Shufersal (SAE) AI Stock Analysis

• Market Cap: $11.35B
• Dividend Yield: 5.16%
• Average Volume (3M): 434.73K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.88
• 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: 1.29
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 3.32
• Enterprise Value/Ebitda: 5.83
• 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: 65 Neutral
• Price Target: 4,193.00 ▲(6.26% Upside)

Shufersal's overall stock score reflects solid financial performance and attractive valuation, offset by bearish technical indicators. The company's high leverage and declining revenue growth present risks, but the strong dividend yield offers potential income benefits.

Positive Factors

E-commerce Growth

The expansion in e-commerce enhances Shufersal's market reach and customer convenience, supporting long-term revenue growth and competitive positioning.

Private Label Products

Private label products provide higher margins, enhancing profitability and allowing Shufersal to differentiate its offerings, strengthening its market position.

Cash Flow Management

Strong cash flow management indicates efficient operations and financial stability, enabling Shufersal to invest in growth opportunities and manage debt.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting Shufersal's ability to invest in growth and weather economic downturns.

Declining Revenue Growth

Declining revenue growth may signal challenges in market demand or competition, potentially affecting long-term profitability and market share.

Free Cash Flow Decline

A decline in free cash flow growth can limit Shufersal's ability to fund new projects and pay down debt, impacting future financial health and expansion efforts.

Shufersal Business Overview & Revenue Model

Company Description

Shufersal Ltd. operates a chain of supermarkets under the Shufersal brand name in Israel. It operates through three segments: The Retail, The Real Estate, and The Be. The company's stores provides vegetables, fruits, dried fruits, dairy products, and other products; and general grocery and food products, toiletries and home care, pharma and cosmetic products, baked goods, beverages, frozen and chilled products, and meat and fish products. It also operates an online shopping website Shufersal Online. The company also offers home and garden furniture, electrical and kitchen appliances, textile and home design products, travel and leisure products, and food products. In addition, it provides credit cards and customer club services. Further,the company is also involved in the real estate business; and logistic activities. Shufersal Ltd. was founded in 1956 and is based in Rishon LeZion, Israel.

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. Continued focus on revenue growth and debt management will be crucial for sustaining long-term financial health.

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	15.08B	15.64B	15.18B	14.66B	14.77B	15.23B
Gross Profit	4.42B	4.43B	4.03B	3.88B	4.02B	4.04B
EBITDA	2.52B	2.16B	1.70B	1.21B	1.59B	1.52B
Net Income	751.00M	657.00M	312.00M	2.00M	393.00M	387.00M
Balance Sheet
Total Assets	14.84B	14.92B	14.91B	14.55B	14.28B	13.03B
Cash, Cash Equivalents and Short-Term Investments	2.07B	1.98B	1.14B	721.00M	1.30B	492.00M
Total Debt	6.35B	6.47B	7.03B	7.17B	7.12B	6.85B
Total Liabilities	10.81B	10.88B	11.35B	11.33B	11.09B	10.79B
Stockholders Equity	3.92B	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	2.07B	2.24B	1.95B	1.32B	1.39B	1.76B
Investing Cash Flow	-644.00M	-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: Negative
• Last Price: 3946.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SAE, the sentiment is Negative. The current price of 3946 is below the 20-day moving average (MA) of 4143.75, below the 50-day MA of 4041.05, and above the 200-day MA of 3787.36, indicating a neutral trend. The MACD of -30.65 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:SAE.

Shufersal Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YHNF	72 Outperform	4.23B	21.15	―	2.74%	7.38%	-7.10%
RMLI	69 Neutral	4.48B	19.80	―	4.35%	6.10%	-9.48%
TTAM	68 Neutral	974.57M	16.79	―	1.84%	―	―
SAE	65 Neutral	$11.35B	15.10	17.02%	5.16%	-6.86%	6.82%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VCTR	62 Neutral	652.40M	19.01	―	3.91%	-1.61%	-45.19%