• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Rami Levi (TASE:RMLI) Stock Faces Margin Squeeze Despite Steady Revenue

    Simply Wall St·08/21/2026 03:37:33
    Listen to the news

    Rami Levi Chain Stores entered this earnings release with a conflicted story. The stock closed at ₪350.10 on 20 August, lagging over the past three months despite a discounted cash flow estimate of ₪427.85 and a P/E of 22x that prices in a premium grocery retailer. Q2 results sharpen that tension. Revenue reached ₪2,065.5m, but net income of ₪52.8m and a trailing net margin of 2.7% keep the spotlight on profit pressure. For investors, the headline is simple: valuation optimism is running ahead of the current margin reality.

    Love the valuation upside that Rami Levi Chain Stores Hashikma Marketing 2006 appears to offer but concerned about its thin 2.7% net margin and profit pressure? Instead, take a look at our list of solid balance sheet and fundamentals stocks (431 results) for stocks that pair disciplined pricing with stronger profitability profiles.

    Q2 2026 Earnings Summary

    • Revenue, Q2 2026 vs. Q2 2025: ₪2,065.5m vs. ₪2,006.3m (up about 3.0%)
    • Net Income, Q2 2026 vs. Q2 2025: ₪52.8m vs. ₪58.8m (declined about 10.2%)
    • Basic EPS, Q2 2026 vs. Q2 2025: ₪3.83 vs. ₪4.27 (declined about 10.3%)
    • Trailing Net Margin, last 12 months vs. prior year: 2.7% vs. 3.0% (compressed by about 0.3 percentage points)

    Prefer clean charts rather than another wall of earnings tables and ratios? See Rami Levi Chain Stores Hashikma Marketing 2006's full visual breakdown, with a clear focus on valuation, in the interactive company report for Rami Levi Chain Stores Hashikma Marketing 2006.

    TASE:RMLI Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
    TASE:RMLI Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

    Rami Levi earnings, testing the bullish story

    For a constructive view on Rami Levi Chain Stores, the key support is that revenue reached ₪2,065.5m, modestly ahead of Q2 2025. That suggests shoppers are still coming through the doors and the essential goods proposition is holding. For a discount supermarket group, keeping the top line moving while consumers stay price sensitive matters. The recent 7 day and 30 day share price gains, even after weak 90 day performance, also indicate that the market has not treated this quarter as a clear setback.

    Profit strains keep the bearish case alive

    The bear case focuses on profitability rather than demand. Net income slipped to ₪52.8m from ₪58.8m and basic EPS fell to ₪3.83 from ₪4.27. The trailing net margin of 2.7% is thin for a business that relies on volume and tight cost control. These trends support concerns about cost inflation and competitive pricing pressure. The planned IPO of loss making Cando Drones also shows management attention on a higher risk side asset just as the retail margin story looks more fragile.

    After a profit squeeze like this, are thin 2.7% margins and a loss making drone IPO just surface issues, or structural cracks? Review the full risk analysis for Rami Levi Chain Stores Hashikma Marketing 2006 which shows 1 important warning sign.

    Stay Ahead Of Your Next Move

    If the mix of valuation optimism and profit pressure at Rami Levi Chain Stores Hashikma Marketing 2006 has your attention, register for free with Simply Wall St and add it to a Watchlist to track share price against fair value and watch how margins evolve. When you decide to take a position, use the Portfolio Command Center to cut through noise and only get the key developments that matter to your holdings. For a longer term perspective, turn to the Community to see how other investors are thinking through the same risks and opportunities. By spotting potential catalysts and pressure points early, you can react faster and stay ahead of the wider market.

    Seeking Alternatives Beyond Rami Levi?

    Fresh ideas can move fast. Some stocks are building quiet momentum while others risk being caught dropping once the crowd notices. Check these under the radar lists now and get in early.

    • Target resilient cash generators and tighten your downside risk by scanning our curated 293 resilient stocks with low risk scores before the crowd starts chasing safety and pushes valuations higher.
    • Ride potential breakout demand for critical materials by reviewing the hand picked 28 best rare earth metal stocks while these producers remain under the radar for now.
    • Spot fresh growth stories that big funds may still be ignoring by tapping into a focused 610 high quality undiscovered gems and position yourself before momentum starts flying.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.