Rotem Shani (RTSN) AI Stock Analysis

• Market Cap: ₪473.68M
• Dividend Yield: 2.95%
• Average Volume (3M): 3.58K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.12
• Revenue Growth: -21.19%
• EPS Growth: -4.17%
• Country: IL
• Employees: 39
• Sector: Services
• Sector Strength: N/A
• Industry: Residential Construction
• EPS (TTM): 55.60
• Shares Outstanding: 15,226,122
• 10 Day Avg. Volume: 1,739
• 30 Day Avg. Volume: 3,578
• PEG Ratio: 1.52
• Price to Book (P/B): 2.09
• Price to Sales (P/S): 1.28
• P/FCF Ratio: -5.45
• 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: 55 Neutral
• Price Target: 3,503.00 ▲(2.49% Upside)

Rotem Shani's stock score is primarily influenced by its strong profitability and attractive valuation. However, the negative cash flow and high leverage pose significant risks. The bearish technical indicators further weigh on the stock's outlook.

Positive Factors

Strong Profitability

The company's strong gross and net profit margins indicate effective cost management and operational efficiency, supporting long-term profitability.

Effective Use of Equity

A high return on equity suggests that the company effectively uses shareholders' equity to generate profits, enhancing shareholder value over time.

Healthy EBIT and EBITDA Margins

Strong EBIT and EBITDA margins reflect efficient operations, providing a buffer against revenue fluctuations and supporting sustainable earnings.

Negative Factors

Declining Revenue

A decline in revenue growth suggests potential challenges in market demand or competitive pressures, which could impact future profitability and market position.

High Leverage

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

Negative Cash Flow

Negative cash flows indicate cash outflows from operations, which can strain liquidity and hinder the company's ability to sustain operations without external financing.

Rotem Shani Business Overview & Revenue Model

Company Description

Rotem Shani (RTSN) is a dynamic company operating primarily in the technology and innovation sectors, specializing in the development and deployment of advanced software solutions tailored for various industries. The company focuses on delivering cutting-edge products that enhance operational efficiency and data analytics capabilities, catering to a diverse clientele ranging from small businesses to large enterprises.

How the Company Makes Money

RTSN generates revenue through multiple streams, including software licensing fees, subscription services for its cloud-based solutions, and consultancy services aimed at optimizing clients' technology infrastructures. The company also partners with industry leaders to integrate its products into larger systems, thereby expanding its market reach and driving additional sales. Key partnerships with technology firms and strategic alliances in various sectors further enhance its revenue potential, as RTSN capitalizes on collaborative projects and joint ventures that yield mutual benefits.

Rotem Shani Financial Statement Overview

Summary

Rotem Shani shows strong profitability with healthy margins, but faces challenges with declining revenue and high leverage. The negative cash flow situation raises concerns about liquidity and financial flexibility.

Income Statement

Rotem Shani's income statement shows a mixed performance. The company has a strong gross profit margin of 30.6% and a robust net profit margin of 25.3% for the TTM, indicating effective cost management and profitability. However, the revenue growth rate is negative at -5.0%, suggesting a decline in sales. The EBIT and EBITDA margins are healthy at 37.8% and 38.1% respectively, reflecting efficient operations despite the revenue drop.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.86, indicating significant leverage which could pose financial risks. The return on equity is strong at 30.6%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

The cash flow statement highlights challenges with negative operating and free cash flows, indicating cash outflows from operations. The free cash flow growth rate is negative at -25.8%, and the operating cash flow to net income ratio is -0.71, reflecting cash flow issues despite profitability. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow aligns with net income, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	317.92M	417.90M	28.08B	289.86M	359.18M	197.13M
Gross Profit	101.24M	114.21M	7.29B	74.06M	73.17M	38.62M
EBITDA	132.71M	95.28M	88.93M	62.84M	60.48M	31.26M
Net Income	81.76M	61.97M	5.87B	31.19M	28.42M	6.53M
Balance Sheet
Total Assets	1.01B	817.84M	62.86B	583.12M	487.81M	309.12M
Cash, Cash Equivalents and Short-Term Investments	104.12M	80.57M	2.65B	162.70M	105.47M	65.94M
Total Debt	523.67M	385.60M	22.78B	170.66M	118.88M	90.64M
Total Liabilities	696.65M	562.11M	42.57B	440.79M	390.96M	285.11M
Stockholders Equity	311.74M	255.73M	20.29B	142.32M	96.84M	24.01M
Cash Flow
Free Cash Flow	-206.36M	-98.08M	-11.10B	56.56M	-32.42M	9.12M
Operating Cash Flow	-206.27M	-97.98M	-97.69M	56.68M	-32.23M	9.12M
Investing Cash Flow	26.44M	-1.53M	6.54B	-65.21M	-13.45M	-6.69M
Financing Cash Flow	94.88M	129.45M	4.29B	65.74M	85.02M	-6.67M

Rotem Shani Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3418.00
• 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:RTSN, the sentiment is Negative. The current price of 3418 is above the 20-day moving average (MA) of 3372.90, below the 50-day MA of 3421.16, and below the 200-day MA of 3423.68, indicating a bearish trend. The MACD of -93.87 indicates Positive momentum. The RSI at 38.48 is Neutral, neither overbought nor oversold. The STOCH value of 28.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:RTSN.

Rotem Shani Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ROTS	64 Neutral	₪1.43B	5.70	―	3.51%	1.43%	238.96%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RTSN	55 Neutral	₪473.68M	5.76	―	2.95%	-21.19%	-4.17%
ILDR	54 Neutral	₪948.87M	-143.48	―	―	53.90%	84.59%