Menif (MNIF) AI Stock Analysis

• Market Cap: ₪1.53B
• Dividend Yield: 4.19%
• Average Volume (3M): 71.44K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.31
• 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)
• Action: Downgraded Date: 01/13/26
• Date: Action: Downgraded 01/13/26

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

Income statement is strong (revenue growth and high margins), but this is outweighed by high leverage (debt ~4.7x equity) and persistently negative operating and free cash flow, increasing funding and liquidity risk.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose to 504.8M (about +6.6% growth), extending a multi-year expansion from 98.2M in 2020. Profitability is a clear strength, with TTM net margin around 34.5% and strong operating profitability (EBIT margin ~44.9%), though margins are lower than the unusually high 2022–2023 levels. Overall: strong earnings power and growth trajectory, but with some margin normalization versus prior peaks.

Balance Sheet

Leverage is the main concern: total debt increased to 3.11B in TTM (Trailing-Twelve-Months) from 2.59B in 2024, and debt relative to equity remains very high (about 4.7x). Equity has grown (656.3M TTM vs 264.5M in 2020), and returns on equity are strong (~28.7% TTM), but the capital structure is aggressive, leaving less flexibility if credit conditions tighten or asset performance weakens.

Cash Flow

Cash generation is weak and consistently negative: operating cash flow is negative across all periods shown, including -549.3M in TTM (Trailing-Twelve-Months) and -422.0M in 2024, with free cash flow similarly negative. The recent trend also deteriorated (TTM free cash flow growth about -15.5%). Despite strong reported earnings, the ongoing cash outflows increase reliance on funding and raise execution/liquidity risk.

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: Negative
• Last Price: 2498.00
• 50DMA: Negative
• 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:MNIF, the sentiment is Negative. The current price of 2498 is below the 20-day moving average (MA) of 2586.00, below the 50-day MA of 2550.80, and above the 200-day MA of 2258.68, indicating a neutral trend. The MACD of 13.96 indicates Positive momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 29.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₪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%
MNIF	66 Neutral	₪1.53B	8.67	―	4.19%	25.72%	21.70%
NAWI	63 Neutral	₪1.79B	7.73	―	6.49%	33.06%	59.60%
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%