Turpaz (TRPZ) AI Stock Analysis

• Market Cap: ₪6.97B
• Dividend Yield: 0.46%
• Average Volume (3M): 141.17K
• Price to Earnings (P/E): 111.8
• Beta (1Y): 0.80
• Revenue Growth: 44.88%
• EPS Growth: 21.45%
• Country: IL
• Employees: 847
• Sector: General
• Sector Strength: N/A
• Industry: Chemicals - Specialty
• EPS (TTM): 18.00
• Shares Outstanding: 108,876,440
• 10 Day Avg. Volume: 180,590
• 30 Day Avg. Volume: 141,167
• PEG Ratio: 2.42
• Price to Book (P/B): 8.58
• Price to Sales (P/S): 7.20
• P/FCF Ratio: 67.47
• 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: 57 Neutral
• Price Target: 6,815.00 ▼(-1.80% Downside)
• Action: Downgraded Date: 03/14/26
• Date: Action: Downgraded 03/14/26

The score is primarily supported by strong growth and improved cash flow in 2025, but is held back by rising leverage and margin compression. Weak technical momentum and a very high P/E further reduce the overall rating.

Positive Factors

Sustained Revenue Growth

Multi-year top-line expansion demonstrates durable customer demand and successful scaling across product lines. A near six-fold revenue increase since 2020 and continued growth in 2025 indicate structural market penetration and a broader sales base that supports longer-term organic growth and operational leverage.

Improved Cash Generation

Significant improvement in operating and free cash flow strengthens the company's ability to fund capex, R&D, or deleveraging without relying solely on external financing. Strong cash conversion in 2025 enhances financial flexibility and supports reinvestment in growth-driving initiatives over the medium term.

Diversified B2B End Markets

Serving multiple end markets reduces single-industry exposure and creates cross-market demand stability; B2B relationships with consumer-product manufacturers tend to generate recurring, formulation-driven sales. Diversification supports resilience through sector cycles and helps sustain revenue streams over time.

Negative Factors

Rising Leverage

A rapid increase in debt materially raises financial risk and interest obligations, limiting capacity to invest or absorb shocks. Although equity grew, the leverage jump reduces balance-sheet flexibility and magnifies downside in weakening demand periods, constraining strategic options over the next several quarters.

Margin Compression

Marked decline in margins signals pressure from costs, pricing, or adverse product mix and weakens profitability quality. Persistently lower margins erode free cash flow potential per revenue dollar and make earnings more sensitive to cost inflation, threatening sustainable returns unless efficiencies or pricing power improve.

Volatile Cash Conversion

Historical swings in free cash flow relative to earnings indicate working-capital or capex variability that undermines predictability. Even with 2025 improvement, inconsistent cash conversion raises execution risk for consistent debt reduction, dividend policy, or funding of long-term projects.

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 makes money primarily by selling flavor and fragrance products and related ingredients to business customers (e.g., manufacturers of food and beverages, personal care products, and household/industrial products). Revenue is generated through B2B supply relationships where customers purchase formulated flavors/fragrances or ingredient solutions for incorporation into their finished goods. Additional specifics about the company’s revenue breakdown by segment, pricing model (e.g., long-term contracts vs. spot sales), major customer or supplier concentration, and material partnerships are null.

Turpaz Financial Statement Overview

Summary

Strong multi-year revenue growth and improved 2025 cash generation/free cash flow support a solid operating profile. Offsetting factors are notable margin compression in recent years and a sharp rise in debt, which increases financial risk and reduces flexibility.

Income Statement

Revenue growth has been strong over the period (from ~52.7M in 2020 to ~297.8M in 2025), including solid growth in 2025 (+16.8%). Profitability remains positive, but margins have compressed versus earlier years: net margin declined from ~17.9% (2022) to ~7.3% (2024), alongside weaker operating profitability. Net income continued to rise in absolute terms (to ~19.2M in 2025), but the combination of lower margins and rapid scaling suggests profitability quality and pricing/power have moderated.

Balance Sheet

The balance sheet has grown substantially (assets up to ~714.1M in 2025), but leverage increased meaningfully as total debt rose to ~205.6M (vs ~120.3M in 2024 and ~32.2M in 2023). Equity also increased to ~249.8M in 2025, providing a cushion, yet the debt build suggests higher financial risk and less flexibility than in 2021–2023 when leverage was materially lower. Returns on equity were healthy in 2022–2024, but the rising debt load is the key watch item.

Cash Flow

Cash generation strengthened: operating cash flow rose to ~44.0M in 2025 (from ~21.1M in 2024), and free cash flow improved to ~31.8M with strong growth (+52.2% in 2025). Free cash flow has been volatile historically (notably a decline in 2023), but the latest year shows improved conversion and capacity to fund growth. Prior-year cash conversion was mixed (free cash flow below net income in 2023–2024), which remains a recurring risk to monitor.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	297.84M	188.95M	127.36M	118.56M	85.33M
Gross Profit	106.32M	73.66M	49.61M	47.66M	34.73M
EBITDA	67.92M	39.87M	23.55M	33.35M	19.84M
Net Income	19.18M	13.82M	12.39M	21.17M	12.61M
Balance Sheet
Total Assets	714.08M	390.75M	222.03M	214.18M	172.67M
Cash, Cash Equivalents and Short-Term Investments	143.12M	25.93M	23.82M	35.67M	55.90M
Total Debt	205.64M	120.25M	32.20M	35.10M	31.52M
Total Liabilities	420.58M	246.50M	104.70M	110.66M	79.55M
Stockholders Equity	249.84M	115.10M	112.39M	102.68M	92.44M
Cash Flow
Free Cash Flow	31.79M	12.80M	9.69M	26.09M	9.35M
Operating Cash Flow	44.01M	21.12M	14.71M	31.94M	12.28M
Investing Cash Flow	-90.74M	-84.08M	-13.60M	-39.80M	-6.47M
Financing Cash Flow	163.25M	66.16M	-12.44M	-7.52M	45.57M

Turpaz Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6940.00
• 50DMA: Negative
• 100DMA: Negative
• 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:TRPZ, the sentiment is Negative. The current price of 6940 is below the 20-day moving average (MA) of 7223.80, below the 50-day MA of 7635.78, and above the 200-day MA of 5778.56, indicating a neutral trend. The MACD of -331.72 indicates Positive momentum. The RSI at 31.04 is Neutral, neither overbought nor oversold. The STOCH value of 13.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₪370.52M	12.52	―	10.50%	-5.25%	-8.54%
PLSN	74 Outperform	₪1.57B	9.25	―	4.41%	9.02%	23.68%
KAFR	69 Neutral	₪672.34M	13.45	―	3.17%	-0.71%	2.35%
PLRM	66 Neutral	₪1.30B	11.77	―	9.08%	-2.62%	-18.78%
TRPZ	57 Neutral	₪6.97B	111.82	―	0.46%	44.88%	21.45%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
POLP	53 Neutral	₪925.68M	71.95	―	3.80%	-6.28%	-41.92%