Shoham Business (SHOM) AI Stock Analysis

• Market Cap: ₪312.46M
• Dividend Yield: 6.31%
• Average Volume (3M): 32.43K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.04
• Revenue Growth: 23.39%
• EPS Growth: 19.04%
• Country: IL
• Employees: 12
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 30.10
• Shares Outstanding: 37,424,686
• 10 Day Avg. Volume: 38,208
• 30 Day Avg. Volume: 32,426
• PEG Ratio: -0.51
• Price to Book (P/B): 2.03
• Price to Sales (P/S): 2.96
• P/FCF Ratio: -40.29
• 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: 63 Neutral
• Price Target: 950.00 ▲(4.13% Upside)

Overall score reflects a clear trade-off: strong reported profitability and appealing valuation (low P/E and high dividend yield) support the score, and technicals are constructive with price above key moving averages. The primary constraint is financial risk from very high leverage and deeply negative operating/free cash flow, which raises funding and liquidity concerns.

Positive Factors

Revenue Growth Momentum

Sustained top-line growth (7.7% TTM) indicates expanding demand and supports medium-term earnings growth. Durable revenue momentum enables reinvestment in the business, underpins pricing power and market share gains, and provides a foundation for margin and cashflow improvement.

Strong Profitability and Margins

Consistently healthy gross, operating and net margins point to a structurally profitable business model and potential competitive advantages. Sustainable margins provide buffer against industry cycles, support returns on invested capital, and enable funding of operations and shareholder distributions over time.

High Returns on Equity

Strong ROE signals efficient capital deployment and the ability to generate shareholder value from existing assets. Over the medium term this supports reinvestment and dividend capacity, and when paired with revenue growth suggests the business can convert operating strength into durable equity returns.

Negative Factors

Very High Leverage

Elevated and rising leverage materially increases refinancing and downside risk. Higher debt servicing requirements constrain financial flexibility, limit ability to invest or weather shocks, and can amplify earnings volatility if margins or revenue weaken over the next several quarters.

Negative Operating and Free Cash Flow

Deeply negative OCF and FCF mean reported earnings are not converting to cash, forcing reliance on external funding. This undermines capacity to service debt, sustain dividends, or fund capex organically and raises medium-term liquidity and solvency concerns if cash conversion does not improve.

Profitability Normalization Risk

Margins normalizing from prior peaks implies past profitability may have been cyclical or one-off. If margins continue to revert, earnings and cashflow could be materially lower than prior peaks, stressing debt servicing and investment plans and increasing long-term earnings volatility.

Shoham Business Business Overview & Revenue Model

Company Description

E.N. Shoham Business Ltd operates as an investment arm of Rubicon Business Group Ltd. It specializes in investments in the industry, retail, and real estate sectors. The firm seeks to invest in Israel and abroad. Isal Amlat was founded in 1987 and is based in Herzliya Pituach, Israel. E.N.

How the Company Makes Money

Shoham Business generates revenue through multiple streams. Primarily, it earns income from consulting services, where clients pay for expertise in technology implementation and strategic planning. Additionally, the company develops and sells proprietary software solutions, which contribute significantly to its earnings. Revenue is also derived from ongoing support and maintenance contracts tied to these software products. Key partnerships with technology providers and industry leaders enable SHOM to enhance its service offerings and reach new markets, further bolstering its revenue potential. Furthermore, the company occasionally undertakes projects with government agencies, providing additional financial support through grants and contracts.

Shoham Business Financial Statement Overview

Summary

Mixed fundamentals: the income statement is strong (revenue up 7.7% TTM with healthy margins), but this is outweighed by very high leverage (elevated and rising debt-to-equity) and deeply negative operating and free cash flow, indicating weak cash conversion and higher financing/liquidity risk.

Income Statement

TTM (Trailing-Twelve-Months) results show solid top-line momentum (revenue up 7.7%) and strong profitability, with healthy gross and net margins and a high operating margin. Net income also improved versus the prior annual period, pointing to resilient earnings power. The main offset is that margins appear to have normalized from exceptionally high levels in prior years, suggesting profitability may be more volatile or less repeatable at peak levels.

Balance Sheet

The balance sheet is highly levered: debt-to-equity is elevated across periods and rose further in TTM (Trailing-Twelve-Months), with total debt increasing alongside assets. Returns on equity are strong, but they are being generated with substantial leverage, which increases refinancing and downside risk if earnings weaken or funding conditions tighten. Equity has grown, but not fast enough to meaningfully reduce leverage.

Cash Flow

Cash generation is the key weakness. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are deeply negative, a sharp deterioration from the positive cash flow seen in some prior years, indicating earnings are not currently converting into cash. While free cash flow growth is reported as positive in TTM (Trailing-Twelve-Months), the absolute level remains meaningfully negative, raising concerns around liquidity needs and reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	163.40M	134.78M	136.73M	95.44M	59.32M	47.48M
Gross Profit	122.56M	134.78M	136.73M	88.59M	54.79M	45.16M
EBITDA	90.42M	110.36M	103.30M	77.66M	49.73M	34.48M
Net Income	42.48M	38.39M	38.02M	36.32M	23.18M	16.01M
Balance Sheet
Total Assets	1.12B	971.49M	804.85M	806.09M	698.93M	348.77M
Cash, Cash Equivalents and Short-Term Investments	144.81M	81.95M	31.87M	26.81M	99.57M	6.78M
Total Debt	897.69M	766.17M	603.68M	641.19M	569.42M	249.28M
Total Liabilities	910.71M	775.06M	623.54M	656.17M	575.86M	258.97M
Stockholders Equity	213.07M	196.42M	181.30M	149.92M	123.08M	89.81M
Cash Flow
Free Cash Flow	-164.42M	-9.88M	86.42M	-123.25M	-219.17M	35.14M
Operating Cash Flow	-164.38M	-9.87M	86.45M	-123.22M	-219.15M	35.16M
Investing Cash Flow	467.00K	474.00K	-40.00K	-35.00K	-5.00K	-39.00K
Financing Cash Flow	247.66M	58.44M	-81.36M	50.49M	311.94M	-35.40M

Shoham Business Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 912.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SHOM, the sentiment is Negative. The current price of 912.3 is above the 20-day moving average (MA) of 861.72, above the 50-day MA of 861.07, and above the 200-day MA of 841.23, indicating a bearish trend. The MACD of -12.27 indicates Positive momentum. The RSI at 34.50 is Neutral, neither overbought nor oversold. The STOCH value of 17.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:SHOM.

Shoham Business Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SHOM	63 Neutral	₪312.46M	7.37	―	6.31%	23.39%	19.04%
MLRN	61 Neutral	₪451.44M	8.54	―	7.37%	―	―
ELCO	52 Neutral	₪4.44B	71.58	―	4.04%	11.99%	―