Willy Food (WLFD) AI Stock Analysis

• Market Cap: ₪793.28M
• Dividend Yield: N/A
• Average Volume (3M): 3.89K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.50
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 204
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 87.60
• Shares Outstanding: 13,308,903
• 10 Day Avg. Volume: 3,360
• 30 Day Avg. Volume: 3,891
• PEG Ratio: 0.06
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.65
• P/FCF Ratio: -60.96
• 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: 74 Outperform
• Price Target: 6,737.00 ▲(21.72% Upside)

Willy Food's overall stock score is driven by its strong financial performance and solid technical indicators. The company's efficient operations and low leverage contribute positively, while the technical analysis suggests a bullish trend with caution due to overbought signals. The valuation is reasonable, supporting the stock's stability in the market.

Positive Factors

Low leverage and strong equity base

Extremely low leverage and a high equity ratio provide durable financial flexibility, allowing Willy Food to fund capex, M&A, or absorb demand shocks without relying on expensive debt. A 16% ROE shows management is generating good returns on shareholder capital, supporting long-term stability.

Robust margins and operational efficiency

Sustained high gross and operating margins indicate durable cost control, pricing power, and efficient operations versus peers in packaged foods. These margins create internal funding for innovation and distribution, buffer commodity cost swings, and support long-term profit resilience.

Improving cash generation trend

A large recent increase in free cash flow and OCF that covers net income reflect improving cash generation, strengthening liquidity and reducing reliance on external financing. This trend supports reinvestment in e-commerce, distribution, or product innovation over the medium term.

Negative Factors

Low free cash flow conversion

A 0.19 FCF-to-net-income ratio signals that a large portion of accounting profits aren't converting to spendable cash, likely due to capex or working capital needs. Structurally weak cash conversion limits returns to shareholders and reduces flexibility to sustain investments during downturns.

Slowing revenue growth

A slowing top-line trend points to market saturation or limited organic expansion in core segments. Over the medium term this constrains earnings upside unless management expands channels, product lines, or geographies. Mature growth raises the bar on margin and efficiency improvements to drive returns.

No dividend reduces direct investor returns

Lack of a dividend means long-term investors rely entirely on capital appreciation and management's reinvestment discipline. If reinvestment underperforms versus returning cash, shareholder returns and investor base stability could suffer, making capital allocation execution a critical structural risk.

Willy Food Business Overview & Revenue Model

Company Description

Willy-Food Investments Ltd imports, exports, markets, and sells food products in Israel. It offers rice; canned fruits, vegetables, and fish; roasted vegetables in brine, ready to eat meals, pasta, flour, wheat dough flakes; and lemon juice, balsamic vinegar, and sauce products, as well as break fast cereals and snacks, and dry nuts and plums. The company also provides oil, cakes and sweets, jams, spreads and halva, salt, coffee bleacher and condensed milk, and frozen products, which include frozen sweet pastry, pizza, pastries, dough, doughnuts, frozen vegetables and fruits, and ready to eat meals; shelf products, such as yogurt drinks, cream cheese, whipped cream, hard and semi hard cheese, and specialty, goat, parmesan, melted, white and blue mold, mozzarella, salty feta, and other cheese products; and butter, tofu, chilled chocolate snacks, and dairy products including butter. In addition, it offers its products under Willi-Food, valio, Wyke, Kolios, Euro, Happy Nuts, DAAWAT, El Pastor, Sera, Zanetti, and Completa's coffee whiteners brands. The company was incorporated in 1992 and is based in Yavne, Israel.

How the Company Makes Money

Willy Food generates revenue through multiple streams, including direct sales of its food products to supermarkets, grocery stores, and restaurants. The company also engages in e-commerce, allowing consumers to purchase products through its online platform. Key revenue streams include the sale of packaged goods, frozen foods, and specialty items. Additionally, Willy Food has established partnerships with various retailers and food service providers, enhancing its distribution network and expanding its market reach. Seasonal promotions and product launches further contribute to increased sales during peak periods, solidifying the company's financial performance.

Willy Food Financial Statement Overview

Summary

Willy Food presents a strong financial profile with consistent revenue and profit growth, efficient operations, and a solid balance sheet. The company maintains low leverage and demonstrates effective equity utilization. While cash flow generation is improving, there is potential to enhance free cash flow conversion. Overall, Willy Food is well-positioned in the packaged foods industry with a stable and profitable financial foundation.

Income Statement

Willy Food demonstrates strong income statement performance with consistent revenue growth and healthy profit margins. The TTM data shows a gross profit margin of 28.31% and a net profit margin of 10.24%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are robust at 21.58% and 22.99% respectively, reflecting operational efficiency. Revenue growth has been steady, albeit at a slower pace recently, suggesting a mature market position.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.01, indicating minimal leverage and financial risk. Return on equity is strong at 16.02%, showcasing effective use of shareholder funds. The equity ratio stands at 55.98%, highlighting a strong equity base relative to assets. Overall, the company maintains a stable financial position with prudent debt management.

Cash Flow

Cash flow performance is improving, with a significant increase in free cash flow growth at 87.9% in the TTM period. The operating cash flow to net income ratio is slightly above 1, indicating adequate cash generation relative to profits. However, the free cash flow to net income ratio is lower at 0.19, suggesting room for improvement in converting profits to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	598.47M	575.79M	543.26M	498.32M	454.21M	454.09M
Gross Profit	170.54M	161.33M	120.57M	143.10M	138.29M	145.38M
EBITDA	134.87M	103.66M	47.01M	57.33M	63.10M	72.14M
Net Income	59.85M	44.11M	17.97M	37.93M	44.19M	50.89M
Balance Sheet
Total Assets	748.79M	700.77M	602.64M	617.34M	661.22M	628.99M
Cash, Cash Equivalents and Short-Term Investments	269.84M	259.36M	183.11M	199.72M	290.13M	263.16M
Total Debt	5.11M	4.70M	2.21M	29.91M	4.20M	2.98M
Total Liabilities	69.32M	73.99M	44.60M	75.41M	57.04M	44.86M
Stockholders Equity	419.24M	375.64M	331.59M	313.60M	371.90M	345.57M
Cash Flow
Free Cash Flow	20.48M	-6.15M	6.48M	-1.24M	38.77M	60.55M
Operating Cash Flow	65.00M	42.59M	30.03M	12.12M	44.97M	63.46M
Investing Cash Flow	-18.83M	-50.03M	611.00K	12.92M	-3.06M	-22.35M
Financing Cash Flow	-22.68M	-6.40M	-45.16M	-77.48M	-26.67M	40.65M

Willy Food Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5535.00
• 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:WLFD, the sentiment is Positive. The current price of 5535 is below the 20-day moving average (MA) of 5940.30, above the 50-day MA of 5459.04, and above the 200-day MA of 4031.14, indicating a bullish trend. The MACD of 174.12 indicates Positive momentum. The RSI at 67.38 is Neutral, neither overbought nor oversold. The STOCH value of 67.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:WLFD.

Willy Food Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLFD	74 Outperform	₪793.28M	23.40	―	―	―	―
ALBA	73 Outperform	₪670.00M	11.92	―	3.09%	1.75%	5.26%
NTML	73 Outperform	₪3.54B	15.21	―	4.18%	8.53%	39.35%
TTAM	67 Neutral	₪1.18B	17.51	―	1.69%	9.07%	38.76%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%