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C. Mer Industries Ltd (CMER) Fair Value & Analysis

Technology · Il · Market cap 700M ILA

CM C. Mer Industries Ltd CMER · TA
Price52.39 ILA
Fair Value64.96 ILA
Upside+24.0%
Quality60/100
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Healthy Growth
Thin margins · 6.7% net margin
Low debt · generates free cash flow
Ranks above peers (12/13)
Moderate moat 59/100
Evidence: High Range 48.72 ILA – 81.20 ILA Share as image

Fair value as of: Jul 19, 2026

From 24 valuation models · updated 22 days ago

Share price −10.6% over the past month.

A solid business, screening 24% undervalued on our models.

What matters now

  • Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from 48.72 ILA (bear) to 81.20 ILA (bull), base 64.96 ILA. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 60/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

60.42 ILA 3.14 ILA Fair Value 64.96 ILA Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range 3.14 ILA – 60.42 ILA · fair‑value band 48.72 ILA – 81.20 ILA · the 52.39 ILA price screens below the 64.96 ILA fair value. Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

C. Mer Industries Ltd (CMER) currently trades at 52.39 ILA, while our model-based Fair Value estimate is 64.96 ILA, implying the stock looks roughly 24.0% undervalued today. The Quality Score stands at 60/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, C. Mer Industries Ltd generated revenue of 671M ILA at a net margin of 6.7%. Revenue grew 2.9% year over year. It earns a return on equity of 30.2%. Net debt stands at 56.6M ILA. Fundamentals as of Jul 19, 2026

Our scenario range runs from 48.72 ILA (bear case) to 81.20 ILA (bull case); at 52.39 ILA, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Technology peers we cover trades at -61% fair-value upside, at 24%, CMER screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 53.53 ILA 65.77 ILA 85.51 ILA 80
Residual Income 18.10 ILA 25.90 ILA 144.00 ILA 76
Rev-Margin DCF 47.16 ILA 64.67 ILA 86.83 ILA 74
All 24 models by family
DCF Models
FCF DCF 52.31 ILA 65.15 ILA 87.65 ILA 38
Owner Earnings 40.44 ILA 50.06 ILA 66.91 ILA 31
5Y Revenue Exit 47.16 ILA 63.67 ILA 87.77 ILA 39
5Y EBITDA Exit 54.13 ILA 75.53 ILA 103.95 ILA 41
5Y P/E Exit 49.31 ILA 67.33 ILA 88.95 ILA 38
10Y Revenue Exit 48.09 ILA 61.95 ILA 77.51 ILA 36
10Y EBITDA Exit 52.96 ILA 69.11 ILA 87.21 ILA 37
10Y P/E Exit 50.25 ILA 64.16 ILA 78.22 ILA 35
Earnings-Based
Graham-Dodd 21.04 ILA 35.87 ILA 43.79 ILA 54
EPV 37.76 ILA 42.23 ILA 45.95 ILA 59
Dividend Discount
Gordon GGM 2.60 ILA 3.15 ILA 3.67 ILA 70
DDM Multi-Stage 2.60 ILA 3.32 ILA 4.10 ILA 61
Multiples
P/E Multiple 48.72 ILA 64.96 ILA 81.20 ILA 63
P/S Multiple 39.44 ILA 52.59 ILA 65.74 ILA 58
P/B Multiple 39.44 ILA 52.59 ILA 65.74 ILA 55
EV/EBIT 63.02 ILA 82.35 ILA 101.69 ILA 53
EV/EBITDA 63.50 ILA 83.00 ILA 102.50 ILA 54
EV/Revenue 46.41 ILA 64.15 ILA 81.90 ILA 43
Asset-Based
NCAV (Graham) 6.17 ILA 8.27 ILA 12.34 ILA 50
Growth DCF
Growth DCF 53.53 ILA 65.77 ILA 85.51 ILA 80
Rev-Margin DCF 47.16 ILA 64.67 ILA 86.83 ILA 74
Economic Profit
Residual Income 18.10 ILA 25.90 ILA 144.00 ILA 76
ROIC Compounder 38.10 ILA 42.99 ILA 47.56 ILA 72
Growth Earnings
Growth-Adj P/E 34.40 ILA 49.15 ILA 63.89 ILA 68

Widest divergence: Growth DCF (64.67 ILA) versus Dividend Discount (3.15 ILA). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 671M ILA
Revenue growth (YoY) +2.9%
Net margin 6.7%
Return on equity 30.2%
Free cash flow 74.9M ILA FY2025
P/E ratio 15.8
More key figures
Operating margin 8.3%
EPS (TTM) 3.33 ILA
EPS growth (YoY) +69.8%
Net debt 56.6M ILA FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 61 · Market factors (momentum, volatility) 75

Profitability 62
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 74
Earnings quality: real cash, not paper profit
Fin. Strength 55
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 86
Distance to the 52-week high (market factor)
Net Issuance 68
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

C. Mer Industries Ltd. provides solutions in the areas of homeland security (HLS), communication infrastructure, and military technologies. It operates through two segments: Global and Israel.

