Skyline (SKLN) AI Stock Analysis

• Market Cap: ₪82.35M
• Dividend Yield: N/A
• Average Volume (3M): 3.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -33.82%
• EPS Growth: 6.83%
• Country: IL
• Employees: 673
• Sector: Real Estate
• Sector Strength: 53
• Industry: Travel Lodging
• EPS (TTM): -408.80
• Shares Outstanding: 16,700,480
• 10 Day Avg. Volume: 3,719
• 30 Day Avg. Volume: 3,730
• PEG Ratio: -0.12
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -3.20
• 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: 38 Underperform
• Price Target: 462.00 ▼(-13.30% Downside)

Skyline's overall stock score is heavily impacted by its poor financial performance, characterized by declining revenues, high leverage, and negative cash flows. Technical analysis further supports a bearish outlook, with all indicators pointing to downward momentum. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield, highlighting significant risks and challenges for potential investors.

Positive Factors

Recurring and diversified revenue model

Skyline's mix of one-time licenses, recurring subscriptions and consulting fees provides multiple revenue channels. Recurring subscriptions increase customer stickiness and predictability, while consulting supports upsells and higher lifetime value, bolstering durable cash generation potential.

Strategic partnerships with municipalities and developers

Partnerships with public agencies and developers create long-term contract opportunities, reference customers and co-development pathways. Such relationships drive adoption in city planning workflows, strengthen sales pipelines, and raise switching costs for customers over multi-year urban projects.

Specialized product suite for urban planning

A focused product set (3D modeling, GIS, planning simulations) targets mission-critical urban planning needs; high domain specificity and integration into workflows create defensibility, technical differentiation, and potential for embedded, multi-year contracts with public and private planners.

Negative Factors

Declining revenue trend

Sustained revenue declines reduce scale economics and limit reinvestment in product and sales. Over time this erodes competitive position, compresses margins, and forces tougher trade-offs between growth and profitability, undermining long-term viability unless trends reverse.

High leverage on the balance sheet

A high debt-to-equity ratio increases fixed obligations and financial rigidity, constraining capital allocation and raising refinancing risk. In a company with weak cash generation, leverage magnifies downside risk and limits ability to fund product development or absorb cyclical pressure.

Negative operating cash flow and shrinking FCF

Negative operating cash flow and a steep FCF decline materially weaken self-funding capacity. This forces reliance on external financing or asset sales, increases dilution or interest burden, and reduces strategic flexibility to invest in sales, R&D, or pursue partnerships long-term.

Skyline Business Overview & Revenue Model

Company Description

Skyline Investments Inc. develops and operates real estate properties. The company was formerly known as Skyline International Development Inc. Skyline Investments Inc. was founded in 1998 and is based in Toronto, Canada with an additional office in Israel.

How the Company Makes Money

Skyline generates revenue through a combination of software licensing, subscription services, and consulting fees. The primary revenue stream comes from the sale of its software products, which are offered as one-time licenses or through recurring subscription models. Additionally, Skyline provides customized consulting services to help clients implement and optimize their software solutions, which contributes significantly to its earnings. The company has formed strategic partnerships with various municipalities and real estate developers, allowing it to enhance its product offerings and expand its market reach. These collaborations often lead to joint projects that further solidify its revenue base.

Skyline Financial Statement Overview

Summary

Skyline is facing substantial financial challenges across all major financial statements. The company is experiencing declining revenues and profitability, high leverage, and negative cash flows. These factors point to significant operational and financial risks, requiring strategic adjustments to improve financial health and sustainability.

Income Statement

Skyline's income statement shows significant challenges. The company has experienced a decline in revenue, with a negative revenue growth rate of -12.17% in the TTM period. Gross profit margins have decreased over time, and the net profit margin is deeply negative at -69.33% in the TTM, indicating substantial losses. EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and high costs relative to revenue.

Balance Sheet

Skyline's balance sheet reveals a high debt-to-equity ratio of 1.50 in the TTM, indicating significant leverage and potential financial risk. The return on equity is negative, suggesting that the company is not generating positive returns for shareholders. However, the equity ratio is relatively stable, showing that a fair portion of the company's assets is financed by equity.

Cash Flow

The cash flow statement highlights severe cash flow issues. Operating cash flow is negative, and free cash flow has decreased significantly, with a growth rate of -47.63% in the TTM. The operating cash flow to net income ratio is negative, indicating that the company is not generating sufficient cash from operations to cover its net losses. The free cash flow to net income ratio is unusually high due to negative net income, which is not a positive indicator.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	85.87M	121.39M	121.34M	133.70M	136.75M	129.36M
Gross Profit	7.82M	12.02M	14.03M	28.07M	32.86M	14.42M
EBITDA	-23.95M	-11.30M	-12.11M	32.58M	63.09M	13.11M
Net Income	-59.53M	-49.86M	-40.30M	-1.55M	22.93M	-18.00M
Balance Sheet
Total Assets	361.75M	458.77M	640.90M	609.35M	579.70M	637.86M
Cash, Cash Equivalents and Short-Term Investments	12.57M	24.62M	57.14M	19.50M	61.49M	22.44M
Total Debt	173.78M	184.42M	310.83M	240.49M	223.60M	306.11M
Total Liabilities	215.64M	250.96M	374.20M	293.38M	282.63M	381.43M
Stockholders Equity	116.19M	180.02M	234.96M	280.46M	266.25M	226.04M
Cash Flow
Free Cash Flow	-13.08M	-40.84M	-89.80M	-43.92M	20.12M	-14.93M
Operating Cash Flow	-1.62M	-3.21M	-7.45M	12.14M	27.52M	-7.82M
Investing Cash Flow	23.28M	104.48M	-44.05M	-57.52M	93.68M	-8.04M
Financing Cash Flow	-27.23M	-134.05M	89.09M	2.49M	-82.47M	11.67M

Skyline Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 532.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:SKLN, the sentiment is Negative. The current price of 532.9 is above the 20-day moving average (MA) of 517.98, below the 50-day MA of 566.89, and below the 200-day MA of 986.44, indicating a bearish trend. The MACD of -21.33 indicates Negative momentum. The RSI at 12.93 is Positive, neither overbought nor oversold. The STOCH value of 22.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:SKLN.

Skyline Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISRO	67 Neutral	₪10.20B	39.90	―	0.66%	17.96%	-12.66%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FTAL	56 Neutral	₪10.60B	619.39	0.73%	―	3.84%	-94.37%
SKLN	38 Underperform	₪82.35M	-0.54	―	―	-33.82%	6.83%