MTI Wireless Edge (MWE) AI Stock Analysis

• Market Cap: £41.37M
• Dividend Yield: 4.11%
• Average Volume (3M): 134.11K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.78
• Revenue Growth: 0.12%
• EPS Growth: 9.24%
• Country: UK
• Employees: 235
• Sector: Technology
• Sector Strength: 87
• Industry: Communication Equipment
• EPS (TTM): 0.02
• Shares Outstanding: 86,195,724
• 10 Day Avg. Volume: 121,692
• 30 Day Avg. Volume: 134,114
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £51.00
• Price Target Upside: 3.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: 51.00p ▲(3.03% Upside)

MTI Wireless Edge's strong financial performance and attractive valuation are the primary drivers of its score. The company maintains robust profitability and a solid balance sheet, though market challenges are reflected in its revenue and cash flow trends. Technical indicators suggest mixed signals, with short-term positive momentum but potential bearish trends.

MTI Wireless Edge Business Overview & Revenue Model

Company Description

M.T.I Wireless Edge Ltd. engages in design, development, manufacture, and marketing of antennas and accessories for the civilian and military sectors. The company operates through three divisions: Antennas; Water Control & Management; and Distribution & Professional Consulting Services. It offers dual bands, directional, base station, and omni antennas; vehicular and train antennas; and accessories, including mounting kit and integrated enclosure. The company also provides RFID antennas; and military antennas, such as airborne, ground, and naval and submarine antennas. In addition, it provides wireless control systems to manage agricultural irrigation and water distribution for municipal authorities and commercial entities under the Mottech brand; and radio frequency/microwave components under the MTI Summit Electronics brand. Further, the company offers consulting, representation, and marketing services to foreign companies in the field of RF and microwave, including engineering services in the field of aerostat systems and system engineering services. It operates in Israel, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 1972 and is headquartered in Rosh HaAyin, Israel.

How the Company Makes Money

MTI Wireless Edge generates revenue primarily through the sale of its wireless communication products, particularly antennas and related systems, to telecommunications and defense sectors. The company has multiple revenue streams, including direct sales to customers, government contracts, and partnerships with other technology firms that enhance its distribution and product offerings. Additionally, MWE benefits from long-term contracts and repeat business from established clients, which provide a stable income base. The company's ability to innovate and adapt to new technologies also plays a crucial role in attracting new customers and maintaining existing relationships, further contributing to its earnings.

MTI Wireless Edge Financial Statement Overview

Summary

MTI Wireless Edge presents a stable financial outlook with strong profitability metrics and a solid balance sheet. Despite a slight decline in revenue, the company's efficient operations and strong equity base mitigate significant financial risks. Cash flow management shows resilience, though there is room for improvement in operational cash generation.

Income Statement

MTI Wireless Edge has demonstrated stable gross profit margins around 31% over recent years, with a slight decline in total revenue for 2024 compared to 2023. The net profit margin remains healthy at 9.6% for 2024. However, the slight drop in revenue growth rate indicates potential market challenges or saturation. The company maintains strong EBIT and EBITDA margins, both over 9% and 14% respectively, highlighting its operational efficiency.

Balance Sheet

The company exhibits a robust financial position with a low debt-to-equity ratio of 0.04, indicating low reliance on external debt. The equity ratio of 63.5% shows a strong equity base, providing stability. Return on Equity (ROE) is solid at 15.3% for 2024, reflecting efficient use of shareholders' funds to generate profits. The balance sheet is well-structured, with a healthy balance between debt and equity.

