Menif (MNIF) AI Stock Analysis

• Market Cap: 1.26B
• Dividend Yield: 4.19%
• Average Volume (3M): 71.44K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.39
• Revenue Growth: 25.72%
• EPS Growth: 21.70%
• Country: IL
• Employees: 7
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 77.90
• Shares Outstanding: 60,920,944
• 10 Day Avg. Volume: 55,098
• 30 Day Avg. Volume: 71,438
• PEG Ratio: 0.29
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 2.26
• P/FCF Ratio: -2.27
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: 2,611.00 ▲(8.70% Upside)

Menif's strong financial performance, particularly in revenue and profit growth, is a key strength. The stock's technical indicators suggest bullish momentum, and its valuation metrics indicate potential undervaluation. However, high leverage and negative cash flows are significant risks that need addressing.

Positive Factors

Revenue Growth

The substantial revenue growth indicates robust demand for Menif's products, enhancing its market position and supporting long-term business expansion.

Profit Margins

Improved profit margins reflect effective cost control and pricing strategies, which contribute to sustainable profitability and competitive advantage.

Return on Equity

High return on equity signifies efficient management and strong profitability, indicating the company's ability to generate returns from shareholders' investments.

Negative Factors

High Leverage

High leverage increases financial risk and can limit the company's ability to invest in growth opportunities, affecting long-term stability.

Negative Cash Flow

Negative cash flow suggests potential liquidity issues, which could hinder operational flexibility and the ability to fund future growth initiatives.

Equity Ratio

A low equity ratio may limit financial flexibility and increase reliance on debt, posing risks to financial health and long-term sustainability.

Menif Business Overview & Revenue Model

Company Description

Menif - Financial Services Ltd provides mezzanine financing for equity to promoters and contractors in the construction sector in Israel and internationally. The company was founded in 1999 and is based in Ramat Gan, Israel.

How the Company Makes Money

Menif generates revenue through multiple streams, primarily from transaction fees associated with its payment processing services, subscriptions for premium financial management tools, and interest on loans provided via its digital banking platform. Additionally, the company partners with various financial institutions and businesses to offer co-branded services, which contribute to its revenue through shared fees and commissions. Menif also benefits from strategic alliances with technology providers, enhancing its service offerings and expanding its market reach, thereby increasing its earnings potential.

Menif Financial Statement Overview

Summary

Menif shows robust revenue and profit growth, reflecting strong operational performance with a high income statement score. However, high leverage and negative cash flows present potential risks, as indicated by lower balance sheet and cash flow scores.

Income Statement

Menif has demonstrated strong revenue growth, with a significant increase from $189.4M in 2023 to $423.3M in 2024, marking a 123.5% growth rate. The gross profit margin improved to 54.2% in 2024, indicating efficient cost management. The net profit margin also increased to 35.9%, reflecting enhanced profitability. However, the EBIT and EBITDA margins, at 46.7% and 46.8% respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is high at 4.60, indicating significant leverage, which could pose financial risk. However, the return on equity improved to 27.0%, showcasing effective use of equity to generate profits. The equity ratio stands at 17.5%, suggesting a relatively low proportion of equity financing compared to total assets, which may limit financial flexibility.

Cash Flow

Menif's cash flow situation is concerning, with negative free cash flow of -$422.1M in 2024, although it slightly improved from -$428.0M in 2023. The operating cash flow to net income ratio is negative, indicating that net income is not translating into positive cash flow. The free cash flow to net income ratio is also negative, highlighting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	473.50M	423.29M	331.91M	183.94M	122.05M	98.16M
Gross Profit	257.51M	229.40M	180.44M	128.34M	92.20M	82.27M
EBITDA	216.48M	198.06M	163.25M	122.31M	74.09M	17.62M
Net Income	165.85M	151.88M	124.42M	92.92M	55.17M	8.12M
Balance Sheet
Total Assets	3.75B	3.22B	2.60B	2.01B	1.10B	838.29M
Cash, Cash Equivalents and Short-Term Investments	20.66M	25.43M	22.10M	21.09M	31.80M	29.71M
Total Debt	3.07B	2.59B	2.11B	1.64B	765.45M	555.82M
Total Liabilities	3.13B	2.66B	2.15B	1.66B	793.09M	573.06M
Stockholders Equity	622.68M	562.25M	450.00M	351.19M	301.54M	264.46M
Cash Flow
Free Cash Flow	-649.89M	-422.08M	-427.98M	-820.89M	-174.85M	-252.23M
Operating Cash Flow	-649.85M	-422.00M	-427.97M	-820.85M	-173.66M	-252.23M
Investing Cash Flow	-44.00K	-88.00K	-7.00K	-45.00K	-1.18M	0.00
Financing Cash Flow	636.96M	425.41M	428.99M	810.17M	176.93M	279.98M

Menif Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2402.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MNIF, the sentiment is Positive. The current price of 2402 is above the 20-day moving average (MA) of 2271.96, above the 50-day MA of 2126.15, and above the 200-day MA of 2034.94, indicating a bullish trend. The MACD of 80.06 indicates Negative momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.20 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:MNIF.

Menif Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JCFN	80 Outperform	791.12M	9.93	―	―	29.67%	15.36%
MNIF	78 Outperform	1.26B	7.49	―	4.19%	25.72%	21.70%
PEN	72 Outperform	774.34M	10.88	―	5.21%	25.73%	45.19%
NAWI	72 Outperform	1.72B	10.47	―	6.56%	33.06%	59.60%
DIFI	72 Outperform	1.71B	16.30	―	5.06%	0.10%	15.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MCLL	60 Neutral	536.73M	11.03	―	1.65%	―	―