Palram (PLRM) AI Stock Analysis

• Market Cap: ₪1.30B
• Dividend Yield: 9.08%
• Average Volume (3M): 29.65K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 0.60
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: 5,869.00 ▲(6.28% Upside)
• Action: Reiterated Date: 12/18/25
• Date: Action: Reiterated 12/18/25

Palram's overall stock score of 61 reflects a mixed outlook, driven primarily by moderate financial performance (score: 65, weight: 0.5) with strengths in balance sheet stability but concerns over revenue and cash flow declines. A strong valuation (score: 85, weight: 0.2) with a low P/E and high dividend yield provides a positive offset, while bearish technical indicators (score: 40, weight: 0.3) signal caution due to a sustained downtrend.

Positive Factors

Strong Profitability

Strong profitability indicates efficient operations and the ability to generate significant profit from sales, supporting long-term financial health.

Low Leverage

Low leverage reduces financial risk and interest burden, providing the company with greater flexibility to invest in growth opportunities.

Cash Conversion

A strong cash conversion ratio indicates effective cash management, ensuring the company can meet its obligations and reinvest in its business.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can signal challenges in market demand or competitive pressures, potentially impacting future profitability.

Negative Free Cash Flow Growth

Declining free cash flow growth can limit the company's ability to fund operations and investments, affecting long-term strategic initiatives.

Earnings Decline

A decline in earnings per share suggests reduced profitability, which can impact investor confidence and the company's ability to reinvest in growth.

Palram Business Overview & Revenue Model

Company Description

Palram Industries (1990) Ltd, together with its subsidiaries, manufactures and sells semi-finished extruded thermoplastic sheets, architectural panel systems, and finished products in Israel and internationally. The company offers PVC, polycarbonate and acrylic sheets, and panel systems. Its products are used in DIY, construction, architectural project, advertising, agriculture, safety and security, and fabrication markets. The company was founded in 1963 and is based in Zevulun, Israel. Palram Industries (1990) Ltd is a subsidiary of Ramat Yohanan Industries & Agriculture Development-Agricultural Coperative Society.

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's financial performance is moderate with a strong balance sheet (score: 75) reflecting low leverage and solid equity, but tempered by weaker cash flow growth (score: 55) and a slight revenue decline in the income statement (score: 65). Stability in profitability is a strength, though negative trends in revenue and free cash flow pose risks.

Income Statement

Palram's Income Statement shows moderate performance for TTM (Trailing-Twelve-Months) with a Gross Profit Margin of 40.8% and an EBIT Margin of 16.7%, indicating decent profitability. However, a Revenue Growth Rate of -3.1% reflects a slight decline, and the Net Profit Margin of 11.6% suggests room for improvement in bottom-line efficiency. While profitability metrics are stable, the negative revenue trend tempers the overall outlook.

Balance Sheet

The Balance Sheet reflects a solid financial position with a low Debt-to-Equity Ratio of 0.20 for TTM (Trailing-Twelve-Months), indicating manageable leverage. Return on Equity at 17.1% demonstrates good utilization of shareholder funds, and an Equity Ratio of 64.6% highlights a strong capital base. Overall, the balance sheet shows stability with minimal risk from debt, though continued monitoring of debt levels is advised.

Cash Flow

Palram's Cash Flow for TTM (Trailing-Twelve-Months) presents a mixed picture. Operating Cash Flow to Net Income Ratio of 1.30 suggests healthy cash generation relative to earnings. However, a Free Cash Flow Growth Rate of -11.9% indicates a decline in cash available after capital expenditures. While cash flow supports operations, the negative growth trend raises concerns about future investment capacity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.80B	1.87B	1.72B	1.81B	1.82B	1.74B
Gross Profit	722.07M	763.78M	622.46M	559.64M	659.75M	676.29M
EBITDA	358.43M	378.44M	278.96M	267.34M	323.05M	366.11M
Net Income	193.81M	231.69M	164.34M	154.43M	188.36M	227.35M
Balance Sheet
Total Assets	1.97B	1.97B	1.70B	1.62B	1.63B	1.41B
Cash, Cash Equivalents and Short-Term Investments	365.10M	360.20M	370.32M	237.15M	317.12M	296.99M
Total Debt	464.31M	241.53M	150.44M	187.22M	206.05M	206.61M
Total Liabilities	564.43M	565.47M	447.57M	517.72M	641.32M	541.79M
Stockholders Equity	1.28B	1.27B	1.13B	983.34M	874.26M	761.21M
Cash Flow
Free Cash Flow	212.48M	187.56M	286.41M	-10.40M	115.13M	322.78M
Operating Cash Flow	252.45M	220.06M	313.42M	31.91M	168.91M	355.14M
Investing Cash Flow	-86.95M	-113.48M	-40.68M	18.25M	-54.97M	-23.01M
Financing Cash Flow	-134.54M	-121.42M	-152.93M	-118.29M	-109.07M	-180.33M

Palram Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5522.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 5522 is above the 20-day moving average (MA) of 5347.05, below the 50-day MA of 5530.44, and below the 200-day MA of 6827.55, indicating a bearish trend. The MACD of -122.98 indicates Positive momentum. The RSI at 36.24 is Neutral, neither overbought nor oversold. The STOCH value of 6.82 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
PLSN	74 Outperform	₪1.57B	9.25	―	4.41%	9.02%	23.68%
NTML	73 Outperform	₪3.42B	9.28	―	4.18%	8.53%	39.35%
AFHL	65 Neutral	₪2.39B	13.13	―	1.12%	-8.18%	329.99%
MAXO	64 Neutral	₪4.05B	28.54	―	3.06%	9.97%	15.86%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
PLRM	61 Neutral	₪1.30B	11.77	―	9.08%	-2.62%	-18.78%