Cash Flow

MTI Wireless Edge's cash flow statements reveal a decline in operating cash flow and free cash flow from 2023 to 2024. However, the company still managed to maintain a positive free cash flow, indicating financial flexibility. The operating cash flow to net income ratio suggests operational cash generation is slightly strained but remains manageable. Despite the decrease, the free cash flow to net income ratio points to a decent level of cash profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	45.57M	45.63M	46.27M	43.18M	40.89M
Gross Profit	14.20M	14.67M	14.59M	13.50M	13.08M
EBITDA	6.46M	6.69M	6.06M	5.26M	5.34M
Net Income	4.36M	4.04M	3.72M	3.60M	3.37M
Balance Sheet
Total Assets	44.81M	44.70M	40.46M	40.94M	36.13M
Cash, Cash Equivalents and Short-Term Investments	6.27M	8.45M	8.28M	12.57M	9.58M
Total Debt	1.21M	1.26M	893.00K	936.00K	528.00K
Total Liabilities	15.30M	15.45M	12.42M	13.93M	10.58M
Stockholders Equity	28.46M	28.03M	26.81M	25.91M	24.57M
Cash Flow
Free Cash Flow	2.17M	3.11M	3.04M	5.76M	3.54M
Operating Cash Flow	3.06M	3.54M	3.59M	6.59M	4.00M
Investing Cash Flow	-835.00K	-364.00K	-4.75M	-736.00K	-447.00K
Financing Cash Flow	-4.36M	-2.98M	-2.97M	-2.82M	-2.33M

MTI Wireless Edge Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MWE, the sentiment is Positive. The current price of 49.5 is above the 20-day moving average (MA) of 47.15, above the 50-day MA of 47.47, and above the 200-day MA of 47.77, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 60.34 is Neutral, neither overbought nor oversold. The STOCH value of 66.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MWE.

MTI Wireless Edge Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTC	81 Outperform	£322.05M	22.20	55.98%	―	121.45%	345.83%
MWE	71 Outperform	£41.37M	11.94	15.34%	4.11%	0.12%	9.24%
Sector *	61 Neutral	$35.45B	7.89	-10.11%	1.88%	8.47%	-9.45%
CLX	61 Neutral	£46.36M	138.82	1.23%	1.79%	12.98%	850.00%
PCIP	60 Neutral	£34.56M	―		―	20.56%	83.30%
PEB	58 Neutral	£21.81M	5.31	-224.48%	―	-0.46%	-171.65%
CYAN	52 Neutral	£25.33M	―	-26.82%	―	-24.31%	14.89%

MTI Wireless Edge Corporate Events

MTI Wireless Edge Secures $1.4 Million in Defense Contracts

MTI Wireless Edge Ltd announced that its subsidiary, P.S.K Wind Technologies Ltd, has secured three contracts worth approximately US$1.4 million for defense services and equipment. This achievement positions PSK’s revenue ahead of internal budgets for 2025 and indicates a promising pipeline for sustained growth, enhancing MTI’s market positioning in the defense sector.

MTI Wireless Edge Secures $1.6 Million in Defense Contracts

MTI Wireless Edge Ltd has announced that its antenna division has secured contracts worth approximately US$1.6 million from three existing defense customers, to be delivered over the next 20 months. These contracts underscore MTI’s technological capabilities in providing advanced antenna solutions, including airborne, anti-jamming GPS, and beam forming antennas for drone management systems, enhancing its position in the defense sector.

MTI Wireless Edge Announces Passing of Founder and Chairman Zvi Borovitz

MTI Wireless Edge Ltd announced the passing of its Chairman and founder, Zvi Borovitz. This announcement marks a significant moment for the company, as Borovitz was instrumental in establishing MTI’s position in the technology sector. The impact of his passing may influence the company’s future strategic direction and operations, potentially affecting stakeholders and market positioning.

MTI Wireless Edge Reports Strong Q1 2025 Financial Results

MTI Wireless Edge Ltd reported a strong financial performance for Q1 2025, with a 7% increase in revenues to $12 million and a 9% rise in net profit for shareholders. The Antenna division experienced significant growth, driven by demand for 5G backhaul and military antennas, while the Water Control & Management division saw an 11% increase in revenues despite softer profits. The Distribution & Professional Consulting Services division faced a 7% decline in revenues, but the overall backlog and pipeline remain strong. The company’s CEO, Moni Borovitz, expressed optimism for continued growth across all divisions, citing increased global demand for defense products, water scarcity solutions, and 5G network rollouts.

MTI Wireless Edge Secures Major Irrigation Contract in Italy

MTI Wireless Edge Ltd announced that its subsidiary, Mottech Water Solutions Ltd, has secured a significant contract worth approximately €1 million from a long-term customer in Italy. This contract involves the renewal and expansion of an irrigation system to improve water distribution for citrus fruit agriculture. This deal marks the first phase of the project, with expectations for further extensions, indicating a positive impact on MTI’s operations and market positioning in the water management sector.