Melisron (MLSR) AI Stock Analysis

• Market Cap: ₪21.08B
• Dividend Yield: 1.89%
• Average Volume (3M): 55.45K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.41
• Revenue Growth: 15.31%
• EPS Growth: 17.50%
• Country: IL
• Employees: 334
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 1882.10
• Shares Outstanding: 47,692,142
• 10 Day Avg. Volume: 66,177
• 30 Day Avg. Volume: 55,445
• PEG Ratio: 0.50
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 8.68
• P/FCF Ratio: 70.55
• 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: 65 Neutral
• Price Target: 47,676.00 ▲(11.78% Upside)
• Action: Reiterated Date: 03/19/26
• Date: Action: Reiterated 03/19/26

The score is primarily supported by strong reported growth and profitability with an expanding asset/equity base, but is held back by meaningful leverage and cash-flow volatility (notably the 2025 operating cash flow decline). Technicals are trend-positive but momentum is mixed, and valuation appears moderate with a modest dividend yield.

Positive Factors

Revenue acceleration

A durable rebound in top-line growth indicates successful monetization of assets, stronger leasing activity or completed developments increasing NOI. Sustained higher revenue supports long-term cash flow capacity for reinvestment and servicing obligations if the growth is maintained across leasing cycles.

Asset-backed balance sheet

Growing asset base and materially increased equity provide a structural cushion for cyclical real estate risks, support borrowing capacity for accretive development, and reduce insolvency risk versus peers with weaker equity, underpinning long-term operational resilience.

Sustained high reported margins

Consistently high reported margins imply operational efficiency and pricing power in core mall and retail leasing activities, which supports durable free cash generation and the ability to absorb lease downtime or capex for asset upgrades over multiple periods.

Negative Factors

Material leverage

A relatively high debt-to-equity ratio leaves the company sensitive to interest-rate moves and refinancing risk. In a capital-intensive real estate business, this level of leverage can constrain strategic flexibility and increase vulnerability during market or cash-flow stress.

Volatile operating cash flow

Sharp year-to-year swings in operating cash flow reduce predictability of funds available for debt service, dividends and development. Persistent volatility suggests timing, working-capital or non-recurring impacts that weaken reliability of reported profits as a gauge of liquidity.

Earnings-quality / one-off concerns

Unusually high operating profit metrics and instances where operating profit eclipses revenue indicate non-recurring gains or accounting effects. This undermines confidence in recurring earnings and complicates forecasting of sustainable margins and cash conversion.

Melisron Business Overview & Revenue Model

Company Description

Melisron Ltd. operates as a commercial real estate company in Israel. The company engages in the rental, management, maintenance, operation, construction, and improvement of commercial and office spaces. It develops malls and outlets, neighborhood centers, high-tech campuses, and office buildings, as well as shopping, eating, and entertainment spaces. The company was incorporated in 1987 and is based in Herzliya, Israel. Melisron Ltd. is a subsidiary of Ofer Investments Ltd.

How the Company Makes Money

Melisron makes money primarily from recurring rental and related income generated by its income-producing commercial real estate portfolio, especially shopping malls. Key revenue streams typically include: (1) base rent paid by tenants under lease agreements; (2) variable rent components linked to tenant sales (where leases include turnover/percentage rent terms); and (3) property operating income such as charges recovered from tenants for common-area maintenance, security, cleaning, utilities in common spaces, parking operations, and other mall services (to the extent these are billed as reimbursements/fees and recognized as revenue). In addition, the company can generate earnings from (4) development, redevelopment, and expansion activities—creating value by improving properties, increasing leasable area, raising occupancy, and re-leasing space at higher rents—followed by monetization through higher ongoing net operating income; and (5) occasional disposals of investment properties, which may produce gains when assets are sold above carrying values (the timing of such gains is non-recurring). The company’s earnings are influenced by occupancy levels, tenant mix and leasing spreads (new/renewal rent vs. expiring rent), foot traffic and retail sales trends (affecting variable rent), and financing costs given the capital-intensive nature of real estate ownership. Information on specific material partnerships is null.

