145.25M	-86.42M	-139.11M	-84.21M

Golf Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 732.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GOLF, the sentiment is Positive. The current price of 732.6 is above the 20-day moving average (MA) of 728.58, above the 50-day MA of 722.69, and above the 200-day MA of 691.97, indicating a bullish trend. The MACD of 3.35 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 62.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:GOLF.

Golf Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOLF	75 Outperform	328.46M	7.87	―	15.68%	13.41%	70.30%
TRX	67 Neutral	1.06B	37.16	―	4.56%	13.94%	84.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ZOOZ	42 Neutral	254.34M	-0.41	―	―	36.26%	43.84%