Are there any notable changes in the company's balance sheet or cash flow that could impact valuation?

Bottom‑line take‑away: The press release highlights a historic quarter for Willi‑Food—record‑high revenue, operating profit, pre‑tax profit and net income—so the most likely balance‑sheet and cash‑flow story is a significant improvement in liquidity and cash‑generation. While the release does not disclose the exact numbers, a company that simultaneously lifts every profit line usually does so by expanding gross margins, tightening working‑capital cycles and/or adding cash‑generating assets. In practice that translates into a stronger cash‑conversion ratio and a larger cash‑balance at quarter‑end, which in turn compresses the discount to future cash‑flows and supports a higher valuation multiple.

What to watch for:

1. Operating cash flow vs. earnings: Verify the upcoming 10‑K to see if operating cash flow grew at a pace comparable to the surge in net income. A robust cash‑flow conversion (e.g., >80 % of earnings) would confirm that the earnings boost is not purely accounting‑driven and would justify a re‑rating of the stock on a DCF basis.

2. Balance‑sheet composition: Look for any material changes in net‑working‑capital (inventory, receivables, payables) and capital‑expenditure plans. If the company is funding growth with internally‑generated cash rather than debt, the levered‑free‑cash‑flow outlook improves and the risk premium narrows. Conversely, a sizable cap‑ex spend or a rise in short‑term borrowings could temper the upside.

3. Liquidity buffers: A jump in cash‑and‑cash‑equivalents or a reduction in net‑debt would give the firm more flexibility for share‑repurchases, dividend hikes, or strategic M&A—each a potential catalyst for price appreciation.

Trading implication: Assuming the forthcoming SEC filing confirms a healthy cash‑flow conversion and a bolstered cash position with modest cap‑ex, the market will likely price the stock at a higher EV/EBITDA or P/E multiple. This creates a short‑term buying opportunity on any pull‑back, especially if the price remains below the 52‑week high and technicals (e.g., the 20‑day moving average) are still supportive. Conversely, if cash‑flow conversion looks weak or the balance sheet shows rising leverage, a cautious stance or partial profit‑taking would be prudent until the fundamentals are clarified.