Rimon (RMON) AI Stock Analysis

• Market Cap: 2.12B
• Dividend Yield: 1.56%
• Average Volume (3M): 13.40K
• Price to Earnings (P/E): 34.9
• Beta (1Y): 1.81
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 601
• Sector: Industrials
• Sector Strength: 93
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 36,228,220
• 10 Day Avg. Volume: 9,512
• 30 Day Avg. Volume: 13,399
• PEG Ratio: N/A
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -22.07
• 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

• Rating: 72 Outperform
• Price Target: 6,091.00 ▲(2.22%Upside)

Rimon's financial performance is the strongest factor, supported by robust revenue growth and profitability despite cash flow challenges. Technical analysis shows bullish momentum, but potential overbought conditions suggest caution. High valuation metrics further temper the overall attractiveness of the stock.

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 makes money through a combination of product sales, subscription services, and maintenance contracts. The company sells its network monitoring and management solutions to businesses, generating revenue from the initial sale of software licenses or hardware appliances. In addition to one-time product sales, Rimon offers subscription-based services that provide customers with ongoing access to software updates, cloud-based tools, and enhanced support features. Rimon also secures revenue through annual maintenance contracts that ensure continued technical support and system upgrades for its clients. Partnerships with IT service providers and resellers further expand its market reach, contributing to its earnings by facilitating wider distribution and adoption of its solutions.

Rimon Financial Statement Overview

Summary

Rimon shows strong revenue growth and profitability with stable operating margins. The balance sheet is robust, featuring moderate leverage and healthy returns on equity. However, cash flow challenges are present due to high capital expenditures, though long-term management of cash resources is improving.

Income Statement

Rimon's income statement showcases a strong performance with a consistent increase in revenue over the years. The TTM (Trailing-Twelve-Months) gross profit margin is 15.8%, and the net profit margin is 6.3%, indicating effective cost management and profitability. Revenue growth from the previous year is 4.51%, which is a positive trajectory. The EBIT margin is stable at 8.45%, and the EBITDA margin is 16.01%, reflecting good operating efficiency.

Balance Sheet

Rimon maintains a stable balance sheet with a debt-to-equity ratio of 1.12 in the TTM period, suggesting moderate leverage. The return on equity (ROE) stands at 10.84%, which is a healthy return for shareholders. The equity ratio is 34.25%, indicating a balanced capital structure. The company manages its liabilities well while maintaining sufficient equity levels.

Cash Flow

Cash flow analysis reveals some concerns, with a negative free cash flow in the TTM period, indicating high capital expenditures. The operating cash flow to net income ratio is 0.26, showing potential cash flow challenges. However, the free cash flow to net income ratio has improved over the years, suggesting better management of cash resources in the long term.

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

Rimon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5959.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 5959 is above the 20-day moving average (MA) of 5537.90, above the 50-day MA of 4999.24, and above the 200-day MA of 4465.90, indicating a bullish trend. The MACD of 216.06 indicates Positive momentum. The RSI at 78.92 is Negative, neither overbought nor oversold. The STOCH value of 76.75 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	72 Outperform	2.12B	34.94		1.56%	―	―
Sector *	65 Neutral	$11.05B	15.76	5.13%	1.92%	3.11%	-24.90%
LEVI	56 Neutral	2.35B	54.49		97.20%	―	―
ELWS	48 Neutral	682.64M	―		―	119.53%	17.32%

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.