Strauss Group (STRS) AI Stock Analysis

• Market Cap: 12.85B
• Dividend Yield: 2.81%
• Average Volume (3M): 126.11K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.84
• 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: 116,795,220
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 10,501.16
• Price Target Upside: -4.53% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 12,419.00 ▲(12.90% Upside)

Strauss Group's strong technical indicators and positive earnings call sentiment are the most significant factors driving the score. The company's robust financial performance is tempered by cash flow challenges, while reasonable valuation metrics and a moderate dividend yield add to its attractiveness. Despite some operational challenges, the overall outlook remains positive.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Strauss Group's products, enhancing its market position and supporting long-term profitability.

International Expansion

Successful international expansion, particularly in the coffee segment, strengthens Strauss Group's global footprint and diversifies revenue streams.

Innovation

Innovation in product offerings, such as Cow Free dairy, positions Strauss Group to capture emerging consumer trends and drive future growth.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates potential liquidity issues, which could constrain investment in growth initiatives and affect financial stability.

Health & Wellness Segment Issues

Operational challenges in the Health & Wellness segment may impact overall profitability and require strategic focus to resolve.

Competitive Pressures

Competitive pressures in key markets like China can erode margins and market share, necessitating strategic adjustments to maintain competitiveness.

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 strong revenue growth and profitability, supported by stable balance sheet metrics. However, cash flow challenges, particularly negative free cash flow, pose potential risks. Continued focus on improving cash flow efficiency and maintaining profitability will be crucial for future stability.

Income Statement

Strauss Group shows a solid revenue growth trajectory with a TTM revenue growth rate of 2.44%. The company maintains healthy profitability margins, with a gross profit margin of 32.80% and an EBIT margin of 16.65% in the TTM period. However, the net profit margin slightly decreased to 8.63% from 8.80% in the previous year, indicating some pressure on net earnings.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.88 in the TTM period, showing a slight increase from the previous year. Return on equity improved to 20.28%, indicating efficient use of equity capital. However, the equity ratio is not explicitly provided, which limits a full assessment of asset financing.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow in the TTM period and a free cash flow to net income ratio of -0.69. The operating cash flow to net income ratio is low at 0.11, suggesting limited cash conversion efficiency. The negative free cash flow growth rate of -17.18% highlights potential liquidity concerns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.61B	7.09B	6.79B	6.11B	6.07B	5.87B
Gross Profit	2.43B	2.39B	2.44B	1.98B	2.42B	2.39B
EBITDA	1.51B	1.43B	1.18B	545.00M	1.19B	1.11B
Net Income	669.00M	624.00M	488.00M	117.00M	609.00M	533.00M
Balance Sheet
Total Assets	8.89B	8.96B	8.17B	7.41B	6.70B	6.41B
Cash, Cash Equivalents and Short-Term Investments	329.00M	1.14B	517.00M	517.00M	554.00M	491.00M
Total Debt	2.68B	2.81B	2.63B	2.61B	2.06B	2.20B
Total Liabilities	5.31B	5.36B	4.86B	4.72B	4.02B	3.98B
Stockholders Equity	3.23B	3.28B	3.04B	2.48B	2.48B	2.26B
Cash Flow
Free Cash Flow	-188.00M	14.00M	192.00M	-73.00M	586.00M	371.00M
Operating Cash Flow	313.00M	560.00M	686.00M	307.00M	854.00M	610.00M
Investing Cash Flow	319.00M	248.00M	-420.00M	-350.00M	-184.00M	-169.00M
Financing Cash Flow	-683.00M	-183.00M	-271.00M	-21.00M	-595.00M	-461.00M

Strauss Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11000.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 11000 is above the 20-day moving average (MA) of 10593.95, above the 50-day MA of 9800.26, and above the 200-day MA of 8988.55, indicating a bullish trend. The MACD of 375.60 indicates Positive momentum. The RSI at 72.31 is Negative, neither overbought nor oversold. The STOCH value of 70.94 is Neutral, 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
STRS	76 Outperform	12.85B	19.17	20.32%	2.81%	8.57%	99.09%
WLFD	74 Outperform	708.48M	21.05	―	―	―	―
NTML	73 Outperform	2.97B	12.74	―	4.18%	8.53%	39.35%
RMLI	70 Outperform	4.88B	22.47	―	4.01%	6.10%	-9.48%
TTAM	67 Neutral	1.20B	17.78	―	1.69%	9.07%	38.76%
VILR	65 Neutral	3.13B	8.94	―	1.40%	6.14%	40.36%
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.