Reit 1 (RIT1) AI Stock Analysis

• Market Cap: $5.38B
• Dividend Yield: 3.23%
• Average Volume (3M): 335.30K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.54
• Revenue Growth: 17.15%
• EPS Growth: 310.11%
• Country: IL
• Employees: 37
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 13.50
• Shares Outstanding: 200,453,380
• 10 Day Avg. Volume: 444,853
• 30 Day Avg. Volume: 335,299
• PEG Ratio: -0.75
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 8.49
• P/FCF Ratio: 12.90
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: 19.10
• Enterprise Value/Gross Profit: 21.78
• Enterprise Value/Ebitda: 12.89
• 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: 81 Outperform
• Price Target: 3,046.00 ▲(15.82% Upside)

Reit 1's strong technical momentum and reasonable valuation are the most significant factors driving its score. While financial performance is solid, potential cash flow issues warrant monitoring. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Profitability

High profitability margins indicate efficient operations and strong pricing power, supporting sustainable earnings and potential for reinvestment.

Revenue Growth

Consistent revenue growth reflects the company's ability to maintain demand for its properties, supporting long-term financial health and expansion.

Balanced Debt Profile

A balanced debt profile enhances financial stability, allowing the company to manage obligations without compromising growth opportunities.

Negative Factors

Cash Flow Challenges

Low cash flow conversion can strain liquidity, limiting the company's ability to invest in new projects or weather economic downturns.

Negative Free Cash Flow Growth

Negative free cash flow growth suggests potential issues in generating sufficient cash from operations, impacting future investment capacity.

Accounting Anomalies

Unusually high EBIT margins may indicate non-recurring items, raising concerns about the sustainability of reported profitability.

Reit 1 Business Overview & Revenue Model

Company Description

Reit 1, Ltd. engages in the acquisition, management, and lease of real estate property. The company holds real estate for commercial and industrial use primarily in the central region of Israel. As of September 30, 2008, its holdings included 9 office properties, 2 industrial properties, and a commercial property, as well as a commercial parking lot with 376 parking spaces. The company, formerly known as Reit 1 Israel (2006) Ltd., was founded in 2006 and is headquartered in Tel Aviv, Israel.

How the Company Makes Money

Reit 1 generates revenue primarily through rental income from its portfolio of properties. The company's key revenue streams include lease agreements with tenants in commercial, residential, and industrial properties, which provide a steady flow of income. Additionally, Reit 1 may engage in property development and improvement projects that enhance the value of its assets, potentially leading to increased rental rates or proceeds from property sales. The company may also form strategic partnerships with real estate developers and other investors to co-invest in lucrative projects, further contributing to its earnings. Reit 1's financial performance is influenced by factors such as market demand for real estate, property occupancy rates, and the overall economic environment.

Reit 1 Financial Statement Overview

Summary

Reit 1 demonstrates strong profitability with high margins and a balanced debt profile. However, cash flow metrics indicate potential liquidity issues, which require attention.

Income Statement

Reit 1 shows strong profitability with a high gross profit margin of 87.49% and a net profit margin of 71.04% in TTM. The revenue growth rate of 3.97% indicates steady growth. However, the EBIT margin is unusually high at 118.53%, suggesting potential accounting anomalies or extraordinary items.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 1.14, indicating balanced leverage. Return on equity is reasonable at 8.06%, reflecting decent profitability. The equity ratio of 46.44% suggests a stable financial structure, though slightly lower than ideal for a REIT.

Cash Flow

Operating cash flow to net income ratio is low at 0.22, indicating potential cash flow challenges. Free cash flow growth is negative at -7.88%, which is a concern. However, the free cash flow to net income ratio remains strong at 1.0, showing efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	481.42M	439.98M	380.02M	386.91M	328.70M	307.83M
Gross Profit	422.26M	382.22M	357.37M	335.30M	278.51M	261.47M
EBITDA	713.38M	505.23M	242.72M	773.60M	625.14M	201.10M
Net Income	492.79M	292.58M	351.12M	564.68M	507.70M	151.66M
Balance Sheet
Total Assets	9.37B	8.70B	8.16B	7.71B	6.77B	5.51B
Cash, Cash Equivalents and Short-Term Investments	52.33M	154.61M	77.14M	315.66M	544.34M	302.75M
Total Debt	4.76B	4.33B	3.95B	3.72B	3.41B	2.74B
Total Liabilities	4.97B	4.51B	4.14B	3.91B	3.56B	2.82B
Stockholders Equity	4.35B	4.14B	3.99B	3.77B	3.18B	2.67B
Cash Flow
Free Cash Flow	273.74M	289.58M	207.09M	204.46M	206.02M	165.45M
Operating Cash Flow	273.74M	289.58M	207.09M	204.46M	206.02M	165.45M
Investing Cash Flow	-338.95M	-266.45M	-432.36M	-585.79M	-622.17M	-52.78M
Financing Cash Flow	54.30M	60.30M	6.45M	202.68M	646.11M	27.92M

Reit 1 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2630.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RIT1, the sentiment is Positive. The current price of 2630 is below the 20-day moving average (MA) of 2644.35, above the 50-day MA of 2589.90, and above the 200-day MA of 2181.99, indicating a neutral trend. The MACD of 4.52 indicates Positive momentum. The RSI at 50.20 is Neutral, neither overbought nor oversold. The STOCH value of 48.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:RIT1.

Reit 1 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIT1	81 Outperform	$5.38B	10.61	11.63%	3.23%	17.15%	310.11%
MNRT	80 Outperform	1.91B	11.56	―	5.43%	―	―
SLARL	78 Outperform	2.76B	8.73	―	4.88%	―	―
KSTN	67 Neutral	1.83B	4.88	―	4.42%	-8.03%	135.97%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AZRT	54 Neutral	594.21M	-9.05	―	―	-12.91%	-44.25%