Eltek (ELTK) AI Stock Analysis

• Market Cap: $58.96M
• Dividend Yield: 2.16%
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 51.5
• Beta (1Y): 0.30
• 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: 6,715,624
• 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: 1.07
• Enterprise Value/Revenue: 1.28
• Enterprise Value/Gross Profit: 7.22
• Enterprise Value/Ebitda: 12.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $9.00 ▼(-1.10% Downside)

The score is held back primarily by deteriorating TTM profitability and a sharp reversal to negative operating/free cash flow, despite a conservatively positioned balance sheet. Technicals are neutral-to-weak and valuation is rich (high P/E), while the earnings call provides partial support from defense demand and expansion progress but flags meaningful operational and competitive pressures.

Positive Factors

Strong Financial Health

Eltek's stable margins, low leverage, and effective equity use indicate a solid financial foundation, supporting long-term stability and growth.

Defense Sector Demand

Strong demand in the defense sector ensures a steady revenue stream, bolstering Eltek's market position and providing growth opportunities.

Production Capacity Expansion

Expanding production capacity enhances operational efficiency and supports future growth, positioning Eltek to meet increasing demand.

Negative Factors

Revenue Decline

A decline in revenue indicates challenges in market expansion and competitiveness, potentially impacting long-term growth prospects.

Operational Instability

Operational instability can disrupt production efficiency and increase costs, affecting Eltek's ability to deliver consistent product quality.

Increased Competition

Increased competition pressures pricing strategies, potentially eroding margins and market share, challenging Eltek's competitive edge.

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

Mixed fundamentals: a strong, low-leverage balance sheet is outweighed by sharply weaker TTM operations (revenue down 51%, margins compressed) and a swing to negative operating cash flow (~-$0.8M) and deeply negative free cash flow (~-$6.9M), raising execution and liquidity risk if the trend persists.

Income Statement

Profitability has weakened meaningfully in TTM (Trailing-Twelve-Months): revenue fell 51% versus the prior period, and margins compressed (gross margin ~17.8% and net margin ~2.3%) compared with 2024 (gross ~22.2%, net ~9.1%) and 2023 (gross ~28.1%, net ~13.6%). While the company remains profitable on a net basis in TTM, earnings power looks materially lower than the last two annual periods, signaling a tougher operating environment and/or mix/price pressure.

Balance Sheet

The balance sheet appears conservatively positioned with low leverage: debt is about 0.14x equity in TTM (Trailing-Twelve-Months), broadly consistent with 2024 and improved from higher leverage in 2020–2022. Equity has grown versus earlier years, supporting financial flexibility. The main watch-out is profitability on equity: return on equity dropped to ~2.7% in TTM from ~10.3% in 2024 and ~23.6% in 2023, reflecting reduced earnings rather than balance sheet strain.

Cash Flow

Cash generation deteriorated in TTM (Trailing-Twelve-Months): operating cash flow turned negative (about -$0.8M) and free cash flow was deeply negative (about -$6.9M). This is a sharp reversal from 2023, when the company produced strong positive operating cash flow (~$8.9M) and free cash flow (~$6.4M). The combination of lower earnings and negative operating cash flow raises near-term funding and execution risk if the trend persists.

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	5.23M	6.64M	9.12M	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: 9.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 9.1 is above the 20-day moving average (MA) of 8.95, above the 50-day MA of 8.89, and below the 200-day MA of 9.98, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.23 is Neutral, neither overbought nor oversold. The STOCH value of 43.97 is Neutral, 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	72 Outperform	$44.38M	6.68	178.77%	―	30.11%	481.67%
CPSH	64 Neutral	$96.01M	-131.53	-3.84%	―	38.22%	70.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOTK	61 Neutral	$64.57M	41.06	8.45%	―	-0.21%	-0.41%
NEON	56 Neutral	$30.38M	3.38	38.72%	―	-48.54%	―
ELTK	51 Neutral	$58.96M	51.50	2.70%	2.16%	2.54%	-79.99%

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.

The most recent analyst rating on (ELTK) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Eltek stock, see the ELTK Stock Forecast page.

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.

The most recent analyst rating on (ELTK) stock is a Buy with a $12.50 price target. To see the full list of analyst forecasts on Eltek stock, see the ELTK Stock Forecast page.