G Willi Food International Ltd (NASDAQ: WILC)

Sector: Consumer Defensive Industry: Food Distribution CIK: 0001030997
Market Cap 394.55 Mn
P/B 2.05
P/E 13.75
P/S 2.18
ROIC (Qtr) 30.00
Div Yield % 3.51
Rev 1y % (Qtr) 12.16
Total Debt (Qtr) 1.55 Mn
Debt/Equity (Qtr) 0.01
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About

G. Willi-Food International Ltd., also known as WILC, operates in the food production industry, specializing in high-quality kosher food products. The company, established in Israel in 1994, is renowned for its diverse range of over 650 food products, which it imports, markets, and distributes worldwide. WILC's primary business activities revolve around sourcing food products from over 150 suppliers in various countries, including Israel, China, India, Vietnam, Eastern Europe, South America, Western and Central Europe, and Southern Europe. These...

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Investment thesis

Bull case

  • Strong operating cash flow of 696969.70 provides robust 0.45x coverage of total debt 1.55M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 31.65M provide 47.89x coverage of short-term debt 660909.09, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 213.06M provides 137.54x coverage of total debt 1.55M, indicating robust asset backing and low credit risk.
  • Retained earnings of 139.29M provide full 156.83x coverage of long-term debt 888181.82, indicating strong internal capital position.
  • Long-term investments of 15.19M provide solid 17.10x coverage of long-term debt 888181.82, indicating strategic financial planning.

Bear case

  • Operating cash flow of 696969.70 barely covers its investment activities of (5.44M), with a coverage ratio of -0.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Free cash flow of (12.64M) provides weak coverage of capital expenditures of 13.34M, with a -0.95 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of 696969.70 barely covers operating expenses of (65151.52) with a -10.70 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of 696969.70 provides minimal 0.09x coverage of tax expenses of 8.08M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of 139.29M provide limited buffer against comprehensive income items of (77575.76), which is -1795.55x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Food Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SYY Sysco Corp 52.49 Bn 48.75 1.21 14.97 Bn
2 USFD US Foods Holding Corp. 22.03 Bn 32.59 0.56 5.37 Bn
3 PFGC Performance Food Group Co 15.24 Bn 44.17 0.23 7.99 Bn
4 CHEF Chefs' Warehouse, Inc. 2.62 Bn 35.11 0.65 0.95 Bn
5 UNFI United Natural Foods Inc 2.38 Bn -23.56 0.07 3.47 Bn
6 ANDE Andersons, Inc. 1.88 Bn 20.94 0.34 0.77 Bn
7 AVO Mission Produce, Inc. 1.03 Bn 27.23 0.74 0.20 Bn
8 CVGW Calavo Growers Inc 0.45 Bn -33.31 0.43 0.02 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.88 1.05
EV to Cash from Ops. EV/CFO 269.30 34.23
EV to Debt EV to Debt 121.16 13.37
EV to EBIT EV/EBIT 4.98 164.56
EV to EBITDA EV/EBITDA 11.05 4.40
EV to Free Cash Flow [EV/FCF] EV/FCF -14.85 22.08
EV to Market Cap EV to Market Cap 0.48 1.45
EV to Revenue EV/Rev 1.03 0.53
Price to Book Value [P/B] P/B 2.05 2.85
Price to Earnings [P/E] P/E 13.75 13.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.57
Dividend Payout Ratio % Div Payout % (Qtr) 48.40 21.05
Dividend per Basic Share Div per Share (Qtr) 1.00 0.44
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -33.44 8.21
Interest Coverage Int. cover (Qtr) 40.13 7.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -22.38 -12.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 5.26 35.81
Dividend Growth (1y) % Div 1y % (Qtr) 401.00 32.53
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 81.62 65.49
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -8.59
EBIT Growth (1y) % EBIT 1y % (Qtr) 77.08 21.40
EBT Growth (1y) % EBT 1y % (Qtr) 81.06 -278.84
EPS Growth (1y) % EPS 1y % (Qtr) 85.42 -67.04
FCF Growth (1y) % FCF 1y % (Qtr) -15.68 82.95
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 24.59 1.59
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.26 2.79
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.07
Cash Ratio Cash Ratio (Qtr) 2.01 0.34
Current Ratio Curr Ratio (Qtr) 9.87 2.65
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 1.41
Interest Cover Ratio Int Coverage (Qtr) 40.13 7.20
Times Interest Earned Times Interest Earned (Qtr) 40.13 7.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 4.45
EBIT Margin % EBIT Margin % (Qtr) 68.65 8.39
EBT Margin % EBT Margin % (Qtr) 20.28 4.17
Gross Margin % Gross Margin % (Qtr) 28.50 24.60
Net Profit Margin % Net Margin % (Qtr) 15.80 3.22