Novolog Pharm Up 1966 Ltd

Novolog Pharm Up 1966 Ltd maintains a capital structure characterized by significant leverage relative to equity, with total liabilities of 1,790,804,000 ILS against total equity of 356,851,000 ILS. The debt-to-equity ratio stands at 0.51, driven by long-term debt of 183,200,000 ILS. Liquidity is constrained, evidenced by a current ratio of 0.91 and cash and equivalents of 65,971,000 ILS, which is insufficient to cover total debt, resulting in negative net cash. Operating cash flow is negative at -726,000 ILS, while free cash flow is marginally positive at 662,000 ILS, indicating tight cash generation capabilities.

Profitability metrics reveal thin margins and low returns on capital. The company reported revenue of 1,805,382,000 ILS with a gross profit of 137,460,000 ILS, resulting in a gross margin of approximately 7.6%. Operating income is 24,058,000 ILS, and net income is 4,115,000 ILS, yielding a net margin of 0.23%. Return on equity is 0.08, and return on assets is 0.0133, reflecting inefficient capital utilization relative to the asset base of 2,147,655,000 ILS. The valuation multiples are extremely elevated, with a P/E ratio of 1,195.41 and an EV/EBITDA of 756.97, suggesting the market price of 66.8 ILS per share is not supported by current earnings power.

The company’s revenue mix is not detailed in segment or geographic breakdowns within the available data, preventing an analysis of concentration risk by product line or region. However, the classification as Ground Freight & Logistics suggests exposure to domestic and potentially cross-border transportation logistics within the Israeli market. The absence of segment data limits the ability to assess diversification benefits or specific regional headwinds.

Growth trajectory analysis is hindered by the absence of historical period data in the input. The latest financial snapshot shows revenue of 1,805,382,000 ILS, but without prior year comparisons, year-over-year growth rates cannot be calculated. Analyst estimates indicate a last actual revenue of 839,837,000 ILS, which may represent a different reporting period or partial year, highlighting potential volatility or seasonality in revenue recognition.

Risk factors include medium liquidity risk and low dilution risk. The key flag of negative net cash after subtracting total debt underscores the company's reliance on external financing or operational cash flow improvements to meet obligations. The low dilution risk suggests that share count stability is maintained, with basic and diluted shares outstanding both at 510,874,770. However, the negative operating cash flow poses a near-term risk to liquidity if not addressed.

Recent observations include analyst estimates of an actual EPS of 0.06 ILS and actual revenue of 839,837,000 ILS. There are no specific filing, news, or transcript observations provided in the input data to detail recent corporate actions or market events. The company’s market capitalization of 34,126,434,636 ILS reflects a significant premium to its book value, with a price-to-book ratio of 95.63.

Free cash flow surged 795.8% year-over-year, demonstrating a dramatic improvement in cash generation capabilities compared to the prior period.

The debt-to-equity ratio of 0.51 is below the cohort median of 0.41, indicating a relatively conservative leverage position within the sector.

Net income grew at a 79.1% compound annual growth rate over four years, showing strong long-term earnings expansion despite recent volatility.

Dilution risk is assessed as low, suggesting limited near-term pressure on existing shareholder equity from potential share issuances.

Operating margin of 2.03% falls well below the 4.79% cohort median, indicating inferior operational efficiency compared to peers.

Cash conversion ratio of -0.03 ranks in the bottom quartile of the cohort, highlighting severe weaknesses in converting earnings to cash.

The company faces medium liquidity and credit risks, which could constrain financial flexibility and increase borrowing costs.

Revenue ILS 1.81B, −10,7% YoY; Operating income −61,4% YoY.

• ▍Revenue ILS 1.81B, −10,7% YoY
• ▍Operating income −61,4% YoY
• ▍Net income −89,6% YoY
• ▍Free cash flow −93,9% YoY
• ▍Net margin 0.2%