Strauss Group (STRS) AI Stock Analysis

• Market Cap: $10.61B
• Dividend Yield: 3.39%
• Average Volume (3M): 113.38K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.83
• Revenue Growth: 6.49%
• EPS Growth: 113.90%
• Country: IL
• Employees: 17,484
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Packaged Foods
• EPS (TTM): 62.00
• Shares Outstanding: 116,605,270
• 10 Day Avg. Volume: 143,853
• 30 Day Avg. Volume: 113,379
• PEG Ratio: -1.17
• Price to Book (P/B): 4.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -150.92
• 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: $8,999.05
• Price Target Upside: -5.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 82 Outperform
• Price Target: 10,415.00 ▲(9.63%Upside)

Strauss Group's strong financial performance and favorable technical indicators contribute significantly to the high stock score. The reasonable valuation further supports the stock's attractiveness, despite the need for improved cash flow management.

Strauss Group Business Overview & Revenue Model

Company Description

Strauss Group (STRS) is a leading Israeli multinational corporation in the food and beverage industry. The company operates in several sectors, including dairy products, coffee, water, and snacks, offering a diverse range of high-quality products. Strauss Group is committed to innovation and sustainability, catering to both local and international markets with a strong presence in over 20 countries.

How the Company Makes Money

Strauss Group makes money through a diversified revenue model primarily driven by the sale of its food and beverage products. The company's key revenue streams include its dairy division, which offers a variety of milk, cheese, and yogurt products, and its coffee business, which is one of the largest in the world, selling both branded and private-label coffee products. Additionally, the company's water division, which markets bottled mineral water, and its snacks segment, which includes salty and sweet snacks, contribute significantly to its earnings. Strategic partnerships, such as joint ventures with global coffee companies and collaborations with local distributors, enhance its market reach and profitability. The company's focus on innovation and adapting to consumer trends further boosts its revenue generation.

Strauss Group Financial Statement Overview

Summary

Overall, Strauss Group exhibits strong financial health with robust revenue and profit growth. The company maintains a solid balance sheet with moderate leverage and a strong equity position. Cash flow management is an area for improvement, with declining free cash flow. Continued focus on operational efficiency and cash generation will support sustained financial performance.

Income Statement

Strauss Group shows strong revenue growth with a Revenue Growth Rate of 4.32% from 2023 to 2024. The Gross Profit Margin is solid at 33.68%, indicating efficient cost management. The Net Profit Margin has improved to 8.80%, reflecting enhanced profitability. Despite the good margins, the EBIT Margin of 14.61% and EBITDA Margin of 20.14% suggest room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is stable with a Debt-to-Equity Ratio of 0.86, indicating a moderate level of leverage. The Return on Equity (ROE) of 19.04% is impressive, demonstrating effective use of shareholder funds. An Equity Ratio of 36.60% suggests a strong equity base, although the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

Strauss Group's Free Cash Flow Growth Rate is negative, indicating a decline in free cash generation. However, the Operating Cash Flow to Net Income Ratio of 0.90 shows good cash conversion efficiency. The Free Cash Flow to Net Income Ratio is relatively low at 0.02, suggesting limited cash flow after capital expenditures.

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

Strauss Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9500.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 9500 is above the 20-day moving average (MA) of 8834.45, above the 50-day MA of 8632.62, and above the 200-day MA of 7226.38, indicating a bullish trend. The MACD of 174.57 indicates Negative momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 61.08 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	82 Outperform	$10.61B	16.10	21.74%	3.39%	6.49%	113.90%
TTAM	79 Outperform	847.39M	14.60		1.56%	―	―
WLFD	77 Outperform	447.09M	13.21		―	6.79%	88.04%
VILR	75 Outperform	3.82B	10.92		1.18%	5.20%	42.31%
Sector *	60 Neutral	HK$17.36B	10.94	0.20%	5.52%	2.68%	-48.29%

Strauss Group Corporate Events

Strauss Group Unveils Strategic Growth Plan with PepsiCo Partnership

Strauss Group Ltd. has outlined a strategic plan for 2024-2026, including the formation of S.E USA Inc and the acquisition of Sabra Dipping Company LLC in partnership with PepsiCo. The company aims to expand its market presence, increase production capacity, and develop innovative products, with projected revenues of $340 million to $370 million by the end of 2024. The firm targets a 25% revenue increase by the end of 2025, highlighting steady growth and a focus on new technologies.

Strauss Group Announces 200 Million NIS Dividend Post-Sales

Strauss Group has announced a cash dividend distribution after completing the sale of its holdings in Sabra and Obela to PepsiCo. This dividend, amounting to 200 million NIS, will be distributed based on the company’s net profit from the transaction, and the board has confirmed compliance with profit and solvency tests. The board of directors evaluated the impact of the dividend distribution on the company’s financial health, ensuring it would not prevent the company from meeting its obligations or affect its financial strength and liquidity.