Eltek (ELTK) AI Stock Analysis

• Market Cap: $75.87M
• Dividend Yield: 2.36%
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.29
• Revenue Growth: 2.54%
• EPS Growth: -79.99%
• Country: US
• Employees: 329
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.03
• Shares Outstanding: 6,714,040
• 10 Day Avg. Volume: 3,262
• 30 Day Avg. Volume: 5,150
• PEG Ratio: -0.43
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.58
• P/FCF Ratio: -14.76
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: 15.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $9.50 ▲(18.01% Upside)

Eltek's overall stock score is primarily influenced by its strong financial health and profitability, despite challenges in revenue growth and cash flow. Technical analysis indicates bearish momentum, and valuation metrics suggest the stock is overvalued. The earnings call revealed both opportunities in the defense sector and challenges from currency impacts and competition, contributing to a moderate overall score.

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 generates revenue through the sale of its power solutions, which include high-efficiency power supplies and systems designed for various sectors such as telecommunications, data centers, and industrial applications. The company's revenue model is based on direct sales to customers, as well as partnerships with distributors and OEMs (Original Equipment Manufacturers). Key revenue streams include the sale of new equipment, ongoing maintenance and support services, and upgrades or replacements of existing systems. Additionally, Eltek may benefit from strategic partnerships with technology firms that enhance its product offerings and market reach, contributing to its overall earnings.

Eltek Financial Statement Overview

Summary

Eltek demonstrates strong financial health with robust profitability and a well-managed balance sheet. While stable margins and low leverage are strengths, the decline in revenue and negative Free Cash Flow indicate areas for improvement. Future focus should be on enhancing revenue growth while managing capital expenditures to improve Free Cash Flow.

Income Statement

Eltek shows a stable profitability with a Gross Profit Margin of 22.2% and a Net Profit Margin of 9.1% for 2024. However, there's a decline in revenue from the previous year by 0.4%, which indicates a need for revenue growth strategies. EBIT and EBITDA margins remain healthy, reflecting efficient operations despite the slight revenue dip.

Balance Sheet

The company's financial structure is strong, with a Debt-to-Equity Ratio of 0.15, indicating low leverage. A solid Return on Equity of 10.3% signifies effective use of equity capital. Furthermore, the Equity Ratio stands at 68.5%, showing a high proportion of assets financed by equity, enhancing financial stability.

Cash Flow

Eltek's cash flow situation is mixed, with negative Free Cash Flow indicating high capital expenditures. The Operating Cash Flow to Net Income Ratio of 1.07 suggests efficient cash generation from operations, but the Free Cash Flow to Net Income Ratio is negative, highlighting the impact of significant investments on cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.31M	46.53M	46.70M	39.65M	33.82M	36.71M
Gross Profit	8.76M	10.34M	13.10M	8.27M	6.90M	7.74M
EBITDA	4.52M	6.68M	9.16M	5.53M	3.31M	4.29M
Net Income	1.16M	4.22M	6.35M	3.19M	5.04M	2.61M
Balance Sheet
Total Assets	65.06M	60.16M	47.17M	41.52M	42.78M	35.16M
Cash, Cash Equivalents and Short-Term Investments	11.64M	17.24M	12.14M	7.37M	9.28M	4.74M
Total Debt	6.42M	6.02M	6.66M	11.30M	13.75M	11.19M
Total Liabilities	19.60M	18.96M	20.30M	20.50M	21.71M	19.89M
Stockholders Equity	45.45M	41.19M	26.87M	21.02M	21.07M	15.27M
Cash Flow
Free Cash Flow	-6.86M	-4.97M	6.43M	802.00K	2.34M	2.17M
Operating Cash Flow	-819.25K	4.54M	8.86M	3.83M	3.88M	3.25M
Investing Cash Flow	-5.18M	-15.87M	-2.96M	-3.03M	-1.65M	-1.14M
Financing Cash Flow	-1.27M	9.61M	-3.81M	-1.64M	2.12M	814.00K

Eltek Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELTK, the sentiment is Negative. The current price of 8.05 is below the 20-day moving average (MA) of 10.77, below the 50-day MA of 10.87, and below the 200-day MA of 10.11, indicating a bearish trend. The MACD of -0.59 indicates Positive momentum. The RSI at 14.12 is Positive, neither overbought nor oversold. The STOCH value of 2.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELTK.

Eltek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACFN	70 Outperform	$57.40M	8.08	178.77%	―	30.11%	481.67%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ELTK	59 Neutral	$75.87M	24.68	2.70%	2.36%	2.54%	-79.99%
CPSH	58 Neutral	$63.29M	-86.70	-3.84%	―	38.22%	70.68%
SOTK	56 Neutral	$72.41M	48.07	8.45%	―	-0.21%	-0.41%
NEON	48 Neutral	$47.33M	-7.46	38.72%	―	-48.54%	―

Eltek Corporate Events

Eltek Reports Q3 2025 Financial Results Amid Currency Challenges

On November 18, 2025, Eltek Ltd. announced its financial results for the third quarter of 2025, reporting revenues of $13.3 million, a slight decrease from $13.5 million in the same period in 2024. The company experienced a net loss of $0.2 million, impacted by the depreciation of the U.S. dollar against the Israeli Shekel, which increased expenses. Despite these challenges, Eltek saw a 6% revenue increase from the previous quarter, driven by strong demand from defense customers. The company is in the final stages of expanding its manufacturing infrastructure with a new production hall, aiming to support long-term growth.

Eltek Announces Q3 2025 Financial Results Release and Conference Call

On November 10, 2025, Eltek Ltd. announced that it will release its third-quarter 2025 financial results on November 18, 2025, before the market opens. A conference call to discuss the results will be held on the same day at 9:00 a.m. Eastern Time, featuring remarks from CEO Eli Yaffe and CFO Ron Freund. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Eltek Ltd. Approves Key Resolutions at Annual General Meeting

On September 18, 2025, Eltek Ltd. held its Annual General Meeting where all proposed resolutions were approved. Key decisions included the re-election of board members, approval of an amended compensation policy, and the extension of indemnification and exculpation letters for Yitzhak Nissan. Additionally, Kost Forer Gabbay & Kasierer was re-appointed as the company’s independent auditor for the upcoming year. These outcomes are expected to reinforce Eltek’s governance structure and operational continuity.

Eltek Secures $2.4 Million Defense Orders

On August 25, 2025, Eltek Ltd. announced it received purchase orders totaling $2.4 million from a leading Israeli defense company. The orders, which involve critical PCB components previously supplied to the customer, are scheduled for delivery mainly in 2026 and 2027. This development underscores Eltek’s strong positioning in the defense sector and its capability to provide advanced technological solutions, potentially enhancing its market presence and stakeholder confidence.