Strauss (IL:STRS)
TASE:STRS
Want to see IL:STRS full AI Analyst Report?
Top Page
Strauss Group
(TASE:STRS)
Select Model
Select Model
Rating:58Neutral
Price Target:
12,969.00
▼(-6.09% 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
Margin recovery & guidance
Sustained double‑digit EBIT (10.5%) and management guidance to expand toward ~12% by end‑2026 indicate durable operating leverage and better cost discipline. If executed, higher structural margins improve cash generation, buffer against input volatility and fund capex and M&A over the medium term.
Negative Factors
Meaningful leverage
Debt roughly matching equity and a ~0.8–1.05 D/E range reduces financial flexibility. Higher leverage increases interest and refinancing sensitivity, constrains ability to fund adverse shocks or opportunistic investments, and raises risk if margins or cash flow weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin recovery & guidance
Sustained double‑digit EBIT (10.5%) and management guidance to expand toward ~12% by end‑2026 indicate durable operating leverage and better cost discipline. If executed, higher structural margins improve cash generation, buffer against input volatility and fund capex and M&A over the medium term.
Read all positive factors
Strauss Group (STRS) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪13.69B
Dividend Yield2.81%
Average Volume (3M)126.11K
Price to Earnings (P/E)29.5
Beta (1Y)0.80
Revenue Growth9.27%
EPS Growth-29.72%
CountryIL
Employees17,484
SectorGeneral
Sector StrengthN/A
IndustryPackaged Foods
Share Statistics
EPS (TTM)3.98
Shares Outstanding117,147,560
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., 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 retail, foodservice, and other distribution channels, with revenues generated across multiple product categories. Key revenue streams include: (1) Coffee: sa...
Strauss Group Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial trajectory: strong margin recovery (double‑digit EBIT margin), substantial YoY net income and cash‑flow improvements, volume growth across categories, marked profitability gains in Coffee International and Três Corações, and clear progress on strategic goals (core mix, productivity and investment). Notable near‑term headwinds remain — Strauss Water profitability impacted by the war and competitive pressures in China, pricing corrections in Brazil reducing reported revenues (but preserving gross profit per kilo), and some ramp/marketing costs in Israel — but management provided concrete mitigation plans (Yoki integration, capacity expansion in China, hedging benefits, productivity targets). Overall, positives materially outweighed the negatives.Positive Updates
Record EBIT margin and return to double-digit profitability
Group EBIT margin reached 10.5%, a return to double-digit EBIT for the first time in five years. Management reported a material YoY increase in EBIT (discussed as +58% to ILS 360m by the CEO and as a record ILS 316m, up ~68% YoY by the CFO).
Negative Updates
Strauss Water profitability hit by war and competition
Strauss Water revenues grew 6.4% to ILS 220 million, but EBIT declined ~33% YoY to ILS 17 million. Management cited the intense war period in March reducing machine sales in Israel and higher marketing spend in China to counter increased competition.
Read all updates
Q1-2026 Updates
Positive
Negative
Record EBIT margin and return to double-digit profitability
Group EBIT margin reached 10.5%, a return to double-digit EBIT for the first time in five years. Management reported a material YoY increase in EBIT (discussed as +58% to ILS 360m by the CEO and as a record ILS 316m, up ~68% YoY by the CFO).
Read all positive updates
Company Guidance
Management guided that the company expects to sustain double‑digit EBIT margins after Q1’s 10.5% result and aims to expand margins toward ~12% by end‑2026, while continuing volume growth (Q1 volumes +3.5%) even as revenue growth moderates due to Brazilian green‑coffee price pass‑through (group sales ~ILS 3.0bn in Q1, +0.4% YoY; ~+2.5% ex‑FX). They reiterated a Brazil target of maintaining ~BRL 10 gross profit per kilo, expect the Yoki acquisition to close by July with a turnaround and synergies to materialize within ~18 months, and forecast lower cocoa and coffee prices in Q2–Q4 that should further improve margins. Operational and financial targets include ILS 300–400m productivity savings, continued elevated capex/digital investment (roughly double prior years ’24–’25 levels), a material free‑cash‑flow uplift already seen (~ILS 450m YoY), and a strong balance sheet (net debt down 11% to ILS 2.35bn; net‑debt/EBITDA ~1.5x), plus Strauss Water’s second China facility on track for H2‑2026.Strauss Group Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
55
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.92B | 7.82B | 7.09B | 6.79B | 6.11B | 6.07B |
| Gross Profit | 2.54B | 2.31B | 2.39B | 2.44B | 1.98B | 2.42B |
| EBITDA | 865.00M | 919.00M | 1.43B | 1.18B | 545.00M | 1.19B |
| Net Income | 464.00M | 404.00M | 624.00M | 488.00M | 117.00M | 609.00M |
Balance Sheet | ||||||
| Total Assets | 9.68B | 8.82B | 8.96B | 8.17B | 7.41B | 6.70B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 535.00M | 1.14B | 517.00M | 517.00M | 554.00M |
| Total Debt | 3.19B | 2.63B | 2.81B | 2.63B | 2.61B | 2.06B |
| Total Liabilities | 6.11B | 5.19B | 5.36B | 4.86B | 4.72B | 4.02B |
| Stockholders Equity | 3.19B | 3.27B | 3.28B | 3.04B | 2.48B | 2.48B |
Cash Flow | ||||||
| Free Cash Flow | 342.00M | 109.00M | 14.00M | 192.00M | -73.00M | 586.00M |
| Operating Cash Flow | 773.00M | 504.00M | 560.00M | 686.00M | 307.00M | 854.00M |
| Investing Cash Flow | -518.00M | -470.00M | 248.00M | -420.00M | -350.00M | -184.00M |
| Financing Cash Flow | 400.00M | -597.00M | -183.00M | -271.00M | -21.00M | -595.00M |
Strauss Group Technical Analysis
Negative
13810.00
Price Trends
12778.41
Negative
12637.86
Negative
11024.49
Positive
Market Momentum
-262.83
Positive
35.21
Neutral
15.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:STRS, the sentiment is Negative. The current price of 13810 is above the 20-day moving average (MA) of 12288.00, above the 50-day MA of 12778.41, and above the 200-day MA of 11024.49, indicating a neutral trend. The MACD of -262.83 indicates Positive momentum. The RSI at 35.21 is Neutral, neither overbought nor oversold. The STOCH value of 15.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:STRS.
Strauss Group Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₪345.93M | 13.48 | ― | 12.33% | -22.73% | -78.48% | |
58 Neutral | ₪13.69B | 29.49 | 20.91% | 2.81% | 9.27% | -29.72% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₪877.88M | 9.40 | ― | ― | 10.53% | -1.26% | |
54 Neutral | ₪327.94M | 5.48 | ― | 6.97% | 3.39% | -18.55% |
* General Sector Average
IL:STRS
Strauss Group
12,180.00
3,635.88
42.55%
IL:MEDN
Mehadrin
32,790.00
9,460.00
40.55%
IL:GSFI
Gan Shmuel
2,363.00
-974.00
-29.19%
IL:NTO
Neto
23,700.00
4,730.00
24.93%
IL:GLRS
Globrands
25,720.00
-28,177.79
-52.28%
IL:CRML
Carmel Corp
1,740.00
-301.00
-14.75%
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.