Golf (GOLF) AI Stock Analysis

• Market Cap: ₪310.88M
• Dividend Yield: 15.68%
• Average Volume (3M): 8.61K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.65
• Revenue Growth: 13.41%
• EPS Growth: 70.30%
• Country: IL
• Employees: 1,818
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 44,279,200
• 10 Day Avg. Volume: 4,311
• 30 Day Avg. Volume: 8,613
• PEG Ratio: -0.23
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 1.69
• 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: 61 Neutral
• Price Target: 733.00 ▲(0.05% Upside)
• Action: Downgraded Date: 03/15/26
• Date: Action: Downgraded 03/15/26

The score is driven primarily by a moderate financial profile: strong cash generation and improved profitability are tempered by declining TTM revenue and high leverage. Valuation is a key positive with a low P/E and very high dividend yield, while technical indicators remain mixed-to-weak with price below longer-term moving averages and a negative MACD.

Positive Factors

High Gross Margin

A sustained gross margin around 61% provides structural pricing and product-margin advantages in specialty retail. This margin cushion helps absorb sales volatility, funds SG&A and capex, and supports long-term operating profitability and strategic reinvestment even if volumes wobble.

Robust Cash Generation

Strong trailing twelve‑month operating and free cash flow create durable financial flexibility. Consistent FCF supports debt servicing, dividend capacity, and targeted investment, enabling the business to sustain operations and strategic initiatives across a multi‑month horizon.

Improved Profitability & ROE

Return to operating profitability and a ~20% TTM ROE signal improved capital efficiency and management execution. Sustainable profits and healthy ROE indicate the company can convert assets and equity into earnings, underpinning long‑term shareholder returns if margins hold.

Negative Factors

Declining Revenue

An ~11.7% trailing revenue decline points to weakened demand or loss of market share. Prolonged top‑line contraction erodes operating leverage, threatens margin sustainability, and can force cost cuts or underinvestment, reducing the company's ability to regain growth over coming quarters.

Elevated Leverage

Significantly higher leverage increases interest and refinancing vulnerability and reduces financial flexibility. With debt rising sharply, the company faces greater strain if earnings or cash flow dip, limiting capacity for strategic investments or cushioning against macro shocks over the medium term.

Margin Compression & Cash‑conversion Flags

Compression of net margin from ~7.4% to ~4.5% lowers resilience to cost or volume shocks and magnifies the impact of revenue declines. Coupled with imperfect cash conversion, this raises concern about the consistency of earnings translating into durable free cash flow going forward.

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.

Golf Financial Statement Overview

Summary

Profitability has recovered with positive TTM operating profit and strong gross margin (~61%), and cash generation is robust (TTM OCF ~233M; FCF ~188M). Offsetting this, TTM revenue is down ~11.7% with net margin compressing vs. 2024, and leverage is elevated with debt-to-equity ~3.5x, increasing financial risk.

Income Statement

Profitability has materially improved versus the loss-making period in 2022–2023, with TTM (Trailing-Twelve-Months) showing positive operating profit and a solid gross margin (~61%). However, demand momentum is weak: TTM revenue is down ~11.7% and net margin has compressed meaningfully versus 2024 (about 4.5% vs. 7.4%), suggesting earnings are currently more vulnerable to further sales pressure.

Balance Sheet

Leverage is the key constraint. TTM (Trailing-Twelve-Months) debt-to-equity is elevated (~3.5x) and has worsened versus 2024 (~2.25x) as total debt rose sharply. Equity remains positive and returns on equity are currently healthy (~20% TTM), but the higher leverage increases financial risk and reduces flexibility if operating performance softens.

Cash Flow

Cash generation is a relative strength. TTM (Trailing-Twelve-Months) operating cash flow (~233M) and free cash flow (~188M) are robust, and free cash flow has grown strongly versus the prior period. That said, cash conversion is not perfect—operating cash flow and free cash flow are both below net income on the provided coverage measures—so consistency of cash realization remains a watch item.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	919.36M	871.49M	852.16M	953.82M	958.59M
Gross Profit	437.09M	536.50M	501.73M	556.22M	574.40M
EBITDA	207.62M	202.06M	101.50M	110.43M	163.18M
Net Income	44.51M	64.87M	-44.78M	-34.55M	28.10M
Balance Sheet
Total Assets	1.14B	888.38M	814.15M	1.01B	1.02B
Cash, Cash Equivalents and Short-Term Investments	94.61M	45.27M	87.86M	50.95M	127.12M
Total Debt	786.55M	496.69M	495.60M	608.43M	546.33M
Total Liabilities	925.39M	667.27M	657.85M	806.45M	760.50M
Stockholders Equity	216.75M	221.11M	156.30M	199.94M	233.49M
Cash Flow
Free Cash Flow	186.78M	131.94M	172.39M	20.40M	125.86M
Operating Cash Flow	232.01M	156.30M	192.34M	49.13M	140.55M
Investing Cash Flow	-43.07M	5.46M	-13.52M	-34.37M	-11.37M
Financing Cash Flow	-141.97M	-178.55M	-145.25M	-86.42M	-139.11M

Golf Technical Analysis

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

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 652.45, above the 50-day MA of 676.71, and above the 200-day MA of 687.07, indicating a bullish trend. The MACD of 7.30 indicates Negative momentum. The RSI at 65.37 is Neutral, neither overbought nor oversold. The STOCH value of 96.35 is Negative, 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
GOLF	61 Neutral	₪310.88M	7.10	―	15.68%	13.41%	70.30%
TRX	59 Neutral	₪891.24M	40.56	―	4.56%	13.94%	84.36%
ZOOZ	42 Neutral	₪184.73M	-0.77	―	―	36.26%	43.84%