Retailors (RTLS) AI Stock Analysis

• Market Cap: 2.99B
• Dividend Yield: 3.76%
• Average Volume (3M): 34.41K
• Price to Earnings (P/E): 37.0
• Beta (1Y): 1.36
• Revenue Growth: 17.18%
• EPS Growth: -19.36%
• Country: IL
• Employees: 5,955
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): N/A
• Shares Outstanding: 48,614,210
• 10 Day Avg. Volume: 29,533
• 30 Day Avg. Volume: 34,415
• 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: 6,742.00
• Price Target Upside: 9.47% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: 6,742.00 ▲(9.47% Upside)

The overall stock score of 60 reflects the company's operational efficiency and stable margins, offset by challenges in revenue growth, cash flow generation, and high leverage. The technical analysis indicates a bearish trend, while the valuation suggests potential overvaluation despite a decent dividend yield. These factors combined highlight the need for cautious optimism regarding future performance.

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 is demonstrating strong revenue growth and healthy profit margins despite some pressure on net income margins. The balance sheet shows a solid equity base but is offset by high leverage, which could pose risks if not managed carefully. Cash flow generation remains strong, although there has been a decline in free cash flow.

Income Statement

Retailors has shown a consistent trajectory of revenue growth with a notable increase from $1.13 billion in 2021 to $2.49 billion in TTM (Trailing-Twelve-Months) 2025. The gross profit margin remains strong at approximately 50.94% for TTM 2025. However, net profit margins have slightly decreased to 3.69% in TTM 2025, down from 4.66% in 2024. Despite this, the company's EBITDA margin remains healthy at 20.77%, indicating good operational efficiency.

Balance Sheet

Retailors maintains a solid equity base with an equity ratio of 27.81% in TTM 2025. However, the debt-to-equity ratio is relatively high at 1.88, reflecting substantial leverage. Return on equity is moderate at 10.50%, down from 12.07% in 2024, suggesting a slight decline in profitability per equity dollar.

Cash Flow

The company displays strong free cash flow generation, with a free cash flow of $123.23 million in TTM 2025. However, the free cash flow has decreased from $245.90 million in 2024, indicating a decline in cash generation efficiency. The operating cash flow to net income ratio is robust at 3.42 in TTM 2025, showcasing effective conversion of income into cash.

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	206.65M
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: Positive
• Last Price: 6159.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:RTLS, the sentiment is Positive. The current price of 6159 is below the 20-day moving average (MA) of 6408.80, below the 50-day MA of 6512.00, and below the 200-day MA of 7148.71, indicating a neutral trend. The MACD of -40.40 indicates Positive momentum. The RSI at 50.14 is Neutral, neither overbought nor oversold. The STOCH value of 30.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	761.07M	19.74	34.52%	7.75%	9.24%	-20.24%
CAST	72 Outperform	1.45B	14.67	10.92%	16.97%	―	―
DELG	68 Neutral	4.31B	13.30	10.66%	2.64%	7.95%	-8.44%
RTLS	60 Neutral	2.99B	37.01	―	3.76%	17.18%	-19.36%
ECP	59 Neutral	2.55B	30.18	8.00%	1.49%	5.18%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%