Melisron (MLSR) AI Stock Analysis

• Market Cap: ₪20.13B
• Dividend Yield: 1.89%
• Average Volume (3M): 55.45K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.31
• Revenue Growth: 15.31%
• EPS Growth: 17.50%
• Country: IL
• Employees: 334
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 600.10
• Shares Outstanding: 47,692,142
• 10 Day Avg. Volume: 66,177
• 30 Day Avg. Volume: 55,445
• PEG Ratio: 0.21
• Price to Book (P/B): 1.32
• Price to Sales (P/S): 7.64
• P/FCF Ratio: 14.10
• 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: 66 Neutral
• Price Target: 47,952.00 ▲(12.43% Upside)

Melisron's overall score is driven by strong financial performance, despite cash flow challenges. The stock's technical indicators suggest bearish momentum, while its valuation is reasonable. The absence of earnings call and corporate events data limits further insights.

Positive Factors

High Profit Margins

Sustained very high gross and net margins indicate durable operating efficiency and pricing power in Melisron’s property portfolio. High margins support reinvestment, debt service and distributions over time, reducing sensitivity to moderate revenue volatility.

Consistent Revenue Growth

Double-digit revenue growth reflects successful leasing, portfolio expansion or rental rate improvement. Persistent top-line growth supports economies of scale, strengthens tenant bargaining power, and underpins long-term cash flows for development and asset maintenance.

Strong FCF-to-Profit Conversion

A near-100% conversion of net income into free cash flow indicates effective cash generation from operations and translated earnings. Over months, this supports capital expenditure, development activity and obligations despite cyclical rent timing differences.

Negative Factors

Sharp Decline in FCF Growth

An 86% drop in free cash flow growth signals potential liquidity stress and weaker near-term cash availability for development, distributions or debt repayment. Persisting declines reduce financial flexibility and can force tighter capital allocation decisions.

Elevated Leverage Reliance

A debt-to-equity ratio above 1 and a low equity ratio indicate material reliance on debt financing. This heightens interest-rate and refinancing risk, constrains nimble capital allocation, and increases vulnerability to macro downturns in real estate demand.

Margin Compression Risk

A recent decline in gross margin implies emerging cost pressures or less favorable tenant mix. If structural (higher operating costs or weaker rents), margin compression would erode the company’s strong profitability advantage and limit funds available for growth and debt service.

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 generates revenue primarily through leasing its properties to commercial tenants, which includes retail chains, office spaces, and various service providers. The company benefits from steady rental income, which is supplemented by additional earnings from property management services. Key revenue streams include long-term leases, short-term rentals, and ancillary services such as parking and advertising spaces within its properties. Furthermore, Melisron engages in property development, which allows them to increase their asset base and generate additional revenue upon leasing or selling newly developed properties. The company has also formed strategic partnerships with various retailers and service providers to enhance its offerings and maximize occupancy rates, further contributing to its earnings.

Melisron Financial Statement Overview

Summary

Melisron shows strong profitability and revenue growth with efficient operations. However, cash flow challenges due to declining free cash flow growth could impact future liquidity. The balance sheet is stable but relies on debt.

Income Statement

Melisron has demonstrated strong revenue growth with a 3.57% increase in TTM, supported by robust gross and net profit margins of 73.67% and 75.18% respectively. The EBIT and EBITDA margins are exceptionally high, indicating efficient operations. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company maintains a stable balance sheet with a moderate debt-to-equity ratio of 1.26, reflecting manageable leverage. Return on equity is healthy at 13.65%, indicating effective use of shareholder funds. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Melisron's cash flow performance shows a significant decline in free cash flow growth by 86.06% in TTM, which is concerning. The operating cash flow to net income ratio is low at 0.20, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains strong at 98.76%, suggesting efficient cash generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.21B	2.02B	1.80B	1.67B	1.42B	1.11B
Gross Profit	1.59B	1.52B	1.34B	1.24B	1.05B	792.00M
EBITDA	2.73B	2.67B	1.95B	2.46B	2.44B	-40.00M
Net Income	1.58B	1.53B	1.04B	1.39B	1.47B	-243.00M
Balance Sheet
Total Assets	33.09B	31.27B	27.12B	25.52B	24.54B	21.39B
Cash, Cash Equivalents and Short-Term Investments	749.00M	1.24B	625.00M	868.00M	1.41B	1.29B
Total Debt	14.77B	14.15B	11.95B	11.20B	11.93B	10.74B
Total Liabilities	20.10B	18.96B	16.07B	15.15B	15.44B	13.83B
Stockholders Equity	12.40B	11.71B	10.55B	9.88B	8.67B	7.19B
Cash Flow
Free Cash Flow	133.00M	1.09B	956.00M	905.00M	727.00M	307.00M
Operating Cash Flow	145.00M	1.10B	979.00M	927.00M	734.00M	309.00M
Investing Cash Flow	-1.03B	-1.08B	-978.00M	-1.18B	-543.00M	-327.00M
Financing Cash Flow	571.00M	210.00M	81.00M	-259.00M	-100.00M	-12.00M

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 43262.00, above the 50-day MA of 41826.20, and above the 200-day MA of 38282.80, indicating a neutral trend. The MACD of -139.41 indicates Positive momentum. The RSI at 48.33 is Neutral, neither overbought nor oversold. The STOCH value of 51.36 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
AZRG	78 Outperform	₪52.26B	31.75	6.64%	2.02%	-12.35%	-20.90%
AFPR	75 Outperform	₪10.20B	12.05	―	―	―	―
BIG	72 Outperform	₪19.51B	12.16	―	1.08%	12.23%	9.49%
AMOT	70 Outperform	₪12.19B	14.40	―	5.22%	3.63%	-10.21%
MVNE	69 Neutral	₪10.81B	15.92	―	1.10%	11.13%	110.98%
MLSR	66 Neutral	₪20.13B	12.74	―	1.89%	15.31%	17.50%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%