Board Change • Jul 01
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Director Samson Adler was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Jun 04
First quarter 2026 earnings released: EPS: ₪2.04 (vs ₪1.24 in 1Q 2025) First quarter 2026 results: EPS: ₪2.04 (up from ₪1.24 in 1Q 2025). Revenue: ₪86.3m (up 10% from 1Q 2025). Net income: ₪8.52m (up 68% from 1Q 2025). Profit margin: 9.9% (up from 6.5% in 1Q 2025). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 10% per year. New Risk • Apr 10
New minor risk - Financial position The company has a high level of debt. Net debt to equity ratio: 45% This is considered a minor risk. Having a high level of debt increases the company's balance sheet risk. The company has a higher interest repayment burden, leading to the need to allocate a greater amount of its earnings towards servicing the debt, potentially limiting growth options or shareholder distributions. It can also increase the risk of bankruptcy if business conditions deteriorate enough that the company can no longer meet its debt obligations. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 3.2% per year over the past 5 years. Minor Risks High level of debt (45% net debt to equity). Dividend is not well covered by earnings (112% payout ratio). Market cap is less than US$100m (₪147.1m market cap, or US$48.4m). Reported Earnings • Mar 30
Full year 2025 earnings released: EPS: ₪6.09 (vs ₪8.97 in FY 2024) Full year 2025 results: EPS: ₪6.09 (down from ₪8.97 in FY 2024). Revenue: ₪301.5m (down 7.5% from FY 2024). Net income: ₪24.8m (down 32% from FY 2024). Profit margin: 8.2% (down from 11% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 8% per year and the company’s share price has also increased by 8% per year. Buy Or Sell Opportunity • Dec 08
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 3.5% to ₪47.13. The fair value is estimated to be ₪59.22, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.0% over the last 3 years. Earnings per share has grown by 8.6%. New Risk • Dec 03
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 112% The company is paying a dividend despite having no free cash flows. Dividend yield: 16% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Dividend is not well covered by earnings and cash flows. Payout ratio: 112% Paying a dividend despite having no free cash flows. Earnings have declined by 0.8% per year over the past 5 years. High level of non-cash earnings (34% accrual ratio). Minor Risk Market cap is less than US$100m (₪194.6m market cap, or US$60.3m). Reported Earnings • Nov 30
Third quarter 2025 earnings released: EPS: ₪1.60 (vs ₪2.05 in 3Q 2024) Third quarter 2025 results: EPS: ₪1.60 (down from ₪2.05 in 3Q 2024). Revenue: ₪86.7m (flat on 3Q 2024). Net income: ₪6.53m (down 22% from 3Q 2024). Profit margin: 7.5% (down from 9.7% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 10% per year. New Risk • Nov 28
New major risk - Revenue and earnings growth Earnings have declined by 0.3% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Earnings have declined by 0.3% per year over the past 5 years. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (₪209.5m market cap, or US$64.2m). Announcement • Sep 22
Ralco Agencies Ltd, Annual General Meeting, Oct 28, 2025 Ralco Agencies Ltd, Annual General Meeting, Oct 28, 2025. Location: friedman law offices, Israel Buy Or Sell Opportunity • Sep 09
Now 21% undervalued Over the last 90 days, the stock has risen 6.2% to ₪48.83. The fair value is estimated to be ₪61.43, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 6.5% over the last 3 years. Earnings per share has grown by 7.2%. Reported Earnings • Aug 31
Second quarter 2025 earnings released: EPS: ₪0.85 (vs ₪1.87 in 2Q 2024) Second quarter 2025 results: EPS: ₪0.85 (down from ₪1.87 in 2Q 2024). Revenue: ₪69.7m (down 17% from 2Q 2024). Net income: ₪3.48m (down 54% from 2Q 2024). Profit margin: 5.0% (down from 9.0% in 2Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 6% per year. Valuation Update With 7 Day Price Move • Jun 25
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₪54.14, the stock trades at a trailing P/E ratio of 6.8x. Average trailing P/E is 19x in the Retail Distributors industry in Asia. Total returns to shareholders of 43% over the past three years. New Risk • Jun 23
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Israeli stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 92% Cash payout ratio: 272% High level of non-cash earnings (26% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.5% average weekly change). Market cap is less than US$100m (₪210.2m market cap, or US$60.4m). New Risk • Jun 02
