Castro (CAST) AI Stock Analysis

Castro

(TASE:CAST)

Select Model

Rating:57Neutral

Price Target:ILA 13,745.00▲(10.67% Upside)

Action:reiterated

Date:08/24/26

The overall score of 57 reflects a company with strong technical momentum and an exceptionally high dividend yield, but these are offset by severe fundamental weaknesses. The most significant risk is the razor-thin 1.3% net profit margin and high debt leverage, which threaten the sustainability of the dividend. The recent surge in free cash flow is a key mitigating factor, providing some support to the financial outlook.

Positive Factors

Stable Gross MarginA strong, stable gross margin indicates Castro retains meaningful economics on its merchandise despite a difficult profitability environment. Maintaining this spread supports the business model, provides room to absorb operating pressure, and preserves an earnings base for recovery if cost discipline improves.

Negative Factors

Elevated LeverageLeverage near two times equity limits Castro’s financial flexibility and makes the retail business more sensitive to downturns. Debt obligations can restrict investment capacity and increase pressure on cash generation, leaving less room to respond to weaker demand or prolonged profitability challenges.

Castro (CAST) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 1.06B
Dividend Yield: 23.09%
Average Volume (3M): 1,557
Price to Earnings (P/E): 27.0
Beta (1Y): 0.70
Revenue Growth: 3.53%
EPS Growth: -57.85%
Country: Israel
Employees: 3,041
Sector: General
Sector Strength: 55
Industry: Apparel - Retail

Castro Business Overview & Revenue Model

Company Description

Castro Model Ltd., headquartered in Bat Yam, Israel, operates as a prominent retailer across Israel. The company’s numerous stores offer a wide spectrum of products, including fashion apparel, home goods, fashion accessories, and cosmetics. Its exten...

Castro Financial Statement Overview

Summary

Financial performance is mixed. Cash flow is a bright spot with 54.6% TTM growth, but profitability is critically weak with net margins at 1.3% and a high debt-to-equity of 2.1x. The income statement and balance sheet scores of 45 and 35 reflect significant operational and leverage risks, partially offset by improving cash generation.

Income Statement

45Neutral

Balance Sheet

35Negative

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.16B	2.12B	2.08B	1.76B	1.67B	1.60B
Gross Profit	1.24B	1.21B	1.19B	987.53M	930.52M	950.26M
EBITDA	419.90M	405.67M	451.88M	340.20M	160.46M	294.90M
Net Income	41.81M	55.09M	135.40M	42.52M	-1.12M	108.02M
Balance Sheet
Total Assets	2.77B	2.74B	2.30B	2.15B	2.06B	2.15B
Cash, Cash Equivalents and Short-Term Investments	433.56M	426.15M	170.49M	270.70M	233.88M	394.71M
Total Debt	1.48B	1.44B	1.24B	1.29B	1.25B	1.24B
Total Liabilities	1.77B	1.77B	1.63B	1.56B	1.50B	1.51B
Stockholders Equity	745.83M	732.75M	669.53M	595.48M	554.15M	638.09M
Cash Flow
Free Cash Flow	262.59M	200.10M	184.93M	187.02M	95.94M	37.42M
Operating Cash Flow	361.71M	301.87M	256.40M	246.32M	116.67M	82.32M
Investing Cash Flow	-96.36M	-100.90M	-74.05M	-61.56M	51.02M	-83.45M
Financing Cash Flow	-331.73M	54.68M	-282.55M	-147.95M	-149.22M	-111.45M

Castro Technical Analysis

Technical Analysis SentimentNegative

Last Price12420.00

Price Trends

50DMA15288.20Negative

100DMA14970.40Negative

200DMA13751.48Negative

Market Momentum

MACD-487.25Positive

RSI29.71Positive

STOCH13.63Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:CAST, the sentiment is Negative. The current price of 12420.00 is below the 20-day moving average (MA) of 14533.50, below the 50-day MA of 15288.20, and below the 200-day MA of 13751.48, indicating a bearish trend. The MACD of -487.25 indicates Positive momentum. The RSI at 29.71 is Positive, neither overbought nor oversold. The STOCH value of 13.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:CAST.

Castro Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:CAST against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:DELG	61Neutral	ILS 4.83B	14.46	10.63%	2.15%	-7.17%	-3.00%
IL:MAXO	60Neutral	ILS 4.56B	30.44	―	2.85%	11.28%	35.65%
IL:CAST	57Neutral	ILS 1.14B	27.05	―	23.09%	3.53%	-57.85%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:RTLS	43Neutral	ILS 708.86M	20.22	―	15.89%	2.54%	-56.97%

* General Sector Average

Performance Comparison

IL:CAST and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:CAST	Castro Model Ltd.	12420.00	-7380.00	-37.27%
IL:DELG	Delta Galil Industries	18520.00	246.76	1.35%
IL:MSBI	Hamashbir 365 Ltd	62.10	-56.00	-47.42%
IL:MAXO	Max Stock Ltd.	3316.00	1049.74	46.32%
IL:RTLS	Retailors Ltd	1467.00	-4353.00	-74.79%
IL:MRG	MULTI RETAIL GROUP LTD	827.90	-16.02	-1.90%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 24, 2026

Castro AI Stock Analysis