Rotem Shani (RTSN) AI Stock Analysis

• Market Cap: 448.14M
• Dividend Yield: 3.32%
• Average Volume (3M): 4.35K
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.07
• Revenue Growth: -14.53%
• EPS Growth: 2.39%
• Country: IL
• Employees: 39
• Sector: Real Estate
• Sector Strength: 53
• Industry: Residential Construction
• EPS (TTM): 74.40
• Shares Outstanding: 15,217,045
• 10 Day Avg. Volume: 5,005
• 30 Day Avg. Volume: 4,346
• 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: 3,044.00
• Price Target Upside: 1.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 48 Neutral
• Price Target: 3,044.00 ▲(1.81% Upside)

The overall stock score is primarily influenced by financial performance challenges, particularly in revenue growth and cash flow management. Technical analysis indicates bearish momentum, further weighing down the score. However, the stock's low P/E ratio and reasonable dividend yield provide some valuation appeal, slightly offsetting the negative aspects.

Rotem Shani Business Overview & Revenue Model

Company Description

Rotem Shani Entrepreneurship and Investment Ltd. engages in the real estate business in Israel. It is also involved in planning and construction of residential projects through combination transactions, transformations, and urban renewal for landowners, company, and apartment buyers. The company was formerly known as Delta Eshbol Entrepreneurship Ltd. and changed its name to Rotem Shani Entrepreneurship and Investment Ltd. in May 1996. Rotem Shani Entrepreneurship and Investment Ltd. was incorporated in 1996 and is based in Tel Aviv, Israel.

How the Company Makes Money

Rotem Shani generates revenue primarily through the development and sale of residential and commercial properties. The company undertakes real estate projects, which involve acquiring land, developing it into residential or commercial spaces, and then selling these spaces to individuals or businesses. Additionally, the company may also engage in leasing activities, providing a steady stream of rental income. Strategic partnerships with construction companies, architects, and local governments can also play a significant role in optimizing project costs and expanding market reach, thus contributing to overall profitability.

Rotem Shani Financial Statement Overview

Summary

Rotem Shani faces significant challenges, particularly in revenue growth and cash flow management. While profitability margins are strong, the high leverage and negative cash flows pose risks to financial stability. The company needs to address revenue decline and improve cash flow generation to enhance its financial health.

Income Statement

The income statement shows a significant decline in revenue growth rate, with a TTM decrease of 97.26%. Despite this, the company maintains a strong net profit margin of 17.50% and a gross profit margin of 27.97%. However, the negative revenue growth is a major concern, indicating potential challenges in maintaining sales momentum.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 1.70, indicating significant leverage. However, the company has a strong return on equity of 36.42%, suggesting efficient use of equity to generate profits. The equity ratio stands at 28.78%, showing a moderate level of equity financing relative to total assets.

Cash Flow

The cash flow statement reveals negative operating and free cash flows, with a concerning free cash flow growth rate of -82.12% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues despite reported profits. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is just covering net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	334.63M	417.90M	28.08B	289.86M	359.18M	197.13M
Gross Profit	102.35M	114.21M	7.29B	74.06M	73.17M	38.62M
EBITDA	127.36M	95.28M	8.49B	52.28M	60.48M	31.26M
Net Income	84.63M	61.97M	5.87B	31.19M	28.42M	6.53M
Balance Sheet
Total Assets	1.05B	817.84M	62.86B	583.12M	487.81M	309.12M
Cash, Cash Equivalents and Short-Term Investments	72.96M	80.57M	2.65B	162.70M	105.47M	65.94M
Total Debt	561.93M	385.60M	22.78B	170.66M	118.88M	90.64M
Total Liabilities	748.68M	562.11M	42.57B	440.79M	390.96M	285.11M
Stockholders Equity	302.50M	255.73M	20.29B	142.32M	96.84M	24.01M
Cash Flow
Free Cash Flow	-278.13M	-98.08M	-11.10B	56.56M	-32.42M	9.12M
Operating Cash Flow	-278.03M	-97.98M	-97.69M	56.68M	-32.23M	9.12M
Investing Cash Flow	49.85M	-1.53M	6.54B	-65.21M	-13.45M	-6.69M
Financing Cash Flow	294.92M	129.45M	4.29B	65.74M	85.02M	-6.67M

Rotem Shani Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2990.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 2990 is below the 20-day moving average (MA) of 3033.65, below the 50-day MA of 3244.82, and below the 200-day MA of 3389.92, indicating a bearish trend. The MACD of -74.81 indicates Negative momentum. The RSI at 39.05 is Neutral, neither overbought nor oversold. The STOCH value of 20.85 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	71 Outperform	1.44B	9.86	21.17%	1.51%	14.62%	103.71%
RTSN	48 Neutral	448.14M	5.26	―	3.32%	-14.53%	2.39%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Rotem Shani Corporate Events

Rotem Shani Engages in New Loan Agreement

Rotem Shani has entered into a loan agreement with a third party, as reported in an immediate release. This transaction is significant for the company as it could influence its financial operations and strategic positioning in the market.