Full company description

C. Mer Industries Ltd. provides solutions in the areas of homeland security (HLS), communication infrastructure, and military technologies. It operates through two segments: Global and Israel. The Global segment focuses on the marketing, sales, planning, construction, and implementation of solutions in the fields of intelligence, detection, security, command and control, and training for countries, international organizations, security bodies, and global and regional corporations. It also offers solutions for the protection of facilities and the management of critical assets and infrastructure, including airports, seaports, government facilities, industrial complexes, energy facilities, logistics terminals, mines, and natural resource sites. The Israel segment offers tactical military solutions, communications, collection, and command and control solutions, as well as mobile system packaging for the defense establishment and the defense industry. It is also engaged in the planning and construction of optical and cellular communication infrastructures, the deployment of optical fibers, and the provision of solutions for securing strategic facilities. The company offers solutions in the areas of cybersecurity, border protection, command and control platforms, critical infrastructure protection, and smart and safe cities for governments, municipalities, organizations, and other entities. It operates in South America, Central America, Africa, Europe, Israel, and other regions worldwide. C. Mer Industries Ltd. was founded in 1948 and is headquartered in Or Yehuda, Israel.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

C. Mer Industries Ltd reported revenue of 666M ILA in FY2025 versus 435M ILA in FY2021, a compound +11.2%/yr. Reported net income was 41.3M ILA in FY2025, compounding +99.6%/yr from FY2021.

Growth Quality 91/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
666M ILS
Latest YoY
+0.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+12.2%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.8%
Revenue +11.2%/yr
FY21 435M ILA
FY22 513M ILA
FY23 646M ILA
FY24 664M ILA
FY25 666M ILA
Net income +99.6%/yr
FY21 2.6M ILA
FY22 −5.6M ILA
FY23 16.3M ILA
FY24 34.4M ILA
FY25 41.3M ILA

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Cite: Fair Value Calculator (2026). "C. Mer Industries Ltd Fair Value". https://www.fairvalue-calculator.com/stock/CMER

Peer Group

Communication Equipment · 286 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Above median
Fair Value upside +24% · Top 25%
Return on equity (TTM) 30% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth 3% · Below median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Communication Equipment median · lower = cheaper

P/E (TTM) 15.8× · Cheaper than 75% of peers
P/B 1.39× · Cheaper than median
P/S (TTM) 0.34× · Cheaper than 75% of peers
P/FCF 3.1× · Cheaper than median
EV/EBITDA 2.5× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 65 · sector 0
FUTURE 15 · sector 30
PAST 100 · sector 15
HEALTH 100 · sector 98
DIVIDEND 0 · sector 25

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Communication Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Cisco Systems, Inc CSCO $119.25 $43.05 -64%
Zhongji Innolight Co 300308 ¥1,094 ¥171.09 -84%
Foxconn Industrial Internet Co 601138 ¥56.50 ¥28.65 -49%
Eoptolink Technology Inc 300502 ¥482.88 ¥155.05 -68%
Nokia Oyj NOK $11.25 $2.67 -76%
Motorola Solutions, Inc MSI $413.31 $190.43 -54%
Suzhou TFC Optical Communication Co 300394 ¥244.13 ¥32.04 -87%
Telefonaktiebolaget LM Ericsson (publ), ERIC $11.72 $15.96 +36%
Accton Technology Corporation 2345 2,090 TWD 846.28 TWD -60%
ZTE Corporation 000063 ¥40.00 ¥15.75 -61%

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Frequently asked questions

Is C. Mer Industries Ltd (CMER) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of 64.96 ILA versus a price of 52.39 ILA, about +24% (undervalued).
What is the fair value of CMER?
Our model-based fair value for C. Mer Industries Ltd is 64.96 ILA (as of Jul 19, 2026), built from audited fundamentals. The current price is 52.39 ILA.
What is the quality score of CMER?
C. Mer Industries Ltd has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of C. Mer Industries Ltd (CMER)?
C. Mer Industries Ltd reported trailing-twelve-month revenue of about 671M ILS (latest available figure, as of Jul 19, 2026).
What is the net profit margin of CMER?
The net profit margin of C. Mer Industries Ltd is about 6.7%, meaning it keeps roughly 6.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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