Rimon (RMON) AI Stock Analysis

• Market Cap: 3.40B
• Dividend Yield: 0.97%
• Average Volume (3M): 84.90K
• Price to Earnings (P/E): 52.7
• Beta (1Y): 1.51
• Revenue Growth: 54.25%
• EPS Growth: -1.47%
• Country: IL
• Employees: 601
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 54.50
• 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: 65 Neutral
• Price Target: 8,816.00 ▼(-5.96% Downside)

Rimon's stock score is primarily influenced by its strong financial performance, despite some risks related to leverage and cash flow. Technical analysis supports a positive outlook with bullish momentum, while valuation concerns due to a high P/E ratio slightly dampen the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects robust demand for Rimon's solutions, indicating effective market penetration and product adoption.

Market Position

Rimon's focus on cloud computing and AI positions it well in high-growth sectors, enhancing its competitive edge and market relevance.

Partnerships and Alliances

Strategic partnerships expand Rimon's market reach and product portfolio, supporting long-term growth and competitive advantage.

Negative Factors

Rising Debt Levels

Higher leverage could strain financial flexibility and increase risk if not managed, potentially impacting long-term stability.

Cash Flow Challenges

Negative cash flows suggest potential liquidity issues, which could hinder Rimon's ability to invest in growth and innovation.

Profit Margin Pressure

Decreasing profit margins may indicate rising costs or pricing pressures, affecting Rimon's profitability and financial health.

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 shows strong revenue growth and stable profitability margins, but increasing leverage and cash flow challenges present potential risks. While the company is performing well operationally, attention should be given to managing debt levels and improving 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	1.32B	910.79M	748.93M	460.93M	291.87M	255.09M
Gross Profit	236.02M	144.82M	120.06M	93.83M	35.90M	39.40M
EBITDA	213.30M	143.12M	129.83M	97.56M	51.40M	45.80M
Net Income	64.25M	60.02M	63.88M	51.77M	29.48M	25.35M
Balance Sheet
Total Assets	2.01B	1.55B	1.12B	980.16M	842.72M	510.73M
Cash, Cash Equivalents and Short-Term Investments	354.20M	372.39M	139.30M	268.09M	299.38M	64.33M
Total Debt	762.78M	647.55M	325.49M	260.67M	226.42M	201.47M
Total Liabilities	1.36B	1.02B	618.25M	501.98M	407.30M	335.21M
Stockholders Equity	586.30M	529.19M	503.18M	476.89M	433.18M	174.88M
Cash Flow
Free Cash Flow	-154.43M	20.36M	25.94M	-6.49M	24.72M	3.91M
Operating Cash Flow	-41.90M	113.45M	64.94M	26.74M	44.10M	19.97M
Investing Cash Flow	-102.11M	-146.54M	-185.76M	-60.31M	-57.37M	-47.10M
Financing Cash Flow	146.40M	273.83M	-7.89M	-2.10M	249.08M	16.64M

Rimon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9375.00
• 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 9375 is above the 20-day moving average (MA) of 8659.45, above the 50-day MA of 8048.34, and above the 200-day MA of 5979.60, indicating a bullish trend. The MACD of 422.64 indicates Negative momentum. The RSI at 70.38 is Negative, neither overbought nor oversold. The STOCH value of 80.94 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
RMON	65 Neutral	3.40B	52.69	―	0.97%	54.25%	-1.47%
LEVI	61 Neutral	2.38B	-635.92	―	0.96%	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ELWS	38 Underperform	625.53M	-7.05	―	―	―	―