Palram (PLRM) AI Stock Analysis

• Market Cap: 1.53B
• Dividend Yield: 8.54%
• Average Volume (3M): 29.65K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.84
• Revenue Growth: -2.62%
• EPS Growth: -18.78%
• Country: IL
• Employees: 1,630
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction
• EPS (TTM): 162.70
• Shares Outstanding: 25,725,489
• 10 Day Avg. Volume: 34,580
• 30 Day Avg. Volume: 29,646
• PEG Ratio: 0.22
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 11.35
• 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: 65 Neutral
• Price Target: 6,312.00 ▲(6.66% Upside)

Palram's stock score is driven by strong valuation metrics, offering a compelling dividend yield and low P/E ratio. However, technical analysis indicates bearish momentum, and financial performance shows some risks with declining revenue and cash flow challenges.

Positive Factors

Balance Sheet Health

A low debt-to-equity ratio indicates conservative leverage, providing financial stability and flexibility to support long-term growth initiatives.

Profitability

High gross profit margin reflects efficient cost management, which is crucial for maintaining competitive pricing and sustaining profitability over time.

Return on Equity

High return on equity indicates effective use of shareholder funds, enhancing investor confidence and supporting long-term value creation.

Negative Factors

Revenue Decline

Declining revenue growth suggests challenges in market demand or competitive positioning, which could impact future profitability and market share.

Cash Flow Challenges

Reduced cash flow growth can limit the company's ability to reinvest in business operations, affecting long-term strategic initiatives and financial resilience.

Operational Efficiency Pressure

Decreasing EBIT and EBITDA margins indicate pressure on operational efficiency, which could affect profitability if not addressed through cost management or revenue enhancement strategies.

Palram Business Overview & Revenue Model

Company Description

Palram Industries Ltd. is a global leader in the manufacture of polymer sheets and panels, specializing in the production of high-quality polycarbonate and PVC products. The company operates primarily in sectors such as construction, agriculture, signage, and DIY markets. Core products include lightweight and durable roofing solutions, transparent and opaque sheets for various applications, and custom-engineered solutions tailored to specific industry needs.

How the Company Makes Money

Palram generates revenue through the sale of its polymer products across multiple sectors, focusing on both direct sales to customers and distribution through a network of partners. Key revenue streams include the supply of roofing and cladding materials for construction projects, agricultural panels for greenhouse and livestock applications, and specialized sheets for signage and display solutions. The company also engages in strategic partnerships with distributors, architects, and contractors, enabling it to expand its market reach and enhance product visibility. Additionally, Palram invests in research and development to innovate new products, which helps to differentiate its offerings and capture a larger share of the market.

Palram Financial Statement Overview

Summary

Palram demonstrates strong profitability with a healthy net profit margin and robust balance sheet. However, declining revenue growth and cash flow challenges are notable risks.

Income Statement

Palram's income statement shows a strong gross profit margin of over 40% in TTM, indicating efficient cost management. However, the revenue growth rate is negative, reflecting a decline in sales. The net profit margin remains healthy at 12.1%, but the EBIT and EBITDA margins have slightly decreased compared to previous periods, suggesting some pressure on operational efficiency.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.20, indicating conservative leverage. Return on equity is strong at 18.3%, showcasing effective use of shareholder funds. The equity ratio is solid, reflecting a stable financial structure with a good proportion of equity financing.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, which is a concern. The operating cash flow to net income ratio is below 1, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains healthy, suggesting that the company is still generating adequate cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.85B	1.87B	1.72B	1.81B	1.82B	1.74B
Gross Profit	754.60M	763.78M	622.46M	559.64M	659.75M	676.29M
EBITDA	382.00M	378.44M	278.96M	267.34M	323.05M	366.11M
Net Income	214.33M	231.69M	164.34M	154.43M	188.36M	227.35M
Balance Sheet
Total Assets	1.95B	1.97B	1.70B	1.62B	1.63B	1.41B
Cash, Cash Equivalents and Short-Term Investments	313.91M	360.20M	370.32M	237.15M	317.12M	296.99M
Total Debt	244.98M	241.53M	150.44M	187.22M	206.05M	206.61M
Total Liabilities	568.72M	565.47M	447.57M	517.72M	641.32M	541.79M
Stockholders Equity	1.25B	1.27B	1.13B	983.34M	874.26M	761.21M
Cash Flow
Free Cash Flow	241.20M	187.56M	286.41M	-10.40M	115.13M	322.78M
Operating Cash Flow	277.38M	220.06M	313.42M	31.91M	168.91M	355.14M
Investing Cash Flow	-87.62M	-113.48M	-40.68M	18.25M	-54.97M	-23.01M
Financing Cash Flow	-163.98M	-121.42M	-152.93M	-118.29M	-109.07M	-180.33M

Palram Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5918.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PLRM, the sentiment is Negative. The current price of 5918 is below the 20-day moving average (MA) of 7049.40, below the 50-day MA of 7371.82, and below the 200-day MA of 7949.89, indicating a bearish trend. The MACD of -353.95 indicates Positive momentum. The RSI at 17.88 is Positive, neither overbought nor oversold. The STOCH value of 12.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PLRM.

Palram Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTML	79 Outperform	2.85B	12.65	―	4.63%	8.53%	39.35%
MAXO	75 Outperform	3.29B	29.79	―	3.27%	9.97%	15.86%
PLSN	70 Outperform	1.83B	12.14	―	1.74%	9.02%	23.68%
PLRM	65 Neutral	1.53B	7.90	―	8.54%	-2.62%	-18.78%
AFHL	65 Neutral	1.56B	23.11	―	1.27%	-8.18%	329.99%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%