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Holmes Place International Ltd. (IL:HLMS)
TASE:HLMS
Israel Market
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Holmes Place (HLMS) AI Stock Analysis

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IL:HLMS

Holmes Place

(TASE:HLMS)

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Neutral 65 (OpenAI - Gpt-5.6Sol)
Rating:65Neutral
Price Target:
677.00
▲(11.88% 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 Profitability
High 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 Leverage
Debt 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.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Operating Profitability
High 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.
Read all positive factors

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

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...
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
78
Positive
Balance Sheet
38
Negative
Cash Flow
62
Positive
BreakdownTTMMar 2026Dec 2024Mar 2024Dec 2022Dec 2021
Income Statement
Total Revenue609.06M588.57M552.22M508.51M461.19M311.06M
Gross Profit164.87M145.13M143.32M133.49M106.44M24.78M
EBITDA241.85M230.50M213.94M192.81M165.71M103.24M
Net Income33.84M27.61M46.50M40.06M31.71M-21.81M
Balance Sheet
Total Assets1.53B1.52B1.38B1.27B1.24B994.37M
Cash, Cash Equivalents and Short-Term Investments18.05M21.32M27.31M16.79M53.34M18.39M
Total Debt1.21B1.18B1.12B1.02B990.89M817.86M
Total Liabilities1.35B1.34B1.26B1.14B1.12B914.37M
Stockholders Equity170.51M176.32M124.38M121.47M123.49M81.66M
Cash Flow
Free Cash Flow104.46M82.80M102.00M92.24M99.65M23.16M
Operating Cash Flow179.53M164.75M167.55M142.81M124.60M43.56M
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
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₪637.05M18.548.62%6.29%-12.45%
62
Neutral
₪1.36B32.4221.03%3.53%-57.85%
58
Neutral
₪7.69B29.560.66%10.55%0.81%
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:HLMS
Holmes Place
601.60
-62.91
-9.47%
IL:DANH
Dan Hotels
2,563.00
-54.00
-2.06%
IL:ISRO
Isrotel
13,350.00
1,850.00
16.09%
IL:CAST
Castro
16,160.00
806.04
5.25%
IL:MSBI
Hamashbir 365
48.20
-65.60
-57.64%
IL:ISTA
Issta
8,902.00
-764.54
-7.91%
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