Company Overview
InterCure Ltd. operates as a specialized entity within the healthcare sector, specifically focusing on the drug manufacturing industry for specialty and generic pharmaceuticals. The company is engaged in the comprehensive research, cultivation, production, marketing, and distribution of pharmaceutical-grade cannabis and cannabis-based products designed for medical use in Israel and international markets. Its product portfolio includes dried cannabis inflorescences and cannabis extracts, positioning it as a key player in the expanding medical cannabis landscape. With a total market capitalization of $41.56M and an employee base of 320, the company maintains a relatively small scale compared to large-cap pharmaceutical giants. The market cap figure suggests that InterCure is currently valued as a small-cap entity, indicating a niche market position rather than broad mainstream dominance in the global pharmaceutical sector.
Financial Health
The company reports no disclosed revenue or net income figures for the trailing twelve months, while its EBITDA stands at a significant negative level of $-80,619,000, highlighting a substantial gap between operational revenue generation and profitability. The absence of reported revenue and net income data, coupled with the negative EBITDA, reveals a cost structure where expenses are currently exceeding all recognized revenue streams. Free cash flow is reported at $-18,398,624, which indicates a lack of financial flexibility and suggests the company is burning through cash reserves to fund its operations and growth initiatives. Analysis of the three primary margins shows a gross margin of 16.7%, an operating margin of 0.0%, and a profit margin of -29.2%. The positive gross margin indicates that the cost of goods sold is lower than the selling price of products, but the zero operating margin and deeply negative profit margin demonstrate that operating expenses and overhead costs are consuming nearly all gross profits, resulting in an overall loss. Regarding liquidity and leverage, specific figures for total cash and total debt are not disclosed, but the debt-to-equity ratio is listed at 41.49, suggesting a highly leveraged balance sheet if debt exists, or potentially indicating capital structure complexities in the reporting period. The current ratio is 1.85, which indicates that the company holds assets sufficient to cover short-term liabilities with a buffer of 85% above the one-to-one threshold. Return on Equity is -16.7% and return on assets is -7.7%, metrics that reveal management is currently generating negative returns on shareholder capital and the asset base, reflecting the company's unprofitable status.
Valuation Assessment
The trailing twelve-month P/E ratio is not available, while the forward P/E is -0.51, a negative figure that implies the market expects earnings to remain negative or that the current stock price is mathematically inconsistent with traditional earnings-based valuation models for a loss-making company. The price-to-book ratio is 0.10, indicating that the market values the company at 10% of its net asset book value, which suggests a deep discount or a market perception that the company's assets are not fully utilized or are impaired. Neither the price-to-sales ratio nor the EV/EBITDA is available for calculation, preventing a standard multiple-based valuation comparison against industry peers. The stock's price range over the last year has fluctuated between a 52-week high of $1.77 and a 52-week low of $0.68. Without the specific current share price to calculate the exact percentage deviation, the trading range defines the historical volatility bounds within which the security has moved. The beta value is 0.29, which signifies that the stock price is significantly less volatile than the broader market, moving with less than one-third of the intensity of a standard market index. This low beta suggests that price movements are driven more by specific company events or sector news rather than general market trends.
Growth & Income
Revenue growth year-over-year is recorded at 3.4%, whereas earnings growth is not available due to the company's lack of profitable earnings. The disparity between positive revenue growth and the absence of earnings growth implies that the company is successfully expanding its sales volume but has not yet translated these increases into net income, likely due to the high operating costs mentioned previously. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, confirming that it does not distribute cash to shareholders. Instead of paying dividends, the company reinvests any available cash or future earnings into its research, cultivation, and distribution operations to attempt to achieve profitability. The overall growth and income profile for InterCure Ltd. is characterized by modest sales expansion without current profitability or shareholder distributions, focusing entirely on operational scaling in the medical cannabis sector.