Kafrit (KAFR) AI Stock Analysis

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Kafrit

(TASE:KAFR)

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Rating:65Neutral

Price Target:ILA 2,452.00▲(2.17% Upside)

Action:downgraded

Date:11/06/26

The score is supported by attractive valuation and generally solid financial fundamentals, but weakened by declining recent cash conversion, higher leverage, and bearish technical momentum.

Positive Factors

Revenue reboundThe return to strong top-line growth indicates renewed demand across Kafrit’s materials and compound solutions. Sustained revenue expansion can improve operating leverage, support customer retention, and provide a broader base for investment in tailored formulations and export-market development.

Negative Factors

Higher leverageThe higher debt-to-equity ratio represents a more leveraged capital structure than in prior years. This can reduce financial flexibility, increase sensitivity to weaker operating results, and constrain the funds available for expansion or shareholder returns if earnings soften.

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

Market Cap: ILS 589.37M
Dividend Yield: 3.72%
Average Volume (3M): 3,188
Price to Earnings (P/E): 11.3
Beta (1Y): 0.83
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

Financial performance is solid but mixed: revenue and profitability have improved, while higher leverage, softer returns, and notably weaker recent cash generation limit the score.

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 Price2400.00

Price Trends

50DMA2694.40Negative

100DMA2571.73Negative

200DMA2606.75Negative

Market Momentum

MACD-81.12Positive

RSI38.42Neutral

STOCH46.44Neutral

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 2400.00 is below the 20-day moving average (MA) of 2593.00, below the 50-day MA of 2694.40, and below the 200-day MA of 2606.75, indicating a bearish trend. The MACD of -81.12 indicates Positive momentum. The RSI at 38.42 is Neutral, neither overbought nor oversold. The STOCH value of 46.44 is Neutral, 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	75Outperform	ILS 1.07B	7.55	―	8.56%	-12.33%	-34.31%
IL:KAFR	65Neutral	ILS 589.37M	11.33	―	3.72%	-5.03%	-26.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:POLP	53Neutral	ILS 768.68M	22.07	―	5.20%	-6.18%	-50.86%
IL:PPIL	40Underperform	ILS 108.22M	-7.56	―	―	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	2400.00	-644.47	-21.17%
IL:PLRM	Palram Industries (1990) Ltd.	4086.00	-2827.88	-40.90%
IL:GNGR	Ginegar Plastic Products Ltd.	498.10	-304.80	-37.96%
IL:GRIN	Golan Plastic Products Ltd.	627.90	-527.29	-45.65%
IL:PPIL	Plastopil Hazorea Co. Ltd.	475.50	-239.60	-33.51%
IL:POLP	Polyram Plastic Industries Ltd.	719.10	-398.90	-35.68%

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: Nov 06, 2026

Kafrit AI Stock Analysis