Palram (PLRM) AI Stock Analysis

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Palram

(TASE:PLRM)

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Rating:75Outperform

Price Target:ILA 4,298.00▲(12.51% Upside)

Action:upgraded

Date:08/29/26

Palram scores well on the strength of an exceptionally conservative balance sheet and reliable cash generation, paired with a cheap 7.1x P/E and a 7.5% dividend yield that offers meaningful income support. The main drag is a deteriorating earnings trajectory: revenue has declined to ~1.62 billion TTM, margins have compressed from 2024 highs, and net income and ROE have fallen materially, reflecting soft construction demand. Technically, the stock has regained its short- and medium-term moving averages with positive MACD momentum, though it still trades below its 200-day average and near-term indicators suggest the move is extended. Overall, a well-capitalized, low-beta, income-generating business at an attractive valuation, with revenue and margin stabilization the key item to watch.

Positive Factors

Strong ProfitabilityTTM gross margin of about 38.5%, EBIT margin of 14.3%, and net margin of 9.6% show that Palram remains meaningfully profitable in its polymer building-products markets. This earnings base can support reinvestment and resilience even while demand is softer.

Negative Factors

Revenue ContractionRevenue declined in both 2025 and TTM, with the TTM decrease cited at about 3.9%, while reported revenue growth is negative. Persistent contraction in sales volumes or demand can pressure utilization, operating leverage, and the company’s ability to sustain earnings growth.

Palram (PLRM) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 982.71M
Dividend Yield: 9.16%
Average Volume (3M): 21.17K
Price to Earnings (P/E): 6.9
Beta (1Y): 0.77
Revenue Growth: -12.33%
EPS Growth: -34.31%
Country: Israel
Employees: 1,759
Sector: General
Sector Strength: 55
Industry: Construction Materials

Palram Business Overview & Revenue Model

Company Description

Palram Industries (1990) Ltd, along with its affiliated enterprises, is involved in the manufacturing and worldwide distribution of semi-processed extruded thermoplastic sheets, bespoke architectural panel systems, and complete finished products. Its...

How the Company Makes Money

Palram makes money primarily by selling polymer sheet materials and finished building systems to business and consumer channels. Key revenue streams typically include: (1) sales of extruded thermoplastic sheets (e.g., polycarbonate/PVC sheet products...

Palram Financial Statement Overview

Summary

A fortress balance sheet (score 84) anchors the profile: debt-to-equity of just 0.19, debt under 1x EBITDA, and equity funding ~64% of the 1.91 billion asset base. Cash flow (73) remains dependable, with TTM operating cash flow of ~211 million and free cash flow of ~164 million converting at roughly 77% of net income, though both are well below the 2023 peak and 2022 showed a sharp working-capital-driven cash swing. The income statement (65) is the weak link: revenue has slipped to ~1.62 billion TTM, margins have compressed from 2024's peak (gross 40.9% to 38.5%, net 12.4% to 9.6%), and net income has fallen ~39% from peak, dragging ROE from 18.3% to 12.9%.

Income Statement

65Positive

Balance Sheet

84Very Positive

Cash Flow

73Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.62B	1.73B	1.87B	1.72B	1.81B	1.82B
Gross Profit	616.00M	681.66M	763.78M	622.46M	559.64M	659.75M
EBITDA	257.65M	317.90M	378.44M	278.96M	267.34M	323.05M
Net Income	141.17M	176.28M	231.69M	164.34M	154.43M	188.36M
Balance Sheet
Total Assets	1.91B	1.96B	1.97B	1.70B	1.62B	1.63B
Cash, Cash Equivalents and Short-Term Investments	357.39M	409.69M	360.20M	370.32M	237.15M	317.12M
Total Debt	232.24M	242.72M	241.53M	150.44M	187.22M	206.05M
Total Liabilities	558.32M	541.94M	565.47M	447.57M	517.72M	641.32M
Stockholders Equity	1.23B	1.29B	1.27B	1.13B	983.34M	874.26M
Cash Flow
Free Cash Flow	163.97M	227.55M	187.56M	286.41M	-10.40M	115.13M
Operating Cash Flow	211.24M	273.19M	220.06M	313.42M	31.91M	168.91M
Investing Cash Flow	-50.79M	-90.52M	-113.48M	-40.68M	18.25M	-54.97M
Financing Cash Flow	-121.70M	-135.08M	-121.42M	-152.93M	-118.29M	-109.07M

Palram Technical Analysis

Technical Analysis SentimentNegative

Last Price3820.00

Price Trends

50DMA4198.56Negative

100DMA4249.54Negative

200DMA4656.51Negative

Market Momentum

MACD-117.57Negative

RSI39.95Neutral

STOCH55.65Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PLRM, the sentiment is Negative. The current price of 3820.00 is below the 20-day moving average (MA) of 3851.05, below the 50-day MA of 4198.56, and below the 200-day MA of 4656.51, indicating a bearish trend. The MACD of -117.57 indicates Negative momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 55.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PLRM.

Palram Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:PLRM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:PLRM	75Outperform	ILS 982.71M	6.95	―	9.16%	-12.33%	-34.31%
IL:KAFR	65Neutral	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:PLRM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:PLRM	Palram Industries (1990) Ltd.	3820.00	-3293.28	-46.30%
IL:KAFR	Kafrit Industries (1993) Ltd	2612.00	-423.77	-13.96%
IL:GNGR	Ginegar Plastic Products Ltd.	521.00	-284.90	-35.35%
IL:GRIN	Golan Plastic Products Ltd.	646.50	-475.80	-42.39%
IL:PPIL	Plastopil Hazorea Co. Ltd.	462.20	-299.00	-39.28%
IL:POLP	Polyram Plastic Industries Ltd.	784.00	-345.00	-30.56%

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

Palram AI Stock Analysis