Strauss Group (STRS) AI Stock Analysis

• Market Cap: 10.50B
• Dividend Yield: 3.43%
• Average Volume (3M): 197.95K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.82
• Revenue Growth: 6.49%
• EPS Growth: 113.90%
• Country: IL
• Employees: 17,484
• Sector: Consumer Defensive
• Sector Strength: 68
• Industry: Packaged Foods
• EPS (TTM): 62.00
• Shares Outstanding: 116,662,330
• 10 Day Avg. Volume: 231,111
• 30 Day Avg. Volume: 197,949
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 9,627.27
• Price Target Upside: 7.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: 10,878.00 ▲(21.34% Upside)

Strauss Group's stock is positively influenced by solid financial health and technical momentum. While the financial performance is strong, attention to cash flow management is critical. Valuation metrics suggest reasonable pricing, and the technical indicators point to continued upward momentum. There are no notable earnings call insights or corporate events affecting the score.

Strauss Group Business Overview & Revenue Model

Company Description

Strauss Group (STRS) is a leading global food and beverage company based in Israel. The company operates in several sectors, including coffee, fresh and chilled foods, and snacks. Its core products include a wide range of dairy products, salads, dips, and coffee products. Strauss Group is known for its innovation and commitment to quality, serving markets in over 20 countries.

How the Company Makes Money

Strauss Group makes money through the production, marketing, and sale of a diverse range of food and beverage products. The company generates revenue primarily from its core business segments: coffee, fresh and chilled foods, and snacks. In the coffee sector, Strauss Group partners with multinational companies like PepsiCo and Danone to produce and sell coffee products, making it a key revenue stream. The fresh and chilled foods sector includes the sale of dairy products, salads, and dips, contributing significantly to its earnings. Additionally, the snacks segment offers a variety of products that add to the company's revenue. Strategic partnerships and a strong presence in international markets further bolster Strauss Group's ability to generate income.

Strauss Group Financial Statement Overview

Summary

Strauss Group displays strong revenue and profit margins, with a robust gross profit margin. However, cash flow challenges due to high capital expenditures pose potential liquidity risks despite a stable balance sheet.

Income Statement

Strauss Group shows strong revenue growth with a TTM revenue of $7.25B, marking a 2.27% increase from the previous year. The gross profit margin is robust at 33.59%, and the net profit margin has improved to 9.09% from 8.80% last year, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 14.99% and 21.23% respectively, reflecting efficient core operations. However, the gross profit margin slightly contracted from previous periods due to rising costs.

Balance Sheet

The balance sheet shows a stable equity structure with a debt-to-equity ratio of 0.78, which is manageable. The return on equity is strong at 20.80%, demonstrating effective use of equity to generate profits. The equity ratio stands at 35.90%, indicating a balanced financial structure, though slightly lower than optimal industry averages. The company maintains adequate liquidity with considerable cash reserves, despite a decrease in cash equivalents over the year.

Cash Flow

Operating cash flow decreased to $442M, impacting the operating cash flow to net income ratio, now at 0.67, showing less cash generation relative to profits. Free cash flow turned negative at -$99M due to significant capital expenditures, marking a noteworthy decline from a positive $14M last year. The cash flow challenges highlight potential pressures on liquidity if capital expenditures continue to rise without corresponding revenue growth.

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: Neutral
• Last Price: 8965.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 8965 is below the 20-day moving average (MA) of 9214.05, below the 50-day MA of 9132.56, and above the 200-day MA of 7802.22, indicating a neutral trend. The MACD of -55.98 indicates Positive momentum. The RSI at 38.84 is Neutral, neither overbought nor oversold. The STOCH value of 18.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:STRS.

Strauss Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTAM	78 Outperform	853.99M	14.72		2.06%	―	―
STRS	78 Outperform	10.50B	15.92	21.74%	3.43%	6.49%	113.90%
WLFD	70 Outperform	515.40M	15.67		―	6.79%	88.04%
VILR	65 Neutral	3.17B	9.08		1.41%	5.20%	42.31%
Sector *	63 Neutral	$20.96B	13.61	-6.24%	3.13%	3.51%	-6.37%

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.