Strauss (IL:STRS)
:STRS
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Strauss Group
(STRS)
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Rating:58Neutral
Price Target:
14,186.00
▲(2.72% Upside)
Action:DowngradedDate:03/27/26
The score is held back primarily by weaker trailing profitability and notably poor trailing free cash flow, plus a high P/E valuation. Offsetting these are a constructive longer-term price trend and a strong, upbeat earnings call emphasizing EBIT/margin improvements, positive free cash flow, and clear multi-year execution targets.
Positive Factors
Coffee International Growth
Sustained double-digit volume and outsized EBIT expansion in Coffee International indicate a durable growth engine with strong brand and distribution leverage. Recurring consumption and improved margins in this division materially bolster group revenue stability, cash flow potential, and scalability over multi-year horizons.
Negative Factors
Margin Volatility and Compression
Material swings in gross and net margins highlight structural sensitivity to input costs and mix shifts. Persistent margin volatility undermines earnings predictability and return on capital, forcing reliance on cost programs or price actions which may be competitively constrained over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Coffee International Growth
Sustained double-digit volume and outsized EBIT expansion in Coffee International indicate a durable growth engine with strong brand and distribution leverage. Recurring consumption and improved margins in this division materially bolster group revenue stability, cash flow potential, and scalability over multi-year horizons.
Read all positive factors
Strauss Group (STRS) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪14.93B
Dividend Yield2.81%
Average Volume (3M)126.11K
Price to Earnings (P/E)36.8
Beta (1Y)0.78
Revenue Growth10.35%
EPS Growth-35.30%
CountryIL
Employees17,484
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)3.47
Shares Outstanding117,123,860
10 Day Avg. Volume147,790
30 Day Avg. Volume126,113
Financial Highlights & Ratios
PEG Ratio-0.91
Price to Book (P/B)3.95
Price to Sales (P/S)1.65
P/FCF Ratio118.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)7.46
Revenue Forecast (FY)₪12.60B
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 & We...
How the Company Makes Money
Strauss Group makes money primarily by selling branded food and beverage products to retailers (e.g., supermarkets and convenience channels), foodservice customers (e.g., cafés, restaurants, institutional catering), and other distributors across i...
Strauss Group Earnings Call Summary
Earnings Call Date:Mar 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 01, 2026
Earnings Call Sentiment Positive
The call presents multiple strong financial and operational positives — double-digit top-line growth, record group EBIT, a dramatic rebound in Coffee International and Três Corações, a return to positive free cash flow, and successful productivity execution. These gains are tempered by isolated but meaningful headwinds: confectionery margin pressure from cocoa, profitability actions in China due to intense competition, higher financial/tax costs, and geopolitical risks from the war in Israel. Management provided clear strategic rationale for the Yoki acquisition and outlined achievable productivity and synergy plans. On balance, the positives (material revenue, EBIT and cash-flow improvements plus structural productivity gains and strategic M&A) substantially outweigh the challenges.Positive Updates
Group Revenue Growth (Full Year and Q4)
Full year 2025 net sales of ILS 12.5 billion, up 11.6% year-on-year; Q4 2025 net sales of ILS 3.2 billion, up 10.2% year-on-year, with broad-based growth across core segments.
Negative Updates
Confectionery Margin Pressure from Cocoa Prices
Confectionery/‘Fun & Indulgence’ performance was hurt by higher cocoa prices, limiting operating income gains in Israel; management expects a turnaround into 2026 but full-year operating income remained largely unchanged due to these headwinds.
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Q4-2025 Updates
Positive
Negative
Group Revenue Growth (Full Year and Q4)
Full year 2025 net sales of ILS 12.5 billion, up 11.6% year-on-year; Q4 2025 net sales of ILS 3.2 billion, up 10.2% year-on-year, with broad-based growth across core segments.
Read all positive updates
Company Guidance
Management reiterated 2024–26 strategic targets including ~5% organic CAGR, margin expansion to 10–12% (Q4‑2025 margin ~9.6% ex‑kitchen; group FY EBIT ILS1.02bn, 8.2% EBIT margin), and productivity savings of ILS300–400m, with ~80–85% of activity to be “core” by end‑2026; they expect a confectionery turnaround in 2026 and a new Brazil R&G margin platform of ~8–9% (Q4 Três Corações: BRL3.59bn sales, BRL464m EBIT, 12.9% Q4 margin; FY BRL14.1bn sales, BRL1.26bn EBIT, 8.9% margin), while Coffee International remains the growth engine (FY sales ILS6.2bn, +31%) as the group aims to sustain top‑line momentum after 2025 group sales of ILS12.5bn (+11.6%) and Q4 sales ILS3.2bn (+10.2%); financial guidance also emphasizes maintaining positive free cash flow (FY FCF ILS215m; Q4 FCF ILS554m), moderate leverage (net debt ILS2.2bn; net debt/EBITDA 1.6x), and completing the Yoki turnaround within ~18–24 months following acquisition at ~0.4x revenues.Strauss Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.82B | 7.09B | 6.79B | 6.11B | 6.07B |
| Gross Profit | 2.31B | 2.39B | 2.44B | 1.98B | 2.42B |
| EBITDA | 919.00M | 1.43B | 1.18B | 545.00M | 1.19B |
| Net Income | 404.00M | 624.00M | 488.00M | 117.00M | 609.00M |
Balance Sheet | |||||
| Total Assets | 8.82B | 8.96B | 8.17B | 7.41B | 6.70B |
| Cash, Cash Equivalents and Short-Term Investments | 535.00M | 1.14B | 517.00M | 517.00M | 554.00M |
| Total Debt | 2.63B | 2.81B | 2.63B | 2.61B | 2.06B |
| Total Liabilities | 5.19B | 5.36B | 4.86B | 4.72B | 4.02B |
| Stockholders Equity | 3.27B | 3.28B | 3.04B | 2.48B | 2.48B |
Cash Flow | |||||
| Free Cash Flow | 109.00M | 14.00M | 192.00M | -73.00M | 586.00M |
| Operating Cash Flow | 504.00M | 560.00M | 686.00M | 307.00M | 854.00M |
| Investing Cash Flow | -470.00M | 248.00M | -420.00M | -350.00M | -184.00M |
| Financing Cash Flow | -597.00M | -183.00M | -271.00M | -21.00M | -595.00M |
Strauss Group Technical Analysis
Neutral
13810.00
Price Trends
13261.73
Negative
11983.58
Positive
10519.60
Positive
Market Momentum
-51.87
Positive
43.96
Neutral
29.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:STRS, the sentiment is Neutral. The current price of 13810 is above the 20-day moving average (MA) of 13303.22, above the 50-day MA of 13261.73, and above the 200-day MA of 10519.60, indicating a neutral trend. The MACD of -51.87 indicates Positive momentum. The RSI at 43.96 is Neutral, neither overbought nor oversold. The STOCH value of 29.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:STRS.
Strauss Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | ₪399.53M | 7.81 | ― | 12.33% | -20.73% | -62.33% | |
58 Neutral | ₪14.93B | 36.80 | 20.91% | 2.81% | 10.35% | -35.30% | |
58 Neutral | ₪995.37M | 9.01 | ― | ― | 8.53% | 1.53% | |
54 Neutral | ₪357.63M | 9.45 | ― | 6.97% | -0.49% | -20.37% |
* Consumer Defensive Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.