Strauss Group (STRS) AI Stock Analysis

• Market Cap: $10.81B
• Dividend Yield: 2.99%
• Average Volume (3M): 126.11K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.80
• Revenue Growth: 8.57%
• EPS Growth: 99.09%
• Country: IL
• Employees: 17,484
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 125.00
• Shares Outstanding: 116,665,760
• 10 Day Avg. Volume: 147,790
• 30 Day Avg. Volume: 126,113
• PEG Ratio: 0.46
• Price to Book (P/B): 2.45
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 573.85
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 8.59
• 1Y Price Target: $10,485.22
• Price Target Upside: 1.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 10,634.00 ▲(3.04% Upside)

Strauss Group's overall stock score reflects its solid financial performance and positive technical indicators. The earnings call provided an optimistic outlook with strong growth in key segments, despite some challenges. The valuation is reasonable, making it an attractive option for investors seeking stability and growth potential in the packaged foods industry.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Profitability

Strong profitability margins reflect efficient operations and cost management, enhancing the company's ability to reinvest in growth.

Brand Portfolio

A robust brand portfolio and innovation drive competitive advantage, ensuring customer loyalty and market leadership.

Negative Factors

Cash Flow Challenges

Negative cash flow can limit the company's ability to fund operations and growth initiatives, posing risks to financial stability.

Debt Levels

Moderate leverage, while manageable, could constrain financial flexibility and increase vulnerability to economic downturns.

Cost Pressures

Declining gross margins suggest rising costs, which could pressure profitability if not managed effectively over time.

Strauss Group Business Overview & Revenue Model

Company Description

Strauss Group Ltd., together with its subsidiaries, develops, manufactures, markets, and sells various food and beverage products in Israel, North America, Brazil, Europe, and internationally. The company operates through six segments: Health & Wellness; Fun & Indulgence; Israel Coffee; International Coffee; International Dips & Spreads; and Strauss Water. The Health & Wellness segment provides yogurts, dairy desserts, dairy-free tahini desserts, soft cheeses, flavored milk beverages, chilled salads, cut vegetables, fresh pasta products, cereal and granola bars, honey products, olive oils, fruit preserves, cooking sauces, lemon juices, and natural maple syrups. This segment also sells and distributes natural juices, butter spreads, and plant-based probiotic desserts. The Fun & Indulgence segment offers sweet snack bars, chocolate tablets, sweet spreads, candies, chewing gums, cakes and cookies, biscuits, wafers, and salty snacks. The Israel Coffee segment develops, manufactures, sells, markets, and distributes a range of coffee products, chocolate powders, and other drink powders; sells coffee beans; and retails coffee products. The International Coffee segment develops and manufactures various coffee products and powder drinks; markets and distributes coffee machines; and purchases and processes green coffee, corn products, cashew-based dairy substitutes and juice powders. The International Dips & Spreads segment manufactures, markets, and sells chilled dips and spreads under the Sabra, Obela, and Florentin brands. The Strauss Water segment also develops, manufactures, distributes, and sells filtration, purification, and carbonation systems for drinking water. The company was formerly known as Strauss-Elite Ltd. and changed its name to Strauss Group Ltd. in February 2007. Strauss Group Ltd. was incorporated in 1933 and is headquartered in Petah Tikva, Israel. Strauss Group Ltd. is a subsidiary of Strauss Holdings Ltd.

How the Company Makes Money

Strauss Group generates revenue through multiple key streams, primarily by selling a wide range of consumer products in its core segments. The company makes money from the sale of dairy products such as yogurt, cheese, and milk; snack foods including chips and other packaged goods; and coffee products that cater to both retail and food service sectors. Additionally, Strauss Group benefits from partnerships with global brands and local distributors, which help expand its market presence and product distribution. The company also invests in innovative product development and marketing strategies to attract consumers, thereby driving sales and enhancing its profitability.

Strauss Group Financial Statement Overview

Summary

Strauss Group demonstrates solid financial health with consistent revenue growth and profitability. The balance sheet reflects moderate leverage, while cash flow management poses some challenges. Overall, the company is well-positioned in the packaged foods industry, but attention to cash flow improvements and cost management will be crucial for sustained growth.

Income Statement

Strauss Group shows a stable revenue growth rate of 2.4% TTM, with consistent profitability reflected in a solid EBIT margin of 16.65% and a net profit margin of 8.63%. The gross profit margin remains strong at 32.80%, indicating efficient cost management. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio of 0.88 TTM indicates moderate leverage, which is manageable but slightly higher than optimal. The return on equity is robust at 20.28%, showcasing effective use of equity capital. The equity ratio of 35.74% suggests a balanced capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Strauss Group's cash flow performance is mixed, with a negative free cash flow TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio of 0.11 suggests limited cash generation relative to earnings. However, the significant improvement in free cash flow growth rate TTM is a positive sign for future cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.42B	7.09B	6.79B	6.11B	6.07B	5.87B
Gross Profit	2.44B	2.39B	2.44B	1.98B	2.42B	2.39B
EBITDA	1.57B	1.43B	1.18B	545.00M	1.19B	1.11B
Net Income	641.00M	624.00M	488.00M	117.00M	609.00M	533.00M
Balance Sheet
Total Assets	8.74B	8.96B	8.17B	7.41B	6.70B	6.41B
Cash, Cash Equivalents and Short-Term Investments	379.00M	1.14B	517.00M	517.00M	554.00M	491.00M
Total Debt	2.76B	2.81B	2.63B	2.61B	2.06B	2.20B
Total Liabilities	5.29B	5.36B	4.86B	4.72B	4.02B	3.98B
Stockholders Equity	3.13B	3.28B	3.04B	2.48B	2.48B	2.26B
Cash Flow
Free Cash Flow	-227.00M	14.00M	192.00M	-73.00M	586.00M	371.00M
Operating Cash Flow	328.00M	560.00M	686.00M	307.00M	854.00M	610.00M
Investing Cash Flow	340.00M	248.00M	-420.00M	-350.00M	-184.00M	-169.00M
Financing Cash Flow	-678.00M	-183.00M	-271.00M	-21.00M	-595.00M	-461.00M

Strauss Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10320.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:STRS, the sentiment is Positive. The current price of 10320 is above the 20-day moving average (MA) of 9487.90, above the 50-day MA of 9283.50, and above the 200-day MA of 8735.21, indicating a bullish trend. The MACD of 213.45 indicates Negative momentum. The RSI at 73.28 is Negative, neither overbought nor oversold. The STOCH value of 91.66 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:STRS.

Strauss Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTML	79 Outperform	2.85B	12.65	―	4.66%	8.53%	39.35%
STRS	74 Outperform	$10.81B	16.85	20.32%	2.99%	8.57%	99.09%
WLFD	74 Outperform	515.80M	15.36	―	―	―	―
VILR	69 Neutral	3.35B	9.49	―	1.37%	6.14%	40.36%
RMLI	69 Neutral	4.48B	19.80	―	4.59%	6.10%	-9.48%
TTAM	68 Neutral	974.57M	16.79	―	1.84%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Strauss Group Corporate Events

Strauss Group’s Q2 2025: Strong Coffee Segment Boosts Profits

Strauss Group Ltd., a leading player in the food and beverage industry, operates globally with a focus on coffee, water, and health & wellness products, known for its innovative approach and strategic joint ventures.