Kafrit (KAFR) AI Stock Analysis

• Market Cap: 719.94M
• Dividend Yield: 2.79%
• Average Volume (3M): 3.90K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.76
• Revenue Growth: 15.45%
• EPS Growth: 26.50%
• Country: IL
• Employees: 801
• Sector: Industrials
• Sector Strength: 87
• Industry: Chemicals - Specialty
• EPS (TTM): 53.10
• Shares Outstanding: 24,070,265
• 10 Day Avg. Volume: 7,811
• 30 Day Avg. Volume: 3,905
• PEG Ratio: -0.95
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.13
• 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

• Rating: 73 Outperform
• Price Target: 3,326.00 ▲(12.25%Upside)

Kafrit's strong financial performance and reasonable valuation are the primary drivers of its stock score. The company demonstrates solid profitability and efficient cash flow management, although increasing debt levels need monitoring. Technical indicators suggest neutral to bearish market sentiment. The absence of recent earnings call data or notable corporate events leaves the financials and valuation as the key factors influencing the score.

Kafrit Business Overview & Revenue Model

Company Description

Kafrit (KAFR) is a leading global manufacturer and supplier of high-quality thermoplastic masterbatches and compounds. These products are used extensively in various industries, including agriculture, automotive, construction, and consumer goods, to enhance the properties of plastic materials. The company prides itself on its innovative solutions that address specific customer needs, focusing on improving material performance, sustainability, and efficiency.

How the Company Makes Money

Kafrit generates revenue primarily through the sale of its thermoplastic masterbatches and compounds to a diverse range of industries worldwide. Its key revenue streams include the development and manufacturing of custom and standard masterbatch solutions, which are designed to improve the physical and chemical properties of plastics. Significant partnerships with manufacturers in industries such as agriculture, automotive, and construction play a vital role in its earnings, as these collaborations ensure a steady demand for its products. Additionally, Kafrit invests in research and development to continuously innovate and expand its product offerings, thus maintaining competitive advantage and driving sales growth.

Kafrit Financial Statement Overview

Summary

Kafrit shows strong financial performance with consistent revenue and profit growth, stable margins, and efficient cash flow management. The company's financial health is underpinned by a solid equity base and effective cost management. However, increasing debt levels pose a potential risk that needs monitoring.

Income Statement

The company has shown robust revenue growth with a positive trajectory, increasing from 861.6M in 2019 to 1.35B in 2024, representing a strong growth rate over the years. Gross profit margins have improved consistently, reaching 22.4% in 2024. Net profit margins have also improved to 5.3% in 2024 from 3.5% in 2019, highlighting efficient cost management. EBIT and EBITDA margins have shown strong growth, with EBIT margin reaching 8.8% and EBITDA margin 13.4% in 2024. Overall, the income statement reflects strong profitability and growth.

Balance Sheet

The balance sheet shows a solid equity base, with stockholders' equity increasing to 528.5M in 2024. The debt-to-equity ratio is 0.85, indicating a moderate level of leverage. The equity ratio stands at 45.3%, showcasing a stable financial structure. Return on equity has improved over the years, reaching 13.5% in 2024, indicating effective utilization of equity to generate profits. However, the increasing total debt from 178.7M in 2020 to 449.1M in 2024 suggests a growing reliance on debt financing.

Cash Flow

Operating cash flow is strong and has been improving, reaching 108.5M in 2024. Free cash flow has also remained positive, indicating good cash management, although it showed a slight decline in 2024 compared to 2023. The operating cash flow to net income ratio is stable, reflecting efficient conversion of profits into cash. Free cash flow to net income ratio also indicates strong cash generation capabilities. Overall, the cash flow statement reflects strong cash generation and efficient capital expenditure management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.12B	1.06B	1.03B	846.66M
Gross Profit	303.92M	223.79M	192.74M	192.79M	173.89M
EBITDA	181.81M	118.55M	102.51M	114.96M	102.54M
Net Income	71.46M	46.88M	44.39M	64.94M	43.21M
Balance Sheet
Total Assets	1.17B	931.57M	857.44M	753.46M	642.71M
Cash, Cash Equivalents and Short-Term Investments	31.33M	42.67M	36.96M	18.66M	31.51M
Total Debt	449.09M	296.13M	271.18M	213.76M	178.71M
Total Liabilities	638.06M	444.92M	417.32M	361.68M	285.56M
Stockholders Equity	528.52M	486.65M	440.13M	391.79M	357.15M
Cash Flow
Free Cash Flow	65.74M	66.62M	49.94M	-545.00K	47.62M
Operating Cash Flow	108.46M	111.47M	103.07M	25.80M	69.28M
Investing Cash Flow	-223.33M	-92.91M	-96.73M	-60.69M	-21.18M
Financing Cash Flow	104.19M	-13.40M	10.89M	22.59M	-57.22M

Kafrit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2963.00
• 50DMA: Negative
• 100DMA: Negative
• 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:KAFR, the sentiment is Positive. The current price of 2963 is above the 20-day moving average (MA) of 2945.75, below the 50-day MA of 3019.20, and above the 200-day MA of 2890.85, indicating a neutral trend. The MACD of -15.17 indicates Negative momentum. The RSI at 52.03 is Neutral, neither overbought nor oversold. The STOCH value of 89.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:KAFR.

Kafrit Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
POLP	74 Outperform	1.08B	12.35		3.69%	1.43%	-0.59%
KAFR	73 Outperform	719.94M	10.64		2.79%	15.45%	26.50%
AFHL	67 Neutral	982.84M	16.79		2.04%	-15.70%	3972.94%
Sector *	58 Neutral	$1.33B	4.20	-2.93%	7.45%	3.67%	-51.13%

Kafrit Corporate Events

Kafrit Industries Announces Key Decisions at Upcoming General Meeting

Kafrit Industries Ltd. has announced a general meeting to be held on March 20, 2025, to discuss several key agenda items including the appointment of a new director, Daniel Ben-Shushan, effective April 5, 2025, and a management agreement with a controlling shareholder. The meeting will also cover the approval of a new compensation policy for directors, the engagement of external auditors, and transactions with interested parties. Notably, the agenda includes the approval of a merger with a foreign corporation, pending regulatory and shareholder approvals. These decisions could significantly impact Kafrit’s governance structure and strategic direction.