Victory (VCTR) AI Stock Analysis

• Market Cap: 652.40M
• Dividend Yield: 3.9%
• Average Volume (3M): 10.61K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.95
• Revenue Growth: -1.61%
• EPS Growth: -45.19%
• Country: IL
• Employees: 458
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 3.07
• Shares Outstanding: 14,185,704
• 10 Day Avg. Volume: 7,812
• 30 Day Avg. Volume: 10,608
• PEG Ratio: -4.21
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 5.71
• 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): 2.11B

• Rating: 62 Neutral
• Price Target: 5,115.00 ▲(5.14% Upside)

Victory's strong revenue growth and cash flow generation are key strengths, but high leverage and declining profit margins are significant risks. The stock's valuation is reasonable, with an attractive dividend yield. Technical indicators suggest a bearish trend, which could impact short-term performance.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust sales expansion and a solid market position, which can drive long-term business success and competitiveness.

Cash Flow Generation

Improved cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction, supporting long-term stability.

Market Position

A diversified asset management approach with innovative products positions Victory well in the market, catering to diverse client needs and driving sustainable growth.

Negative Factors

High Leverage

Significant leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth or weather economic downturns.

Declining Profit Margins

Declining profit margins suggest cost pressures or inefficiencies, which could hinder profitability and require strategic adjustments to maintain competitiveness.

Reduced Return on Equity

A decline in return on equity reflects reduced shareholder profitability, which may affect investor confidence and necessitate improved operational efficiency.

Victory Business Overview & Revenue Model

Company Description

Victory Supermarket Chain Ltd operates supermarkets in Israel. It sells kosher products. The company operates 58 supermarket stores with 5 branches in the city of Tel Aviv. It also sells its products through victoryonline.co.il website. Victory Supermarket Chain Ltd was founded in 1986 and is based in Yavne, Israel.

How the Company Makes Money

Victory makes money primarily through management fees earned on the assets under management (AUM). These fees are typically calculated as a percentage of the AUM and can vary depending on the type of investment product and the specific investment strategy employed. Additionally, Victory may earn performance-based fees, which are contingent on achieving certain investment performance benchmarks. The company also generates revenue through its investment advisory services, offering tailored investment solutions and strategies to institutional clients. Strategic partnerships with financial advisors and distribution networks play a significant role in expanding its client base and increasing AUM, thereby contributing to its earnings.

Victory Financial Statement Overview

Summary

Victory shows strong revenue growth and cash flow generation, which are positive indicators for future performance. However, declining profit margins and high leverage pose financial risks. Focus on cost management and debt reduction is needed to enhance profitability and reduce financial risk.

Income Statement

Victory's income statement shows moderate performance with a stable gross profit margin of around 23.4% in the TTM period. However, the net profit margin has decreased slightly to 1.34% from 1.69% in the previous annual report. Revenue growth is strong at 62.9% in the TTM period, indicating robust sales expansion. EBIT and EBITDA margins have declined, suggesting potential cost pressures or operational inefficiencies.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.37 in the TTM period, indicating significant leverage which could pose financial risk. Return on equity has decreased to 8.7% from 10.8%, reflecting reduced profitability for shareholders. The equity ratio stands at 18.5%, suggesting a lower proportion of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a positive trend with a 14.6% growth in free cash flow in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio is 0.24, suggesting moderate cash conversion efficiency. The free cash flow to net income ratio is 0.69, reflecting a healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.58B	2.58B	2.45B	2.32B	2.31B	2.38B
Gross Profit	593.26M	619.94M	637.49M	590.23M	586.31M	603.92M
EBITDA	213.13M	252.81M	242.46M	213.32M	226.68M	231.72M
Net Income	34.35M	43.75M	46.46M	36.90M	50.69M	58.11M
Balance Sheet
Total Assets	2.14B	2.11B	1.92B	1.93B	1.87B	1.87B
Cash, Cash Equivalents and Short-Term Investments	108.58M	125.23M	133.73M	115.99M	89.64M	118.46M
Total Debt	1.29B	1.27B	1.11B	1.17B	1.18B	1.15B
Total Liabilities	1.75B	1.71B	1.52B	1.57B	1.52B	1.56B
Stockholders Equity	395.74M	404.12M	398.11M	367.80M	345.66M	313.79M
Cash Flow
Free Cash Flow	112.54M	139.35M	164.14M	165.77M	89.35M	161.91M
Operating Cash Flow	158.87M	182.69M	201.50M	218.28M	119.17M	200.32M
Investing Cash Flow	-54.74M	-54.64M	-25.71M	-36.26M	-31.91M	-100.00M
Financing Cash Flow	-153.24M	-151.14M	-145.18M	-133.64M	-123.05M	-113.25M

Victory Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4865.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:VCTR, the sentiment is Positive. The current price of 4865 is above the 20-day moving average (MA) of 4710.65, above the 50-day MA of 4663.70, and above the 200-day MA of 4686.38, indicating a bullish trend. The MACD of 65.39 indicates Negative momentum. The RSI at 59.91 is Neutral, neither overbought nor oversold. The STOCH value of 84.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:VCTR.

Victory Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTO	70 Outperform	784.40M	8.90	―	―	7.73%	28.27%
TTAM	68 Neutral	974.57M	16.79	―	1.84%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
VCTR	62 Neutral	652.40M	19.01	―	3.90%	-1.61%	-45.19%