Ratio Pu (RATI) AI Stock Analysis

• Market Cap: 5.21B
• Dividend Yield: 8.82%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 11.4
• Beta (1Y): 1.32
• Revenue Growth: -15.49%
• EPS Growth: -8.29%
• Country: IL
• Employees: N/A
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 10.40
• Shares Outstanding: 1,123,871,100
• 10 Day Avg. Volume: 2,403,620
• 30 Day Avg. Volume: 1,699,540
• PEG Ratio: 0.83
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 2.80
• P/FCF Ratio: 6.61
• 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: 77 Outperform
• Price Target: 510.00 ▲(10.03% Upside)

Ratio Pu's overall stock score is driven by strong financial performance and attractive valuation. The company's robust profitability and efficient cash flow management are significant strengths. The low P/E ratio and high dividend yield enhance its appeal. However, technical analysis presents mixed signals, with potential bearish momentum. Continued focus on revenue growth and debt reduction will be crucial for maintaining its competitive edge.

Positive Factors

Cash Generation

Strong free cash flow generation indicates efficient operations and provides the company with flexibility to invest in growth opportunities or reduce debt, enhancing long-term financial stability.

Profitability

Improved profitability through a high net profit margin suggests effective cost management and pricing strategies, contributing to sustained financial health and competitive advantage.

Balance Sheet Health

A moderate debt-to-equity ratio indicates a balanced approach to leveraging, reducing financial risk and supporting long-term growth through prudent capital management.

Negative Factors

Revenue Growth Inconsistency

Inconsistent revenue growth can hinder long-term strategic planning and market expansion, potentially affecting the company's ability to capitalize on new opportunities.

Free Cash Flow Decline

A decline in free cash flow growth can limit the company's ability to reinvest in its business, impacting future growth prospects and financial flexibility.

Industry Competition

Operating in a competitive industry requires constant innovation and efficiency to maintain market position, which can strain resources and impact long-term profitability.

Ratio Pu Business Overview & Revenue Model

Company Description

Ratio Energies - Limited Partnership explores, develops, and produces oil and natural gas in Israel. It has operations in Leviathan project. The company was formerly known as Ratio Oil Explorations (1992) – Limited Partnership and changed its name into Ratio Energies - Limited Partnership. The company was founded in 1992 and is headquartered in Tel Aviv-Yafo, Israel.

How the Company Makes Money

Ratio Pu generates revenue through multiple streams, primarily by offering subscription-based access to its data analytics platforms and software solutions. The company charges clients monthly or annually for using its proprietary tools, which provide insights and analytics tailored to their specific needs. Additionally, RATI earns income through consulting services, where expert teams assist clients in implementing data strategies and optimizing their use of RATI's products. Significant partnerships with major tech firms and industry leaders also enhance RATI's market position, allowing it to offer bundled services and reach a broader audience, further driving revenue growth.

Ratio Pu Financial Statement Overview

Summary

Ratio Pu exhibits strong financial health with robust profitability and efficient cash flow management. The company has effectively managed its leverage, maintaining a balanced capital structure. However, inconsistent revenue growth poses a potential risk. Continued focus on revenue expansion and debt reduction will be key to sustaining its financial strength in the competitive oil and gas industry.

Income Statement

The company has demonstrated strong profitability with a consistent increase in net income over the years. The gross profit margin is robust at 60.63% for 2024, indicating efficient cost management. The net profit margin has improved to 37.09%, reflecting enhanced profitability. However, the revenue growth rate has been inconsistent, with a slight decrease in 2024 compared to 2023. Overall, the company shows strong operational performance with room for revenue growth improvement.

Balance Sheet

The balance sheet reflects a solid equity base with a debt-to-equity ratio of 1.05, indicating moderate leverage. The return on equity is impressive at 27.71%, showcasing effective use of equity to generate profits. The equity ratio stands at 42.44%, suggesting a healthy balance between debt and equity. While the company has reduced its debt levels, maintaining this trajectory will be crucial to further strengthen its financial position.

Cash Flow

The cash flow statement highlights strong free cash flow generation, with a free cash flow growth rate of -19.27% from 2023 to 2024, primarily due to reduced operating cash flow. The operating cash flow to net income ratio is 1.14, indicating efficient cash conversion. The free cash flow to net income ratio is 1.14, reflecting solid cash flow management. Continued focus on optimizing cash flow will enhance financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	338.29M	375.91M	362.29M	379.94M	293.35M	195.16M
Gross Profit	202.43M	227.94M	230.77M	249.74M	179.13M	111.97M
EBITDA	235.02M	259.20M	253.92M	280.13M	181.41M	89.38M
Net Income	128.15M	139.44M	126.82M	149.55M	77.44M	6.95M
Balance Sheet
Total Assets	1.16B	1.19B	1.16B	1.12B	1.14B	1.10B
Cash, Cash Equivalents and Short-Term Investments	95.82M	138.32M	153.16M	146.57M	200.53M	141.88M
Total Debt	534.28M	527.93M	598.22M	663.22M	827.44M	864.71M
Total Liabilities	693.20M	682.83M	739.40M	768.11M	919.04M	920.00M
Stockholders Equity	467.38M	503.16M	423.71M	350.42M	225.87M	175.56M
Cash Flow
Free Cash Flow	169.69M	159.17M	197.19M	151.33M	122.43M	-13.95M
Operating Cash Flow	184.43M	159.22M	197.30M	151.40M	122.44M	39.22M
Investing Cash Flow	-37.01M	-1.43M	-78.88M	645.00K	-48.76M	-90.52M
Financing Cash Flow	-137.55M	-133.81M	-121.01M	-183.62M	-38.69M	29.07M

Ratio Pu Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 463.50
• 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:RATI, the sentiment is Positive. The current price of 463.5 is above the 20-day moving average (MA) of 444.05, above the 50-day MA of 451.38, and above the 200-day MA of 426.94, indicating a bullish trend. The MACD of 2.94 indicates Negative momentum. The RSI at 59.60 is Neutral, neither overbought nor oversold. The STOCH value of 94.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:RATI.

Ratio Pu Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RATI	77 Outperform	5.21B	11.41	27.38%	8.82%	-15.49%	-8.29%
TMRP	65 Neutral	2.95B	20.53	―	7.38%	5.30%	-23.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%