Eltek (ELTK) AI Stock Analysis

• Market Cap: $60.84M
• Dividend Yield: 2.16%
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 70.3
• Beta (1Y): 0.26
• Revenue Growth: 2.54%
• EPS Growth: -79.99%
• Country: US
• Employees: 329
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.05
• Shares Outstanding: 6,715,624
• 10 Day Avg. Volume: 3,262
• 30 Day Avg. Volume: 5,150
• PEG Ratio: -0.87
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 1.12
• P/FCF Ratio: -12.31
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 8.14
• Enterprise Value/Ebitda: 14.60
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.25
• Revenue Forecast (FY): $58.99M

• Rating: 54 Neutral
• Price Target: $9.50 ▲(4.40% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is primarily weighed down by deteriorating profitability and especially weak cash generation (negative free cash flow in 2024–2025) despite a conservatively financed balance sheet. Technicals are modestly supportive in the short term, but valuation is stretched with a high P/E, increasing sensitivity to any further earnings pressure. Earnings-call commentary suggests a potential margin/capacity recovery plan, but near-term execution, currency, and operational risks remain significant.

Positive Factors

Conservative balance sheet

Low leverage and an expanded equity base provide durable financial flexibility to fund capex and absorb temporary operating shocks. Over 2–6 months this reduces refinancing and solvency risk while supporting the company’s multi‑year investment program without immediate dependence on external debt markets.

Sustained revenue growth and demand

Consistent top‑line expansion and strong quarterly growth indicate enduring end‑market demand across sectors. This improves potential utilization of new capacity and underpins longer‑term revenue visibility, helping convert investments in capacity into sustainable sales over the coming quarters.

Strategic capacity investments

Adding plated lines directly targets the firm’s key constraint—capacity and quality for high‑reliability PCBs. Once qualified, this raises installed annual capacity toward $60–65M, improves unit economics and supports higher‑margin, complex products, forming a structural lever to restore margins over multiple quarters.

Negative Factors

Deteriorating cash generation

Two consecutive years of negative free cash flow and a steep fall in operating cash flow undermine the company’s ability to self‑fund investments and cushion shocks. This elevates execution risk for the plating qualification program and may force tradeoffs between working capital, capex and strategic initiatives.

Gross margin compression & currency hit

A multi‑percentage‑point margin decline plus a material currency loss indicate structural pressure on profitability. With part of backlog priced at older exchange rates and a quoted 1–2 quarter lag for pricing updates, margins may remain suppressed until pricing and operational efficiency improvements fully take hold.

Operational disruptions & staffing risk

Installation and qualification of new lines has produced delivery delays and a loss of experienced staff, creating persistent execution risk. Recruiting and training to restore productivity can take many months, threatening the timeline for capacity and margin recovery and increasing the chance of further shortfalls.

Eltek Business Overview & Revenue Model

Company Description

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. The company offers a range of custom designed PCBs, including rigid, double-sided, and multi-layer PCBs, and flexible circuitry boards. It also offers high density interconnect, flex-rigid, and multi-layered boards. It primarily serves manufacturers of defense and aerospace, medical, industrial, telecom, and networking equipment, as well as contract electronic manufacturers and others. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was incorporated in 1970 and is headquartered in Petach Tikva, Israel. Eltek Ltd. is a subsidiary of Nistec Golan Ltd.

How the Company Makes Money

Eltek primarily makes money by manufacturing and selling printed circuit boards (PCBs) to customers, generating revenue from production orders based on PCB specifications (e.g., technology complexity, materials, layer count, and required quality/standards). Its revenue model is largely transactional: customers place orders for PCB fabrication, and Eltek bills for finished boards delivered. Additional earnings can come from engineering/technical support and pre-production services that are bundled into or billed alongside manufacturing work when required by the customer’s design and qualification process. Information on specific customer concentration, contract structure, end-market mix, and significant partnerships is null.

Eltek Financial Statement Overview

Summary

Balance sheet strength is a clear positive (low leverage; debt-to-equity ~0.14), but operating results weakened meaningfully: gross margin fell to ~15.4% and net income dropped to ~$0.8M. Cash flow is the biggest drag, with operating cash flow down to ~$0.6M and two consecutive years of negative free cash flow, raising execution and cash-conversion risk.

Income Statement

Revenue grew to $51.8M in 2025 (annual) (+5.0%), but profitability weakened materially versus prior years. Gross margin fell to ~15.4% (from ~22.2% in 2024 and ~28.1% in 2023) and net margin compressed to ~1.6% (from ~9.1% in 2024 and ~13.6% in 2023), driving net income down sharply to $0.8M. The multi-year picture shows solid revenue expansion since 2021, but the latest-year margin and earnings volatility is a clear concern.

Balance Sheet

The balance sheet looks conservatively financed with low leverage: 2025 total debt of ~$6.4M against equity of ~$46.7M (debt-to-equity ~0.14), an improvement from much higher leverage levels in 2020–2022. Assets and equity have expanded over time, supporting balance sheet stability. The main weakness is returns: 2025 return on equity is low (~1.8%) after much stronger levels in 2022–2024, reflecting the recent earnings drop rather than balance sheet strain.

