Rimon (RMON) AI Stock Analysis

• Market Cap: 2.76B
• Dividend Yield: 1.09%
• Average Volume (3M): 84.90K
• Price to Earnings (P/E): 42.8
• Beta (1Y): 1.54
• Revenue Growth: 54.25%
• EPS Growth: -1.47%
• Country: IL
• Employees: 601
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 55.40
• Shares Outstanding: 36,228,220
• 10 Day Avg. Volume: 64,514
• 30 Day Avg. Volume: 84,899
• PEG Ratio: -4.13
• Price to Book (P/B): 2.88
• Price to Sales (P/S): 1.67
• P/FCF Ratio: 74.83
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 7,952.00 ▼(-9.71% Downside)

Rimon's overall stock score is primarily influenced by its strong revenue growth and stable profitability margins. However, the increasing leverage and cash flow challenges pose significant risks. The technical indicators show mixed signals, with short-term positive momentum but potential bearish trends. The high P/E ratio suggests overvaluation, which, combined with a modest dividend yield, impacts the overall attractiveness of the stock.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Stable Profitability Margins

Stable profitability margins suggest efficient cost management and pricing power, which are crucial for sustaining long-term profitability.

Product and Service Diversification

Diversified revenue streams reduce dependency on a single product line, enhancing resilience against market fluctuations and supporting growth.

Negative Factors

Increasing Leverage

Higher leverage can increase financial risk, potentially affecting the company's ability to invest in growth and manage economic downturns.

Cash Flow Challenges

Negative free cash flow indicates difficulty in generating cash from operations, which can limit investment capacity and financial flexibility.

Decline in Net Profit Margin

A declining net profit margin suggests pressure on profitability, which could impact future earnings and shareholder returns if not addressed.

Rimon Business Overview & Revenue Model

Company Description

Rimon Consulting & Management Services Ltd. engages in the water, energy, and natural gas infrastructure businesses in Israel. It owns, develops, and operates a portfolio of projects, including water plants, wastewater and reuse plants, brine treatment and discharge facilities, desalination plants, underground water drillings, reservoirs, pumping stations, and other infrastructure works; provides contractor services for the water infrastructure projects; and provides water and wastewater solutions for clients, including municipalities, agriculture and industry sectors, public utilities, and others. The company also owns and develops, and provides EPC (engineering, procurement, and construction) and O&M (operations and maintenance) contractor services for energy and renewable energy projects, including solar PV, biogas, and industrial cogeneration power plants; distributes and supplies approximately 100,000 MWh of electricity; and provides grid management services to 12,000 consumers, as well as distributes natural gas for consumers, including large-scale clients, such as factories, public institutions, and others. Further, it provides contractor services for water infrastructure works and natural gas pipes laying, as well as for infrastructure works, including pumping stations, reservoirs, civil works, construction waste recycling, and others; and horizontal directional drilling and pipe jacking services for water and natural gas infrastructure projects. The company's natural gas driven cogeneration power plants supply electricity and heat to its clients under BOT agreements. Rimon Consulting & Management Services Ltd. was founded in 1997 and is based in Caesarea, Israel.

How the Company Makes Money

Rimon generates revenue through multiple streams, primarily by offering subscription-based services for its cloud computing and data analytics platforms. These services include software-as-a-service (SaaS) solutions that allow businesses to access advanced analytical tools and cloud infrastructure without significant upfront investment. Additionally, Rimon earns revenue through consulting services, helping organizations implement and optimize their technology solutions. Key partnerships with major technology providers enhance its offerings and market reach, contributing to its overall earnings. The company also explores strategic alliances and joint ventures to expand its product portfolio and enter new markets, further bolstering its revenue potential.

Rimon Financial Statement Overview

Summary

Rimon demonstrates strong revenue growth and stable profitability margins. However, increasing leverage and cash flow challenges present potential risks. The company needs to manage debt levels and improve cash flow to ensure long-term financial stability.

Income Statement

Rimon has demonstrated strong revenue growth, particularly in the TTM period with a 17.08% increase. The company maintains healthy gross and net profit margins, though there is a slight decline in gross profit margin over time. EBIT and EBITDA margins are stable, indicating efficient operational management. However, the net profit margin has slightly decreased compared to previous years, suggesting some pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose risks if not managed properly. Return on equity remains solid, reflecting efficient use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure, but the increasing debt levels warrant caution.

Cash Flow

Rimon's cash flow situation is concerning, with negative free cash flow in the TTM period and a significant decline in operating cash flow. The free cash flow to net income ratio is negative, indicating challenges in converting profits into cash. The operating cash flow to net income ratio is low, suggesting potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.11B	910.79M	748.93M	460.93M	291.87M	255.09M
Gross Profit	183.52M	144.82M	120.06M	93.83M	35.90M	39.40M
EBITDA	186.88M	143.12M	129.83M	97.56M	51.40M	45.80M
Net Income	61.13M	60.02M	63.88M	51.77M	29.48M	25.35M
Balance Sheet
Total Assets	1.93B	1.55B	1.12B	980.16M	842.72M	510.73M
Cash, Cash Equivalents and Short-Term Investments	350.44M	372.39M	139.30M	268.09M	299.38M	64.33M
Total Debt	719.27M	647.55M	325.49M	260.67M	226.42M	201.47M
Total Liabilities	1.31B	1.02B	618.25M	501.98M	407.30M	335.21M
Stockholders Equity	573.25M	529.19M	503.18M	476.89M	433.18M	174.88M
Cash Flow
Free Cash Flow	-156.63M	20.36M	25.94M	-6.49M	24.72M	3.91M
Operating Cash Flow	-33.23M	113.45M	64.94M	26.74M	44.10M	19.97M
Investing Cash Flow	-101.96M	-146.54M	-185.76M	-60.31M	-57.37M	-47.10M
Financing Cash Flow	296.28M	273.83M	-7.89M	-2.10M	249.08M	16.64M

Rimon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8807.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RMON, the sentiment is Positive. The current price of 8807 is above the 20-day moving average (MA) of 7420.20, above the 50-day MA of 7589.76, and above the 200-day MA of 5678.22, indicating a bullish trend. The MACD of 205.34 indicates Negative momentum. The RSI at 73.19 is Negative, neither overbought nor oversold. The STOCH value of 90.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:RMON.

Rimon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEVI	61 Neutral	2.24B	269.25	―	1.01%	―	―
RMON	59 Neutral	2.76B	42.77	―	1.09%	54.25%	-1.47%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ELWS	41 Neutral	845.84M	-9.41	―	―	―	―