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Strauss (IL:STRS)
TASE:STRS
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Strauss Group (STRS) AI Stock Analysis

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IL:STRS

Strauss Group

(TASE:STRS)

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Neutral 58 (OpenAI - 5.2)
Rating:58Neutral
Price Target:
11,554.00
▼(-1.67% Downside)
Action:Reiterated
Date:05/22/26
The score is primarily weighed down by uneven financial quality (margin volatility, meaningful leverage, and inconsistent multi-year free-cash-flow conversion) and weak near-term technical momentum. These are partially offset by a constructive earnings-call outlook with clear margin guidance and strong recent cash-flow improvement, though valuation remains relatively high for the current risk profile.
Positive Factors
Diversified branded portfolio with volume growth
Sustained volume growth across categories supports durable revenue stability and brand resilience. Growing volumes even while peers struggle implies effective category execution and distribution strength, underpinning longer-term sales predictability and bargaining power with retailers.
Negative Factors
Meaningful leverage reduces financial flexibility
Net debt roughly equal to equity constrains the firm's ability to absorb volatility or pursue aggressive M&A without raising leverage. Higher leverage increases interest exposure and limits agility if margins or cash flow deteriorate, making balance sheet risk a multi‑quarter watch item.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified branded portfolio with volume growth
Sustained volume growth across categories supports durable revenue stability and brand resilience. Growing volumes even while peers struggle implies effective category execution and distribution strength, underpinning longer-term sales predictability and bargaining power with retailers.
Read all positive factors

Strauss Group (STRS) vs. iShares MSCI Israel ETF (EIS)

Strauss Group Business Overview & Revenue Model

Company Description
Strauss Group Ltd., including its various subsidiaries, is an international food and beverage conglomerate involved in the creation, production, commercialization, and distribution of a wide array of culinary items and drinks. Its market presence ...
How the Company Makes Money
Strauss Group primarily makes money by selling branded food and beverage products through a mix of retail and out-of-home channels. Key revenue streams include: (1) Packaged consumer goods sales: Revenue is generated from the sale of products such...

Strauss Group Earnings Call Summary

Earnings Call Date:Aug 12, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Nov 30, 2026
Earnings Call Sentiment Positive
The call communicated a pronounced improvement in profitability, cash flow and leverage driven by productivity gains, core brand focus and stronger performance in Brazil and Israel, alongside organic volume growth and Water business expansion. Key negatives include headline revenue pressure from FX and commodity price pass-through, ongoing profitability challenges in China, reliance on one‑time insurance income in part of the improvement, and a pending Brazil acquisition awaiting antitrust approval. On balance, the magnitude and breadth of profit, cash flow and leverage improvements plus strategic progress and ESG recognition outweigh the operational and timing risks highlighted.
Positive Updates
Strong Group Profitability Expansion
Q2 2026 group EBIT rose 42% year-on-year to ILS 363 million with EBIT margin improving to 12.6% (from 8.3% in Q2 2025). First-half 2026 group EBIT rose 53% to ILS 679 million with EBIT margin of 11.6% (from 7.3% a year ago).
Negative Updates
Group Revenues Slightly Down and FX Headwinds
Group sales in Q2 2026 were ILS 2.87 billion, down 1.9% on a like-for-like basis (FX translation from a stronger shekel contributed to the headline revenue decline).
Read all updates
Q2-2026 Updates
Negative
Strong Group Profitability Expansion
Q2 2026 group EBIT rose 42% year-on-year to ILS 363 million with EBIT margin improving to 12.6% (from 8.3% in Q2 2025). First-half 2026 group EBIT rose 53% to ILS 679 million with EBIT margin of 11.6% (from 7.3% a year ago).
Read all positive updates
Company Guidance
Management reiterated guidance that 2026 will reflect a sustainable, higher profit platform with full‑year EBIT targeted at 10–12% (Q2 was 12.6%, H1 11.6%) and potential to be at the higher end, supported by last‑12‑month EBITDA of ILS 1.7bn (14%), EBIT ILS 1.3bn (10.6%) and net profit of ILS 700m; Q2 net income was ILS 195m and H1 net income ILS 376m. They expect productivity savings of ILS 300–400m and now aim to reach the upper segment (~ILS 400m+) by year‑end, continue to prioritize cash conversion (Q2 free cash flow ILS 150m, H1 FCF ILS 104m versus -ILS 584m prior year; operating cash flow ILS 265m) and financial discipline (net debt ILS 2.5bn, net‑debt/EBITDA 1.5x vs 2.4x). Regionally, management sees a new profit platform in Brazil with high‑single‑digit volume growth (Tres Corações Q2 sales BRL 3.25bn, gross margin 27.5%, EBIT BRL 378m / 11.6%), expects the Yoki deal to close pending Brazilian antitrust (targeted in Q3), and flagged Strauss Water momentum (Q2 revenues ILS 233m, +7.1%; EBITDA ILS 48m, +10.4%) while China (HSW sales CNY 490m, net income CNY 35m, -14.3%) is expected to recover profitably by mid‑2027; a ILS 180m dividend (≈2.7% annual yield) was also announced and a new 2027–2030 strategy will be unveiled at year‑end.

