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C. Mer Industries Ltd. (IL:CMER)
TASE:CMER
Israel Market
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Mer (CMER) AI Stock Analysis

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IL:CMER

Mer

(TASE:CMER)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
5,346.00
▲(6.03% Upside)
Action:Downgraded
Date:08/22/26
The score is driven primarily by improving financial performance—stronger profitability, significant deleveraging, and robust free cash flow. These positives are tempered by a weak technical setup (price below key moving averages and negative MACD) and only modest top-line growth, while valuation (P/E ~14.6) is supportive but not a major catalyst on its own.
Positive Factors
Profitability Turnaround
The sharp recovery in profitability indicates stronger cost control and operating leverage. Sustained margins would improve earnings resilience and provide internal funding capacity, although continued execution is needed to preserve the gains.
Negative Factors
Limited Top-Line Growth
Modest revenue expansion suggests the recent earnings recovery is driven mainly by margins rather than increasing demand or market share. Without stronger top-line growth, future profit expansion may depend on further efficiencies that could be difficult to repeat.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Turnaround
The sharp recovery in profitability indicates stronger cost control and operating leverage. Sustained margins would improve earnings resilience and provide internal funding capacity, although continued execution is needed to preserve the gains.
Read all positive factors

Mer (CMER) vs. iShares MSCI Israel ETF (EIS)

Mer Business Overview & Revenue Model

Company Description
C. Mer Industries Ltd. is a global technology firm that designs, develops, manufactures, integrates, and deploys comprehensive solutions and services across Israel, Latin America, the United States, Africa, the United Kingdom, and Asia. The compan...
How the Company Makes Money
null...

Mer Financial Statement Overview

Summary
Financials reflect a meaningful turnaround: margins and profitability improved sharply (gross margin ~20.2%, EBIT margin ~10.2%, net margin ~6.7%) alongside strong free cash flow (~113M) with solid cash conversion (~0.93x net income). Balance sheet leverage has delevered to ~0.46x debt/equity, improving resilience. Offsets are modest recent revenue growth (~2.8% TTM, near-flat in 2025) and only moderate operating cash flow coverage of debt (~0.39).
Income Statement
74
Positive
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue689.82M666.36M663.70M646.15M513.26M435.19M
Gross Profit140.46M124.07M118.67M100.73M76.85M70.16M
EBITDA83.79M73.98M77.53M60.07M32.61M39.84M
Net Income47.71M41.25M34.43M16.28M-5.64M2.60M
Balance Sheet
Total Assets529.12M539.91M523.77M473.88M444.46M410.50M
Cash, Cash Equivalents and Short-Term Investments53.49M67.70M52.53M43.28M44.88M20.21M
Total Debt84.51M124.34M170.57M216.97M193.26M201.82M
Total Liabilities347.10M375.37M402.58M379.49M367.70M329.67M
Stockholders Equity182.01M164.55M121.19M94.40M76.76M80.83M
Cash Flow
Free Cash Flow113.10M74.90M35.26M24.57M49.55M37.99M
Operating Cash Flow119.32M79.38M45.52M31.58M53.96M42.36M
Investing Cash Flow-12.90M-11.56M-9.92M-6.52M-3.97M-2.93M
Financing Cash Flow-102.08M-52.77M-24.32M-26.68M-25.94M-40.70M

Mer Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5042.00
Price Trends
50DMA
5114.67
Negative
100DMA
5143.52
Negative
200DMA
4460.54
Positive
Market Momentum
MACD
-17.15
Negative
RSI
49.12
Neutral
STOCH
55.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:CMER, the sentiment is Positive. The current price of 5042 is above the 20-day moving average (MA) of 4888.37, below the 50-day MA of 5114.67, and above the 200-day MA of 4460.54, indicating a neutral trend. The MACD of -17.15 indicates Negative momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 55.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:CMER.

Mer Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₪283.77M14.5713.07%-7.67%-34.19%
66
Neutral
₪1.02B29.613.44%19.60%22.51%
65
Neutral
₪663.19M13.780.02%6.53%29.44%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:CMER
Mer
4,973.00
1,832.44
58.35%
IL:CMDR
Computer Direct
34,850.00
-10,021.21
-22.33%
IL:CISY
C I Systems
1,768.00
-2,364.00
-57.21%
IL:PCBT
P.C.B Tec
1,300.00
170.00
15.04%
IL:UNIT
Unitronics
2,028.00
-277.00
-12.02%
IL:TRX
Terminal X
797.80
236.19
42.06%
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 22, 2026