Strauss Group (STRS) AI Stock Analysis

• Market Cap: $10.23B
• Dividend Yield: 3.52%
• Average Volume (3M): 168.00K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.80
• Revenue Growth: 7.94%
• EPS Growth: 102.18%
• Country: IL
• Employees: 17,484
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Packaged Foods
• EPS (TTM): 69.00
• Shares Outstanding: 116,664,560
• 10 Day Avg. Volume: 162,821
• 30 Day Avg. Volume: 168,005
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 5.53
• Enterprise Value/Ebitda: 8.59
• 1Y Price Target: $9,683.87
• Price Target Upside: 10.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: 9,831.00 ▲(12.14% Upside)

Strauss Group's overall stock score is driven primarily by its solid financial performance and fair valuation. The company's consistent revenue growth and profitability are strong points, although cash flow management needs improvement. Technical analysis indicates short-term bearish momentum, which slightly offsets the positive financial and valuation aspects.

Strauss Group Business Overview & Revenue Model

Company Description

Strauss Group Ltd., together with its subsidiaries, develops, manufactures, markets, and sells various food and beverage products in Israel, North America, Brazil, Europe, and internationally. The company operates through six segments: Health & Wellness; Fun & Indulgence; Israel Coffee; International Coffee; International Dips & Spreads; and Strauss Water. The Health & Wellness segment provides yogurts, dairy desserts, dairy-free tahini desserts, soft cheeses, flavored milk beverages, chilled salads, cut vegetables, fresh pasta products, cereal and granola bars, honey products, olive oils, fruit preserves, cooking sauces, lemon juices, and natural maple syrups. This segment also sells and distributes natural juices, butter spreads, and plant-based probiotic desserts. The Fun & Indulgence segment offers sweet snack bars, chocolate tablets, sweet spreads, candies, chewing gums, cakes and cookies, biscuits, wafers, and salty snacks. The Israel Coffee segment develops, manufactures, sells, markets, and distributes a range of coffee products, chocolate powders, and other drink powders; sells coffee beans; and retails coffee products. The International Coffee segment develops and manufactures various coffee products and powder drinks; markets and distributes coffee machines; and purchases and processes green coffee, corn products, cashew-based dairy substitutes and juice powders. The International Dips & Spreads segment manufactures, markets, and sells chilled dips and spreads under the Sabra, Obela, and Florentin brands. The Strauss Water segment also develops, manufactures, distributes, and sells filtration, purification, and carbonation systems for drinking water. The company was formerly known as Strauss-Elite Ltd. and changed its name to Strauss Group Ltd. in February 2007. Strauss Group Ltd. was incorporated in 1933 and is headquartered in Petah Tikva, Israel. Strauss Group Ltd. is a subsidiary of Strauss Holdings Ltd.

How the Company Makes Money

Strauss Group makes money through the production, marketing, and sale of a diverse range of food and beverage products. The company generates revenue primarily from its core business segments: coffee, fresh and chilled foods, and snacks. In the coffee sector, Strauss Group partners with multinational companies like PepsiCo and Danone to produce and sell coffee products, making it a key revenue stream. The fresh and chilled foods sector includes the sale of dairy products, salads, and dips, contributing significantly to its earnings. Additionally, the snacks segment offers a variety of products that add to the company's revenue. Strategic partnerships and a strong presence in international markets further bolster Strauss Group's ability to generate income.

Strauss Group Financial Statement Overview

Summary

Strauss Group demonstrates strong revenue growth and profitability with robust margins. However, cash flow challenges due to high capital expenditures pose a risk, requiring careful management to maintain financial stability.

Income Statement

Strauss Group shows strong revenue growth with a TTM revenue of $7.25B, marking a 2.27% increase from the previous year. The gross profit margin is robust at 33.59%, and the net profit margin has improved to 9.09% from 8.80% last year, indicating enhanced profitability. EBIT and EBITDA margins are healthy at 14.99% and 21.23% respectively, reflecting efficient core operations. However, the gross profit margin slightly contracted from previous periods due to rising costs.

Balance Sheet

The balance sheet shows a stable equity structure with a debt-to-equity ratio of 0.78, which is manageable. The return on equity is strong at 20.80%, demonstrating effective use of equity to generate profits. The equity ratio stands at 35.90%, indicating a balanced financial structure, though slightly lower than optimal industry averages. The company maintains adequate liquidity with considerable cash reserves, despite a decrease in cash equivalents over the year.

Cash Flow

Operating cash flow decreased to $442M, impacting the operating cash flow to net income ratio, now at 0.67, showing less cash generation relative to profits. Free cash flow turned negative at -$99M due to significant capital expenditures, marking a noteworthy decline from a positive $14M last year. The cash flow challenges highlight potential pressures on liquidity if capital expenditures continue to rise without corresponding revenue growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.42B	7.09B	6.79B	6.11B	6.07B	5.87B
Gross Profit	2.44B	2.39B	2.44B	1.98B	2.42B	2.39B
EBITDA	1.57B	1.43B	1.18B	545.00M	1.19B	1.11B
Net Income	641.00M	624.00M	488.00M	117.00M	609.00M	533.00M
Balance Sheet
Total Assets	8.74B	8.96B	8.17B	7.41B	6.70B	6.41B
Cash, Cash Equivalents and Short-Term Investments	379.00M	1.14B	517.00M	517.00M	554.00M	491.00M
Total Debt	2.76B	2.81B	2.63B	2.61B	2.06B	2.20B
Total Liabilities	5.29B	5.36B	4.86B	4.72B	4.02B	3.98B
Stockholders Equity	3.13B	3.28B	3.04B	2.48B	2.48B	2.26B
Cash Flow
Free Cash Flow	-227.00M	14.00M	192.00M	-73.00M	586.00M	371.00M
Operating Cash Flow	328.00M	560.00M	686.00M	307.00M	854.00M	610.00M
Investing Cash Flow	340.00M	248.00M	-420.00M	-350.00M	-184.00M	-169.00M
Financing Cash Flow	-678.00M	-183.00M	-271.00M	-21.00M	-595.00M	-461.00M

Strauss Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8767.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:STRS, the sentiment is Negative. The current price of 8767 is below the 20-day moving average (MA) of 8970.45, below the 50-day MA of 9084.06, and above the 200-day MA of 8204.60, indicating a neutral trend. The MACD of -63.00 indicates Positive momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 31.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:STRS.

Strauss Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTAM	75 Outperform	878.48M	15.14	17.19%	2.12%	―	―
WLFD	74 Outperform	504.06M	14.92	15.03%	―	6.79%	88.04%
STRS	69 Neutral	$10.23B	15.94	20.32%	3.52%	7.94%	102.18%
RMLI	68 Neutral	4.01B	17.70	40.91%	5.16%	6.29%	4.13%
VILR	67 Neutral	3.11B	8.82	9.79%	1.44%	5.75%	45.99%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%