Menif (MNIF) AI Stock Analysis

• Market Cap: ₪1.61B
• Dividend Yield: 4.19%
• Average Volume (3M): 71.44K
• Price to Earnings (P/E): 8.0
• Beta (1Y): 1.27
• 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: 61,200,720
• 10 Day Avg. Volume: 55,098
• 30 Day Avg. Volume: 71,438
• PEG Ratio: 0.35
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 2.78
• P/FCF Ratio: 6.48
• 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: 70 Outperform
• Price Target: 3,039.00 ▲(21.66% Upside)
• Action: Upgraded Date: 03/06/26
• Date: Action: Upgraded 03/06/26

The score is driven by attractive valuation (low P/E and a ~3.64% dividend yield) and strong technical momentum (price above major moving averages with positive MACD). These positives are tempered by financial risk from high leverage and a limited track record of consistent cash generation despite the 2025 cash-flow rebound.

Positive Factors

Revenue Growth

Consistent multi-year revenue expansion indicates durable demand and effective go-to-market execution. Repeated annual growth to 2025 supports structural market penetration, giving the company a larger base to convert into sustainable earnings and to invest in product or service scale.

High Profitability

Sustained high operating and net margins demonstrate strong unit economics and pricing power in the core business. Higher profitability improves internal cash generation potential and resilience to competitive pressure, supporting reinvestment and return on invested capital over the medium term.

Strong Return on Equity

A ~27% ROE across recent years reflects efficient use of equity and the business' ability to generate shareholder returns from operations. When driven by operating performance, elevated ROE supports long-term capital allocation and investor confidence in management execution.

Negative Factors

High Leverage

Very high debt relative to equity materially limits financial flexibility and raises solvency risk. In a downturn or tighter credit conditions, elevated leverage can force asset sales, increase funding costs, and constrain investment, making the company more vulnerable over the medium term.

Inconsistent Cash Generation

A short history of negative operating and free cash flows until 2025 signals execution and conversion risk. The 2025 improvement is encouraging but not yet a long track record; inconsistent cash conversion heightens refinancing risk and reduces predictable internal funding for growth.

Margin Volatility / One-offs

Significant swings in margins and an anomalous 2025 profitability suggest results may be influenced by revenue mix, accounting items, or one-offs. This undermines earnings quality and makes forecasting and long-term planning less reliable for stakeholders and lenders.

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

Strong revenue growth and high profitability support the score, but it is heavily offset by elevated leverage (debt-to-equity above ~4x in 2022–2025) and historically weak/volatile cash generation (negative operating and free cash flow through 2024, only turning positive in 2025).

Income Statement

Revenue scaled sharply from 2020 to 2025 (annual revenue growth positive each year, peaking in 2025), indicating strong business momentum. Profitability is also strong, with high operating and net margins across the period and a step-up in 2025 operating profitability versus prior years. The key watch-out is volatility in reported margins (notably the unusually high 2025 gross profitability versus prior years), which suggests results may be influenced by mix, accounting items, or one-offs.

Balance Sheet

The balance sheet is heavily leveraged: debt-to-equity sits above ~4x in 2022–2025 (and rose meaningfully from 2020–2021 levels), which limits financial flexibility and can amplify downside risk in a credit cycle. Equity has grown, and return on equity is consistently strong (roughly ~27% in recent years), but that strength is partly leverage-assisted. Overall, solvency risk looks elevated due to the high debt load relative to equity.

Cash Flow

Cash generation is the weakest area: operating cash flow was negative from 2020 through 2024 and then turned positive in 2025, showing improvement but not yet a long track record of consistency. Free cash flow also flipped positive in 2025 after multiple years of negative results, and the 2025 free cash flow level is roughly in line with net income. However, the sharp swing in free cash flow growth and the history of cash outflows highlight higher variability and execution risk.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	532.95M	423.29M	331.91M	183.94M	122.05M
Gross Profit	530.88M	229.40M	180.44M	128.34M	92.20M
EBITDA	469.16M	198.06M	163.25M	122.31M	74.09M
Net Income	186.22M	151.88M	124.42M	92.92M	55.17M
Balance Sheet
Total Assets	3.75B	3.22B	2.60B	2.01B	1.10B
Cash, Cash Equivalents and Short-Term Investments	42.27M	25.43M	22.10M	21.09M	31.80M
Total Debt	2.99B	2.59B	2.11B	1.64B	765.45M
Total Liabilities	3.06B	2.66B	2.15B	1.66B	793.09M
Stockholders Equity	689.86M	562.25M	450.00M	351.19M	301.54M
Cash Flow
Free Cash Flow	228.79M	-422.08M	-427.98M	-820.89M	-174.85M
Operating Cash Flow	228.83M	-422.00M	-427.97M	-820.85M	-173.66M
Investing Cash Flow	-552.89M	-88.00K	-7.00K	-45.00K	-1.18M
Financing Cash Flow	340.90M	425.41M	428.99M	810.17M	176.93M

Menif Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2498.00
• 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:MNIF, the sentiment is Positive. The current price of 2498 is below the 20-day moving average (MA) of 2605.09, below the 50-day MA of 2564.95, and above the 200-day MA of 2252.98, indicating a bullish trend. The MACD of 27.35 indicates Positive momentum. The RSI at 53.95 is Neutral, neither overbought nor oversold. The STOCH value of 41.40 is Neutral, 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
MNIF	70 Outperform	₪1.61B	7.96	―	4.19%	25.72%	21.70%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
NAWI	63 Neutral	₪1.76B	3.99	―	6.49%	33.06%	59.60%
MCLL	58 Neutral	₪795.01M	11.79	―	1.53%	―	―
JCFN	55 Neutral	₪814.72M	10.01	―	―	29.67%	15.36%
PEN	54 Neutral	₪668.54M	10.63	―	5.35%	25.73%	45.19%
DIFI	51 Neutral	₪1.47B	5.48	―	5.03%	0.10%	15.03%