Kafrit (KAFR) AI Stock Analysis

• Market Cap: 748.68M
• Dividend Yield: 2.64%
• Average Volume (3M): 3.20K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.78
• Revenue Growth: -0.71%
• EPS Growth: 2.35%
• Country: IL
• Employees: 801
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 55.80
• Shares Outstanding: 24,073,277
• 10 Day Avg. Volume: 3,268
• 30 Day Avg. Volume: 3,198
• PEG Ratio: 0.19
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 10.89
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 3,027.00 ▲(9.44% Upside)

Kafrit's strong financial performance is the most significant factor, showcasing robust revenue growth and profitability. However, technical analysis indicates bearish momentum, which could pose short-term risks. The valuation is favorable, with a low P/E ratio and a decent dividend yield, suggesting potential for long-term value.

Positive Factors

Revenue Growth

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

Cash Flow Management

Improved cash flow management enhances financial flexibility, allowing for strategic investments and debt management, supporting sustainable growth.

Profitability

Strong profitability margins indicate efficient operations and pricing power, contributing to long-term financial health and competitive advantage.

Negative Factors

Rising Debt Levels

Rising debt levels can strain cash flow and limit financial flexibility, potentially impacting long-term stability and investment capacity.

Net Profit Margin Decrease

A decrease in net profit margin may indicate rising costs or pricing pressures, which could affect future profitability and cash generation.

Debt-to-Equity Ratio

While the ratio is manageable, any increase in debt without proportional equity growth could elevate financial risk, affecting long-term resilience.

Kafrit Business Overview & Revenue Model

Company Description

Kafrit Industries (1993) Ltd develops, manufactures, and sells customized masterbatches and compounds for the plastic industry in Israel and internationally. The company's product portfolio includes agricultural films, BOPE and BOPP films, injection molding and extrusion-blow molding, pipes and sheets, and polycarbonate and PMMA sheets, as well as fibers, fabric, and nonwoven products. It also offers polyethylene and polypropylene films, reclosable and conpeel, ecocell, foaming agent, and antioxidants. The company was founded in 1973 and is based in Sha'ar HaNegev, Israel.

How the Company Makes Money

Kafrit generates revenue primarily through the sale of its thermoplastic masterbatches and compounds. These products are essential additives used by manufacturers to improve the properties of plastic products, such as UV resistance, flame retardancy, and color enhancement. The company's key revenue streams include direct sales to manufacturers in various industries such as agriculture, automotive, and packaging. Significant partnerships with industry leaders and continuous investment in research and development also play a crucial role in Kafrit's ability to innovate and maintain a competitive edge, thereby contributing to its earnings.

Kafrit Financial Statement Overview

Summary

Kafrit demonstrates strong financial health with impressive revenue growth and profitability. The company maintains a stable balance sheet with a prudent capital structure, although rising debt levels warrant attention. Cash flow management has improved, supporting the company's growth trajectory and operational efficiency.

Income Statement

Kafrit's income statement shows strong revenue growth, particularly in the TTM period with a 39.3% increase. The company maintains solid profitability with a gross profit margin of 22.5% and a net profit margin of 4.96% in the TTM. EBIT and EBITDA margins are also healthy at 9.55% and 14.06%, respectively. These metrics indicate robust operational efficiency and profitability, although the net profit margin has slightly decreased compared to the previous year.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.81 in the TTM, showing a slight improvement from the previous year. The return on equity is strong at 12.52%, indicating effective use of equity to generate profits. The equity ratio stands at 46.7%, suggesting a balanced capital structure. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Kafrit's cash flow statement highlights a positive trend in free cash flow growth, with a 9.15% increase in the TTM. The operating cash flow to net income ratio is 0.20, and the free cash flow to net income ratio is 0.64, indicating efficient cash generation relative to net income. The company has improved its cash flow management significantly compared to previous years, enhancing its financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.35B	1.12B	1.06B	1.03B	846.66M
Gross Profit	303.07M	303.92M	223.79M	192.74M	192.79M	173.89M
EBITDA	196.50M	181.81M	118.55M	102.51M	119.71M	94.62M
Net Income	70.06M	71.46M	46.88M	44.39M	64.94M	43.21M
Balance Sheet
Total Assets	1.18B	1.17B	931.57M	857.44M	753.46M	642.71M
Cash, Cash Equivalents and Short-Term Investments	40.91M	31.33M	42.67M	36.96M	18.66M	31.51M
Total Debt	433.42M	449.09M	296.13M	271.18M	213.76M	178.71M
Total Liabilities	627.83M	638.06M	444.92M	417.32M	361.68M	285.56M
Stockholders Equity	549.30M	528.52M	486.65M	440.13M	391.79M	357.15M
Cash Flow
Free Cash Flow	69.88M	65.74M	66.62M	49.94M	-545.00K	47.62M
Operating Cash Flow	113.95M	108.46M	111.47M	103.07M	25.80M	69.28M
Investing Cash Flow	-53.92M	-223.33M	-92.91M	-96.73M	-60.69M	-21.18M
Financing Cash Flow	-45.59M	104.19M	-13.40M	10.89M	22.59M	-57.22M

Kafrit Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2766.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:KAFR, the sentiment is Negative. The current price of 2766 is below the 20-day moving average (MA) of 3007.00, below the 50-day MA of 3016.62, and below the 200-day MA of 2982.49, indicating a bearish trend. The MACD of -68.94 indicates Positive momentum. The RSI at 31.44 is Neutral, neither overbought nor oversold. The STOCH value of 21.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:KAFR.

Kafrit Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAFR	67 Neutral	748.68M	10.66	―	2.64%	-0.71%	2.35%
POLP	67 Neutral	1.20B	16.82	―	3.83%	-6.28%	-41.92%
AFHL	65 Neutral	1.56B	23.11	―	1.30%	-8.18%	329.99%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%