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Photomyne (PHTM) AI Stock Analysis

IL:PHTM

Photomyne

(TASE:PHTM)

Select Model
Rating:39Underperform
Price Target:ILA 1,434.00â–²(0.49% Upside)
Action:reiterated
Date:08/18/26

The score is held down primarily by weak financial performance: despite ~41% revenue growth and healthy 68%-71% gross margins, Photomyne remains loss-making (about -$3.2M net loss TTM), continues to burn cash, and has seen shareholders' equity shrink roughly 80% since 2023 to about $2.4M, leaving little room for further losses. Technicals reinforce the caution, with the price trading below all major moving averages and negative MACD momentum, though a deeply oversold RSI hints at potential near-term stabilisation. Valuation adds no support given negative earnings and no dividend. Positives - narrowing cash burn, minimal debt and an asset-light model - are real but not yet sufficient to offset the risks. Earnings call and corporate events were excluded due to lack of data, with their weight redistributed across the remaining components.

Positive Factors
Strong Gross MarginsA gross margin near 68% supports the economics of Photomyne’s subscription software model and leaves room to fund product development, customer acquisition, and operating improvements if revenue scales.
Negative Factors
Sharp Profitability DeteriorationThe shift from profitability to substantial operating and net losses signals weaker operating leverage or rising costs. Unless margins recover, revenue growth may not translate into durable earnings or strengthen the capital base.

Photomyne (PHTM) vs. iShares MSCI Israel ETF (EIS)

-40%-20%0%20%40%IL:PHTM-39.46%EIS+13.14%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
ILS 38.42M
Dividend Yield
―
Average Volume (3M)
433
Price to Earnings (P/E)
-3.8
Beta (1Y)
0.20
Revenue Growth
12.14%
EPS Growth
43.83%
Country
Israel
Employees
22
Sector
General
Sector Strength
55
Industry
Software - Application

Photomyne Business Overview & Revenue Model

Company Description

Photomyne Ltd develops mobile applications that empower users to digitize, organize, store, share, and manage their personal photograph collections and albums. For subscribers, the platform offers secure cloud backup services for their images. Its ro...

How the Company Makes Money

Photomyne primarily makes money through paid subscriptions to its consumer mobile apps (typically sold as auto-renewing plans via app stores). Under this model, users can download the apps for free but pay to unlock premium features such as high-volu...

Photomyne Financial Statement Overview

Summary

Weak overall despite genuine bright spots. Revenue re-accelerated roughly 41% to about $18.4M in 2025 (~$19.0M TTM) and gross margins are consistently strong at 68%-71%, with an asset-light model and minimal capital spending. However, operating expenses absorb the entire gross profit, producing an operating loss of about $3.5M and a net loss of about $3.2M TTM (net margin near -27%), with losses in five of the last six periods. Shareholders' equity has fallen roughly 80% since 2023 to about $2.4M, leaving a very thin capital cushion even though debt is minimal (debt-to-equity ~0.20). Cash burn is narrowing (operating cash flow of about -$1.7M TTM versus -$3.4M in 2024), which is encouraging, but the company still needs to reach breakeven before liquidity becomes a concern.

Income Statement

36Negative

Balance Sheet

37Negative

Cash Flow

38Negative
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue19.03M18.41M13.04M13.33M16.16M12.32M
Gross Profit13.28M12.56M8.99M9.43M11.38M8.34M
EBITDA-3.30M-5.18M-4.64M2.14M19.39K-6.18M
Net Income-3.24M-4.93M-3.97M2.50M-1.07M-6.35M
Balance Sheet
Total Assets11.68M12.58M14.43M17.83M17.16M18.52M
Cash, Cash Equivalents and Short-Term Investments8.60M9.52M12.49M15.76M14.52M15.85M
Total Debt727.00K1.31M20.00K165.00K252.00K220.98K
Total Liabilities9.23M8.89M5.92M4.95M6.89M7.59M
Stockholders Equity2.44M3.69M8.51M12.88M10.27M10.93M
Cash Flow
Free Cash Flow-1.74M-2.38M-3.44M804.00K-101.00K-4.03M
Operating Cash Flow-1.72M-2.31M-3.41M814.00K-59.00K-3.99M
Investing Cash Flow2.08M3.81M2.60M-11.38M11.00M-11.51M
Financing Cash Flow-307.00K-696.03K-653.00K-110.00K-110.00K17.06M

Photomyne Technical Analysis

Technical Analysis SentimentNegative
Last Price1427.00

Price Trends

50DMA1499.52Negative
100DMA1586.21Negative
200DMA1809.66Negative

Market Momentum

MACD-17.04Positive
RSI20.39Positive
STOCH94.94Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PHTM, the sentiment is Negative. The current price of 1427.00 is below the 20-day moving average (MA) of 1500.25, below the 50-day MA of 1499.52, and below the 200-day MA of 1809.66, indicating a bearish trend. The MACD of -17.04 indicates Positive momentum. The RSI at 20.39 is Positive, neither overbought nor oversold. The STOCH value of 94.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PHTM.

Photomyne Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IL:PHTM against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IL:NICEIL:NICE81OutperformILS 20.68B16.1715.11%―-6.11%-27.82%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
IL:PHTMIL:PHTM39UnderperformILS 38.42M-3.79――12.14%43.83%
IL:IDMOIL:IDMO38UnderperformILS 76.27M-3.87――-13.27%29.76%

* General Sector Average

Performance Comparison

-40%-20%0%20%40%IL:PHTMIL:NICEIL:IDMOIL:JNGODec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
IL:PHTM and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IL:PHTMPhotomyne Ltd1427.00-1060.00-42.62%
IL:NICENICE 35390.00-8860.00-20.02%
IL:IDMOIdomoo Ltd.425.6090.3026.93%
IL:JNGOJungo Connectivity Ltd177.50-9.94-5.30%
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 18, 2026