Michlol Fin (MCLL) AI Stock Analysis

• Market Cap: ₪756.61M
• Dividend Yield: 1.53%
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.79
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 36
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 31.60
• Shares Outstanding: 49,226,420
• 10 Day Avg. Volume: 5,716
• 30 Day Avg. Volume: 3,851
• PEG Ratio: 0.41
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 2.12
• P/FCF Ratio: -2.30
• 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: 58 Neutral
• Price Target: 1,593.00 ▲(4.12% Upside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is held back primarily by weak cash generation and high leverage despite strong reported profitability. Technicals are supportive with price above major moving averages and positive momentum, while valuation appears reasonable with a modest dividend yield.

Positive Factors

High Profitability Margins

Sustained high operating and net margins indicate durable pricing power and an efficient cost base. Over 2-6 months this supports reinvestment in technology and client service, funds for strategic initiatives, and resilience to revenue shocks versus lower‑margin peers.

Diversified Fee-Based Business Model

A mix of recurring management fees, performance fees and consultancy reduces revenue concentration risk and promotes predictable cash flow profiles. Long-term partnerships and tech-enabled solutions improve client retention and scalability of advisory services.

Revenue Growth and Solid ROE

Multi-year revenue expansion combined with ~15% ROE signals the business can generate attractive shareholder returns and reinvestment capacity. These durable trends support expansion of advisory offerings and sustained competitive positioning.

Negative Factors

Very High Leverage

A debt-to-equity ratio near 5x materially constrains financial flexibility. Over the medium term this raises refinancing and interest rate sensitivity, limits ability to invest organically or by acquisition, and elevates downside risk if credit conditions tighten.

Negative Operating and Free Cash Flow

Repeatedly negative operating and free cash flow despite reported profits indicates weak cash conversion and potential earnings quality issues. This structural cash shortfall requires external funding, constraining capital allocation and deleveraging options.

Worsening Capital Structure and Profitability Volatility

Rising leverage alongside volatile margins makes future performance less predictable. Over months this increases refinancing risk and may raise funding costs, complicating strategic planning and undermining the sustainability of high reported margins.

Michlol Fin Business Overview & Revenue Model

Company Description

Michlol Finance Ltd, through its subsidiary, engages in financing and managing construction projects in Israel. It offers finance to entrepreneurs in the field of residential real estate through a complex of real estate; and provides credit to medium and small business corporations. The company was incorporated in 2017 and is based in Bnei Brak, Israel.

How the Company Makes Money

Michlol Fin generates revenue through multiple channels. Its primary revenue streams include management fees from assets under management (AUM), which are charged to clients for the ongoing management and advisory services provided. Additionally, the company earns performance fees based on the investment returns generated for clients above a predetermined benchmark. MCLL also generates income through consultancy services, providing tailored financial advice and strategic planning for corporate clients. Significant partnerships with financial institutions and technology providers enhance MCLL's service offerings and operational efficiency, further contributing to its revenue. The company's focus on expanding its client base and enhancing service delivery through innovative solutions plays a critical role in sustaining its earnings.

Michlol Fin Financial Statement Overview

Summary

Profitability is strong (TTM net margin ~23%, EBIT margin ~44%) and revenue has grown since 2020, but the overall financial quality is constrained by very high leverage (debt-to-equity ~5.0x) and materially negative operating/free cash flow in TTM (about -169M), which raises funding and balance-sheet risk.

Income Statement

Profitability is a clear strength: TTM (Trailing-Twelve-Months) net margin is ~23% with strong operating profitability (EBIT margin ~44%), and profits have stayed positive across the last several years. Revenue has also expanded materially since 2020, though the most recent top-line growth is modest (TTM ~4.5% vs. 2024 ~0.1%). The main watch-outs are volatility in reported profitability metrics across years (notably unusually high gross margin levels in some periods) and a slight dip in net margin versus 2024, suggesting earnings quality and consistency should be monitored.

Balance Sheet

Leverage is the key constraint. Debt has risen to ~1.70B in TTM (Trailing-Twelve-Months) and the debt load remains high relative to equity (debt-to-equity ~5.0x), up from ~4.1x in 2024. While returns on equity are solid (TTM ~15%), the capital structure leaves less flexibility if credit conditions tighten or asset quality weakens. Total assets have grown, but the balance sheet is meaningfully debt-heavy for the level of equity.

Cash Flow

Cash generation is the weakest area. Operating cash flow and free cash flow are materially negative in TTM (Trailing-Twelve-Months) (about -169M each) and were also negative in 2024, reversing the positive cash generation seen in 2023. Free cash flow growth is negative in the most recent periods, signaling deteriorating cash conversion. While net income is positive, the repeated negative cash flow profile raises concerns about funding needs and sustainability without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	209.23M	203.43M	182.52M	68.65M	46.22M	9.24M
Gross Profit	130.91M	106.59M	175.59M	68.65M	34.59M	2.45M
EBITDA	94.74M	69.18M	140.01M	0.00	11.82M	-2.67M
Net Income	48.65M	50.93M	41.02M	26.44M	5.95M	-1.74M
Balance Sheet
Total Assets	2.13B	1.63B	1.61B	1.11B	716.47M	274.75M
Cash, Cash Equivalents and Short-Term Investments	30.32M	49.32M	51.43M	11.54M	6.31M	4.77M
Total Debt	1.70B	1.25B	1.17B	841.77M	472.11M	184.72M
Total Liabilities	1.79B	1.33B	1.35B	906.84M	549.60M	262.33M
Stockholders Equity	338.30M	305.73M	258.38M	198.97M	166.86M	12.41M
Cash Flow
Free Cash Flow	-169.81M	-187.88M	64.35M	-146.64M	-97.66M	-4.39M
Operating Cash Flow	-169.38M	-187.66M	64.65M	-146.30M	-96.89M	-4.29M
Investing Cash Flow	-150.88M	6.46M	-300.00K	-2.84M	-7.27M	-96.00K
Financing Cash Flow	317.59M	179.09M	-24.46M	154.37M	105.70M	7.33M

Michlol Fin Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1530.00
• 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:MCLL, the sentiment is Neutral. The current price of 1530 is below the 20-day moving average (MA) of 1563.25, above the 50-day MA of 1525.74, and above the 200-day MA of 1412.72, indicating a neutral trend. The MACD of 13.98 indicates Positive momentum. The RSI at 47.97 is Neutral, neither overbought nor oversold. The STOCH value of 37.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:MCLL.

Michlol Fin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEN	75 Outperform	₪771.00M	10.84	―	5.35%	25.73%	45.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JCFN	60 Neutral	₪851.10M	10.65	―	―	29.67%	15.36%
MCLL	58 Neutral	₪756.61M	13.72	―	1.53%	―	―
DIFI	51 Neutral	₪1.51B	11.67	―	5.03%	0.10%	15.03%