Rotshtein (ROTS) AI Stock Analysis

• Market Cap: 1.54B
• Dividend Yield: 3.51%
• Average Volume (3M): 10.55K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.09
• 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: 16,969,790
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 9,609.00 ▲(15.13% Upside)

The score is driven primarily by mixed financial performance—strong margins and ROE offset by declining revenue, high leverage, and weaker cash flow trends. Attractive valuation (low P/E with a meaningful dividend) supports the score, while technicals show an uptrend but with stretched/weakening momentum.

Positive Factors

Profitability

Strong profitability metrics indicate efficient operations and effective cost management, supporting long-term business sustainability and competitive positioning.

Competitive Advantage

Diverse product offerings in high-demand sectors like telecommunications and automotive provide a competitive edge and potential for sustained revenue streams.

Return on Equity

High ROE suggests effective management and strong financial performance, enhancing shareholder value over the long term.

Negative Factors

Revenue Decline

Declining revenue growth indicates potential challenges in market demand or competition, which could impact future profitability and market share.

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Weak cash flow generation could constrain operational and strategic initiatives, affecting the company's ability to sustain growth and manage debt.

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: Positive
• Last Price: 8346.00
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 8346 is below the 20-day moving average (MA) of 8486.15, below the 50-day MA of 8452.55, and above the 200-day MA of 8154.35, indicating a bullish trend. The MACD of 231.00 indicates Negative momentum. The RSI at 58.89 is Neutral, neither overbought nor oversold. The STOCH value of 64.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ROTS.

Rotshtein Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNRT	82 Outperform	2.10B	10.60	―	5.49%	―	―
LAHAV	75 Outperform	2.40B	16.20	―	2.26%	19.43%	21.77%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ROTS	64 Neutral	1.54B	6.15	―	3.51%	1.43%	238.96%
ILDC	64 Neutral	1.66B	12.58	―	3.87%	-5.51%	35.48%
RTSN	55 Neutral	551.34M	6.70	―	2.95%	-21.19%	-4.17%