Castro (CAST) AI Stock Analysis

4 Followers

Castro

(TASE:CAST)

Select Model

Rating:62Neutral

Price Target:ILA 12,688.00▲(15.24% Upside)

Action:reiterated

Date:08/24/26

Overall score reflects constrained financial quality—especially high leverage and weakened profitability—partly offset by improving free cash flow. Technicals are supportive with price above major moving averages and positive MACD. Valuation is mixed: a high P/E is a headwind, while the very high dividend yield provides meaningful support.

Positive Factors

Stable Gross MarginA strong, stable gross margin indicates Castro continues to retain meaningful value from sales despite operating pressure. Maintaining this level provides a durable base for profitability and leaves scope for earnings recovery if cost control improves over the next several quarters.

Negative Factors

Elevated LeverageHigh leverage limits financial flexibility and makes the business more sensitive to weaker trading conditions. Debt obligations can constrain investment and capital allocation, while a downturn could make it harder to protect liquidity or sustain shareholder returns through the next several quarters.

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

Market Cap: ILS 1.03B
Dividend Yield: 24.69%
Average Volume (3M): 1,611
Price to Earnings (P/E): 25.3
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

Income statement is mixed (Score 62): modest revenue growth and strong mid‑50% gross margin, but materially weaker net margin and declining EBIT/EBITDA margins. Balance sheet is a key drag (Score 45) due to elevated leverage (about ~2x debt-to-equity) and sharply lower ROE in TTM. Cash flow is comparatively supportive (Score 66) with solid operating/FCF and strong FCF growth, though cash conversion is not consistently strong (FCF/net income below 1.0).

Income Statement

62Positive

Balance Sheet

45Neutral

Cash Flow

66Positive

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 Price11010.00

Price Trends

50DMA15233.20Negative

100DMA14922.20Negative

200DMA13726.78Negative

Market Momentum

MACD-694.93Positive

RSI21.18Positive

STOCH9.80Positive

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 11010.00 is below the 20-day moving average (MA) of 14227.50, below the 50-day MA of 15233.20, and below the 200-day MA of 13726.78, indicating a bearish trend. The MACD of -694.93 indicates Positive momentum. The RSI at 21.18 is Positive, neither overbought nor oversold. The STOCH value of 9.80 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	64Neutral	ILS 4.86B	14.53	10.63%	2.12%	-7.17%	-3.00%
IL:CAST	62Neutral	ILS 1.06B	25.30	―	24.69%	3.53%	-57.85%
IL:MAXO	60Neutral	ILS 4.64B	30.99	―	2.87%	11.28%	35.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:RTLS	43Neutral	ILS 714.21M	20.38	―	―	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.	11010.00	-8550.00	-43.71%
IL:DELG	Delta Galil Industries	18440.00	147.24	0.80%
IL:MSBI	Hamashbir 365 Ltd	61.10	-55.00	-47.37%
IL:MAXO	Max Stock Ltd.	3255.00	967.40	42.29%
IL:RTLS	Retailors Ltd	1450.00	-4457.00	-75.45%
IL:MRG	MULTI RETAIL GROUP LTD	807.50	-37.11	-4.39%

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