Nawi (NAWI) AI Stock Analysis

• Market Cap: 1.76B
• Dividend Yield: 6.49%
• Average Volume (3M): 25.07K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.11
• Revenue Growth: 33.06%
• EPS Growth: 59.60%
• Country: IL
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 323.90
• Shares Outstanding: 32,757,980
• 10 Day Avg. Volume: 17,669
• 30 Day Avg. Volume: 25,066
• PEG Ratio: 0.85
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 3.50
• P/FCF Ratio: -5.08
• 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: 63 Neutral
• Price Target: 5,810.00 ▲(5.89% Upside)

The score is held back primarily by financial risk: sharply negative TTM operating/free cash flow alongside high leverage despite strong reported profitability. Offsetting this, technicals are moderately positive with price above key moving averages, and valuation is appealing with a low P/E and high dividend yield.

Positive Factors

High reported profitability and ROE

Sustained high gross and net margins and solid ROE indicate durable operating economics and pricing power in core products. Over 2–6 months this supports reinvestment capacity, competitive positioning and ability to fund strategic initiatives even if growth slows temporarily.

Long-term revenue growth trend

A multi-year revenue growth trend signals persistent end-market demand and successful commercial execution. Consistent top-line expansion supports economies of scale, product adoption, and potential margin improvement, helping stability of cash generation once operational issues are addressed.

Diverse, sustainability-aligned revenue streams

Multiple revenue streams—product sales, recurring installation/maintenance services, government/NGO partnerships and potential licensing—create stability and recurring income. Alignment with structural renewable energy demand lends long-term market tailwinds and partnership opportunities.

Negative Factors

High financial leverage

Elevated debt-to-equity materially increases refinancing, interest-rate and covenant risk. Overcoming operational volatility or funding negative cash flow will require external financing or asset sales, constraining strategic flexibility and amplifying downside in tougher credit conditions.

Negative operating and free cash flow

Persistent negative OCF and FCF undermine self-funding ability, increasing reliance on debt or equity to sustain growth. Given high leverage, weak cash conversion risks liquidity stress, limits capital allocation choices and raises questions about sustainability of reported earnings.

Earnings quality and margin volatility

Unusual margin figures and uneven growth raise concerns about recurring profitability versus accounting effects. If margins reflect one-offs or classification quirks, reported net income may overstate sustainable earnings, complicating forecasting and long-term return expectations.

Nawi Business Overview & Revenue Model

Company Description

Nawi Brothers Group Ltd provides finance and non-bank credit services in Israel. The company's services include real estate initiative financing and completion of equity, import/suppliers financing, credit insurance for companies and businesses, financing for companies and businesses, equipment financing, financing against commercial checks, and bridging loans. It serves corporations, companies, partnerships, licensed dealers, and businessmen in various industries. The company was formerly known as Golden Equity Holdings Ltd. and changed its name to Nawi Brothers Group Ltd in January 2011. Nawi Brothers Group Ltd was incorporated in 1984 and is based in Tel Aviv, Israel.

How the Company Makes Money

Nawi generates revenue through multiple streams, primarily by selling its renewable energy products such as solar panels and energy-efficient appliances directly to consumers and businesses. The company also offers installation and maintenance services, which provide a recurring source of income. Another key revenue stream comes from partnerships with government and non-governmental organizations focused on sustainability initiatives, enabling Nawi to participate in funded projects and grants. Additionally, the company may explore licensing its technology to other manufacturers, further diversifying its income sources. Overall, Nawi's commitment to sustainability resonates with a growing market of environmentally conscious consumers, contributing significantly to its earnings.

Nawi Financial Statement Overview

Summary

Nawi demonstrates strong revenue growth and profitability with impressive margins. However, high leverage and negative cash flows pose potential risks, necessitating careful management of debt and cash flow for long-term stability.

Income Statement

Nawi has demonstrated strong revenue growth, with a significant increase from $200 million in 2023 to $375 million in 2024, marking an 87.5% growth rate. The gross profit margin stands at 62.5%, and the net profit margin is 41.8%, indicating robust profitability. The EBIT and EBITDA margins are also healthy at 53.5% and 53.5%, respectively. These figures reflect a stable and profitable income statement, with excellent growth and margin performance.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.46, suggesting significant leverage, which could pose a risk if not managed carefully. However, the return on equity is strong at 17.2%, indicating effective use of equity to generate profits. The equity ratio is 22.1%, reflecting a moderate level of equity financing. Overall, while the company is profitable, the high leverage warrants caution.

Cash Flow

Nawi's cash flow statement shows a concerning trend with negative operating cash flow of -$258 million in 2024, compared to a positive $229 million in 2023. The free cash flow has also turned negative, indicating potential liquidity challenges. The operating cash flow to net income ratio is negative, highlighting inefficiencies in converting income to cash. Despite these issues, the company has managed to maintain some level of investing and financing activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	434.69M	375.03M	372.37M	251.76M	167.23M	136.02M
Gross Profit	253.65M	234.29M	225.52M	187.44M	140.99M	116.10M
EBITDA	215.51M	200.71M	178.65M	175.48M	141.43M	97.82M
Net Income	231.60M	156.81M	142.70M	136.25M	110.11M	74.37M
Balance Sheet
Total Assets	4.87B	4.13B	3.40B	3.43B	3.34B	1.98B
Cash, Cash Equivalents and Short-Term Investments	31.94M	196.58M	229.72M	133.04M	80.59M	31.82M
Total Debt	3.83B	3.16B	2.53B	2.70B	2.66B	1.35B
Total Liabilities	3.88B	3.22B	2.59B	2.74B	2.70B	1.38B
Stockholders Equity	993.70M	911.93M	810.71M	685.48M	644.56M	600.74M
Cash Flow
Free Cash Flow	-1.05B	-258.51M	229.42M	-98.37M	-281.77M	503.77M
Operating Cash Flow	-1.05B	-258.46M	229.43M	-98.34M	-281.05M	503.80M
Investing Cash Flow	138.80M	160.91M	-94.45M	68.00M	-160.06M	-36.24M
Financing Cash Flow	909.00M	97.50M	-136.39M	30.74M	441.67M	-475.70M

Nawi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5487.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NAWI, the sentiment is Negative. The current price of 5487 is above the 20-day moving average (MA) of 5409.90, above the 50-day MA of 5216.27, and above the 200-day MA of 5316.10, indicating a neutral trend. The MACD of 45.20 indicates Positive momentum. The RSI at 45.30 is Neutral, neither overbought nor oversold. The STOCH value of 11.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:NAWI.

Nawi 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%