G. Willi-Food International (NasdaqCM:WILC) has just reported another solid stretch of results, with Q2 FY 2025 revenue of ₪160.5 million and basic EPS of ₪2.30, set against trailing twelve month EPS of ₪6.94 on revenue of ₪598.4 million as the company caps off a year where net earnings grew 132.9%. Over the past few reporting periods, revenue has moved from ₪146.7 million in Q2 FY 2024 to ₪160.5 million in Q2 FY 2025, while quarterly EPS has ranged from ₪0.49 to ₪2.30, feeding into a trailing net profit margin of 16.1% compared with 7.6% a year earlier. For investors, this mix of higher margins and a sizeable one off gain puts the quality and sustainability of profitability firmly in focus.

See our full analysis for G. Willi-Food International.

With the latest numbers on the table, the next step is to see how this earnings profile lines up against the most widely held market narratives around G. Willi-Food International and where those stories may need updating.

132.9% net earnings growth and 16.1% margin put profitability in the spotlight

• Over the last 12 months, net earnings grew 132.9% and the trailing net profit margin sits at 16.1% compared with 7.6% in the prior year, both supported by trailing twelve month net income of ₪96.3 million on revenue of ₪598.4 million.
• Bulls focus on the strong profit picture, yet the data add some nuance, as:
  • The 132.9% earnings growth rate is far above the 5 year average of 5.3% per year, so the recent performance looks very different to the longer run pattern.
  • Trailing EPS of ₪6.94 across the last four quarters is backed by higher margins, but investors still need to weigh how much of that uplift reflects repeatable business performance versus special items.

₪33.9 million one off gain and weak dividend coverage add caution

• The trailing 12 month figures include a ₪33.9 million non recurring gain and the 3.14% dividend yield is flagged as not well covered by free cash flow, alongside significant insider selling in the last three months.
• Bears highlight the quality of earnings and cash returns, and the numbers give them specific talking points, as:
  • The large one off gain means part of the ₪96.3 million trailing net income and related 16.1% margin does not reflect ongoing operations, which can make headline EPS of ₪6.94 look stronger than underlying cash generation.
  • Dividend coverage being weak on free cash flow, together with recent insider selling, gives cautious investors extra data to question how reliable the 3.14% yield is if cash generation does not keep pace.

On this mix of one off gains, dividends and insider activity, it can help to see how other investors are framing the story for G. Willi-Food International, and how those views connect back to the latest numbers. 📊 Read the what the Community is saying about G. Willi-Food International.

11.9x P/E against DCF fair value of ₪11.71 and a ₪26.33 share price

• The shares trade on a trailing P/E of 11.9x, which is below the US Consumer Retailing industry average of 19.6x, below the indicated peer average of 31x, and below the broader US market at 18.4x, while the current share price of ₪26.33 sits above a DCF fair value estimate of ₪11.71.
• What stands out for valuation focused investors is the tension between a seemingly low multiple and the inputs behind it, because:
  • The 11.9x P/E is calculated on trailing EPS that includes the ₪33.9 million one off gain, so the low multiple partly reflects earnings that are temporarily higher than ongoing operations might support.
  • The gap between the current price of ₪26.33 and the DCF fair value of ₪11.71 underlines how sensitive valuation can be to assumptions about how much of the recent 132.9% earnings growth and 16.1% margin can persist over time.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on G. Willi-Food International's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Seeing both the strong recent earnings and the cautions around one off gains and cash coverage, it makes sense to check the full picture yourself and move quickly to form your own view, starting with the company's 2 key rewards and 3 important warning signs

See What Else Is Out There

Heavy reliance on a ₪33.9 million one off gain, weak free cash flow dividend coverage and recent insider selling all raise questions about reliability and risk.

If you want alternatives where earnings quality and balance sheet strength are more central to the story, start comparing ideas using the solid balance sheet and fundamentals stocks screener (39 results) now.

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.