Turpaz (TRPZ) AI Stock Analysis

• Market Cap: ₪8.58B
• Dividend Yield: 0.46%
• Average Volume (3M): 141.17K
• Price to Earnings (P/E): 130.1
• Beta (1Y): 0.65
• Revenue Growth: 44.88%
• EPS Growth: 21.45%
• Country: IL
• Employees: 847
• Sector: General
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): 13.60
• Shares Outstanding: 108,408,160
• 10 Day Avg. Volume: 180,590
• 30 Day Avg. Volume: 141,167
• PEG Ratio: 4.95
• Price to Book (P/B): 4.96
• Price to Sales (P/S): 3.02
• P/FCF Ratio: 44.58
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 8,910.00 ▲(28.39% Upside)

Turpaz's strong financial performance and bullish technical indicators are offset by its high valuation, which suggests potential overvaluation. The company's robust revenue growth and solid cash flow generation are positive, but increased leverage and a high P/E ratio warrant caution. Investors should monitor debt levels and valuation metrics closely.

Positive Factors

Revenue Growth

Sustained TTM revenue growth reflects expanding B2B adoption and strengthening customer demand across food, personal care and industrial end markets. Durable top-line momentum supports scale, improves bargaining power with suppliers, and underpins longer-term investment and product development plans.

Free Cash Flow Growth

Strong free cash flow growth and a healthy FCF-to-net-income ratio indicate durable cash generation ability. This enhances financial flexibility for capex, R&D, or debt reduction, and provides a buffer against cyclical swings in the specialty chemicals and flavors sector.

Return on Equity

A mid-teens ROE demonstrates efficient use of shareholder capital and consistent profitability. Sustained ROE at this level suggests the company can generate returns above cost of equity, supporting reinvestment and long-term value creation if maintained.

Negative Factors

High Leverage

Elevated and rising leverage reduces financial flexibility and increases vulnerability to interest-rate or demand shocks. Higher debt levels can constrain strategic investments, raise funding costs, and magnify downside risk in a prolonged slowdown for customers.

Low Cash Conversion

A low operating-cash-to-net-income ratio signals weaker conversion of reported earnings into cash, often due to working-capital demands or timing. Persistently low conversion pressures liquidity, may necessitate external financing, and undermines the durability of reported profits.

Pressure on Net Margins

Declining net margins suggest rising input costs, competitive pricing pressure, or structural cost creep. If margin compression continues, it will limit cash available for reinvestment or deleveraging and could weaken returns despite revenue growth.

Turpaz Business Overview & Revenue Model

Company Description

Turpaz Industries Ltd, together with its subsidiaries, primarily provides various natural fragrances and flavors worldwide. The company offers natural and synthesized flavor and fragrance extracts, which are primarily used in the perfume, cosmetics, toiletries, detergents, scented candles, air care and odor neutralizers, and wet wipes industries; and a range of flavors, such as spray died flavors, encapsulation, emulsions, water and oil-soluble flavors, natural flavors, heat-stable flavors for UHT, and others. It also supplies ingredients and fine chemicals for aroma chemicals, pharma, agro, and specialty chemicals industries. The company was formerly known as BKF Perfume Compounding Ltd. and changed its name to Turpaz Industries Ltd in January 2021. Turpaz Industries Ltd was incorporated in 2011 and is based in Holon, Israel.

How the Company Makes Money

Turpaz generates revenue through the sale of its flavor and fragrance products to manufacturers in multiple industries, including food and beverage, cosmetics, and household products. The company employs a B2B revenue model, establishing long-term contracts and partnerships with key players in these sectors. Key revenue streams include direct sales of fragrance and flavor compounds, custom formulation services, and the provision of technical support and consulting for product development. Additionally, Turpaz may benefit from strategic partnerships with suppliers and distributors, which can enhance its market reach and improve economies of scale.

Turpaz Financial Statement Overview

Summary

Turpaz exhibits strong revenue growth and profitability, supported by efficient operations and solid cash flow generation. However, increased leverage and a slight decline in net profit margins warrant attention. The company is well-positioned in its industry, but should focus on managing debt levels to maintain financial stability.

Income Statement

Turpaz has demonstrated strong revenue growth with a 12.32% increase in the TTM period, supported by healthy gross and EBIT margins of 39.40% and 15.46%, respectively. The net profit margin is stable at 7.11%, indicating effective cost management. However, the net profit margin has decreased from previous years, suggesting some pressure on profitability.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.31, reflecting higher leverage, which could pose a risk if not managed carefully. Return on equity is solid at 13.20%, indicating efficient use of equity to generate profits. The equity ratio stands at 34.65%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Turpaz shows a robust free cash flow growth rate of 45.39% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.21, which is relatively low, suggesting potential challenges in converting income into cash. However, the free cash flow to net income ratio of 0.62 reflects a healthy cash flow position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	254.91M	188.95M	127.36M	118.56M	85.33M	52.73M
Gross Profit	101.19M	73.66M	49.61M	47.66M	34.73M	21.82M
EBITDA	56.12M	39.87M	23.55M	33.35M	19.84M	13.60M
Net Income	16.38M	13.82M	12.39M	21.17M	12.61M	7.86M
Balance Sheet
Total Assets	689.66M	390.75M	222.03M	214.18M	172.67M	70.39M
Cash, Cash Equivalents and Short-Term Investments	140.38M	25.93M	23.82M	35.67M	55.90M	2.80M
Total Debt	207.16M	120.25M	32.20M	35.10M	31.52M	31.70M
Total Liabilities	408.38M	246.50M	104.70M	110.66M	79.55M	57.61M
Stockholders Equity	239.02M	115.10M	112.39M	102.68M	92.44M	10.02M
Cash Flow
Free Cash Flow	20.89M	12.80M	9.69M	26.09M	9.35M	10.62M
Operating Cash Flow	31.90M	21.12M	14.71M	31.94M	12.28M	11.15M
Investing Cash Flow	-84.63M	-84.08M	-13.60M	-39.80M	-6.47M	-3.45M
Financing Cash Flow	164.74M	66.16M	-12.44M	-7.52M	45.57M	-9.21M

Turpaz Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6940.00
• 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:TRPZ, the sentiment is Positive. The current price of 6940 is below the 20-day moving average (MA) of 7654.55, above the 50-day MA of 6931.04, and above the 200-day MA of 5010.28, indicating a bullish trend. The MACD of 315.03 indicates Positive momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:TRPZ.

Turpaz Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RIMO	82 Outperform	₪401.95M	10.66	―	10.50%	-5.25%	-8.54%
PLSN	74 Outperform	₪1.63B	10.65	―	4.41%	9.02%	23.68%
TRPZ	70 Outperform	₪8.58B	130.05	―	0.46%	44.88%	21.45%
KAFR	69 Neutral	₪648.95M	9.58	―	3.17%	-0.71%	2.35%
PLRM	66 Neutral	₪1.42B	7.29	―	9.08%	-2.62%	-18.78%
POLP	63 Neutral	₪1.11B	20.33	―	3.80%	-6.28%	-41.92%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%