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Gilat Satellite Networks Ltd (GILT)
NASDAQ:GILT
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Gilat
(NASDAQ:GILT)
Rating:74Outperform
Price Target:
$10.00
▲(6.50% Upside)
Positive Factors
Market Traction
Gilat Satellite Networks received more than $60 million in orders for its Stellar Blu ESA Sidewinder in-flight connectivity terminals, indicating strong market traction.
Revenue Growth
The company raised its revenue guidance significantly, expecting strong growth driven by commercial and Peru segments.
Strategic Partnerships
Gilat's partnership with Boeing for the B737 MAX and B787 Dreamliner aircraft allows the company to capture significant new business.
Negative Factors
Defense Segment Performance
The Defense segment experienced a decline in sales, reflecting a muted performance this quarter.
First Quarter Performance
First-quarter revenue was below consensus on 21% growth.
Peru Operations
Revenue was negatively impacted by temporary renewal delays for its Peru operations.
Gilat (GILT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$535.85M
Dividend YieldN/A
Average Volume (3M)716.36K
Price to Earnings (P/E)23.9
Beta (1Y)1.21
Revenue Growth19.67%
EPS Growth12.32%
CountryUS
Employees1,118
SectorTechnology
Sector Strength85
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.21
Shares Outstanding57,065,990
10 Day Avg. Volume766,211
30 Day Avg. Volume716,360
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue1.16
Enterprise Value/Gross Profit3.42
Enterprise Value/Ebitda10.02
Forecast
1Y Price Target
$11.00Price Target Upside17.15% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Gilat Business Overview & Revenue Model
Company DescriptionGilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel and internationally. It operates through Fixed Networks, Mobility Solutions, and Terrestrial Infrastructure Projects segments. The company designs and manufactures ground-based satellite communications equipment; and provides solutions and end-to-end services. Its portfolio consists of very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, low-profile antennas, and on-the-move/on-the-pause terminals and modems. The company also offers turnkey integrated solutions, including managed satellite network services, network planning and optimization, satellite capacity, remote network operation, call center support, hub and field operations, and communication networks construction and installation services. In addition, it provides connectivity services, Internet access, and telephony services to enterprise, government, and residential customers; and builds telecommunication infrastructure using fiber-optic and wireless technologies for broadband connectivity. The company sells its products and solutions to communication service providers, satellite operators, governments, mobile network operators, telecommunication companies, and system integrators, as well as to defense and homeland security organizations, and directly to end-users. Gilat Satellite Networks Ltd. was incorporated in 1987 and is headquartered in Petah Tikva, Israel.
How the Company Makes MoneyGilat generates revenue through multiple streams, including the sale of satellite communication equipment, service contracts for network operations, and managed services. The company's key revenue streams stem from the deployment of its satellite solutions in various verticals, such as government and military applications, where it provides secure communication services. Partnerships with satellite operators and telecommunications companies further enhance its revenue potential by facilitating broader distribution of its services. Additionally, Gilat's ongoing investment in R&D allows it to innovate and offer advanced products, which helps maintain competitive pricing and attract new customers, thereby contributing to its overall earnings.
Gilat Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: 27.76%|
Next Earnings Date:Nov 18, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive sentiment with strong revenue growth and significant contract wins. The improved guidance and strategic achievements in the Defense and Peru segments were notable positives. However, challenges with Stellar Blu's ramp-up and decreased gross margin were areas of concern.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Second quarter revenues reached $105 million, a 37% increase year-over-year, including $36 million from the Stellar Blu acquisition.
Significant Contract Wins
Signing of a $40 million contract for a virtualized SkyEdge IV platform and over $47 million in orders from Tier 1 satellite operators.
Improved Guidance
Full year revenue guidance was increased to a range of $435 million to $455 million, representing year-over-year growth of 46% at the midpoint.
Defense Division Growth
Gilat DataPath received over $8 million in orders from the Israeli Ministry of Defense and a contract with the U.S. Army worth up to $70 million.
Peru Segment Achievement
Gilat Peru was awarded more than $60 million in new orders from Pronatel.
Negative Updates
Stellar Blu Ramp-Up Challenges
Stellar Blu's production ramp-up is slower than expected, partially due to component challenges, resulting in expected ramp-up losses of about $1.5 million.
Decreased Gross Margin
GAAP gross margin in Q2 '25 decreased to 30.4% from 34.7% in Q2 '24, primarily due to lower margins from Stellar Blu.
Unmet Stellar Blu Milestone
Stellar Blu failed to meet the first earn-out milestone of delivering 350 terminals, having delivered only 225 due to production challenges.
