Neto (NTO) AI Stock Analysis

• Market Cap: 916.21M
• Dividend Yield: N/A
• Average Volume (3M): 3.85K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.60
• Revenue Growth: 8.20%
• EPS Growth: -12.69%
• Country: IL
• Employees: 1,367
• Sector: Services
• Sector Strength: N/A
• Industry: Food Distribution
• EPS (TTM): N/A
• Shares Outstanding: 3,719,614
• 10 Day Avg. Volume: 3,939
• 30 Day Avg. Volume: 3,851
• PEG Ratio: 0.05
• Price to Book (P/B): 0.98
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 1.38
• 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: 72 Outperform
• Price Target: 28,394.00 ▲(20.36% Upside)

Neto's stock score is primarily driven by strong technical indicators, suggesting bullish momentum. Financial performance is a concern due to low profitability and negative cash flows, which are partially offset by reasonable valuation metrics. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Recurring subscription revenue

A subscription and transaction-fee business model creates recurring, predictable revenue and higher customer lifetime value. For an eCommerce platform serving SMEs, this supports steady top-line visibility, scalable unit economics, and durable monetization from cross-sells and partner referrals.

Consistent revenue growth

Sustained revenue growth indicates continued platform adoption and market penetration among retailers. Over a multi-month horizon this supports scale benefits, improves bargaining leverage with partners, and provides a base for margin expansion if cost controls persist.

Operational efficiency / strong ROE

A high ROE signals effective use of equity to generate returns, while reported improvements in gross and operating margins point to rising operational efficiency. Together these fundamentals imply the business can extract more profit from incremental revenue if cash conversion and capital structure are managed.

Negative Factors

Negative operating and free cash flows

Persistent negative operating and free cash flows weaken the company’s ability to self-fund growth, impair reinvestment, and increase dependence on external financing. Over months this constrains strategic flexibility and raises refinancing and liquidity risk.

High leverage and low equity ratio

Material leverage and a low equity base increase financial risk and interest burden, limiting capacity to absorb revenue shocks. In a multi-month view, elevated debt raises refinancing needs and reduces resilience, making margin recovery and investment initiatives more costly.

Low net profit margin

A sub-2% net margin leaves little buffer against rising costs or pricing pressure and limits retained earnings for growth. Structurally low profitability hampers free cash flow generation and makes the business sensitive to even modest adverse changes in expenses or customer churn.

Neto Business Overview & Revenue Model

Company Description

Neto M.E Holdings Ltd. produces, processes, imports, markets, and distributes a range of food products in Israel. The company offers frozen, refrigerated, fresh, and processed meat, including chicken and turkey; grilled meat products, such as hamburgers, kebabs, steaks, sausages, skewers, and others; ground meat products comprising beef, lamb, and veal; and meat products for cooking, such as calf goulash, roasted veal, faux-filet, kishke, and roast beef, as well as instant meals, including shawarma, readymade schnitzel, chicken rings, and others under the Tibon Veal brand. It also provides frozen, fresh, live, and smoked fish products, including whole fish, fish fillets, fish steaks, kosher, fish cutlets, and fish salads under the Delidag brand; canned tuna and frozen smoked salmon, canned mushrooms, fruits, sauces, vegetables, pasta, rice, and granola products under the Williger brand; frozen bakery products comprising bourekas, meat and dairy pastries, pastries from the Yemenite cuisine, pizzas, and others under the Three Bakers brand; ready-to-eat noodle meals under the Magic brand; and non-dairy and whipped creams, as well as cakes under the Rich's brand name. In addition, the company offers catering services, rural accommodations, meat workshops, meals for carnivores, and frozen meat products, as well as operates grill restaurant chain under the El Gaucho brand name. Neto M.E Holdings Ltd. was founded in 1940 and is headquartered in Kiryat Malachi, Israel.

How the Company Makes Money

Neto generates revenue through a subscription-based model, where businesses pay monthly fees to access its eCommerce platform and associated features. Key revenue streams include subscription fees for different service tiers, transaction fees on sales processed through the platform, and additional charges for premium features, such as advanced analytics and custom integrations. The company also forms strategic partnerships with payment processors, logistics companies, and other service providers, which can enhance its service offerings and create additional revenue opportunities through referral fees or co-marketing arrangements.

Neto Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.93B	4.81B	4.38B	4.20B	3.55B	3.24B
Gross Profit	682.96M	655.39M	482.54M	502.60M	532.90M	479.94M
EBITDA	390.42M	348.37M	202.13M	229.60M	316.78M	333.56M
Net Income	83.77M	81.40M	43.03M	61.59M	91.49M	127.28M
Balance Sheet
Total Assets	2.17B	2.07B	1.93B	1.92B	1.69B	1.65B
Cash, Cash Equivalents and Short-Term Investments	7.64M	38.65M	6.28M	8.46M	19.42M	88.36M
Total Debt	510.40M	449.29M	649.27M	785.80M	595.57M	381.39M
Total Liabilities	1.00B	967.95M	983.26M	1.06B	982.54M	781.29M
Stockholders Equity	396.95M	354.07M	270.65M	231.94M	159.23M	364.65M
Cash Flow
Free Cash Flow	61.57M	252.56M	140.90M	-113.69M	49.06M	107.05M
Operating Cash Flow	101.42M	296.39M	208.92M	-69.17M	71.12M	127.70M
Investing Cash Flow	-11.87M	-36.26M	-64.40M	-41.79M	49.03M	120.83M
Financing Cash Flow	-89.25M	-234.50M	-147.08M	106.00M	-194.36M	-179.29M

Neto Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23590.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:NTO, the sentiment is Positive. The current price of 23590 is below the 20-day moving average (MA) of 23785.00, above the 50-day MA of 22765.60, and above the 200-day MA of 19491.40, indicating a bullish trend. The MACD of 803.71 indicates Negative momentum. The RSI at 85.18 is Negative, neither overbought nor oversold. The STOCH value of 87.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:NTO.

Neto Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTO	72 Outperform	916.21M	12.19	―	―	8.20%	-12.69%
TTAM	67 Neutral	1.24B	18.38	―	1.69%	9.07%	38.76%
VCTR	62 Neutral	807.59M	27.31	―	3.30%	-1.61%	-45.19%
GLRS	56 Neutral	637.20M	10.13	―	6.97%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%