Menif (MNIF) AI Stock Analysis

• Market Cap: 1.63B
• Dividend Yield: 4.19%
• Average Volume (3M): 71.44K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 1.29
• 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: 60,929,940
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 2,806.00 ▲(12.33% Upside)

The score is pulled down primarily by financial risk—heavy leverage and consistently negative operating/free cash flow despite strong profitability. Offsetting this, technicals show a clear uptrend with positive momentum, and valuation appears favorable with a low P/E and solid dividend yield.

Positive Factors

High profitability and operating margins

Sustained high net and EBIT margins indicate durable earnings power and operational efficiency. This margin profile supports reinvestment, potential dividend capacity and cushions returns during cyclical slowdowns, strengthening long-term competitive positioning.

Multi-year revenue growth and scale expansion

Consistent multi-year revenue expansion reflects successful product adoption and market penetration. Growing scale improves unit economics, supports platform investments and partner negotiations, and underpins durable top-line momentum over the next several quarters.

Strong return on equity and growing equity base

High ROE alongside a materially larger equity base signals efficient capital deployment and retained earnings funding growth. A growing equity cushion enhances solvency and provides room for strategic investments without immediate dilution.

Negative Factors

Very high financial leverage

Debt roughly 4.7x equity creates substantial refinancing and interest-rate sensitivity. High leverage limits strategic flexibility, raises default risk if earnings or cash flows falter, and increases vulnerability to tighter credit conditions over the medium term.

Persistent negative operating and free cash flow

Ongoing negative OCF and FCF mean reported profits are not converting to cash, forcing reliance on external financing. This undermines self-funded growth, elevates liquidity and execution risk, and can constrain capital allocation over multiple quarters.

Margin normalization from peak levels

A reversion from historically elevated margins suggests earlier outperformance may have been cyclical or nonrecurring. If structural pressures or competition persist, sustainable margin compression could reduce long-term cash flow and reinvestment capacity.

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 demonstrates strong revenue and profit growth, with a 123.5% increase in revenue and improved profit margins. However, high leverage and negative cash flows pose financial risks. The company needs to improve cash flow management and reduce debt to enhance financial stability.

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	504.80M	423.29M	331.91M	183.94M	122.05M	98.16M
Gross Profit	274.87M	229.40M	180.44M	128.34M	92.20M	82.27M
EBITDA	227.15M	198.06M	163.25M	122.31M	74.09M	17.62M
Net Income	174.11M	151.88M	124.42M	92.92M	55.17M	8.12M
Balance Sheet
Total Assets	3.82B	3.22B	2.60B	2.01B	1.10B	838.29M
Cash, Cash Equivalents and Short-Term Investments	26.66M	25.43M	22.10M	21.09M	31.80M	29.71M
Total Debt	3.11B	2.59B	2.11B	1.64B	765.45M	555.82M
Total Liabilities	3.16B	2.66B	2.15B	1.66B	793.09M	573.06M
Stockholders Equity	656.31M	562.25M	450.00M	351.19M	301.54M	264.46M
Cash Flow
Free Cash Flow	-549.30M	-422.08M	-427.98M	-820.89M	-174.85M	-252.23M
Operating Cash Flow	-549.27M	-422.00M	-427.97M	-820.85M	-173.66M	-252.23M
Investing Cash Flow	-35.00K	-88.00K	-7.00K	-45.00K	-1.18M	0.00
Financing Cash Flow	554.58M	425.41M	428.99M	810.17M	176.93M	279.98M

Menif Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2498.00
• 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 2498 is below the 20-day moving average (MA) of 2536.95, above the 50-day MA of 2381.37, and above the 200-day MA of 2134.07, indicating a bullish trend. The MACD of 88.95 indicates Negative momentum. The RSI at 68.98 is Neutral, neither overbought nor oversold. The STOCH value of 91.31 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
PEN	75 Outperform	821.44M	11.55	―	5.35%	25.73%	45.19%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MNIF	66 Neutral	1.63B	9.27	―	4.19%	25.72%	21.70%
NAWI	63 Neutral	1.76B	7.58	―	6.49%	33.06%	59.60%
JCFN	60 Neutral	843.48M	10.71	―	―	29.67%	15.36%
MCLL	58 Neutral	716.59M	13.39	―	1.53%	―	―
DIFI	51 Neutral	1.52B	11.80	―	5.03%	0.10%	15.03%