Baran (BRAN) AI Stock Analysis

• Market Cap: $391.52M
• Dividend Yield: 10.16%
• Average Volume (3M): 32.52K
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.41
• Revenue Growth: -6.37%
• EPS Growth: -66.78%
• Country: IL
• Employees: 1,041
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 5.60
• Shares Outstanding: 23,992,685
• 10 Day Avg. Volume: 45,558
• 30 Day Avg. Volume: 32,517
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 6.37
• 1Y Price Target: $1,830.18
• Price Target Upside: 8.49% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: 1,831.00 ▲(8.54% Upside)

Baran's overall stock score reflects moderate financial health with stable revenue growth and profitability, balanced by cash flow challenges. The technical analysis suggests a positive short-term trend, though caution is advised due to potential overbought conditions. The valuation is attractive, with a reasonable P/E ratio and high dividend yield, making it appealing for income-focused investors.

Baran Business Overview & Revenue Model

Company Description

Baran Group Ltd provides engineering, technology, telecommunication, and construction solutions worldwide. The company's solutions include feasibility studies, engineering and design, permitting and validation, construction and site management, procurement and construction management, project management and control, turnkey, project financing, and related services. It serves various industries, such as manufacturing, industrial process, power generation and distribution, petroleum production, water supply, sewerage and hazardous waste treatment, general building, construction, transportation, telecommunications, and other. Baran Group Ltd was founded in 1979 and is headquartered in Beit Dagan, Israel.

How the Company Makes Money

Baran generates revenue through multiple streams, including the sale of proprietary software solutions, subscription-based services, and consulting fees. Its primary revenue model includes licensing its technology to enterprises, which allows clients to leverage Baran's platforms for improved operational efficiency and security. Additionally, Baran earns income from long-term contracts with government and large-scale corporate clients for managed services and infrastructure support. The company has also established strategic partnerships with major tech firms, enhancing its credibility and market reach, which significantly contributes to its earnings.

Baran Financial Statement Overview

Summary

Baran demonstrates strong profitability with healthy EBIT and EBITDA margins, and a stable balance sheet. However, challenges include a recent decline in revenue and negative free cash flow, which need addressing to ensure long-term financial health.

Income Statement

Baran's income statement shows a strong performance with a consistent increase in revenue over the years. The TTM (Trailing-Twelve-Months) gross profit margin is 13.89%, and the net profit margin is 4.94%, indicating good profitability. However, the revenue growth rate from the previous year is slightly negative at -3.03%, which could be a concern. EBIT and EBITDA margins are healthy at 6.80% and 10.88%, respectively, reflecting efficient operational management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.84, indicating a moderate level of leverage. The return on equity (ROE) is 12.74%, showing effective use of equity to generate profits. The equity ratio is 31.08%, suggesting a balanced capital structure. However, the increase in total debt over the years could pose a risk if not managed properly.

Cash Flow

The cash flow statement indicates challenges in free cash flow generation, with a negative free cash flow of -4.57 million in the TTM period. The operating cash flow to net income ratio is 0.56, suggesting that not all net income is being converted into cash. The free cash flow to net income ratio is negative, highlighting potential liquidity issues. Despite these concerns, the company has managed to maintain positive operating cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	681.75M	684.62M	680.70M	386.90M	373.42M	362.53M
Gross Profit	88.49M	99.69M	87.62M	47.95M	58.43M	68.70M
EBITDA	77.92M	77.26M	67.18M	41.20M	17.94M	32.51M
Net Income	22.14M	41.92M	42.80M	14.17M	15.23M	9.92M
Balance Sheet
Total Assets	866.99M	784.19M	729.74M	556.09M	335.42M	351.60M
Cash, Cash Equivalents and Short-Term Investments	111.39M	129.61M	71.35M	67.66M	80.92M	70.52M
Total Debt	229.87M	196.84M	178.57M	158.69M	97.14M	131.19M
Total Liabilities	586.87M	497.57M	495.33M	365.30M	203.80M	228.33M
Stockholders Equity	258.94M	264.29M	208.75M	165.44M	129.73M	121.19M
Cash Flow
Free Cash Flow	-46.29M	14.63M	6.92M	34.87M	24.77M	11.98M
Operating Cash Flow	-1.53M	36.55M	23.38M	68.24M	26.64M	13.89M
Investing Cash Flow	-21.10M	11.53M	-9.54M	-121.27M	13.41M	-5.63M
Financing Cash Flow	5.59M	9.39M	-12.02M	55.72M	-42.77M	45.91M

Baran Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1687.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BRAN, the sentiment is Positive. The current price of 1687 is above the 20-day moving average (MA) of 1572.10, above the 50-day MA of 1570.08, and above the 200-day MA of 1509.75, indicating a bullish trend. The MACD of 25.28 indicates Negative momentum. The RSI at 62.62 is Neutral, neither overbought nor oversold. The STOCH value of 52.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:BRAN.

Baran Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRAN	66 Neutral	$391.52M	17.13	9.72%	10.16%	-6.37%	-66.78%
LUDN	65 Neutral	152.70M	6.55	16.86%	7.68%	-10.73%	-12.78%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%