Gilat (GILT) AI Stock Analysis

• Market Cap: $419.08M
• Dividend Yield: N/A
• Average Volume (3M): 457.51K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.09
• Revenue Growth: 13.49%
• EPS Growth: -39.61%
• Country: US
• Employees: 1,118
• Sector: Technology
• Sector Strength: 90
• Industry: Communication Equipment
• EPS (TTM): N/A
• Shares Outstanding: 57,017,033
• 10 Day Avg. Volume: 422,303
• 30 Day Avg. Volume: 457,511
• 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: 0.87
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 3.21
• Enterprise Value/Ebitda: 10.25
• 1Y Price Target: $8.50
• Price Target Upside: 13.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 69 Neutral
• Price Target: $8.50 ▲(13.94%Upside)

Gilat's overall stock score is driven by strong technical analysis and financial performance, despite valuation concerns and mixed earnings call insights. The company's growth strategy and market positioning are promising, but profitability and margin challenges need addressing to sustain investor confidence.

Positive Factors

Acquisitions

The recently closed Stellar Blu Systems acquisition is expected to impact revenue positively across newly defined customer segments.

Contract Wins

Gilat was awarded a $40 million contract for its virtualized SkyEdge IV platform, indicating strong demand for standard cloud-based infrastructure for satellite operators.

Defense Spending

Management is optimistic that Gilat will be a beneficiary of the expected surge in European defense spending, positioning the company to capture a share of increased defense spend.

Negative Factors

Consensus Expectations

Total revenue was 6% below consensus expectations.

Operational Delays

Revenue was negatively impacted by temporary renewal delays for its Peru operations.

Revenue Performance

First-quarter revenue was below consensus on 21% growth.

Gilat Business Overview & Revenue Model

Company Description

Gilat 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 Money

Gilat generates revenue primarily through the sale of its satellite communication products and services. The company earns money by providing VSAT equipment and network management solutions to telecommunications companies, Internet service providers, and government entities. Additionally, Gilat offers managed services, where it operates and maintains satellite networks for its clients, leading to recurring revenue streams. Significant partnerships with satellite operators and service providers further enhance its market reach and revenue potential. The company's earnings are also bolstered by contracts with defense and government agencies for secure communication solutions.

Gilat Financial Statement Overview

Summary

Gilat demonstrates strong financial performance with solid revenue growth, profitability, and cash flow management. The low debt-to-equity ratio indicates financial stability, and the company maintains a robust equity position. However, the net profit margin and return on equity could be improved further.

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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	305.45M	266.09M	239.84M	218.82M	165.88M
Gross Profit	113.33M	104.94M	86.91M	71.62M	41.22M
EBITDA	43.26M	41.83M	22.33M	13.82M	-5.57M
Net Income	24.85M	23.50M	-5.93M	-2.68M	35.08M
Balance Sheet
Total Assets	429.75M	426.89M	385.41M	352.99M	393.81M
Cash, Cash Equivalents and Short-Term Investments	119.38M	103.96M	86.59M	84.02M	88.75M
Total Debt	8.57M	14.90M	3.83M	4.10M	8.90M
Total Liabilities	125.31M	152.20M	141.29M	120.90M	160.00M
Stockholders Equity	304.44M	274.69M	244.13M	232.09M	233.81M
Cash Flow
Free Cash Flow	25.06M	21.20M	-1.98M	9.97M	38.44M
Operating Cash Flow	31.67M	31.94M	10.81M	18.90M	43.16M
Investing Cash Flow	-6.61M	-12.69M	-8.16M	-11.09M	-4.72M
Financing Cash Flow	-8.11M	-1.59M	0.00	-39.00M	-24.09M

Gilat Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILT, the sentiment is Neutral. The current price of 7.46 is below the 20-day moving average (MA) of 7.65, above the 50-day MA of 6.86, and above the 200-day MA of 6.41, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 51.74 is Neutral, neither overbought nor oversold. The STOCH value of 14.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GILT.

Gilat Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILT	69 Neutral	$419.08M	30.17	4.79%	―	13.49%	-39.61%
CRNT	69 Neutral	$191.89M	8.42	15.02%	―	11.94%	377.86%
AUDC	64 Neutral	$287.30M	21.45	7.32%	3.72%	-0.93%	3.10%
Sector *	62 Neutral	$34.80B	6.83	-10.78%	2.06%	6.36%	-8.52%
CLFD	61 Neutral	$564.44M	―	-0.68%	―	-2.14%	44.13%
AVNW	54 Neutral	$265.66M	―	-1.32%	―	12.39%	-123.62%
SATX	42 Neutral	$256.48M	―	50.55%	―	130.79%	-392.49%