Kafrit (KAFR) AI Stock Analysis

• Market Cap: 667.95M
• Dividend Yield: 2.69%
• Average Volume (3M): 3.30K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.82
• Revenue Growth: 8.57%
• EPS Growth: 7.79%
• Country: IL
• Employees: 801
• Sector: Industrials
• Sector Strength: 72
• Industry: Chemicals - Specialty
• EPS (TTM): 96.70
• Shares Outstanding: 24,070,265
• 10 Day Avg. Volume: 2,627
• 30 Day Avg. Volume: 3,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 3,256.00
• Price Target Upside: 10.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: 3,256.00 ▲(10.11% Upside)

Kafrit's strong financial performance and attractive valuation are the primary drivers of its stock score. The company's robust revenue growth, profitability, and efficient cash flow management support its financial health. While technical indicators suggest some bearish momentum, the stock's valuation and dividend yield offer compelling reasons for investment.

Kafrit Business Overview & Revenue Model

Company Description

Kafrit Industries (1993) Ltd develops, manufactures, and sells customized masterbatches and compounds for the plastic industry in Israel and internationally. The company's product portfolio includes agricultural films, BOPE and BOPP films, injection molding and extrusion-blow molding, pipes and sheets, and polycarbonate and PMMA sheets, as well as fibers, fabric, and nonwoven products. It also offers polyethylene and polypropylene films, reclosable and conpeel, ecocell, foaming agent, and antioxidants. The company was founded in 1973 and is based in Sha'ar HaNegev, Israel.

How the Company Makes Money

Kafrit generates revenue primarily through the sale of its thermoplastic masterbatches and compounds. These products are essential additives used by manufacturers to improve the properties of plastic products, such as UV resistance, flame retardancy, and color enhancement. The company's key revenue streams include direct sales to manufacturers in various industries such as agriculture, automotive, and packaging. Significant partnerships with industry leaders and continuous investment in research and development also play a crucial role in Kafrit's ability to innovate and maintain a competitive edge, thereby contributing to its earnings.

Kafrit Financial Statement Overview

Summary

Kafrit exhibits strong financial health with consistent revenue growth and stable profitability. The balance sheet is solid with manageable leverage, and the company demonstrates strong cash flow generation. While there are opportunities to further strengthen equity ratios, overall financial performance is robust, positioning Kafrit well in the chemicals - specialty industry.

Income Statement

Kafrit has shown consistent revenue growth over the years, with a strong TTM revenue of 1.36 billion. The gross profit margin stands at 22.5% for TTM, indicating efficient cost management. The net profit margin is 5.0%, reflecting stable profitability. EBIT and EBITDA margins are 8.8% and 14.1% respectively, highlighting robust operational performance. Overall, the company is on a positive growth trajectory with healthy profitability metrics.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 0.81, signifying manageable leverage levels. The return on equity (ROE) is 12.1% for TTM, showcasing effective utilization of shareholder funds. The equity ratio is 45.0%, indicating a solid equity base. While debt levels are under control, there is room for improvement in equity ratios to enhance financial stability.

Cash Flow

Kafrit's cash flow performance is commendable, with a steady free cash flow generation of 64 million in TTM. There is a slight decline in operating cash flow, but the free cash flow to net income ratio remains strong at 0.95, indicating efficient cash conversion. The company maintains a positive operating cash flow to net income ratio, reflecting strong cash-generating ability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.35B	1.12B	1.06B	1.03B	846.66M
Gross Profit	303.07M	303.92M	223.79M	192.74M	192.79M	173.89M
EBITDA	196.50M	181.81M	118.55M	102.51M	114.96M	102.54M
Net Income	70.06M	71.46M	46.88M	44.39M	64.94M	43.21M
Balance Sheet
Total Assets	1.18B	1.17B	931.57M	857.44M	753.46M	642.71M
Cash, Cash Equivalents and Short-Term Investments	40.91M	31.33M	42.67M	36.96M	18.66M	31.51M
Total Debt	433.42M	449.09M	296.13M	271.18M	213.76M	178.71M
Total Liabilities	627.83M	638.06M	444.92M	417.32M	361.68M	285.56M
Stockholders Equity	549.30M	528.52M	486.65M	440.13M	391.79M	357.15M
Cash Flow
Free Cash Flow	69.88M	65.74M	66.62M	49.94M	-545.00K	47.62M
Operating Cash Flow	113.95M	108.46M	111.47M	103.07M	25.80M	69.28M
Investing Cash Flow	-53.92M	-223.33M	-92.91M	-96.73M	-60.69M	-21.18M
Financing Cash Flow	-45.59M	104.19M	-13.40M	10.89M	22.59M	-57.22M

Kafrit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2957.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:KAFR, the sentiment is Positive. The current price of 2957 is below the 20-day moving average (MA) of 2963.09, above the 50-day MA of 2850.12, and below the 200-day MA of 2957.97, indicating a bullish trend. The MACD of 8.45 indicates Positive momentum. The RSI at 57.00 is Neutral, neither overbought nor oversold. The STOCH value of 79.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:KAFR.

Kafrit Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KAFR	73 Outperform	667.95M	9.51	―	2.69%	8.57%	7.79%
POLP	67 Neutral	1.08B	15.17	10.85%	3.53%	-0.64%	-21.12%
AFHL	64 Neutral	1.17B	17.36	12.29%	1.64%	-16.04%	1025.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%