Palram (PLRM) AI Stock Analysis

• Market Cap: 2.21B
• Dividend Yield: 9.26%
• Average Volume (3M): 39.47K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.82
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 1,630
• Sector: Industrials
• Sector Strength: 86
• Industry: Construction
• EPS (TTM): 201.60
• Shares Outstanding: 25,725,489
• 10 Day Avg. Volume: 40,206
• 30 Day Avg. Volume: 39,472
• PEG Ratio: -0.91
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.79
• 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

• Rating: 77 Outperform
• Price Target: 8,929.00 ▲(18.93%Upside)

Palram's strong valuation and solid financial performance are the most significant strengths, supported by robust profitability and an attractive dividend yield. The technical analysis presents some caution due to mixed signals, particularly the bearish MACD. Despite these concerns, the company's overall financial health supports a positive stock outlook.

Palram Business Overview & Revenue Model

Company Description

Palram (PLRM) is a global leader in the design, manufacture, and distribution of thermoplastic sheets, panel systems, and finished products. Operating primarily in the construction, agriculture, signage, and fabrication sectors, the company offers a wide range of products including polycarbonate and PVC sheets, panel systems for roofing and cladding, and complete greenhouse solutions. Palram's innovative solutions cater to both industrial and consumer markets, focusing on quality, durability, and performance under various environmental conditions.

How the Company Makes Money

Palram generates revenue through the sale of its thermoplastic products and systems across various sectors. The company's primary revenue streams include the construction industry, where its polycarbonate and PVC sheets are used for roofing, cladding, and glazing applications; the agriculture sector, where it supplies greenhouse solutions and agricultural panels; and the signage and fabrication industries, which utilize its materials for advertising and industrial applications. Additionally, Palram's global distribution network and strategic partnerships with retailers and distributors play a crucial role in its revenue generation, allowing the company to reach a wide customer base and expand its market presence.

Palram Financial Statement Overview

Summary

Palram demonstrates strong financial health with robust profitability and growth metrics. The company maintains solid operational efficiency and a stable balance sheet with low leverage. However, cash flow management shows room for improvement, particularly in sustaining free cash flow levels.

Income Statement

Palram exhibits a strong financial performance with significant growth in revenues and profitability. The gross profit margin for the latest year stands at approximately 40.9%, indicating efficient cost management, while the net profit margin is robust at around 12.4%. The revenue growth rate from 2023 to 2024 is 8.8%, showcasing a positive trajectory. EBIT and EBITDA margins are 16.3% and 20.3% respectively, reflecting solid operational efficiency. However, the revenue growth rate between 2022 and 2023 was negative, indicating some volatility in recent years.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.19, indicating low leverage. The return on equity (ROE) is a strong 18.3%, demonstrating effective use of equity capital. The equity ratio is 64.3%, emphasizing financial stability and low reliance on debt. Despite these strengths, the total debt has increased from the previous year, which might need monitoring for future leverage risk.

Cash Flow

Palram's cash flow statement reveals a mixed performance. The operating cash flow to net income ratio is 0.95, suggesting that most of the net income translates into cash, indicating healthy cash generation. However, the free cash flow decreased from the previous year, leading to a negative free cash flow growth rate, which may signal challenges in maintaining cash reserves. The free cash flow to net income ratio is 0.81, reflecting decent but not exceptional cash conversion.

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

Palram Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7508.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PLRM, the sentiment is Positive. The current price of 7508 is below the 20-day moving average (MA) of 8053.25, below the 50-day MA of 7954.68, and below the 200-day MA of 7865.91, indicating a bullish trend. The MACD of 167.92 indicates Negative momentum. The RSI at 62.92 is Neutral, neither overbought nor oversold. The STOCH value of 87.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:PLRM.

Palram Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAXO	79 Outperform	2.26B	20.17		3.00%	17.72%	30.15%
PLRM	77 Outperform	2.21B	9.53		9.26%	―	―
PLSN	71 Outperform	2.22B	15.57		1.78%	6.30%	10.12%
AFHL	67 Neutral	982.84M	16.79		2.04%	-15.70%	3972.94%
Sector *	65 Neutral	$10.69B	15.75	5.51%	1.90%	2.72%	-26.43%