Kafrit (KAFR) AI Stock Analysis

• Market Cap: 660.01M
• Dividend Yield: 288.71%
• Average Volume (3M): 4.92K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.82
• 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: 6,023
• 30 Day Avg. Volume: 4,923
• PEG Ratio: -1.63
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.36
• 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

• Rating: 80 Outperform
• Price Target: 3,397.00 ▲(23.66%Upside)

Kafrit's overall stock score reflects its strong financial performance and attractive valuation, with financial health being a significant strength. The technical analysis suggests a neutral to slightly bearish short-term outlook. The absence of earnings call data and corporate events did not impact the score calculation.

Kafrit Business Overview & Revenue Model

Company Description

Kafrit (KAFR) is a global leader in the production of high-quality thermoplastic masterbatches and compounds. The company operates in the plastics industry, providing innovative solutions for a variety of applications including agriculture, packaging, automotive, construction, and textiles. With a focus on sustainability and technological advancement, Kafrit offers a diverse range of products that enhance the performance and functionality of plastic materials.

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 exhibits strong financial health with consistent revenue growth and stable profitability. The balance sheet is solid with manageable leverage, and the company demonstrates strong cash flow generation. While there are opportunities to further strengthen equity ratios, overall financial performance is robust, positioning Kafrit well in the chemicals - specialty industry.

Income Statement

Kafrit has shown consistent revenue growth over the years, with a strong TTM revenue of 1.36 billion. The gross profit margin stands at 22.5% for TTM, indicating efficient cost management. The net profit margin is 5.0%, reflecting stable profitability. EBIT and EBITDA margins are 8.8% and 14.1% respectively, highlighting robust operational performance. Overall, the company is on a positive growth trajectory with healthy profitability metrics.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 0.81, signifying manageable leverage levels. The return on equity (ROE) is 12.1% for TTM, showcasing effective utilization of shareholder funds. The equity ratio is 45.0%, indicating a solid equity base. While debt levels are under control, there is room for improvement in equity ratios to enhance financial stability.

Cash Flow

Kafrit's cash flow performance is commendable, with a steady free cash flow generation of 64 million in TTM. There is a slight decline in operating cash flow, but the free cash flow to net income ratio remains strong at 0.95, indicating efficient cash conversion. The company maintains a positive operating cash flow to net income ratio, reflecting strong cash-generating ability.

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: Negative
• Last Price: 2747.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2747 is below the 20-day moving average (MA) of 2890.40, below the 50-day MA of 2960.37, and below the 200-day MA of 2928.76, indicating a bearish trend. The MACD of -62.92 indicates Positive momentum. The RSI at 32.86 is Neutral, neither overbought nor oversold. The STOCH value of 16.28 is Positive, 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	80 Outperform	660.01M	9.75		288.71%	15.45%	26.50%
POLP	75 Outperform	1.20B	13.64		333.88%	1.43%	-0.59%
AFHL	70 Outperform	1.03B	17.67		187.06%	-15.70%	3972.94%
Sector *	59 Neutral	AU$1.66B	10.19	11.24%	3.52%	6.75%	3.18%

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.