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Rami Levi Chain Stores Hashikma Marketing 2006 (TASE:RMLI) Following Mixed Q2 Results Looks Pricey

Simply Wall St · 3d ago

Q2 2026 earnings highlight mixed profit trend

Rami Levi Chain Stores Hashikma Marketing 2006 (TASE:RMLI) reported Q2 2026 results on 19 August, with higher sales alongside weaker quarterly profit and stronger net income over the first half of the year.

See our latest analysis for Rami Levi Chain Stores Hashikma Marketing 2006.

The mixed Q2 profit trend comes after a period where Rami Levi Chain Stores Hashikma Marketing 2006 has seen short term share price pressure, with a 90 day share price return that declined 9.16%, while the 1 year total shareholder return is 18.15% and the 5 year total shareholder return is 109.96%.

If you are reassessing your watchlist after these earnings, it can help to look at other consumer facing businesses and compare different risk and growth profiles through 110 top founder-led companies

Rami Levi Chain Stores Hashikma Marketing 2006 shares have pulled back over the past quarter, while longer term returns remain positive. Does that recent softness already offer a reasonable entry, or does it make more sense to wait?

Price-to-earnings of 22x for Rami Levi Chain Stores Hashikma Marketing 2006: Is it justified?

Rami Levi Chain Stores Hashikma Marketing 2006 trades on a P/E of 22x, which is higher than both its peer group average of 17.5x and the wider Asian Consumer Retailing industry average of 15.5x, even though the shares are currently at ₪350.1.

The P/E ratio compares the current share price to earnings per share and helps you see how much investors are paying for each unit of profit. For a consumer retail stock like Rami Levi Chain Stores Hashikma Marketing 2006, a higher P/E often reflects expectations for steadier earnings or stronger profitability, rather than rapid growth.

However, RMLI has seen earnings decline 3% over the past year, net profit margins of 2.7% are lower than last year's 3%, and earnings growth over the last 5 years has been 3.4% per year. Against that backdrop, a P/E premium to peers suggests the market is putting a relatively rich price on the company’s earnings, despite the recent weaker profit trend.

Compared to the Asian Consumer Retailing industry average P/E of 15.5x and the more direct peer average of 17.5x, RMLI’s 22x valuation looks clearly more expensive. That gap indicates investors are currently willing to pay more for each shekel of earnings than they do for similar consumer retailers, even though the company’s recent earnings trend has not outpaced the sector.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-earnings of 22x (OVERVALUED)

However, the rich P/E and recent quarterly profit softness mean that any further margin pressure or weaker consumer demand could quickly challenge the current valuation narrative.

Find out about the key risks to this Rami Levi Chain Stores Hashikma Marketing 2006 narrative.

Another view on Rami Levi Chain Stores Hashikma Marketing 2006’s valuation

The P/E multiple paints Rami Levi Chain Stores Hashikma Marketing 2006 as expensive, yet the SWS DCF model points the other way. At a share price of ₪350.1, RMLI trades about 18.2% below an estimated future cash flow value of ₪427.85, which implies potential valuation upside.

That gap between an expensive earnings multiple and a discounted cash flow estimate leaves investors with a clear question: Which signal should carry more weight for you right now, the market’s rich pricing of current earnings or the cash flow outlook suggested by the DCF model?

Look into how the SWS DCF model arrives at its fair value.

RMLI Discounted Cash Flow as at Aug 2026
RMLI Discounted Cash Flow as at Aug 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Rami Levi Chain Stores Hashikma Marketing 2006 for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 276 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

The signals around Rami Levi Chain Stores Hashikma Marketing 2006 are mixed, so it makes sense to move quickly and test the data against your own expectations. To understand both the potential upside and the key issues that could limit it, review the 1 key reward and 1 important warning sign

Looking for more investment ideas beyond Rami Levi Chain Stores Hashikma Marketing 2006?

If Rami Levi Chain Stores Hashikma Marketing 2006 has you rethinking your portfolio mix, now is the moment to broaden your opportunity set before the next move catches you off guard.

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.