Rami Levi (RMLI) AI Stock Analysis

• Market Cap: 4.23B
• Dividend Yield: 4.9%
• Average Volume (3M): 20.45K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.52
• Revenue Growth: 6.29%
• EPS Growth: 4.13%
• Country: IL
• Employees: 5,929
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Grocery Stores
• EPS (TTM): 17.51
• Shares Outstanding: 13,775,583
• 10 Day Avg. Volume: 15,128
• 30 Day Avg. Volume: 20,455
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 32,299.00
• Price Target Upside: 8.75% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: 32,299.00 ▲(8.75% Upside)

Rami Levi's overall stock score reflects solid financial performance with strong revenue growth and profitability. However, high leverage and declining cash flow growth are concerns. The technical analysis indicates a bearish trend, while the valuation is supported by a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Revenue Growth

Stable revenue growth indicates a strong market position and effective business model, ensuring consistent cash flows and market competitiveness.

Return on Equity

High return on equity demonstrates efficient use of shareholders' capital, enhancing investor confidence and supporting future growth initiatives.

Gross Profit Margin

A healthy gross profit margin reflects strong pricing power and cost management, contributing to sustainable profitability and competitive advantage.

Negative Factors

High Leverage

Significant leverage increases financial risk, particularly in rising interest rate environments, potentially impacting financial stability and growth.

Declining Free Cash Flow Growth

Decreasing free cash flow growth can limit investment in growth opportunities and reduce financial flexibility, posing long-term operational challenges.

Margin Pressure

Declining EBIT and EBITDA margins suggest rising operational costs, which could erode profitability if not managed effectively over time.

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 its revenue primarily through the sale of groceries and household goods in its chain of supermarkets. The company employs a low-cost business model, allowing it to offer competitive prices that attract a large customer base. Key revenue streams include in-store sales, private label products, and promotional sales. Additionally, Rami Levi may engage in strategic partnerships with suppliers and manufacturers, which can enhance its product offerings and contribute to profitability. The company's focus on operational efficiency helps in maintaining margins while driving sales volume.

Rami Levi Financial Statement Overview

Summary

Rami Levi demonstrates solid financial performance with consistent revenue and profit growth. While profitability metrics are improving, high leverage remains a concern. Cash flow management is generally strong, but recent declines in free cash flow growth warrant attention. Overall, the company is on a positive trajectory but should focus on reducing leverage to mitigate financial risks.

Income Statement

Rami Levi has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 21.6% in 2023 to 23.7% in 2024. The net profit margin has also improved slightly, indicating better cost management. However, the EBIT and EBITDA margins, while stable, suggest room for operational efficiency improvements.

Balance Sheet

The company has a high debt-to-equity ratio of 3.70, indicating significant leverage, which could pose risks if not managed properly. However, the return on equity is strong at 44.4%, showing effective use of equity to generate profits. The equity ratio is relatively low, suggesting reliance on debt financing.

Cash Flow

Operating cash flow has increased, but free cash flow growth has been negative recently, indicating potential challenges in cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from profits. The free cash flow to net income ratio is strong, reflecting efficient cash management.

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: Negative
• Last Price: 29700.00
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 29700 is below the 20-day moving average (MA) of 30410.83, below the 50-day MA of 30881.29, and above the 200-day MA of 27569.97, indicating a neutral trend. The MACD of -113.36 indicates Negative momentum. The RSI at 40.94 is Neutral, neither overbought nor oversold. The STOCH value of 40.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:RMLI.

Rami Levi Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMLI	68 Neutral	4.23B	18.67		4.90%	6.29%	4.13%
Sector *	62 Neutral	$20.56B	14.79	-3.30%	3.19%	1.94%	-8.41%
SHUFF	―	$3.22B	8.23	19.51%	5.56%	―	―
MEDN	―	1.03B	67.39		―	―	―
TTAM	75 Outperform	950.36M	16.38		1.96%	―	―
YHNF	63 Neutral	4.17B	20.83		2.87%	10.81%	13.20%
VCTR	62 Neutral	687.47M	20.03		3.99%	3.03%	-33.66%