Revenue 2025
5,222M ₪
Food holding
Net margin 2025
6.2%
Typical for food
FCF 2025
-118M ₪
Negative — to monitor
1 Company Profile
Neto M.E. Holdings (NTCH) is an Israeli holding company in the food and consumer-goods sectors, traded on the Tel Aviv Stock Exchange. The company operates through subsidiaries engaged in the production, marketing and sale of processed-food products (primarily meat products, delicatessen, dairy, and frozen goods). Neto is regarded as one of the material publicly traded Israeli food companies, with recognised brands and broad distribution through the major retail chains. 2025 revenue: NIS 5.22B. Item to monitor: negative FCF (-NIS 118M in 2025) despite operating profitability.
| Activity | Feature |
|---|
| Meat products | Leading brands |
| Dairy & deli | Production and distribution |
| מוצרים קפואים | הפצה ארצית |
| מוצרים מעובדים | מגוון רחב |
Source: Annual 2025, maya.tase.co.il
2 Key Financial Observations
This summary is not a recommendation. It is a factual list of key financial metrics.
מדדים מרכזיים 2025
| Metric | Value |
|---|
| הכנסות | 5,222M ₪ |
| EBITDA | 376M ₪ |
| שולי נקי | 6.2% |
| EPS Basic | 25.98 ₪ |
| FCF | -118M ₪ |
| Share price | 263.20 ₪ |
נתונים חסרים
| Metric | סטטוס |
|---|
| פילוח מגזרים | דורש דוח מלא |
| חוב נטו מדויק | לא נסקר |
| סיבת FCF שלילי | Capex / הון חוזר? |
| נתונים היסטוריים | דורש אימות |
Missing data: פילוח מגזרים מפורט, חוב נטו מדויק, פירוק הגורמים ל-FCF השלילי (Capex, הון חוזר, או דיבידנד).
3 Industry & Competitive Context
מזון ישראלי. דפנסיבי — ביקוש יציב. תחרותי — שופרסל, רמי לוי, יבואנים, טבעונות עולה.
| מתחרה | תחום |
|---|
| שטראוס | מזון מעובד |
| אסם/Nestle | מזון מעובד |
| טמפו | משקאות ומזון |
| החברה המרכזית | משקאות |
| שופרסל Private Label | תחרות מרשתות |
4 Risk Factors
| סיכון | הקשר |
|---|
| FCF שלילי | -118M ₪ ב-2025 — דורש ניתוח סיבה |
| מחירי תשומות | בשר, חיטה, חלב — תנודתי |
| רגולציה | מסי בריאות, פיקוח מחירים |
| תחרות ממכלים | שופרסל, רמי לוי — private label |
| מגמות תזונה | ירידה בבשר, עלייה בטבעוני |
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.
This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
What is the historical revenue-growth pace?
Profitability
Net margin of 6.2% — typical for food. What is the trend?
Leverage
What is the D/E ratio and the FCF shortfall?
Competitive Position
Position against Strauss and Osem?
Management Quality
History of execution versus guidance?
Business Complexity
A holding company — how should an investor value it?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario:
FCF turns positive, margins improve, revenue growth of 5%+.
Base Scenario:
Revenue steady 3-5%, net margin 6%, FCF returns to positive.
Adverse Scenario:
Consumer recession, institutional pricing pressure, prolonged negative FCF.
Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
NTCH is not an exciting company — it is a stable Israeli food company with a 6% net margin. The essence of analysing NTCH is understanding why FCF is negative despite positive net income. Three possibilities: (a) material CAPEX for new activity, (b) working-capital build-up (receivables/inventory), (c) dividends exceeding cash generation.
The critical variables: FCF — is negative FCF sustainable? Segment mix — which is growing? D/E ratio.
Where the analysis may go wrong: ignoring negative FCF; valuing as a typical defensive company without understanding the details.
Professional analysis addresses three things: (a) decomposing the cause of negative FCF; (b) sensitivity to input prices; (c) the SOTP structure of the holdings.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
| # | Source | Date | Type |
|---|
| 1 | נטו — 2025 Annual Report | March 2026 | Official — TASE |
| 2 | maya.tase.co.il | April 2026 | Official — Stock Exchange |
Missing: פילוח מגזרים מפורט, חוב נטו מדויק, פירוק הגורמים ל-FCF השלילי (Capex, הון חוזר, או דיבידנד).