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 92% Cash payout ratio: 272% Dividend yield: 7.0% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 92% Cash payout ratio: 272% High level of non-cash earnings (26% accrual ratio). Minor Risk Market cap is less than US$100m (₪213.7m market cap, or US$60.8m). Reported Earnings • May 21
First quarter 2025 earnings released: EPS: ₪1.24 (vs ₪2.22 in 1Q 2024) First quarter 2025 results: EPS: ₪1.24 (down from ₪2.22 in 1Q 2024). Revenue: ₪78.4m (down 7.9% from 1Q 2024). Net income: ₪5.08m (down 44% from 1Q 2024). Profit margin: 6.5% (down from 11% in 1Q 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 3% per year and the company’s share price has also increased by 3% per year. Declared Dividend • Mar 31
Dividend of ₪3.67 announced Shareholders will receive a dividend of ₪3.67. Ex-date: 6th April 2025 Payment date: 15th April 2025 Dividend yield will be 6.3%, which is higher than the industry average of 2.4%. Sustainability & Growth Dividend is covered by earnings (82% earnings payout ratio) but not covered by cash flows (dividend approximately 10x free cash flows). The dividend has increased by an average of 16% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 19% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Mar 30
Ralco Agencies Ltd announces Annual dividend, payable on April 15, 2025 Ralco Agencies Ltd. announced Annual dividend of ILS 3.6738 per share payable on April 15, 2025, ex-date on April 06, 2025 and record date on April 06, 2025. Reported Earnings • Mar 29
Full year 2024 earnings released: EPS: ₪8.97 (vs ₪5.61 in FY 2023) Full year 2024 results: EPS: ₪8.97 (up from ₪5.61 in FY 2023). Revenue: ₪325.9m (up 20% from FY 2023). Net income: ₪36.6m (up 60% from FY 2023). Profit margin: 11% (up from 8.4% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 5% per year. Reported Earnings • Dec 01
Third quarter 2024 earnings released: EPS: ₪2.05 (vs ₪1.65 in 3Q 2023) Third quarter 2024 results: EPS: ₪2.05 (up from ₪1.65 in 3Q 2023). Revenue: ₪86.4m (up 26% from 3Q 2023). Net income: ₪8.35m (up 25% from 3Q 2023). Profit margin: 9.7% (in line with 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 5% per year. Reported Earnings • Aug 31
Second quarter 2024 earnings released: EPS: ₪1.87 (vs ₪0.82 in 2Q 2023) Second quarter 2024 results: EPS: ₪1.87 (up from ₪0.82 in 2Q 2023). Revenue: ₪84.4m (up 40% from 2Q 2023). Net income: ₪7.62m (up 127% from 2Q 2023). Profit margin: 9.0% (up from 5.6% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 11% per year. Announcement • Aug 30
Ralco Agencies Ltd, Annual General Meeting, Oct 07, 2024 Ralco Agencies Ltd, Annual General Meeting, Oct 07, 2024. Location: friedman law offices, Israel New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Israeli stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (248% cash payout ratio). Share price has been volatile over the past 3 months (5.5% average weekly change). Market cap is less than US$100m (₪141.7m market cap, or US$37.6m). Reported Earnings • Apr 01
Full year 2023 earnings released: EPS: ₪5.61 (vs ₪6.23 in FY 2022) Full year 2023 results: EPS: ₪5.61 (down from ₪6.23 in FY 2022). Revenue: ₪272.1m (down 1.0% from FY 2022). Net income: ₪22.9m (down 10% from FY 2022). Profit margin: 8.4% (down from 9.2% in FY 2022). Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 01
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₪36.30, the stock trades at a trailing P/E ratio of 5.9x. Average trailing P/E is 17x in the Retail Distributors industry in Asia. Total returns to shareholders of 34% over the past three years. Reported Earnings • Sep 02
Second quarter 2023 earnings released: EPS: ₪0.82 (vs ₪0.36 in 2Q 2022) Second quarter 2023 results: EPS: ₪0.82 (up from ₪0.36 in 2Q 2022). Revenue: ₪60.2m (down 1.0% from 2Q 2022). Net income: ₪3.36m (up 126% from 2Q 2022). Profit margin: 5.6% (up from 2.4% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 9% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₪32.31, the stock trades at a trailing P/E ratio of 5.8x. Average trailing P/E is 15x in the Retail Distributors industry in Asia. Total returns to shareholders of 129% over the past three years. Reported Earnings • Jun 04
