Mlrn (MLRN) AI Stock Analysis

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Mlrn

(TASE:MLRN)

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Rating:57Neutral

Price Target:ILA 1,112.00▲(12.82% Upside)

Action:reiterated

Date:09/06/26

The score is held back primarily by weak financial quality signals (large, persistent negative operating/free cash flow and declining TTM revenue) and bearish technical momentum (below all key moving averages with negative MACD and very low RSI/Stoch). These risks are partly offset by strong reported margins/ROE and very favorable valuation (low P/E and high dividend yield).

Positive Factors

Strong reported profitabilityTTM net margin of about 35.5% and EBIT margin of about 67.1% indicate that the credit-services operation currently converts reported revenue into substantial accounting profit. This profitability provides a buffer for investment and credit-cycle pressure, although cash conversion remains a separate concern.

Negative Factors

Persistent negative cash generationDeeply negative TTM operating and free cash flow, despite positive net income, indicates weak conversion of reported earnings into usable cash. The multi-year pattern increases funding and liquidity risk, reduces financial flexibility, and could constrain investment or shareholder distributions.

Mlrn (MLRN) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 290.52M
Dividend Yield: 10.65%
Average Volume (3M): 13.82K
Price to Earnings (P/E): 5.3
Beta (1Y): 0.22
Revenue Growth: 13.55%
EPS Growth: 20.43%
Country: Israel
Employees: 42
Sector: General
Sector Strength: 55
Industry: Financial - Credit Services

Mlrn Business Overview & Revenue Model

Company Description

M.L.R.N Projects and Trade Ltd., headquartered in Tel Aviv-Yafo, Israel, was established in 2008 to offer a variety of financial solutions to small and medium-sized enterprises (SMEs) across the nation. The company's extensive portfolio of services i...

Mlrn Financial Statement Overview

Summary

Reported profitability is strong (TTM net margin ~35.5%, EBIT margin ~67.1%) and ROE is solid (~17.1%), but this is outweighed by persistently negative operating/free cash flow (TTM OCF -179.7M, FCF -181.3M) and a weakening top line (TTM revenue down ~10.8%). Leverage remains meaningful (debt-to-equity ~1.37x), keeping risk elevated.

Income Statement

74Positive

Balance Sheet

62Positive

Cash Flow

28Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	171.11M	172.20M	86.78M	87.21M	93.70M	61.48M
Gross Profit	140.44M	115.17M	86.78M	87.21M	104.03M	65.95M
EBITDA	106.94M	77.68M	51.60M	114.88M	132.86M	84.09M
Net Income	54.95M	57.14M	37.03M	28.62M	63.22M	28.74M
Balance Sheet
Total Assets	1.16B	1.13B	905.02M	791.42M	1.17B	924.86M
Cash, Cash Equivalents and Short-Term Investments	10.91M	1.37M	3.08M	19.46M	8.82M	43.53M
Total Debt	814.69M	792.74M	281.67M	239.98M	482.87M	445.03M
Total Liabilities	826.71M	807.85M	613.23M	532.80M	893.61M	701.00M
Stockholders Equity	328.89M	317.66M	291.79M	258.61M	239.03M	174.72M
Cash Flow
Free Cash Flow	-181.28M	-70.06M	-45.27M	245.43M	-153.63M	-310.02M
Operating Cash Flow	-179.68M	-67.67M	-44.97M	246.92M	-151.32M	-309.07M
Investing Cash Flow	-2.07M	-2.38M	-1.16M	-13.71M	-2.47M	-27.76M
Financing Cash Flow	161.59M	68.35M	29.75M	-222.68M	119.00M	347.28M

Mlrn Technical Analysis

Technical Analysis SentimentNegative

Last Price985.60

Price Trends

50DMA1061.19Negative

100DMA1166.88Negative

200DMA1268.91Negative

Market Momentum

MACD-22.02Positive

RSI39.91Neutral

STOCH22.93Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:MLRN, the sentiment is Negative. The current price of 985.60 is below the 20-day moving average (MA) of 1023.57, below the 50-day MA of 1061.19, and below the 200-day MA of 1268.91, indicating a bearish trend. The MACD of -22.02 indicates Positive momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 22.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:MLRN.

Mlrn Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:MLRN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:JCFN	80Outperform	ILS 655.66M	7.51	―	0.05%	20.00%	14.06%
IL:DIFI	72Outperform	ILS 1.59B	7.48	―	9.08%	-1.75%	91.68%
IL:NAWI	61Neutral	ILS 1.36B	5.65	―	4.18%	33.11%	48.58%
IL:MNIF	60Neutral	ILS 1.27B	6.27	―	8.81%	13.66%	20.34%
IL:ISCD	57Neutral	ILS 3.62B	15.63	-1.68%	―	7.18%	―
IL:MLRN	57Neutral	ILS 290.52M	5.30	―	10.65%	13.55%	20.43%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IL:MLRN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:MLRN	M.L.R.N Projects & Trading Ltd.	985.60	-344.09	-25.88%
IL:ISCD	Isracard	1080.00	-315.00	-22.58%
IL:NAWI	Nawi Brothers Group Ltd	4109.00	-916.73	-18.24%
IL:MNIF	Menif - Financial Services Ltd.	1990.00	33.88	1.73%
IL:DIFI	DIRECT FINANCE OF DIRECT GROUP (2006)LTD	52500.00	-631.86	-1.19%
IL:JCFN	Jacob Finance & Investments Ltd.	2590.00	-641.38	-19.85%

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: Sep 06, 2026

Mlrn AI Stock Analysis