Nawi (NAWI) AI Stock Analysis

• Market Cap: 1.72B
• Dividend Yield: 6.56%
• Average Volume (3M): 25.07K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.29
• Revenue Growth: 33.06%
• EPS Growth: 59.60%
• Country: IL
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: 5,894.00 ▲(14.96% Upside)

Nawi's strong financial performance, particularly in revenue growth and profitability, is a key strength. However, high leverage and negative cash flows are significant risks. The stock's valuation is attractive, with a low P/E ratio and high dividend yield, providing a buffer against financial risks. Technical indicators present mixed signals, contributing to a moderate overall score.

Positive Factors

Revenue Growth

The 87.5% revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Profitability

High profit margins reflect efficient operations and pricing power, which can sustain profitability and provide a buffer against market fluctuations.

Market Position

Nawi's focus on renewable energy and sustainability aligns with global trends, enhancing its competitive advantage and market position in a growing industry.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Negative Cash Flow

Negative cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and invest in future growth.

Cash Flow Inefficiency

Inefficiencies in converting income to cash can strain financial resources, affecting the company's operational flexibility and investment capacity.

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	413.67M	375.03M	372.37M	251.76M	167.23M	136.02M
Gross Profit	249.79M	234.29M	225.52M	187.44M	140.99M	116.10M
EBITDA	208.84M	200.71M	178.65M	175.48M	141.43M	97.82M
Net Income	163.81M	156.81M	142.70M	136.25M	110.11M	74.37M
Balance Sheet
Total Assets	5.02B	4.13B	3.40B	3.43B	3.34B	1.98B
Cash, Cash Equivalents and Short-Term Investments	211.37M	196.58M	229.72M	133.04M	80.59M	31.82M
Total Debt	4.00B	3.16B	2.53B	2.70B	2.66B	1.35B
Total Liabilities	4.06B	3.22B	2.59B	2.74B	2.70B	1.38B
Stockholders Equity	960.67M	911.93M	810.71M	685.48M	644.56M	600.74M
Cash Flow
Free Cash Flow	-484.38M	-258.51M	229.42M	-98.37M	-281.77M	503.77M
Operating Cash Flow	-484.31M	-258.46M	229.43M	-98.34M	-281.05M	503.80M
Investing Cash Flow	-227.00K	160.91M	-94.45M	68.00M	-160.06M	-36.24M
Financing Cash Flow	483.49M	97.50M	-136.39M	30.74M	441.67M	-475.70M

Nawi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5127.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• 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 Positive. The current price of 5127 is above the 20-day moving average (MA) of 5107.73, above the 50-day MA of 5090.32, and below the 200-day MA of 5175.24, indicating a neutral trend. The MACD of -18.98 indicates Negative momentum. The RSI at 50.65 is Neutral, neither overbought nor oversold. The STOCH value of 53.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	791.12M	9.93	―	―	29.67%	15.36%
MNIF	78 Outperform	1.26B	7.49	―	4.19%	25.72%	21.70%
PEN	72 Outperform	774.34M	10.88	―	5.21%	25.73%	45.19%
NAWI	72 Outperform	1.72B	10.47	―	6.56%	33.06%	59.60%
DIFI	72 Outperform	1.71B	16.30	―	5.06%	0.10%	15.03%
MCLL	60 Neutral	536.73M	11.03	―	1.65%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%