Holmes Place (HLMS) AI Stock Analysis

Holmes Place

(TASE:HLMS)

Select Model

Rating:65Neutral

Price Target:ILA 677.00▲(18.77% Upside)

Action:reiterated

Date:08/22/26

The score is driven primarily by solid operating profitability and positive free cash flow, but materially constrained by high leverage (debt far exceeds equity), which increases risk and likely contributes to recent net margin compression. Technicals are supportive with a positive trend and steady momentum, while valuation is moderately attractive due to the high dividend yield despite a mid-range P/E.

Positive Factors

Strong Operating ProfitabilityHigh EBIT and EBITDA margins indicate a profitable operating model with meaningful earnings before financing effects. This provides a durable base for reinvestment and debt service, although net profitability remains more constrained by leverage and other costs.

Negative Factors

High Financial LeverageDebt remains very high relative to equity for a leisure and services business, leaving limited balance-sheet resilience. Elevated leverage increases sensitivity to weaker demand, refinancing conditions and interest costs, potentially diverting cash flow from investment or growth.

Holmes Place (HLMS) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 581.59M
Dividend Yield: 7.91%
Average Volume (3M): 129.27K
Price to Earnings (P/E): 16.8
Beta (1Y): 0.36
Revenue Growth: 6.29%
EPS Growth: -12.45%
Country: Israel
Employees: 221
Sector: General
Sector Strength: 55
Industry: Leisure

Holmes Place Business Overview & Revenue Model

Company Description

Holmes Place International Ltd is responsible for the management and operation of health and fitness clubs, operating under its proprietary Holmes Place and Go Active brands. Established in 1979, this Israeli company maintains its base in Caesarea an...

How the Company Makes Money

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Holmes Place Financial Statement Overview

Summary

Operating performance is solid (TTM EBIT margin ~16.9%, EBITDA margin ~39.7%) with continued profitability and positive free cash flow (~104.5M). However, the balance sheet is a major risk: leverage remains very high (TTM debt ~1.21B vs equity ~171M; ~6.8x debt-to-equity), and net margins have compressed versus 2023–2024, indicating weaker earnings quality and reduced resilience in tougher conditions.

Income Statement

78Positive

Balance Sheet

38Negative

Cash Flow

62Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	609.06M	588.57M	552.22M	508.51M	461.19M	311.06M
Gross Profit	164.87M	145.13M	143.32M	133.49M	106.44M	24.78M
EBITDA	241.85M	230.50M	213.94M	192.81M	165.71M	103.24M
Net Income	33.84M	27.61M	46.50M	40.06M	31.71M	-21.81M
Balance Sheet
Total Assets	1.53B	1.52B	1.38B	1.27B	1.24B	994.37M
Cash, Cash Equivalents and Short-Term Investments	18.05M	21.32M	27.31M	16.79M	53.34M	18.39M
Total Debt	1.21B	1.18B	1.12B	1.02B	990.89M	817.86M
Total Liabilities	1.35B	1.34B	1.26B	1.14B	1.12B	914.37M
Stockholders Equity	170.51M	176.32M	124.38M	121.47M	123.49M	81.66M
Cash Flow
Free Cash Flow	104.46M	82.80M	102.00M	92.24M	99.65M	23.16M
Operating Cash Flow	179.53M	164.75M	167.55M	142.81M	124.60M	43.56M
Investing Cash Flow	-83.30M	-90.98M	-71.84M	-54.05M	-34.56M	-17.93M
Financing Cash Flow	-86.36M	-80.12M	-84.90M	-125.16M	-55.12M	-57.65M

Holmes Place Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:HLMS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:CAST	70Outperform	ILS 1.14B	27.05	―	23.09%	3.53%	-57.85%
IL:HLMS	65Neutral	ILS 584.55M	16.76	―	7.91%	6.29%	-12.45%
IL:ISRO	58Neutral	ILS 7.34B	29.93	―	―	10.55%	0.81%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IL:HLMS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:HLMS	Holmes Place International Ltd.	570.00	-113.20	-16.57%
IL:DANH	Dan Hotels Ltd	2330.00	-1000.00	-30.03%
IL:ISRO	Isrotel Ltd.	13270.00	290.00	2.23%
IL:CAST	Castro Model Ltd.	12420.00	-7380.00	-37.27%
IL:MSBI	Hamashbir 365 Ltd	62.10	-56.00	-47.42%
IL:ISTA	Issta Lines Ltd.	8500.00	-1395.33	-14.10%

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

Holmes Place AI Stock Analysis