Nawi (NAWI) AI Stock Analysis

• Market Cap: 1.69B
• Dividend Yield: 6.36%
• Average Volume (3M): 25.07K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 1.30
• Revenue Growth: 10.74%
• EPS Growth: 12.47%
• Country: IL
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Financial - Credit Services
• EPS (TTM): 123.70
• Shares Outstanding: 32,757,980
• 10 Day Avg. Volume: 17,669
• 30 Day Avg. Volume: 25,066
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 70 Outperform
• Price Target: 5,695.00 ▲(10.52% Upside)

Nawi's strong financial performance and attractive valuation are offset by technical indicators suggesting bearish momentum and liquidity concerns. The high leverage and negative cash flow require careful management to mitigate risks.

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 primarily through the sale of its solar technology products, including solar panels and energy management systems, to homeowners, businesses, and utility providers. Additionally, the company engages in strategic partnerships with construction firms and real estate developers to integrate its technology into new building projects, thus expanding its market reach. Nawi's earnings are also bolstered by government incentives and subsidies for renewable energy projects, which encourage adoption of its products. Furthermore, the company offers maintenance and support services, providing ongoing revenue through service contracts.

Nawi Financial Statement Overview

Summary

Nawi shows strong revenue growth and profitability with impressive margins. However, high leverage and negative cash flows pose risks, requiring 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	362.33M	375.03M	200.01M	251.76M	167.23M	136.02M
Gross Profit	243.75M	234.29M	225.52M	231.63M	160.76M	130.58M
EBITDA	204.28M	200.71M	178.65M	219.67M	161.19M	112.30M
Net Income	165.44M	156.81M	142.70M	136.25M	110.11M	74.37M
Balance Sheet
Total Assets	4.32B	4.13B	3.40B	3.43B	3.34B	1.98B
Cash, Cash Equivalents and Short-Term Investments	302.08M	196.58M	229.72M	133.04M	80.59M	31.82M
Total Debt	3.30B	3.16B	2.53B	2.70B	2.66B	1.35B
Total Liabilities	3.39B	3.22B	2.59B	2.74B	2.70B	1.38B
Stockholders Equity	930.60M	911.93M	810.71M	685.48M	644.56M	600.74M
Cash Flow
Free Cash Flow	-558.99M	-258.51M	229.42M	-98.37M	-281.77M	503.77M
Operating Cash Flow	-558.95M	-258.46M	229.43M	-98.34M	-281.05M	503.80M
Investing Cash Flow	6.39M	160.91M	-94.45M	68.00M	-160.06M	-36.24M
Financing Cash Flow	652.53M	97.50M	-136.39M	30.74M	441.67M	-475.70M

Nawi Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5153.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5153 is above the 20-day moving average (MA) of 5096.25, below the 50-day MA of 5427.92, and above the 200-day MA of 5051.11, indicating a neutral trend. The MACD of -46.83 indicates Negative momentum. The RSI at 46.35 is Neutral, neither overbought nor oversold. The STOCH value of 39.12 is Neutral, 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
JCFN	80 Outperform	768.01M	10.03	―	―	28.74%	19.95%
PEN	73 Outperform	673.05M	10.17	―	5.95%	27.66%	46.91%
MNIF	72 Outperform	1.30B	7.71	―	4.09%	24.31%	21.51%
NAWI	70 Outperform	1.69B	10.30	―	6.36%	10.74%	12.47%
DIFI	69 Neutral	1.48B	14.08	―	4.97%	6.88%	-13.14%
MCLL	68 Neutral	634.00M	12.95	―	1.58%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%