Rimon (RMON) AI Stock Analysis

• Market Cap: 2.49B
• Dividend Yield: 1.33%
• Average Volume (3M): 13.42K
• Price to Earnings (P/E): 40.4
• Beta (1Y): 1.74
• Revenue Growth: 29.73%
• EPS Growth: -20.63%
• Country: IL
• Employees: 601
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 55.40
• Shares Outstanding: 36,228,220
• 10 Day Avg. Volume: 15,280
• 30 Day Avg. Volume: 13,421
• 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: 6,391.00
• Price Target Upside: -11.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: 6,405.00 ▼(-10.81% Downside)

Rimon's overall stock score is driven by strong technical momentum and solid financial performance. The stock benefits from robust revenue growth and stable profitability, although cash flow management needs improvement. The high P/E ratio suggests potential overvaluation, which tempers the overall score.

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 primarily through subscription fees for its software-as-a-service (SaaS) offerings, which provide ongoing access to its suite of financial solutions. Key revenue streams include licensing fees from its compliance and analytics platforms, transaction fees from its digital processing services, and consulting fees for custom solutions tailored to specific client needs. Additionally, Rimon has formed significant partnerships with major financial institutions, allowing for collaborative product development and expanded market reach, which further contributes to its earnings.

Rimon Financial Statement Overview

Summary

Rimon exhibits robust revenue growth and stable profitability, supported by a healthy balance sheet. However, cash flow challenges in the TTM period highlight the need for improved cash management. The company's financial health is solid, but attention to debt levels and cash flow efficiency will be crucial for sustaining growth.

Income Statement

Rimon demonstrates strong revenue growth with a 28% increase from 2023 to 2024 and a further 4.5% rise in TTM. Gross profit margins are stable around 15.8%, and the net profit margin is consistent at approximately 6.3%. The EBIT and EBITDA margins are healthy, indicating efficient operations. However, the slight decline in EBIT margin from 10.9% to 8.4% in TTM suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is moderate at 1.12, reflecting a balanced capital structure. The equity ratio is stable at around 34.2%, indicating a solid equity base. Return on equity is strong at 10.8%, showcasing effective use of equity. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Rimon's cash flow from operations has decreased significantly in TTM, affecting free cash flow, which turned negative. The operating cash flow to net income ratio dropped from 1.89 to 0.26, indicating potential cash flow management issues. Despite this, the company maintains positive financing cash flows, supporting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	951.83M	910.79M	748.93M	460.93M	291.87M	255.09M
Gross Profit	150.41M	144.82M	120.06M	93.83M	35.90M	39.40M
EBITDA	152.41M	143.12M	129.83M	97.56M	51.40M	45.80M
Net Income	60.11M	60.02M	63.88M	51.77M	29.48M	25.35M
Balance Sheet
Total Assets	1.62B	1.55B	1.12B	980.16M	842.72M	510.73M
Cash, Cash Equivalents and Short-Term Investments	343.68M	372.39M	139.30M	268.09M	299.38M	64.33M
Total Debt	621.05M	647.55M	325.49M	260.67M	226.42M	201.47M
Total Liabilities	1.06B	1.02B	618.25M	501.98M	407.30M	335.21M
Stockholders Equity	554.80M	529.19M	503.18M	476.89M	433.18M	174.88M
Cash Flow
Free Cash Flow	-92.42M	20.36M	25.94M	-6.49M	24.72M	3.91M
Operating Cash Flow	15.86M	113.45M	64.94M	26.74M	44.10M	19.97M
Investing Cash Flow	-159.38M	-146.54M	-185.76M	-60.31M	-57.37M	-47.10M
Financing Cash Flow	279.00M	273.83M	-7.89M	-2.10M	249.08M	16.64M

Rimon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7181.00
• 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:RMON, the sentiment is Positive. The current price of 7181 is above the 20-day moving average (MA) of 7031.50, above the 50-day MA of 6353.68, and above the 200-day MA of 5031.90, indicating a bullish trend. The MACD of 175.55 indicates Positive momentum. The RSI at 60.73 is Neutral, neither overbought nor oversold. The STOCH value of 62.43 is Neutral, 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	76 Outperform	2.49B	40.39	―	1.33%	29.73%	-20.63%
LEVI	53 Neutral	1.85B	222.05	2.47%	1.16%	―	―
ELWS	49 Neutral	746.80M	-9.18	-89.83%	―	119.53%	17.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Rimon Corporate Events

Rimon Consulting Updates on Chile Compression Project

Rimon Consulting and Management Services Ltd. has updated on an agreement for compression works in Chile. This development indicates a potential expansion or continuation of their operations in this region, which could impact their market presence and stakeholder interests.