Kafrit (KAFR) AI Stock Analysis

Kafrit

(TASE:KAFR)

Select Model

Rating:70Outperform

Price Target:ILA 2,806.00▲(7.47% Upside)

Action:reiterated

Date:08/29/26

The overall score is driven primarily by a solid but mixed financial profile, combining healthy growth and margins with higher leverage and weaker recent cash flows, complemented by strong yet overbought technical momentum and a reasonable, income-supported valuation.

Positive Factors

Revenue reboundTTM revenue of ~1.29B and 16.2% growth after the 2025 decline indicate a meaningful rebound in demand. This scale gives Kafrit a broad operating base, while renewed growth can support customer retention, product investment, and improved absorption of fixed costs.

Negative Factors

Higher leverageDebt-to-equity has increased to approximately 0.82 from roughly 0.55–0.62 in 2021–2023, making the capital structure more leveraged. Although equity is relatively stable, higher leverage can reduce financial flexibility and increase the burden on future cash generation.

Kafrit (KAFR) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 623.24M
Dividend Yield: 3.41%
Average Volume (3M): 3,017
Price to Earnings (P/E): 12.1
Beta (1Y): 0.80
Revenue Growth: -5.03%
EPS Growth: -26.38%
Country: Israel
Employees: 952
Sector: General
Sector Strength: 55
Industry: Chemicals - Specialty

Kafrit Business Overview & Revenue Model

Company Description

Based in Sha'ar HaNegev, Israel, Kafrit Industries (1993) Ltd was established in 1973 and operates internationally, providing the plastics sector with custom-formulated masterbatches and polymer compounds. Their extensive product line addresses diver...

Kafrit Financial Statement Overview

Summary

Score reflects solid multi-year revenue growth, healthy gross and operating margins, and generally positive free cash flow, offset by rising leverage, moderating returns on equity, and notably weaker recent cash generation.

Income Statement

75Positive

Balance Sheet

70Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.29B	1.29B	1.35B	1.12B	1.06B	1.03B
Gross Profit	281.59M	248.51M	303.92M	223.79M	192.74M	192.79M
EBITDA	156.18M	150.50M	181.81M	125.24M	102.51M	119.71M
Net Income	51.78M	47.11M	71.46M	46.88M	44.39M	64.94M
Balance Sheet
Total Assets	1.18B	1.15B	1.17B	931.57M	857.44M	753.46M
Cash, Cash Equivalents and Short-Term Investments	24.44M	34.97M	31.33M	42.67M	36.96M	18.66M
Total Debt	437.34M	442.15M	449.09M	296.13M	271.18M	213.76M
Total Liabilities	648.93M	616.98M	638.06M	444.92M	417.32M	361.68M
Stockholders Equity	531.45M	531.47M	528.52M	486.65M	440.13M	391.79M
Cash Flow
Free Cash Flow	38.91M	85.06M	65.74M	66.62M	49.94M	-545.00K
Operating Cash Flow	78.65M	126.80M	108.46M	111.47M	103.07M	25.80M
Investing Cash Flow	-101.64M	-104.42M	-223.33M	-92.91M	-96.73M	-60.69M
Financing Cash Flow	6.46M	-16.63M	104.19M	-13.40M	10.89M	22.59M

Kafrit Technical Analysis

Technical Analysis SentimentNegative

Last Price2611.00

Price Trends

50DMA2723.45Negative

100DMA2575.09Positive

200DMA2621.84Negative

Market Momentum

MACD-23.90Positive

RSI40.40Neutral

STOCH14.83Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:KAFR, the sentiment is Negative. The current price of 2611.00 is below the 20-day moving average (MA) of 2705.40, below the 50-day MA of 2723.45, and below the 200-day MA of 2621.84, indicating a bearish trend. The MACD of -23.90 indicates Positive momentum. The RSI at 40.40 is Neutral, neither overbought nor oversold. The STOCH value of 14.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:KAFR.

Kafrit Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:KAFR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:PLRM	72Outperform	ILS 982.71M	6.95	―	9.16%	-12.33%	-34.31%
IL:KAFR	70Outperform	ILS 631.95M	12.15	―	3.41%	-5.03%	-26.38%
IL:POLP	57Neutral	ILS 837.94M	24.06	―	4.77%	-6.18%	-50.86%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:PPIL	40Underperform	ILS 105.19M	-7.35	―	―	5.49%	-598.10%

* General Sector Average

Performance Comparison

IL:KAFR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:KAFR	Kafrit Industries (1993) Ltd	2612.00	-395.72	-13.16%
IL:PLRM	Palram Industries (1990) Ltd.	3820.00	-3247.63	-45.95%
IL:GNGR	Ginegar Plastic Products Ltd.	521.00	-321.70	-38.17%
IL:GRIN	Golan Plastic Products Ltd.	646.50	-484.50	-42.84%
IL:PPIL	Plastopil Hazorea Co. Ltd.	462.20	-299.00	-39.28%
IL:POLP	Polyram Plastic Industries Ltd.	784.00	-338.00	-30.12%

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 29, 2026

Kafrit AI Stock Analysis