Retailors (RTLS) AI Stock Analysis

• Market Cap: 2.48B
• Dividend Yield: 4.36%
• Average Volume (3M): 116.73K
• Price to Earnings (P/E): 43.0
• Beta (1Y): 1.53
• Revenue Growth: 13.95%
• EPS Growth: -45.91%
• Country: IL
• Employees: 5,955
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Apparel - Retail
• EPS (TTM): N/A
• Shares Outstanding: 48,614,210
• 10 Day Avg. Volume: 115,224
• 30 Day Avg. Volume: 116,732
• PEG Ratio: -2.27
• Price to Book (P/B): 3.87
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 14.63
• 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: 54 Neutral
• Price Target: 5,508.00 ▼(-18.82% Downside)

The overall stock score reflects significant financial challenges, including declining revenue growth and cash flow issues, compounded by high leverage. Technical indicators suggest bearish momentum, with the stock trading below key moving averages. While the valuation is high, the dividend yield offers some appeal. The absence of recent earnings call data or notable corporate events limits additional insights.

Positive Factors

Business Model Strength

Retailors' diversified revenue streams, including hardware sales, software subscriptions, and strategic partnerships, provide a robust business model that supports long-term growth and resilience against market fluctuations.

Operational Efficiency

Stable margins indicate effective cost management and operational efficiency, which are crucial for sustaining profitability and competitive advantage in the retail solutions industry.

Market Position

As a leader in RTLS, Retailors benefits from a strong market position, enhancing its ability to attract new clients and retain existing ones, thereby supporting long-term revenue growth and market share expansion.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially in economic downturns, potentially impacting the company's ability to invest in growth opportunities or weather financial challenges.

Declining Cash Flow

A sharp decline in free cash flow growth suggests potential difficulties in funding operations and investments, which could hinder long-term growth and financial stability.

Decreasing Profitability

Decreasing net profit margins indicate challenges in maintaining profitability, which could affect the company's ability to reinvest in its business and compete effectively over the long term.

Retailors Business Overview & Revenue Model

Company Description

Retailors Ltd operates as a retailer in Israel, Canada, and Europe. The company sells sports and leisure footwear, apparel, and accessories under the Nike, Foot Locker, and Dream Sport brands. It operates 135 stores. The company is based in Airport City, Israel. Retailors Ltd is a subsidiary of Fox-Wizel Ltd.

How the Company Makes Money

Retailors generates revenue through multiple channels, primarily by selling its RTLS hardware and software solutions to retailers. The company offers subscription-based services for its software platforms, providing ongoing revenue through monthly or annual fees. Key revenue streams include the direct sale of tracking devices, installation and setup fees, and recurring revenue from software maintenance and updates. Additionally, RTLS partners with major retail chains and technology firms to integrate its solutions into their existing systems, creating strategic alliances that enhance its market reach and credibility. These partnerships often lead to co-development opportunities and shared revenue models, contributing significantly to Retailors' overall earnings.

Retailors Financial Statement Overview

Summary

Retailors faces challenges in revenue growth and cash flow generation, with high leverage posing potential risks. While the company maintains operational efficiency with stable margins, the declining profitability and cash flow metrics highlight areas for improvement. The balance sheet's high debt levels could impact financial flexibility.

Income Statement

Retailors has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate, which is concerning. However, the company maintains a healthy gross profit margin of approximately 51%, indicating efficient cost management. The net profit margin has decreased to 3.69% in the TTM, reflecting challenges in maintaining profitability. Despite these challenges, the EBIT and EBITDA margins remain relatively stable, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.88 in the TTM, indicating significant leverage, which could pose financial risks. The return on equity has decreased to 8.96%, showing reduced profitability from shareholders' investments. The equity ratio is not explicitly calculated, but the high leverage suggests a lower proportion of equity in the asset structure, which could impact financial stability.

Cash Flow

The cash flow statement highlights a significant decline in free cash flow growth, down by 69.45% in the TTM, which is a major concern. The operating cash flow to net income ratio is 0.37, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.39, suggesting that the company is generating less free cash flow relative to its net income, which could impact future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.47B	2.41B	1.93B	1.53B	1.12B	637.66M
Gross Profit	1.27B	1.24B	984.44M	799.90M	574.07M	313.15M
EBITDA	523.88M	518.61M	430.36M	315.92M	245.39M	71.58M
Net Income	80.73M	112.33M	130.23M	102.31M	72.86M	-28.97M
Balance Sheet
Total Assets	3.31B	3.06B	2.81B	2.45B	2.05B	1.10B
Cash, Cash Equivalents and Short-Term Investments	391.75M	498.93M	739.46M	704.90M	763.79M	90.03M
Total Debt	1.92B	1.55B	1.40B	1.02B	787.88M	705.07M
Total Liabilities	2.42B	2.11B	1.87B	1.48B	1.14B	1.03B
Stockholders Equity	874.67M	930.52M	940.93M	966.69M	881.61M	47.08M
Cash Flow
Free Cash Flow	37.65M	245.90M	174.89M	152.91M	228.84M	29.07M
Operating Cash Flow	193.82M	422.07M	318.21M	243.08M	278.48M	90.21M
Investing Cash Flow	-80.15M	-226.79M	-62.68M	-218.37M	-358.40M	-105.13M
Financing Cash Flow	-147.57M	-306.59M	-174.76M	-178.77M	458.13M	48.36M

Retailors Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6785.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RTLS, the sentiment is Negative. The current price of 6785 is above the 20-day moving average (MA) of 5876.10, above the 50-day MA of 6138.08, and below the 200-day MA of 6910.55, indicating a bearish trend. The MACD of -286.78 indicates Positive momentum. The RSI at 36.68 is Neutral, neither overbought nor oversold. The STOCH value of 7.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:RTLS.

Retailors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLMS	73 Outperform	766.73M	19.88	―	8.07%	7.70%	-34.56%
DELG	63 Neutral	$4.64B	15.09	10.63%	2.47%	2.95%	-14.16%
CAST	61 Neutral	1.70B	17.15	―	19.35%	9.88%	-2.72%
ECP	57 Neutral	2.43B	28.83	―	3.20%	3.83%	―
Sector *	57 Neutral	$3.13B	9.23	-34.32%	3.14%	-25.56%	-353.61%
RTLS	54 Neutral	2.48B	42.96	―	4.36%	13.95%	-45.91%