Max Stock (MAXO) AI Stock Analysis

• Market Cap: ₪3.94B
• Dividend Yield: 3.06%
• Average Volume (3M): 284.53K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.56
• Revenue Growth: 9.97%
• EPS Growth: 15.86%
• Country: IL
• Employees: 2,146
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Department Stores
• EPS (TTM): 29.00
• Shares Outstanding: 139,771,650
• 10 Day Avg. Volume: 380,818
• 30 Day Avg. Volume: 284,534
• PEG Ratio: 0.46
• Price to Book (P/B): 6.06
• Price to Sales (P/S): 1.23
• P/FCF Ratio: 18.60
• 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: 76 Outperform
• Price Target: 3,168.00 ▲(27.90% Upside)

Max Stock's overall score is driven by strong financial performance and favorable technical indicators, suggesting a positive outlook. The high P/E ratio raises valuation concerns, but the solid dividend yield provides some compensation. The absence of recent earnings call data and notable corporate events means these factors do not influence the score.

Positive Factors

Free Cash Flow Generation

Sustained FCF growth (62.93% TTM) and strong FCF-to-net-income conversion (0.86) indicate durable cash-generation capacity. This supports long-term options: reinvestment in stores/online, debt paydown, or shareholder distributions without relying on volatile capital markets.

High and Improving Margins

Elevated gross margin (43.13%) and improving net margin (8.55%) reflect structural pricing power and operational efficiency. Durable margin expansion increases internal funding for growth, cushions cost shocks, and supports competitive pricing in a discount retail model over the medium term.

Efficient Use of Equity & Business Model

A 44.22% ROE signals effective capital deployment and strong return generation from core retail operations. Coupled with a diversified discount retail model and omnichannel sales, this suggests resilient demand from price-sensitive consumers and efficient asset utilization over multiple cycles.

Negative Factors

High Leverage

A debt-to-equity ratio of 3.22 indicates significant financial leverage, which raises interest and refinancing risk and reduces flexibility for strategic investments. In adverse macro environments or rising rates, leverage could materially constrain capital allocation and stress cash flow.

Low Equity Cushion

An equity ratio of ~19% means a relatively small asset base is financed by shareholders' equity, increasing balance-sheet sensitivity to losses or inventory shocks. This structural reliance on debt amplifies downturn risk and could necessitate costly recapitalization under stress.

Recent Top-Line Slowdown

A TTM revenue rise of only 1.89% signals recent top-line deceleration versus longer-term growth. Slower sales momentum can limit operating leverage benefits, pressure margin sustainability, and constrain the pace at which the company scales fixed-cost investments in stores and digital channels.

Max Stock Business Overview & Revenue Model

Company Description

Max Stock Ltd. operates various discount stores in Israel. Its stores provide products in various categories, including school supplies, disposable dishes, clothing and textiles, arts and crafts, furniture, home accessories and gifts, toys, cleaning products, plasticware, kitchen and cooking utensils, bithdays, and tools and hardware. The company is based in Caesarea, Israel.

How the Company Makes Money

Max Stock generates revenue primarily through direct sales of its products in physical stores and online platforms. The company employs a discount retail model, which allows it to sell products at lower prices than traditional retailers, attracting price-sensitive customers. Key revenue streams include sales from various product categories, including household items, electronics, and apparel. Additionally, Max Stock may benefit from strategic partnerships with suppliers, allowing for better procurement prices and promotional deals, which enhance profit margins. Seasonal promotions and loyalty programs also contribute to increased customer retention and sales volume, further solidifying its revenue base.

Max Stock Financial Statement Overview

Summary

Max Stock exhibits strong financial performance with notable revenue and profit growth, supported by efficient operations and cash flow management. Despite high leverage, the company maintains robust returns on equity, indicating effective use of capital. The overall financial health is positive, with potential risks associated with debt levels.

Income Statement

Max Stock has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) increase of 1.89% and consistent improvement in gross profit margins, reaching 43.13%. The net profit margin has also improved to 8.55%, indicating enhanced profitability. EBIT and EBITDA margins have shown positive trends, reflecting operational efficiency.

Balance Sheet

The company maintains a high debt-to-equity ratio of 3.22, which poses a leverage risk. However, the return on equity is robust at 44.22%, showcasing effective utilization of equity. The equity ratio stands at 19.27%, indicating a moderate reliance on equity financing.

Cash Flow

Max Stock has achieved significant free cash flow growth of 62.93% in the TTM, reflecting strong cash generation capabilities. The operating cash flow to net income ratio is 0.73, indicating healthy cash flow relative to earnings. The free cash flow to net income ratio of 0.86 suggests efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.33B	1.12B	1.05B	976.27M	1.01B
Gross Profit	604.93M	556.10M	468.24M	418.31M	379.27M	358.93M
EBITDA	324.32M	279.94M	226.70M	188.56M	180.49M	194.52M
Net Income	119.88M	108.76M	81.01M	64.16M	68.20M	72.65M
Balance Sheet
Total Assets	1.32B	1.29B	1.11B	995.32M	972.15M	932.72M
Cash, Cash Equivalents and Short-Term Investments	120.72M	97.15M	128.86M	80.53M	50.34M	118.26M
Total Debt	818.50M	794.58M	688.22M	644.88M	643.43M	576.01M
Total Liabilities	1.06B	1.01B	880.30M	781.09M	771.54M	737.13M
Stockholders Equity	253.97M	270.94M	221.70M	202.07M	188.08M	177.27M
Cash Flow
Free Cash Flow	199.89M	88.30M	188.39M	174.26M	6.75M	142.50M
Operating Cash Flow	231.90M	132.27M	219.26M	201.01M	40.14M	160.00M
Investing Cash Flow	-32.31M	-44.15M	-31.85M	-26.65M	-11.60M	-41.36M
Financing Cash Flow	-166.07M	-119.80M	-139.11M	-144.17M	-96.47M	-46.44M

Max Stock Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2477.00
• 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:MAXO, the sentiment is Positive. The current price of 2477 is below the 20-day moving average (MA) of 2831.80, below the 50-day MA of 2620.14, and above the 200-day MA of 2010.58, indicating a bullish trend. The MACD of 52.69 indicates Positive momentum. The RSI at 58.88 is Neutral, neither overbought nor oversold. The STOCH value of 61.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MAXO.

Max Stock Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAXO	76 Outperform	₪3.94B	32.85	―	3.06%	9.97%	15.86%
NTML	73 Outperform	₪3.52B	15.09	―	4.18%	8.53%	39.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLEA	60 Neutral	₪2.19B	10.32	―	8.19%	-2.81%	372.63%