Company Guidance
In the second quarter of 2025, Gilat Satellite Networks reported strong financial performance, with revenues reaching $105 million, a 37% increase year-over-year, driven by the acquisition of Stellar Blu, which contributed $36 million. Adjusted EBITDA rose to $11.8 million, representing a 17% improvement from the previous year. Excluding Stellar Blu's ramp-up losses, adjusted EBITDA was $13.3 million, reflecting a 32% increase. The company anticipates Stellar Blu's annual revenue to be between $120 million and $150 million, with expectations to achieve EBITDA positivity in the second half of 2025. Gilat has revised its full-year guidance upwards, projecting revenues between $435 million and $455 million and adjusted EBITDA between $50 million and $53 million, indicating year-over-year growth rates of approximately 46% and 22%, respectively, at the midpoint. The Defense division reported $20 million in revenues, maintaining its level from the previous year, while the Peru segment generated $15.9 million, compared to $13.9 million in Q2 2024.Gilat Financial Statement Overview
Summary
Gilat's financial performance is strong, with robust revenue growth, efficient profitability, and solid cash flow management. The company demonstrates stability with low leverage and a strong equity base, positioning it well within the communication equipment industry. Potential risks are minimal, with consistent growth and profitability trends evident over the recent years.Income Statement
Gilat shows a strong revenue growth rate of 14.79% from 2023 to 2024, indicating expanding operations. The gross profit margin stands at 37.09%, and the net profit margin is 8.13%, which are solid figures for the industry, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also healthy at 9.07% and 14.16%, respectively, showcasing operational efficiency and strong earnings before interest and taxes.75
Positive
Balance Sheet
The company's balance sheet is robust with a low debt-to-equity ratio of 0.03, indicating low leverage and financial stability. The return on equity (ROE) is 8.16%, reflecting reasonable profitability relative to shareholder equity. The equity ratio is 70.85%, highlighting a strong equity base and reduced financial risk. Overall, the company is in a stable financial position with solid asset management.70
Positive
Cash Flow
Gilat's free cash flow growth rate is 18.23% from 2023 to 2024, suggesting improved cash generation capability. The operating cash flow to net income ratio is 1.27, indicating that the company generates sufficient operating cash flow to cover its net income. The free cash flow to net income ratio is 1.01, showing that the company effectively converts its net income into free cash flow. Overall, the cash flow statements reflect a positive cash position and efficient cash management.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 349.75M | 305.45M | 266.09M | 239.84M | 218.82M | 165.88M |
| Gross Profit | 119.03M | 113.33M | 104.94M | 86.91M | 71.62M | 41.22M |
| EBITDA | 40.62M | 43.26M | 41.83M | 22.33M | 13.82M | -5.57M |
| Net Income | 22.42M | 24.85M | 23.50M | -5.93M | -2.68M | 35.08M |
Balance Sheet | ||||||
| Total Assets | 575.88M | 429.75M | 426.89M | 385.41M | 352.99M | 393.81M |
| Cash, Cash Equivalents and Short-Term Investments | 65.40M | 119.38M | 103.96M | 86.59M | 84.02M | 88.75M |
| Total Debt | 66.02M | 8.57M | 14.90M | 3.83M | 4.10M | 8.90M |
| Total Liabilities | 260.12M | 125.31M | 152.20M | 141.29M | 120.90M | 160.00M |
| Stockholders Equity | 315.76M | 304.44M | 274.69M | 244.13M | 232.09M | 233.81M |
Cash Flow | ||||||
| Free Cash Flow | 21.26M | 25.06M | 21.20M | -1.98M | 9.97M | 38.44M |
| Operating Cash Flow | 29.50M | 31.67M | 31.94M | 10.81M | 18.90M | 43.16M |
| Investing Cash Flow | -117.20M | -6.61M | -12.69M | -8.16M | -11.09M | -4.72M |
| Financing Cash Flow | 57.72M | -8.11M | -1.59M | 0.00 | -39.00M | -24.09M |
Gilat Technical Analysis
Positive
9.39
Price Trends
7.70
Positive
6.92
Positive
6.68
Positive
Market Momentum
0.45
Negative
67.86
Neutral
73.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILT, the sentiment is Positive. The current price of 9.39 is above the 20-day moving average (MA) of 8.46, above the 50-day MA of 7.70, and above the 200-day MA of 6.68, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 67.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GILT.
Gilat Risk Analysis
Gilat disclosed 60 risk factors in its most recent earnings report. Gilat 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
Gilat Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $535.85M | 23.94 | 7.49% | ― | 19.67% | 12.32% | |
63 Neutral | $176.79M | 12.99 | 8.61% | ― | 5.06% | 29.66% | |
61 Neutral | $35.49B | 7.54 | -10.73% | 1.90% | 8.85% | -10.46% | |
57 Neutral | $275.31M | 20.41 | 7.32% | 4.13% | -0.93% | 3.10% | |
54 Neutral | $295.33M | ― | -1.32% | ― | 12.39% | -123.62% | |
51 Neutral | $454.36M | 1,828.33 | 0.07% | ― | 5.72% | ― | |
42 Neutral | ― | ― | 130.79% | -392.49% |
* Technology Sector Average
Performance Comparison
GILT
Gilat
9.39
4.84
106.37%
AUDC
Audiocodes
9.21
-1.18
-11.36%
AVNW
Aviat Networks
23.19
-4.59
-16.52%
CRNT
Ceragon Networks
1.99
-1.02
-33.89%
CLFD
Clearfield
32.91
-4.55
-12.15%
SATX
SatixFy Communications
2.96
2.31
355.38%
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.