Shufersal (SAE) AI Stock Analysis

• Market Cap: 11.08B
• Dividend Yield: 4.88%
• Average Volume (3M): 434.73K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.84
• Revenue Growth: -6.86%
• EPS Growth: 6.82%
• Country: IL
• Employees: 15,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 57.00
• Shares Outstanding: 266,782,300
• 10 Day Avg. Volume: 420,222
• 30 Day Avg. Volume: 434,726
• PEG Ratio: 0.14
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.65
• P/FCF Ratio: 5.39
• 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: 67 Neutral
• Price Target: 4,434.00 ▲(8.49% Upside)

Shufersal's overall stock score reflects a stable financial position with solid operational efficiency, despite some challenges in revenue growth and cash generation. The technical analysis indicates a neutral trend with potential bearish momentum, while the valuation is fair with an attractive dividend yield. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Operational Efficiency

Shufersal's improved EBIT and EBITDA margins indicate enhanced operational efficiency, which can lead to better profitability and competitive positioning in the long term.

Private Label Products

The focus on private label products allows Shufersal to achieve higher margins, enhancing profitability and providing a competitive edge over other retailers.

Customer Engagement

Investments in loyalty programs drive repeat business and increase transaction value, supporting long-term revenue stability and customer retention.

Negative Factors

Revenue Growth Decline

Negative revenue growth suggests challenges in maintaining sales momentum, which could impact market share and long-term financial performance.

High Debt Levels

Significant leverage poses financial risks, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

Cash Generation Concerns

Declining free cash flow growth raises concerns about the company's ability to generate sufficient cash to fund operations and growth initiatives.

Shufersal Business Overview & Revenue Model

Company Description

Shufersal (SAE) is Israel's largest supermarket chain, operating a vast network of retail stores that offer a wide range of grocery products, fresh produce, household goods, and personal care items. The company operates in the retail sector and is known for its commitment to providing high-quality products and customer service. Shufersal also has a growing presence in e-commerce, enabling customers to shop online for home delivery or in-store pickup, expanding its reach and convenience for consumers.

How the Company Makes Money

Shufersal generates revenue primarily through the sale of food and non-food products in its physical retail locations and online platforms. Key revenue streams include sales from supermarkets, hypermarkets, and convenience stores, as well as online grocery sales. Additionally, Shufersal benefits from private label products, which typically offer higher margins than branded goods. The company also engages in partnerships with various suppliers and brands, allowing it to negotiate favorable purchasing terms and promotions that enhance profitability. Furthermore, Shufersal has invested in loyalty programs and customer engagement strategies that drive repeat business and increase the average transaction value, contributing to its overall earnings.

Shufersal Financial Statement Overview

Summary

Shufersal demonstrates solid financial performance with strong profitability and efficient cash flow management. However, the company faces challenges with declining revenue growth and high leverage, which could impact future financial stability.

Income Statement

Shufersal's income statement shows a stable gross profit margin of around 29% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 4.98%, and revenue has slightly declined by 1.99% in the TTM period. EBIT and EBITDA margins have improved, suggesting better operational efficiency. Overall, the company demonstrates moderate profitability with room for improvement in revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.62, indicating significant leverage, which could pose financial risks. However, the return on equity is strong at 19.54%, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure. Overall, the balance sheet reflects financial stability but with potential risks due to high leverage.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 16.19% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is healthy at 0.44, indicating good cash generation relative to net income. The free cash flow to net income ratio is robust at 0.85, suggesting strong cash flow relative to earnings. Overall, cash flow management is solid but could be improved with better free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.71B	15.64B	15.18B	14.66B	14.77B	15.23B
Gross Profit	4.36B	4.43B	4.03B	3.88B	4.02B	4.04B
EBITDA	2.59B	2.16B	1.70B	1.21B	1.59B	1.52B
Net Income	666.00M	657.00M	312.00M	2.00M	393.00M	387.00M
Balance Sheet
Total Assets	15.50B	14.92B	14.91B	14.55B	14.28B	13.03B
Cash, Cash Equivalents and Short-Term Investments	2.65B	1.98B	1.14B	721.00M	1.30B	492.00M
Total Debt	6.30B	6.47B	7.03B	7.17B	7.12B	6.85B
Total Liabilities	11.48B	10.88B	11.35B	11.33B	11.09B	10.79B
Stockholders Equity	3.90B	3.94B	3.47B	3.13B	3.19B	2.24B
Cash Flow
Free Cash Flow	1.75B	1.87B	1.33B	639.00M	744.00M	1.22B
Operating Cash Flow	2.04B	2.24B	1.95B	1.32B	1.39B	1.76B
Investing Cash Flow	-97.00M	-819.00M	-980.00M	-76.00M	-1.14B	-652.00M
Financing Cash Flow	-1.34B	-1.16B	-917.00M	-1.05B	-288.00M	-688.00M

Shufersal Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4087.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SAE, the sentiment is Positive. The current price of 4087 is above the 20-day moving average (MA) of 4016.90, above the 50-day MA of 4085.88, and above the 200-day MA of 3828.52, indicating a bullish trend. The MACD of 16.95 indicates Negative momentum. The RSI at 61.56 is Neutral, neither overbought nor oversold. The STOCH value of 84.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:SAE.

Shufersal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMLI	70 Outperform	4.82B	22.16	―	4.01%	6.10%	-9.48%
SAE	67 Neutral	11.08B	16.62	17.02%	4.88%	-6.86%	6.82%
TTAM	67 Neutral	1.20B	17.78	―	1.69%	9.07%	38.76%
YHNF	66 Neutral	4.95B	26.36	―	2.33%	7.38%	-7.10%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VCTR	62 Neutral	818.52M	27.68	―	3.30%	-1.61%	-45.19%