Rami Levi (RMLI) AI Stock Analysis

• Market Cap: 4.88B
• Dividend Yield: 4.01%
• Average Volume (3M): 38.90K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.71
• 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: 70 Outperform
• Price Target: 37,466.00 ▲(5.66% Upside)

Rami Levi's stock is supported by strong technical indicators and a reasonable valuation, despite financial challenges related to high leverage and declining free cash flow. The stock's positive price trend and attractive dividend yield enhance its appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective sales strategies, which are crucial for long-term business sustainability.

Operational Efficiency

Strong operational efficiency supports profitability and competitiveness, allowing Rami Levi to maintain its market leadership in the retail sector.

Return on Equity

High return on equity reflects effective management and strong financial performance, enhancing shareholder value over the long term.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Free Cash Flow

Declining free cash flow may constrain the company's ability to fund operations and growth initiatives, affecting long-term sustainability.

Net Profit Margin Pressure

Pressure on net profit margins can affect overall profitability, indicating potential challenges in maintaining cost efficiency or pricing power.

Rami Levi Business Overview & Revenue Model

Company Description

Rami Levi Chain Stores Hashikma Marketing 2006 Ltd operates a chain of retail stores with a format of discount network in Israel. Its stores offer breads and pastries, fruits and vegetables, milk, eggs, salads fish meats, pulses and cereals, snacks and sweets, drinks, and disposables, as well as organic and health, frozen, canning, cooking and baking, home and animal maintenance, skin and babies care, clothing, and electrical and electronic products. The company was founded in 1976 and is based in Jerusalem, Israel.

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 shows stable revenue growth and profitability with strong returns on equity. However, high debt levels and declining free cash flow growth pose risks. The company should focus on managing leverage and improving cash flow.

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	7.74B	7.38B	7.18B	7.04B	6.45B	6.47B
Gross Profit	1.83B	1.75B	1.55B	1.62B	1.52B	1.46B
EBITDA	741.65M	724.60M	643.80M	599.57M	592.87M	531.48M
Net Income	217.40M	241.17M	199.36M	173.27M	204.05M	173.49M
Balance Sheet
Total Assets	4.58B	4.29B	4.20B	4.08B	3.83B	3.69B
Cash, Cash Equivalents and Short-Term Investments	937.18M	945.47M	943.79M	911.39M	916.95M	852.93M
Total Debt	2.07B	2.01B	2.02B	1.99B	1.81B	1.71B
Total Liabilities	4.00B	3.68B	3.57B	3.45B	3.19B	3.10B
Stockholders Equity	523.04M	543.70M	550.27M	552.68M	565.90M	539.13M
Cash Flow
Free Cash Flow	313.73M	440.72M	411.57M	396.80M	365.59M	503.58M
Operating Cash Flow	534.39M	606.15M	539.70M	505.59M	486.23M	575.61M
Investing Cash Flow	-255.07M	-66.75M	-144.15M	-178.22M	-178.76M	-102.53M
Financing Cash Flow	-415.61M	-450.14M	-381.59M	-370.81M	-320.13M	-278.60M

Rami Levi Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35460.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 35460 is above the 20-day moving average (MA) of 34666.00, above the 50-day MA of 32548.00, and above the 200-day MA of 29762.75, indicating a bullish trend. The MACD of 677.19 indicates Positive momentum. The RSI at 62.94 is Neutral, neither overbought nor oversold. The STOCH value of 83.70 is Negative, 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
RMLI	70 Outperform	4.88B	22.47	―	4.01%	6.10%	-9.48%
SAE	67 Neutral	11.22B	16.83	17.02%	4.88%	-6.86%	6.82%
TTAM	67 Neutral	1.20B	17.78	―	1.69%	9.07%	38.76%
YHNF	66 Neutral	4.98B	26.52	―	2.33%	7.38%	-7.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VCTR	62 Neutral	828.02M	28.00	―	3.30%	-1.61%	-45.19%