Intercure (INCR) AI Stock Analysis

• Market Cap: ₪159.89M
• Dividend Yield: N/A
• Average Volume (3M): 91.19K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.19
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 320
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -3.60
• Shares Outstanding: 54,681,335
• 10 Day Avg. Volume: 173,192
• 30 Day Avg. Volume: 91,185
• PEG Ratio: -0.43
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 1.09
• P/FCF Ratio: -3.64
• 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: 44 Neutral
• Price Target: 305.00 ▼(-40.68% Downside)

The score is held down primarily by weak financial performance (declining revenue, negative profitability, and negative operating/free cash flow) and a strongly bearish technical setup (below all key moving averages with negative MACD). Valuation provides limited signal because P/E and dividend yield data are unavailable.

Positive Factors

Vertical integration

Owning cultivation, production and distribution creates durable control over product quality, supply consistency and pricing. This vertical model can sustain gross margins, lower unit costs over time, and protect against third-party supply disruptions as the company scales domestically and abroad.

Market leadership in medical cannabis

A leading position in Israel and presence in other jurisdictions provides structural advantages: regulatory expertise, brand recognition with patients and providers, and preferential access to limited licensing. These traits support durable demand and a platform for measured international expansion.

Partnerships and diversified revenue streams

Established partnerships with providers and pharmacies create repeat demand and lower customer acquisition costs, while research collaborations and potential licensing offer non-sales revenue and product pipeline optionality. Diversified streams reduce reliance on a single channel long-term.

Negative Factors

Declining revenue and negative margins

Sustained declines in revenue and compressing gross and operating margins indicate structural demand or cost issues. Persistent unprofitability erodes retained earnings, limits reinvestment capacity, and weakens competitive positioning versus better-funded peers over the medium term.

Negative operating and free cash flow

Ongoing negative operating and free cash flow signals cash burn and operational inefficiency. This reduces financial flexibility to invest in cultivation, R&D or geographic expansion, and increases dependency on external financing which can dilute shareholders or raise leverage over time.

Shrinking equity and moderate leverage

Decreasing shareholders' equity alongside existing leverage weakens the balance sheet buffer against shocks and limits capacity for capital-intensive expansion. Combined with losses, this raises long-term solvency and refinancing risk, potentially increasing future financing costs.

Intercure Business Overview & Revenue Model

Company Description

InterCure Ltd., together with its subsidiaries, engages in the research, cultivation, production, marketing, and distribution of medical cannabis products in Israel and internationally. It offers dried cannabis inflorescences and cannabis extract mixed with oil. The company also invests in biomed sector. InterCure Ltd. was incorporated in 1994 and is headquartered in Herzliya, Israel.

How the Company Makes Money

Intercure generates revenue through multiple key streams, primarily by selling its medical cannabis products to patients and pharmacies. The company benefits from its vertically integrated business model, which includes cultivation, production, and distribution, allowing it to maintain control over product quality and pricing. Additionally, Intercure engages in partnerships with healthcare providers and pharmacies, enhancing its market reach and ensuring consistent demand for its products. The company also explores international markets, which can provide new revenue opportunities as regulations evolve globally. Furthermore, Intercure may generate income through research collaborations and potentially licensing agreements related to its proprietary products.

Intercure Financial Statement Overview

Summary

Income statement weakness dominates: declining revenue, reduced gross margin, and negative EBIT/EBITDA and net margins. The balance sheet shows only moderate leverage but shrinking equity, while cash flow is pressured with negative operating and free cash flow.

Income Statement

Intercure has experienced a significant decline in revenue and profitability over the reported periods. The gross profit margin decreased, and the company reported negative EBIT and EBITDA margins, indicating operational challenges. Net profit margin is also negative, reflecting ongoing losses.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, showing some leverage but not excessively high. However, the stockholders' equity has been decreasing, which could be concerning. The equity ratio suggests a fair level of equity financing, but declining equity may pose future risks.

Cash Flow

Intercure's cash flow statement highlights negative free cash flow and operating cash flow, indicating cash flow difficulties. The company also struggles with generating positive cash flow relative to net income, suggesting inefficiencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	243.12M	238.84M	355.55M	388.68M	219.68M	65.03M
Gross Profit	40.61M	30.23M	105.09M	155.08M	91.13M	31.98M
EBITDA	-79.49M	-51.31M	-23.90M	70.23M	31.17M	-34.53M
Net Income	-70.93M	-67.80M	-61.96M	44.82M	4.69M	-37.23M
Balance Sheet
Total Assets	751.76M	762.57M	786.61M	958.01M	686.32M	326.27M
Cash, Cash Equivalents and Short-Term Investments	51.58M	78.65M	101.33M	232.79M	196.55M	38.26M
Total Debt	179.34M	211.40M	195.68M	255.16M	108.91M	6.68M
Total Liabilities	319.52M	364.90M	329.55M	436.53M	227.13M	34.16M
Stockholders Equity	431.15M	396.97M	455.11M	501.31M	448.03M	274.51M
Cash Flow
Free Cash Flow	8.95M	-71.30M	-56.25M	31.52M	10.99M	-13.04M
Operating Cash Flow	12.20M	-66.93M	-53.63M	51.27M	25.02M	7.80M
Investing Cash Flow	-4.33M	17.69M	4.77M	-142.50M	-65.21M	-22.76M
Financing Cash Flow	-34.85M	26.45M	-82.89M	120.45M	197.94M	25.29M

Intercure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 514.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:INCR, the sentiment is Negative. The current price of 514.2 is above the 20-day moving average (MA) of 303.29, above the 50-day MA of 364.27, and above the 200-day MA of 482.35, indicating a bearish trend. The MACD of -20.96 indicates Negative momentum. The RSI at 29.49 is Positive, neither overbought nor oversold. The STOCH value of 21.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:INCR.

Intercure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
INCR	44 Neutral	₪159.89M	―	―	―	―	―