Eltek Ltd (ELTK)
NASDAQ:ELTK
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Eltek
(NASDAQ:ELTK)
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Rating:54Neutral
Price Target:
$8.00
▼(-12.09% Downside)
Action:ReiteratedDate: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 a durable financial cushion, lowering refinancing and solvency risk. This balance-sheet strength supports multi-year capex (plating lines) and gives management flexibility to absorb temporary cash-flow swings while executing capacity upgrades.
Negative Factors
Weak cash generation
Sustained negative free cash flow and collapsing operating cash conversion increase execution risk and constrain internal funding for capex and working capital. Without cash-flow recovery, the firm may need external financing or to slow investments, affecting capacity rollouts and margin restoration plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low leverage and an expanded equity base provide a durable financial cushion, lowering refinancing and solvency risk. This balance-sheet strength supports multi-year capex (plating lines) and gives management flexibility to absorb temporary cash-flow swings while executing capacity upgrades.
Read all positive factors
Eltek (ELTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$54.08M
Dividend Yield2.16%
Average Volume (3M)5.15K
Price to Earnings (P/E)70.3
Beta (1Y)0.20
Revenue Growth2.54%
EPS Growth-79.99%
CountryUS
Employees329
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.05
Shares Outstanding6,719,827
10 Day Avg. Volume3,262
30 Day Avg. Volume5,150
Financial Highlights & Ratios
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 Cap1.07
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit7.26
Enterprise Value/Ebitda13.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.25
Revenue Forecast (FY)$58.99M
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-l...
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/s...
Eltek Earnings Call Summary
Earnings Call Date:Mar 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Negative
The call reported solid top-line growth (11% FY, 22% Q4) and strong demand, plus a clear multiyear investment plan (new plating lines) intended to restore capacity and margins. However, these positives are materially offset by substantial margin compression (gross margin down 7 percentage points), an ~81% drop in net profit, sizeable currency-related charges (~$2.2M), operational disruptions (reallocation, staffing losses, delivery delays) and sharply reduced operating cash flow. Management is optimistic that the investment program and pricing updates will restore profitability, but in the near term results show significant headwinds.Positive Updates
Revenue Growth (Full Year and Q4)
Total revenue for 2025 was $51.8M, an increase of ~11% year-over-year from $46.6M in 2024. Fourth-quarter revenue was $13.2M, up ~22% from $10.8M in Q4 2024.
Negative Updates
Sharp Margin Compression (Gross Profit and Gross Margin)
Gross profit declined to $8.0M in 2025 from $10.3M in 2024 (≈-22%), and gross margin fell to 15% from 22% (a 7 percentage-point decrease). The company cited reduced production efficiency and currency effects as drivers of the margin compression.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth (Full Year and Q4)
Total revenue for 2025 was $51.8M, an increase of ~11% year-over-year from $46.6M in 2024. Fourth-quarter revenue was $13.2M, up ~22% from $10.8M in Q4 2024.
Read all positive updates
Company Guidance
Management guided that completing and qualifying the two new plating lines (first line arrived in early‑2026; installation and phased qualification expected through the remainder of 2026) is the key to restoring capacity and margins, targeting annual installed capacity of $60–65 million at current prices (versus 2025 revenue of $51.8M, 2024 $46.6M and a prior average near $77M); they expect gross margin to recover from 15% in 2025 (gross profit $8.0M vs $10.3M in 2024) and Q4 weakness (Q4 revenue $13.2M, Q4 gross profit $1.2M, Q4 net loss $0.3M) as volume grows. Management reiterated EBITDA was $4.5M in 2025 (vs $5.9M in 2024), full‑year net profit $0.8M ($0.12/share) vs $4.2M ($0.63/share) in 2024, cash and short‑term deposits $12.1M, and operating cash flow $0.6M (vs $4.5M); they warned a roughly $2.2M adverse impact from USD depreciation will depress margins on backlog priced at higher historical rates, pricing updates have been implemented but will flow through over 1–2 quarters (management cited ~4–5 months), and the company extended its lease to 2039 with a lease payment to be amortized to modestly reduce annual rental expense.Eltek Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
78
Positive
Cash Flow
34
Negative
| 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
Negative
9.10
Price Trends
8.73
Negative
8.88
Negative
9.75
Negative
Market Momentum
-0.24
Positive
32.80
Neutral
29.82
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 8.56, above the 50-day MA of 8.73, and below the 200-day MA of 9.75, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 32.80 is Neutral, neither overbought nor oversold. The STOCH value of 29.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELTK.
Eltek Risk Analysis
Eltek disclosed 49 risk factors in its most recent earnings report. Eltek reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eltek Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $45.67M | 15.02 | 35.41% | ― | 30.11% | 481.67% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $62.06M | 42.86 | 8.53% | ― | -0.21% | -0.41% | |
54 Neutral | $54.08M | 70.33 | 1.85% | 2.16% | 2.54% | -79.99% | |
52 Neutral | $23.83M | 3.44 | 50.99% | ― | -48.54% | ― | |
52 Neutral | $84.99M | 110.94 | 2.42% | ― | 38.22% | 70.68% |
* Technology Sector Average
ELTK
Eltek
8.05
-0.01
-0.15%
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Eltek Corporate Events
Eltek Secures $5.3 Million International PCB Order, Warns on Q1 2026 Results
Apr 1, 2026
Eltek Ltd., a leading global PCB manufacturer serving high-end markets such as defense, aerospace and medical, announced on April 1, 2026 that it has secured purchase orders totaling approximately $5.3 million from an international customer. The o...
Eltek Files 2025 Annual Report With U.S. SEC
Mar 26, 2026
Eltek Ltd., a global maker of advanced printed circuit boards, reported that on March 26, 2026 it filed its 2025 annual report, including audited consolidated financial statements for the year ended December 31, 2025, with the U.S. Securities and ...
Eltek Invests Through Margin Squeeze as 2025 Profit Falls Despite Higher Sales
Mar 9, 2026
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 clim...
Eltek Sets March 9, 2026 Date for Q4 and Full-Year 2025 Results
Mar 2, 2026
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...
Eltek Secures $12.2 Million U.S. Defense PCB Orders to Bolster American Market Expansion
Feb 9, 2026
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 i...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.