Strauss Group Financial Statement Overview

Summary
Underlying revenue growth is steady and TTM cash flow rebounded, but profitability has been volatile with a notable margin step-down after a very strong 2024. Leverage is meaningful (debt roughly in line with equity), and multi-year free-cash-flow consistency remains a key risk (TTM FCF covers less than half of net income).
Income Statement
63
Positive
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue7.92B7.82B7.09B6.79B6.11B6.07B
Gross Profit2.54B2.31B2.39B2.44B1.98B2.42B
EBITDA967.00M919.00M1.43B1.18B545.00M1.19B
Net Income464.00M404.00M624.00M488.00M117.00M609.00M
Balance Sheet
Total Assets9.68B8.82B8.96B8.17B7.41B6.70B
Cash, Cash Equivalents and Short-Term Investments1.05B535.00M1.14B517.00M517.00M554.00M
Total Debt3.19B2.63B2.81B2.63B2.61B2.06B
Total Liabilities6.11B5.19B5.36B4.86B4.72B4.02B
Stockholders Equity3.19B3.27B3.28B3.04B2.48B2.48B
Cash Flow
Free Cash Flow342.00M109.00M14.00M192.00M-73.00M586.00M
Operating Cash Flow773.00M504.00M560.00M686.00M307.00M854.00M
Investing Cash Flow-518.00M-470.00M248.00M-420.00M-350.00M-184.00M
Financing Cash Flow400.00M-597.00M-183.00M-271.00M-21.00M-595.00M

Strauss Group Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11750.00
Price Trends
50DMA
11562.00
Negative
100DMA
12223.32
Negative
200DMA
11638.01
Negative
Market Momentum
MACD
-109.93
Positive
RSI
48.44
Neutral
STOCH
25.24
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 11750 is above the 20-day moving average (MA) of 11389.50, above the 50-day MA of 11562.00, and above the 200-day MA of 11638.01, indicating a bearish trend. The MACD of -109.93 indicates Positive momentum. The RSI at 48.44 is Neutral, neither overbought nor oversold. The STOCH value of 25.24 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₪332.56M13.178.96%-22.73%-78.48%
58
Neutral
₪12.90B27.6620.91%1.82%9.27%-29.72%
58
Neutral
₪747.15M7.8410.53%-1.26%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
43
Neutral
₪117.95M1.9732.49%3.39%-18.55%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:STRS
Strauss Group
11,350.00
2,359.76
26.25%
IL:MEDN
Mehadrin
26,880.00
-3,120.00
-10.40%
IL:GSFI
Gan Shmuel
2,258.00
-781.00
-25.70%
IL:NTO
Neto
20,590.00
200.00
0.98%
IL:GLRS
Globrands
9,498.00
-42,967.48
-81.90%
IL:CRML
Carmel Corp
1,467.00
-804.00
-35.40%
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.Date of analysis: May 22, 2026