Melisron Financial Statement Overview

Summary

Strong post-2020 rebound with very rapid 2025 revenue growth and high reported profitability, alongside expanding assets and equity. Offsetting this, leverage is material (debt-to-equity ~1.17x) and cash generation is volatile, highlighted by the sharp drop in 2025 operating cash flow; unusually elevated operating profitability also raises one-off/volatility risk.

Income Statement

Revenue has accelerated strongly in 2025 (annual growth of 271.9% vs. 11.8% in 2024 and 7.8% in 2023), showing a clear rebound after the 2020 downturn. Profitability is very strong on the reported figures, with consistently high gross and net margins from 2021–2025, and a return to sustained profitability after 2020’s loss. Key watchout: margins and operating profitability appear unusually elevated (e.g., operating profit exceeding revenue in several years), which can signal one-off items or accounting effects that may not repeat, increasing earnings volatility risk.

Balance Sheet

The balance sheet is asset-backed (total assets rising from 21.4B in 2020 to 34.8B in 2025), and equity has grown meaningfully over time (7.2B to 13.2B), supporting stability. However, leverage remains material: total debt increased to 15.4B in 2025 and debt-to-equity sits around ~1.17x (generally 1.13x–1.38x over 2021–2025), which can pressure flexibility in a higher-rate environment. Returns on equity are solid (roughly 10%–17% in most years post-2020), but the capital structure still leaves the company more exposed to refinancing and property-cycle swings than a lower-leverage peer.

Cash Flow

Free cash flow conversion versus net income looks strong in the data (close to ~95%–99% across years), which is supportive of earnings quality. The main concern is volatility and weaker cash generation in 2025: operating cash flow fell sharply to 294M from 1.10B in 2024, and operating cash flow relative to revenue is low in 2025 versus prior years, suggesting working-capital or timing impacts. While free cash flow growth is reported as very strong in 2025, the year-to-year swings (including the 2024 step-down and 2025 operating cash flow drop) indicate cash generation is less predictable than profits imply.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.27B	2.02B	1.80B	1.67B	1.42B
Gross Profit	1.59B	1.52B	1.34B	1.24B	1.05B
EBITDA	3.02B	2.67B	1.95B	2.46B	2.44B
Net Income	1.86B	1.53B	1.04B	1.39B	1.47B
Balance Sheet
Total Assets	34.84B	31.27B	27.12B	25.52B	24.54B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.24B	625.00M	868.00M	1.41B
Total Debt	15.42B	14.15B	11.95B	11.20B	11.93B
Total Liabilities	21.02B	18.96B	16.07B	15.15B	15.44B
Stockholders Equity	13.21B	11.71B	10.55B	9.88B	8.67B
Cash Flow
Free Cash Flow	279.00M	1.09B	956.00M	905.00M	727.00M
Operating Cash Flow	294.00M	1.10B	979.00M	927.00M	734.00M
Investing Cash Flow	-535.00M	-1.08B	-978.00M	-1.18B	-543.00M
Financing Cash Flow	574.00M	210.00M	81.00M	-259.00M	-100.00M

Melisron Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42650.00
• 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:MLSR, the sentiment is Positive. The current price of 42650 is below the 20-day moving average (MA) of 43827.50, below the 50-day MA of 43392.20, and above the 200-day MA of 40171.85, indicating a bullish trend. The MACD of 66.04 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 64.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MLSR.

Melisron Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMOT	71 Outperform	₪10.07B	15.41	―	5.22%	3.63%	-10.21%
MVNE	69 Neutral	₪10.17B	17.94	―	1.10%	11.13%	110.98%
BIG	68 Neutral	₪19.50B	10.73	―	1.08%	12.23%	9.49%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MLSR	65 Neutral	₪21.08B	10.60	―	1.89%	15.31%	17.50%
AZRG	65 Neutral	₪53.89B	28.53	6.64%	2.02%	-12.35%	-20.90%
AFPR	65 Neutral	₪9.74B	9.71	―	―	―	―