Terminal X (TRX) AI Stock Analysis

• Market Cap: ₪1.02B
• Dividend Yield: 4.56%
• Average Volume (3M): 56.43K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 0.47
• Revenue Growth: 13.94%
• EPS Growth: 84.36%
• Country: IL
• Employees: 188
• Sector: Technology
• Sector Strength: 88
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 127,047,070
• 10 Day Avg. Volume: 44,564
• 30 Day Avg. Volume: 56,433
• PEG Ratio: -0.02
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 1.14
• P/FCF Ratio: 6.43
• 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: 67 Neutral
• Price Target: 905.00 ▲(45.17% Upside)

The score is primarily driven by solid financial performance (healthy margins, improving leverage, and strong free cash flow growth). Technicals are supportive due to the strong uptrend, but the extremely overbought RSI raises near-term downside risk. Valuation is a headwind given the high P/E, partly balanced by the dividend yield.

Positive Factors

Strong gross and EBITDA margins

High gross and EBITDA margins point to durable pricing power and efficient unit economics in fashion retail. Sustained margins provide capacity to fund marketing, tech and logistics investments, supporting scalable growth and resilience through industry cycles over the medium term.

Robust free cash flow growth

Strong FCF expansion improves financial flexibility, enabling reinvestment in the platform, logistics and seller acquisition without heavy reliance on external funding. Consistent cash generation supports deleveraging, dividend capacity and long-term investment optionality.

Diversified marketplace and logistics partnerships

A hybrid model combining direct sales, third-party marketplace commissions and brand partnerships diversifies revenue and margin sources. Strategic logistics partnerships strengthen customer experience and fulfillment scale, creating structural advantages versus single-channel competitors.

Negative Factors

Residual leverage risk

Although leverage has improved, remaining debt levels mean interest and principal obligations could constrain investment or force capital allocation tradeoffs. In a slower retail cycle, persistent leverage limits strategic flexibility and increases refinancing sensitivity.

Decline in operating profit (EBIT)

A year-over-year EBIT decline suggests rising operating costs or margin pressure beneath the surface of stable revenue. Sustained EBIT erosion would reduce cash available for reinvestment and returns, and may signal competitive or structural cost challenges needing management attention.

Volatile operating cash flow coverage

Low and volatile operating cash flow relative to earnings indicates earnings quality and working capital sensitivity. This unpredictability raises the risk that cash won't reliably cover capex, inventory or debt service, constraining long-term investment and dividend consistency.

Terminal X Business Overview & Revenue Model

Company Description

Terminal X Online Ltd., a multi-brand online company, offers apparel for men, women, boys, girls, teens, and infants under various brands. It also offers sportswear and shoes; beauty products; and living products. The company is based in Rishon Lezion, Israel. Terminal X Online Ltd. operates as a subsidiary of Fox-Wizel Ltd.

How the Company Makes Money

Terminal X generates revenue primarily through direct sales of fashion and lifestyle products on its e-commerce platform. Key revenue streams include the markup on products sold directly to consumers, commissions from third-party sellers who utilize the marketplace, and partnerships with brands for exclusive collections. The company also benefits from strategic partnerships with logistics companies that enhance delivery efficiency and customer satisfaction. Additionally, Terminal X may explore advertising revenue from brands looking to promote their products on the platform, contributing further to its earnings.

Terminal X Financial Statement Overview

Summary

Solid fundamentals supported by consistent TTM revenue growth (4.81%) and strong profitability (gross margin 44.70%, net margin 5.29%, EBITDA margin 16.53%). Balance sheet leverage has improved (debt-to-equity 0.62) but historical high leverage remains a risk, and EBIT declined versus the prior year. Cash generation is strong with TTM free cash flow growth of 18.6%, though operating cash flow coverage has shown volatility.

Income Statement

Terminal X has shown consistent revenue growth with a TTM (Trailing-Twelve-Months) growth rate of 4.81%. The company maintains a healthy gross profit margin of 44.70% and a net profit margin of 5.29%, indicating strong profitability. The EBIT and EBITDA margins are also solid at 9.05% and 16.53%, respectively. However, there was a decline in EBIT from the previous year, which slightly impacts the overall score.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.62 in the TTM, indicating a reduction in leverage compared to previous years. Return on equity (ROE) is at 11.34%, showing effective use of equity to generate profits. The equity ratio stands at 45.04%, reflecting a stable capital structure. Despite improvements, the historical high leverage remains a concern.

Cash Flow

Terminal X has demonstrated a strong free cash flow growth rate of 18.6% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.22, and the free cash flow to net income ratio is 0.84, suggesting efficient cash flow management. However, the lower operating cash flow coverage ratio compared to previous periods suggests potential volatility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	537.79M	492.34M	423.69M	382.95M	340.62M	225.95M
Gross Profit	240.38M	217.63M	185.57M	172.43M	153.86M	101.70M
EBITDA	88.88M	82.49M	46.66M	32.78M	22.65M	13.78M
Net Income	28.48M	25.21M	-2.06M	-7.76M	-8.63M	2.98M
Balance Sheet
Total Assets	550.47M	593.23M	538.42M	560.12M	413.18M	259.76M
Cash, Cash Equivalents and Short-Term Investments	96.48M	172.32M	144.64M	156.81M	141.23M	49.10M
Total Debt	153.84M	198.38M	194.24M	217.86M	103.80M	128.93M
Total Liabilities	285.83M	323.39M	298.19M	328.31M	189.56M	244.87M
Stockholders Equity	247.85M	261.04M	235.37M	229.62M	223.62M	14.89M
Cash Flow
Free Cash Flow	33.39M	87.47M	20.40M	-26.78M	-53.03M	37.68M
Operating Cash Flow	39.80M	97.70M	47.12M	2.50M	-45.45M	43.64M
Investing Cash Flow	-16.68M	6.79M	28.43M	-92.28M	-3.08M	-10.46M
Financing Cash Flow	-80.04M	-53.09M	-48.89M	28.47M	145.16M	7.93M

Terminal X Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 623.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TRX, the sentiment is Neutral. The current price of 623.4 is below the 20-day moving average (MA) of 838.41, below the 50-day MA of 715.31, and above the 200-day MA of 574.29, indicating a neutral trend. The MACD of 31.30 indicates Positive momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 31.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:TRX.

Terminal X Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRX	67 Neutral	₪1.02B	35.45	―	4.56%	13.94%	84.36%
ALAR	65 Neutral	₪170.11M	37.21	―	―	9.00%	-84.50%
ABRA	64 Neutral	₪632.47M	47.04	―	―	19.46%	-27.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASGR	51 Neutral	₪476.68M	-12.93	―	7.71%	-3.10%	53.93%