Rotshtein (ROTS) AI Stock Analysis

• Market Cap: 1.31B
• Dividend Yield: 3.51%
• Average Volume (3M): 10.55K
• Price to Earnings (P/E): 5.2
• Beta (1Y): 1.14
• Revenue Growth: 1.43%
• EPS Growth: 238.96%
• Country: IL
• Employees: 76
• Sector: Real Estate
• Sector Strength: 53
• Industry: Residential Construction
• EPS (TTM): 725.00
• Shares Outstanding: 16,961,102
• 10 Day Avg. Volume: 14,254
• 30 Day Avg. Volume: 10,549
• PEG Ratio: 0.32
• Price to Book (P/B): 1.80
• Price to Sales (P/S): 1.32
• P/FCF Ratio: 5.36
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: 8,377.00 ▲(8.37% Upside)

The overall stock score is primarily influenced by the company's strong profitability and attractive valuation. However, bearish technical indicators and financial challenges such as declining revenue growth and high leverage weigh down the score. The lack of earnings call data and corporate events did not impact the score.

Positive Factors

Strong Profitability

The company's robust return on equity of 23.71% indicates efficient use of its equity to generate profits, which is a positive indicator of financial health and management effectiveness.

Economies of Scale

Economies of scale allow Rotshtein to optimize production costs and maintain competitive pricing, enhancing profitability and market competitiveness over the long term.

Diverse Revenue Streams

Diversified revenue streams, including product sales and technology licensing, provide Rotshtein with stability and resilience against market fluctuations, supporting long-term growth.

Negative Factors

Declining Revenue Growth

The decline in revenue growth is concerning as it may impact future profitability and market position, necessitating strategic adjustments to sustain growth.

High Leverage

Significant leverage can strain financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Declining Free Cash Flow

A decline in free cash flow growth indicates potential cash management issues, which could limit the company's ability to fund operations and strategic initiatives.

Rotshtein Business Overview & Revenue Model

Company Description

Rotshtein Realestate Ltd develops and constructs residential projects in Israel. It also undertakes engineering works. The company was formerly known as D. Rothstein Company and changed its name to Rotshtein Realestate Ltd in February 2013. Rotshtein Realestate Ltd is based in Petah Tikva, Israel. Rotshtein Realestate Ltd is a subsidiary of Avnei Shoham Yizum Ltd.

How the Company Makes Money

Rotshtein generates revenue through multiple streams, primarily by selling its electronic components and systems to various industries. The company has established long-term contracts and partnerships with major clients in the telecommunications and automotive sectors, ensuring a steady flow of orders. Additionally, ROTS engages in research and development to create proprietary technologies, which it then licenses to other firms, providing an additional source of income. The company also benefits from economies of scale in manufacturing, allowing it to optimize production costs and maintain competitive pricing, which further enhances its profitability.

Rotshtein Financial Statement Overview

Summary

Rotshtein demonstrates solid profitability and cash flow management despite facing revenue growth challenges. The company maintains strong margins and has improved its cash flow position significantly. However, high leverage remains a concern, necessitating careful financial management to mitigate potential risks. The company's financial health is stable, with strengths in profitability and cash flow, but it must address revenue growth and leverage issues.

Income Statement

Rotshtein's income statement shows a mixed performance. The TTM gross profit margin is healthy at 27.8%, indicating efficient cost management. However, the revenue growth rate has declined by 6.75% in the TTM, suggesting challenges in maintaining sales momentum. The net profit margin remains stable at 13.17%, and the EBIT margin is strong at 23.72%, reflecting good operational efficiency. Despite the revenue decline, profitability metrics remain robust.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.83 in the TTM, indicating significant leverage which could pose financial risk. However, the return on equity is strong at 19.41%, suggesting effective use of equity to generate profits. The equity ratio stands at 29.4%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a positive trend with a 50.82% growth in free cash flow in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is low at 0.09, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is strong at 0.78, reflecting good cash flow management relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	660.72M	779.74M	702.59M	825.14M	523.96M	307.45M
Gross Profit	156.18M	211.21M	164.52M	240.45M	106.89M	63.65M
EBITDA	364.83M	192.63M	151.25M	280.95M	143.82M	79.36M
Net Income	246.75M	100.75M	73.91M	176.04M	71.17M	49.58M
Balance Sheet
Total Assets	2.39B	2.47B	2.13B	1.94B	1.52B	1.06B
Cash, Cash Equivalents and Short-Term Investments	161.41M	99.45M	114.86M	135.23M	103.30M	131.11M
Total Debt	974.65M	1.17B	1.14B	855.64M	814.62M	636.20M
Total Liabilities	1.55B	1.84B	1.60B	1.46B	1.22B	842.25M
Stockholders Equity	797.01M	571.17M	468.77M	426.15M	239.63M	173.39M
Cash Flow
Free Cash Flow	80.96M	191.98M	-368.28M	45.25M	-47.63M	-104.91M
Operating Cash Flow	111.78M	192.45M	-357.26M	91.97M	-46.82M	-104.24M
Investing Cash Flow	-149.99M	-235.69M	70.90M	-104.95M	-126.92M	-48.19M
Financing Cash Flow	24.66M	27.49M	265.84M	58.18M	180.33M	200.87M

Rotshtein Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7730.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ROTS, the sentiment is Neutral. The current price of 7730 is below the 20-day moving average (MA) of 8153.93, below the 50-day MA of 8616.51, and below the 200-day MA of 8023.53, indicating a neutral trend. The MACD of -214.37 indicates Negative momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 48.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ROTS.

Rotshtein Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNRT	80 Outperform	1.98B	10.00	―	5.49%	―	―
LAHAV	75 Outperform	2.20B	14.85	―	2.26%	19.43%	21.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ILDC	64 Neutral	1.55B	11.76	―	3.87%	-5.51%	35.48%
ROTS	57 Neutral	1.31B	5.23	―	3.51%	1.43%	238.96%
RTSN	55 Neutral	512.51M	6.23	―	2.95%	-21.19%	-4.17%