Jacob Finance & Investments Ltd. (JCFN) AI Stock Analysis

• Market Cap: ₪826.03M
• Dividend Yield: N/A
• Average Volume (3M): 24.34K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.82
• Revenue Growth: 29.67%
• EPS Growth: 15.36%
• Country: IL
• Employees: 11
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 82.60
• Shares Outstanding: 24,584,196
• 10 Day Avg. Volume: 33,144
• 30 Day Avg. Volume: 24,337
• PEG Ratio: 0.33
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 2.95
• P/FCF Ratio: 48.36
• 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: 60 Neutral
• Price Target: 3,531.00 ▲(5.00% Upside)
• Action: Downgraded Date: 12/30/25
• Date: Action: Downgraded 12/30/25

The score is most constrained by financial risk: high leverage and negative/volatile cash flow offset strong reported margins and modest growth. Technicals are supportive but show overextended momentum, while valuation looks favorable on a low P/E, helping partially balance the risks.

Positive Factors

Profitability

Strong profitability with high net and EBIT margins indicates efficient operations and a robust business model, supporting long-term sustainability.

Revenue Growth

Consistent revenue growth suggests expanding market reach and product adoption, which is crucial for long-term business expansion and competitiveness.

Return on Equity

Strong and steady returns on equity reflect effective management and the ability to generate profits from shareholders' investments, enhancing investor confidence.

Negative Factors

High Leverage

High leverage poses financial risk, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term stability.

Weak Cash Generation

Negative cash flow indicates potential liquidity issues, undermining the ability to fund operations and growth initiatives, crucial for long-term viability.

Margin Consistency Concerns

Declining margins and inconsistencies raise concerns about the sustainability of profitability, impacting long-term financial health and competitive positioning.

Jacob Finance & Investments Ltd. Business Overview & Revenue Model

Company Description

Jacob Finance and Investments Ltd provides non-banking credit services. The company was incorporated in 2009 and is based in Tel Aviv, Israel.

How the Company Makes Money

JCFN generates revenue through management fees charged on the assets under management (AUM). These fees are typically a percentage of the total assets managed by the company. Additionally, JCFN earns income from advisory fees for financial planning and consulting services offered to clients. The company also benefits from performance fees, which are contingent on achieving specific investment benchmarks or returns. Strategic partnerships with financial institutions and investment platforms further enhance JCFN's distribution channels, contributing to its revenue growth.

Jacob Finance & Investments Ltd. Financial Statement Overview

Summary

Reported profitability is strong (TTM net margin ~36.7%, EBIT margin ~47.6%) with modest TTM revenue growth (~5.2%), but the balance sheet is highly levered (TTM debt-to-equity ~5.14) and cash generation is weak/volatile (TTM operating cash flow and free cash flow about -56.7M/-56.8M), which materially raises risk and lowers earnings-quality confidence.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose to 214.995M (about 5.2% growth) and profitability remains strong, with net margin ~36.7% and EBIT margin ~47.6%. The company also shows a multi-year expansion from 2021–2024 with consistently positive net income after the 2020 loss. Offsetting this, margins have trended down from unusually high levels in 2021–2024 to lower (though still healthy) levels in TTM (Trailing-Twelve-Months), and the historical margin series contains some apparent inconsistencies (e.g., 100% gross margin in several years), which reduces confidence in the quality/consistency of the reported margin profile.

Balance Sheet

Leverage is high for the recent periods: TTM (Trailing-Twelve-Months) debt-to-equity is ~5.14 (2024: ~4.91), with total debt of ~2.23B versus equity of ~434M. While returns on equity are solid and fairly steady (~18–20% in 2022–TTM), the capital structure leaves limited cushion if credit performance or funding conditions weaken. The balance sheet has improved materially versus 2020–2021 (when equity was extremely thin and leverage was outsized), but overall leverage remains the key constraint on balance-sheet quality.

Cash Flow

Cash generation is volatile and currently weak: TTM (Trailing-Twelve-Months) operating cash flow is -56.7M and free cash flow is -56.8M, reversing the modest positive cash flow seen in 2024 (~10.6M). Several prior years also show negative operating/free cash flow (notably 2022 and 2023), indicating inconsistent cash conversion despite strong reported earnings. This pattern raises the risk that earnings quality depends on working-capital movements or other non-cash dynamics, which is a concern for a credit-services business reliant on stable funding and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	215.00M	173.72M	152.06M	109.02M	48.62M	803.00K
Gross Profit	112.02M	99.30M	85.28M	76.85M	37.00M	639.00K
EBITDA	102.45M	90.23M	74.18M	61.81M	31.65M	-1.07M
Net Income	78.80M	69.53M	56.81M	47.49M	24.33M	-829.00K
Balance Sheet
Total Assets	2.67B	2.27B	1.48B	1.55B	1.40B	307.06M
Cash, Cash Equivalents and Short-Term Investments	30.93M	10.64M	39.00K	16.17M	775.00K	12.58M
Total Debt	2.23B	1.83B	1.14B	1.29B	1.34B	270.04M
Total Liabilities	2.24B	1.89B	1.18B	1.30B	1.37B	306.70M
Stockholders Equity	433.65M	371.76M	301.83M	244.80M	32.51M	365.00K
Cash Flow
Free Cash Flow	-56.78M	10.60M	-16.35M	-149.38M	-18.31M	12.58M
Operating Cash Flow	-56.73M	10.61M	-16.34M	-149.38M	-18.23M	12.60M
Investing Cash Flow	-132.71M	-10.00K	-11.00K	8.00K	-80.00K	-14.00K
Financing Cash Flow	408.50M	0.00	216.00K	164.78M	6.50M	0.00

Jacob Finance & Investments Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3363.00
• 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:JCFN, the sentiment is Positive. The current price of 3363 is below the 20-day moving average (MA) of 3531.70, below the 50-day MA of 3466.50, and above the 200-day MA of 3357.20, indicating a bullish trend. The MACD of -5.05 indicates Positive momentum. The RSI at 55.77 is Neutral, neither overbought nor oversold. The STOCH value of 32.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:JCFN.

Jacob Finance & Investments Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEN	75 Outperform	₪716.31M	10.07	―	5.35%	25.73%	45.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MNIF	66 Neutral	₪1.58B	9.01	―	4.19%	25.72%	21.70%
MLRN	61 Neutral	₪449.03M	8.49	―	7.37%	―	―
JCFN	60 Neutral	₪826.03M	10.94	―	―	29.67%	15.36%
MCLL	58 Neutral	₪744.80M	13.50	―	1.53%	―	―