First quarter 2023 earnings released: EPS: ₪2.19 (vs ₪2.19 in 1Q 2022) First quarter 2023 results: EPS: ₪2.19 (in line with 1Q 2022). Revenue: ₪74.8m (down 3.4% from 1Q 2022). Net income: ₪6.12m (down 32% from 1Q 2022). Profit margin: 8.2% (down from 12% in 1Q 2022). Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has increased by 24% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to ₪32.55, the stock trades at a trailing P/E ratio of 4.7x. Average trailing P/E is 13x in the Retail Distributors industry in Asia. Total returns to shareholders of 96% over the past three years. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment deteriorated over the past week After last week's 15% share price decline to ₪36.63, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 15x in the Retail Distributors industry in Asia. Total returns to shareholders of 91% over the past three years. Buying Opportunity • Nov 29
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be ₪53.71, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 35%. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 3 highly experienced directors. Independent External Director Doron Stanitky was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 30
Second quarter 2022 earnings released: EPS: ₪0.36 (vs ₪1.75 in 2Q 2021) Second quarter 2022 results: EPS: ₪0.36 (down from ₪1.75 in 2Q 2021). Revenue: ₪60.8m (down 3.7% from 2Q 2021). Net income: ₪1.49m (down 79% from 2Q 2021). Profit margin: 2.4% (down from 11% in 2Q 2021). The decrease in margin was primarily driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 35% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. Independent External Director Doron Stanitky was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment improved over the past week After last week's 17% share price gain to ₪65.92, the stock trades at a trailing P/E ratio of 7.1x. Average trailing P/E is 14x in the Retail Distributors industry in Asia. Total returns to shareholders of 290% over the past three years. Reported Earnings • Mar 28
Full year 2021 earnings released: EPS: ₪9.35 (vs ₪6.30 in FY 2020) Full year 2021 results: EPS: ₪9.35 (up from ₪6.30 in FY 2020). Revenue: ₪270.1m (up 12% from FY 2020). Net income: ₪38.2m (up 48% from FY 2020). Profit margin: 14% (up from 11% in FY 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 42% per year whereas the company’s share price has increased by 45% per year. Valuation Update With 7 Day Price Move • Mar 24
Investor sentiment improved over the past week After last week's 20% share price gain to ₪66.60, the stock trades at a trailing P/E ratio of 7.6x. Average trailing P/E is 16x in the Retail Distributors industry in Asia. Total returns to shareholders of 322% over the past three years. Board Change • Nov 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 2 highly experienced directors. Independent External Director Doron Stanitky was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improved over the past week After last week's 18% share price gain to ₪41.34, the stock trades at a trailing P/E ratio of 6.6x. Average trailing P/E is 17x in the Retail Distributors industry in Asia. Total returns to shareholders of 108% over the past three years. Reported Earnings • Mar 29
Full year 2020 earnings released: EPS ₪6.30 (vs ₪3.93 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: ₪241.4m (up 19% from FY 2019). Net income: ₪25.7m (up 61% from FY 2019). Profit margin: 11% (up from 7.8% in FY 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Is New 90 Day High Low • Mar 01
New 90-day high: ₪31.94 The company is up 7.0% from its price of ₪29.72 on 01 December 2020. The Israeli market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Retail Distributors industry, which is down 2.0% over the same period. Is New 90 Day High Low • Jan 12
New 90-day high: ₪30.90 The company is up 22% from its price of ₪25.43 on 14 October 2020. The Israeli market is up 24% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Retail Distributors industry, which is down 1.0% over the same period. Is New 90 Day High Low • Dec 07
New 90-day high: ₪30.26 The company is up 30% from its price of ₪23.31 on 08 September 2020. The Israeli market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Retail Distributors industry, which is flat over the same period. Is New 90 Day High Low • Nov 11
New 90-day high: ₪27.20 The company is up 28% from its price of ₪21.20 on 13 August 2020. The Israeli market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Retail Distributors industry, which is down 3.0% over the same period. Is New 90 Day High Low • Oct 26
New 90-day high: ₪26.25 The company is up 37% from its price of ₪19.15 on 28 July 2020. The Israeli market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Retail Distributors industry, which is down 1.0% over the same period. Is New 90 Day High Low • Oct 05
New 90-day high: ₪24.50 The company is up 27% from its price of ₪19.24 on 07 July 2020. The Israeli market is up 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Retail Distributors industry, which is down 2.0% over the same period.