Rami Levi (RMLI) AI Stock Analysis

• Market Cap: ₪5.55B
• Dividend Yield: 4.01%
• Average Volume (3M): 38.90K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 0.76
• 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): 21.47
• Revenue Forecast (FY): ₪8.95B

• Rating: 71 Outperform
• Price Target: 40,034.00 ▲(8.49% Upside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

Rami Levi earns a score of 71, driven primarily by strong technical momentum and solid operational revenue growth. The stock is in a clear uptrend and rewards shareholders with a healthy dividend yield. However, the score is capped by fundamental risks regarding high debt leverage and tightening liquidity, alongside a premium valuation multiple.

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 a mixed financial picture. While the company demonstrates strong revenue growth and exceptional Return on Equity (over 40%), the score is negatively impacted by a leverage-heavy balance sheet (debt-to-equity ~4.0x) and deteriorating free cash flow efficiency, which dropped 25% in the TTM period.

Income Statement

Rami Levi demonstrates solid top-line performance, with TTM (Trailing-Twelve-Months) revenue rising to 7.74 billion, continuing a steady upward trajectory from 2024. Gross profit margins have remained stable at roughly 23.6%, indicating consistent pricing power and cost control—a vital attribute in the low-margin grocery industry. However, the company faces mild pressure on the bottom line, with net profit margins compressing slightly to 2.8% in the TTM period compared to 3.3% in 2024. Despite this, the consistent EBITDA margins suggest operational stability.

Balance Sheet

The company achieves an exceptional Return on Equity (ROE) of over 40% in the TTM (Trailing-Twelve-Months) period, showcasing high efficiency in generating profits from shareholder capital. However, this return is heavily leveraged; the debt-to-equity ratio has climbed to nearly 4.0x, indicating a capital structure heavily reliant on debt. While high leverage is common in the retail sector due to lease liabilities, the increasing debt burden alongside a slight dip in stockholder equity warrants caution regarding long-term solvency risks.

Cash Flow

While the company remains cash-positive, recent trends show deterioration in cash flow efficiency. Free cash flow dropped by approximately 25% in the TTM (Trailing-Twelve-Months) period compared to the previous year. Furthermore, the conversion of net income into free cash flow has weakened significantly (from roughly 73% in 2024 to 59% TTM). This decline suggests increased working capital requirements or capital expenditures are weighing on liquidity, despite the company maintaining positive operating cash flow.

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: 36900.00
• 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:RMLI, the sentiment is Positive. The current price of 36900 is below the 20-day moving average (MA) of 40227.00, below the 50-day MA of 38276.20, and above the 200-day MA of 33169.91, indicating a neutral trend. The MACD of 372.51 indicates Positive momentum. The RSI at 50.84 is Neutral, neither overbought nor oversold. The STOCH value of 40.50 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
RMLI	71 Outperform	₪5.55B	20.25	―	4.01%	6.10%	-9.48%
TTAM	67 Neutral	₪1.37B	14.37	―	1.69%	9.07%	38.76%
YHNF	66 Neutral	₪5.19B	25.60	―	2.33%	7.38%	-7.10%
SAE	63 Neutral	₪11.64B	17.46	17.20%	4.88%	-6.86%	6.82%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VCTR	59 Neutral	₪826.32M	15.22	―	3.30%	-1.61%	-45.19%