Cash Flow

Cash generation deteriorated significantly in 2024–2025. Operating cash flow fell to ~$0.6M in 2025 (from ~$4.5M in 2024 and ~$8.9M in 2023), and free cash flow was negative in both 2024 and 2025 (about -$5.0M and -$4.7M, respectively) after being positive in 2021–2023. With free cash flow deeply negative relative to net income in 2025, cash conversion and/or investment needs appear elevated, increasing near-term execution risk despite a low-debt balance sheet.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	51.79M	46.53M	46.70M	39.65M	33.82M
Gross Profit	7.98M	10.34M	13.10M	8.27M	6.90M
EBITDA	4.45M	6.64M	9.12M	5.53M	3.31M
Net Income	826.00K	4.22M	6.35M	3.19M	5.04M
Balance Sheet
Total Assets	66.26M	60.16M	47.17M	41.52M	42.78M
Cash, Cash Equivalents and Short-Term Investments	12.12M	17.24M	12.14M	7.37M	9.28M
Total Debt	6.40M	6.02M	6.66M	11.30M	13.75M
Total Liabilities	19.52M	18.96M	20.30M	20.50M	21.71M
Stockholders Equity	46.74M	41.19M	26.87M	21.02M	21.07M
Cash Flow
Free Cash Flow	-4.72M	-4.97M	6.43M	802.00K	2.34M
Operating Cash Flow	632.00K	4.54M	8.86M	3.83M	3.88M
Investing Cash Flow	-4.82M	-15.87M	-2.96M	-3.03M	-1.65M
Financing Cash Flow	-1.24M	9.61M	-3.81M	-1.64M	2.12M

Eltek Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 9.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELTK, the sentiment is Neutral. The current price of 9.1 is above the 20-day moving average (MA) of 8.97, above the 50-day MA of 8.92, and below the 200-day MA of 9.88, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 60.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ELTK.

Eltek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACFN	71 Outperform	$46.75M	8.77	35.41%	―	30.11%	481.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOTK	57 Neutral	$64.57M	42.86	8.53%	―	-0.21%	-0.41%
ELTK	54 Neutral	$60.84M	70.33	1.85%	2.16%	2.54%	-79.99%
NEON	52 Neutral	$24.84M	3.44	50.99%	―	-48.54%	―
CPSH	52 Neutral	$68.91M	110.94	2.42%	―	38.22%	70.68%

Eltek Corporate Events

Eltek Invests Through Margin Squeeze as 2025 Profit Falls Despite Higher Sales

On March 9, 2026, Eltek reported its full‑year and fourth‑quarter 2025 results, showing revenues up 11% to $51.8 million but a sharp drop in net income to $0.8 million from $4.2 million a year earlier. Fourth‑quarter revenue climbed to $13.2 million, yet the company swung to a quarterly net loss of $0.3 million, with gross margin compression and higher financial expenses tied mainly to U.S. dollar depreciation against the shekel.

Management described 2025 as a transition year marked by major manufacturing upgrades, including relocation of production systems and preparation for new plating lines that disrupted operations and pressured profitability. These investments, along with workforce challenges and roughly $2.2 million in additional shekel‑based costs from currency movements, are framed as positioning Eltek to capture rising demand for sophisticated PCBs in defense and medical markets, potentially strengthening its long‑term competitive position despite near‑term margin weakness.

The most recent analyst rating on (ELTK) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Eltek stock, see the ELTK Stock Forecast page.

Eltek Sets March 9, 2026 Date for Q4 and Full-Year 2025 Results

Eltek Ltd., a global producer of advanced printed circuit boards based in Israel, focuses on complex, high-end PCB solutions such as HDI, multilayer and flex-rigid boards for defense, aerospace and medical customers worldwide. The company operates from its Israeli headquarters with international reach through a North American subsidiary and regional distributors, supported by ITAR, AS-9100 and NADCAP Electronics certifications.

On March 2, 2026, Eltek announced it will release its financial results for the fourth quarter and full year ended December 31, 2025 before the market opens on March 9, 2026. The company will host a conference call that same day, led by CEO Eli Yaffe and CFO Ron Freund, signaling upcoming visibility into its recent operating performance for investors and other stakeholders.

The most recent analyst rating on (ELTK) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Eltek stock, see the ELTK Stock Forecast page.

Eltek Secures $12.2 Million U.S. Defense PCB Orders to Bolster American Market Expansion

On February 9, 2026, Eltek Ltd. announced it had received purchase orders totaling $12.2 million from an American defense customer for advanced printed circuit boards. The products, which are slated for delivery throughout 2026 and 2027, will be incorporated into a defense project, adding multi‑year revenue visibility and reinforcing Eltek’s role as a technology supplier to the defense sector.

Management highlighted that the win supports Eltek’s strategic objective of expanding its presence in the U.S. market with high value‑added products. The sizeable defense order underscores the company’s competitive positioning in high‑reliability PCB solutions and signals potential for deeper penetration of the U.S. defense and aerospace supply chain, a positive development for its growth trajectory and stakeholders.

The most recent analyst rating on (ELTK) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on Eltek stock, see the ELTK Stock Forecast page.