Rotshtein (ROTS) AI Stock Analysis

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Rotshtein

(TASE:ROTS)

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Rating:54Neutral

Price Target:ILA 5,484.00▲(2.01% Upside)

Action:reiterated

Date:08/27/26

The overall score of 54 reflects a company with significant operational risks despite a strong balance sheet and seemingly cheap valuation. The most impactful factor is the severe disconnect between reported profitability and actual cash generation, which is a major red flag. This is compounded by a bearish technical trend, with the stock in a clear downtrend. The low P/E ratio and high dividend yield provide some support but are likely value traps until cash flow improves.

Positive Factors

Improved Balance SheetThe sharp reduction in leverage improves financial flexibility for a capital-intensive homebuilder and provides a stronger buffer against operating volatility. Lower debt relative to equity can also reduce pressure on financing capacity and support more resilient capital allocation over the next several quarters.

Negative Factors

Weak Cash GenerationRepeated negative operating and free cash flow weakens earnings quality because reported profits are not consistently converting into liquidity. Persistent cash pressure can constrain reinvestment, debt reduction, and shareholder distributions, while increasing sensitivity to working-capital and project-timing swings.

Rotshtein (ROTS) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 940.24M
Dividend Yield: 5.28%
Average Volume (3M): 7,806
Price to Earnings (P/E): 6.5
Beta (1Y): 1.35
Revenue Growth: -53.51%
EPS Growth: -5.29%
Country: Israel
Employees: 122
Sector: General
Sector Strength: 55
Industry: Residential Construction

Rotshtein Business Overview & Revenue Model

Company Description

Rotshtein Realestate Ltd is an Israeli company primarily focused on developing and constructing residential properties throughout the country. In addition to its real estate ventures, the firm also undertakes various engineering projects. Headquarter...

Rotshtein Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a clear strength with dramatically reduced leverage (debt-to-equity improved to 0.77x) and a growing equity base. However, this is offset by highly volatile revenue and declining gross margins (29.1% to 17.3%). Critically, cash flow is a persistent weakness, with deeply negative operating and free cash flow in the TTM period, indicating reported profits are not converting to cash.

Income Statement

65Positive

Balance Sheet

72Positive

Cash Flow

25Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	360.27M	450.16M	779.74M	702.59M	825.14M	523.96M
Gross Profit	62.37M	97.99M	211.21M	164.52M	240.45M	106.89M
EBITDA	203.93M	43.25M	192.63M	151.25M	280.95M	143.82M
Net Income	139.12M	207.86M	100.75M	73.91M	176.04M	71.17M
Balance Sheet
Total Assets	2.68B	2.45B	2.47B	2.13B	1.94B	1.52B
Cash, Cash Equivalents and Short-Term Investments	89.22M	237.79M	99.45M	114.86M	135.23M	103.30M
Total Debt	1.17B	1.10B	1.17B	1.14B	855.64M	814.62M
Total Liabilities	1.84B	1.65B	1.84B	1.60B	1.46B	1.22B
Stockholders Equity	795.39M	763.92M	571.17M	468.77M	426.15M	239.63M
Cash Flow
Free Cash Flow	-265.87M	-164.75M	191.98M	-368.28M	45.25M	-47.63M
Operating Cash Flow	-262.28M	-161.24M	192.45M	-357.26M	91.97M	-46.82M
Investing Cash Flow	7.75M	-32.88M	-235.69M	70.90M	-104.95M	-126.92M
Financing Cash Flow	127.09M	187.22M	27.49M	265.84M	58.18M	180.33M

Rotshtein Technical Analysis

Technical Analysis SentimentNegative

Last Price5376.00

Price Trends

50DMA6475.80Negative

100DMA6600.36Negative

200DMA7444.23Negative

Market Momentum

MACD-281.58Positive

RSI29.42Positive

STOCH9.63Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ROTS, the sentiment is Negative. The current price of 5376.00 is below the 20-day moving average (MA) of 6289.45, below the 50-day MA of 6475.80, and below the 200-day MA of 7444.23, indicating a bearish trend. The MACD of -281.58 indicates Positive momentum. The RSI at 29.42 is Positive, neither overbought nor oversold. The STOCH value of 9.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ROTS.

Rotshtein Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:ROTS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:MNRT	79Outperform	ILS 1.54B	7.49	―	7.14%	12.90%	15.19%
IL:ILDC	64Neutral	ILS 1.48B	5.70	―	4.06%	19.26%	623.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:ROTS	54Neutral	ILS 940.24M	6.53	―	5.28%	-53.51%	-5.29%

* General Sector Average

Performance Comparison

IL:ROTS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:ROTS	Rotshtein Realestate Ltd.	5376.00	-3597.42	-40.09%
IL:ILDC	Israel Land Development Co. Ltd.	3654.00	67.65	1.89%
IL:KARE	Kardan Real Estate Enterprise & Development Ltd.	396.30	-272.28	-40.73%
IL:HRON	Hiron Trade Investments & Industrial Buildings Ltd.	197580.00	-51337.59	-20.62%
IL:HGG	Hagag Group Real Estate Development Ltd.	1876.00	-331.66	-15.02%
IL:MNRT	Menivim - The New REIT Ltd.	183.00	-45.10	-19.77%

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 27, 2026

Rotshtein AI Stock Analysis