Rami Levi (RMLI) AI Stock Analysis

• Market Cap: 4.48B
• Dividend Yield: 4.35%
• Average Volume (3M): 38.90K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.70
• Revenue Growth: 6.10%
• EPS Growth: -9.48%
• Country: IL
• Employees: 5,929
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 17.51
• Shares Outstanding: 13,775,583
• 10 Day Avg. Volume: 65,667
• 30 Day Avg. Volume: 38,897
• PEG Ratio: 0.68
• Price to Book (P/B): 6.27
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 7.73
• 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): 20.22
• Revenue Forecast (FY): 8.61B

• Rating: 69 Neutral
• Price Target: 38,982.00 ▲(12.93% Upside)

Rami Levi's overall stock score is driven by solid financial performance and a reasonable valuation. The stock's positive technical trend is tempered by overbought signals, suggesting caution. High leverage and declining cash flow growth are key risks.

Positive Factors

Revenue Growth

Stable revenue growth indicates a strong market position and effective pricing strategies, which can support long-term business sustainability.

Return on Equity

High return on equity reflects efficient use of equity to generate profits, suggesting strong management performance and competitive advantage.

Cash Generation

Effective cash generation relative to net income supports reinvestment in growth opportunities and provides a buffer against economic downturns.

Negative Factors

High Debt Levels

Significant leverage can increase financial risk, especially if interest rates rise or revenue growth slows, potentially impacting financial stability.

Declining Free Cash Flow

Decreasing free cash flow growth may limit the company's ability to fund new projects or pay down debt, affecting long-term growth prospects.

Margin Pressure

Declining margins suggest potential cost pressures, which could erode profitability if not managed effectively, impacting future earnings.

Rami Levi Business Overview & Revenue Model

Company Description

Rami Levi (RMLI) is a prominent retail chain in Israel, primarily operating in the supermarket sector. The company specializes in offering a wide range of grocery products, including fresh produce, dairy, meat, and packaged goods, catering to a diverse customer base. RMLI is known for its competitive pricing and value-oriented shopping experience, positioning itself as a leader in the Israeli retail landscape.

How the Company Makes Money

Rami Levi generates revenue through the sale of grocery items and other consumer goods in its supermarkets. The company's revenue model is primarily based on direct sales to customers, with a strong focus on volume sales driven by competitive pricing strategies. Key revenue streams include the sale of fresh produce, packaged food, household items, and branded products. Additionally, Rami Levi benefits from strategic partnerships with suppliers and manufacturers, enabling it to negotiate favorable terms and pricing, which contributes to its profitability. The company may also explore ancillary revenue opportunities through promotional campaigns, loyalty programs, and potential online sales platforms.

Rami Levi Financial Statement Overview

Summary

Rami Levi demonstrates solid revenue growth and profitability, with strong returns on equity. However, the high debt levels and declining free cash flow growth are potential risks. The company should focus on managing its leverage and improving cash flow generation to maintain financial stability.

Income Statement

Rami Levi's income statement shows a stable revenue growth rate of 2.3% TTM, with consistent gross and net profit margins. The gross profit margin is healthy at 23.4%, and the net profit margin is modest at 3.0%. However, the EBIT and EBITDA margins have slightly declined compared to the previous year, indicating potential cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.73, indicating significant leverage. Return on equity is strong at 41.4%, showcasing effective use of equity to generate profits. However, the high leverage poses a risk if interest rates rise or if revenue growth slows.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 15.9% TTM, which is a concern. The operating cash flow to net income ratio is stable at 0.32, and the free cash flow to net income ratio is healthy at 0.67, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.66B	7.38B	7.18B	7.04B	6.45B	6.47B
Gross Profit	1.79B	1.75B	1.55B	1.62B	1.52B	1.46B
EBITDA	732.16M	724.60M	643.80M	599.57M	592.87M	531.48M
Net Income	226.42M	241.17M	199.36M	173.27M	204.05M	173.49M
Balance Sheet
Total Assets	4.50B	4.29B	4.20B	4.08B	3.83B	3.69B
Cash, Cash Equivalents and Short-Term Investments	987.71M	945.47M	943.79M	911.39M	916.95M	852.93M
Total Debt	2.06B	2.01B	2.02B	1.99B	1.81B	1.71B
Total Liabilities	3.88B	3.68B	3.57B	3.45B	3.19B	3.10B
Stockholders Equity	553.45M	543.70M	550.27M	552.68M	565.90M	539.13M
Cash Flow
Free Cash Flow	422.99M	440.72M	411.57M	396.80M	365.59M	503.58M
Operating Cash Flow	630.10M	606.15M	539.70M	505.59M	486.23M	575.61M
Investing Cash Flow	-202.42M	-66.75M	-144.15M	-178.22M	-178.76M	-102.53M
Financing Cash Flow	-424.57M	-450.14M	-381.59M	-370.81M	-320.13M	-278.60M

Rami Levi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 34520.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RMLI, the sentiment is Positive. The current price of 34520 is above the 20-day moving average (MA) of 33322.50, above the 50-day MA of 31355.60, and above the 200-day MA of 29383.02, indicating a bullish trend. The MACD of 1023.89 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 57.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:RMLI.

Rami Levi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YHNF	72 Outperform	4.23B	21.15	―	2.50%	7.38%	-7.10%
RMLI	69 Neutral	4.48B	19.80	―	4.35%	6.10%	-9.48%
TTAM	68 Neutral	974.57M	16.79	―	1.72%	―	―
SAE	65 Neutral	$11.35B	15.10	17.02%	5.16%	-6.86%	6.82%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VCTR	62 Neutral	652.40M	19.01	―	3.91%	-1.61%	-45.19%