Gilat (GILT) AI Stock Analysis

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Gilat

(NASDAQ:GILT)

Rating:64Neutral

Price Target:

$6.50

▲(4.17%Upside)

Gilat's overall stock score is driven by strong financial performance and promising growth prospects, particularly in the Defense and Commercial segments. However, technical indicators and valuation suggest caution, and recent earnings call challenges, such as margin declines and a net loss, highlight potential risks.

Positive Factors

Contract Award

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

Market Expansion

The acquisition of Stellar Blu positions Gilat to capture a significant portion of the LEO aviation antenna market.

Strategic Partnership

Stellar Blu’s line-fit partnership with Boeing for B737 MAX and B787 Dreamliner aircraft positions the company to capture significant new business.

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

1Q results were below consensus as Stellar Blu ramps products and its Peru segment was impacted by government delays.

Gilat (GILT) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$355.79M

Dividend YieldN/A

Average Volume (3M)429.53K

Price to Earnings (P/E)25.6

Beta (1Y)1.07

Revenue Growth13.49%

EPS Growth-39.61%

CountryUS

Employees1,118

SectorTechnology

Sector Strength82

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.03

Shares Outstanding57,017,033

10 Day Avg. Volume372,043

30 Day Avg. Volume429,530

Financial Highlights & Ratios

PEG Ratio-0.50

Price to Book (P/B)1.34

Price to Sales (P/S)0.00

P/FCF Ratio-165.86

Enterprise Value/Market Cap0.69

Enterprise Value/Revenue0.21

Enterprise Value/Gross Profit2.17

Enterprise Value/Ebitda1.61

Forecast

1Y Price Target

$8.50

Price Target Upside36.22% 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 makes money primarily through the sale of satellite communication products and services. Its revenue streams include the sale of satellite ground segment equipment, such as Very Small Aperture Terminals (VSATs), modems, and antennas. Additionally, the company generates income from providing managed network services, which include the operation and maintenance of satellite communication networks for clients. Significant partnerships with telecommunications companies, government agencies, and enterprises also contribute to its earnings, as these collaborations often lead to long-term service contracts and joint ventures in developing satellite communication solutions.

Gilat Earnings Call Summary

Earnings Call Date:May 19, 2025

(Q1-2025)

% Change Since: -6.59%|

Next Earnings Date:Aug 12, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture. While there was significant year-over-year revenue growth and promising developments in the Defense and Commercial segments, these were offset by challenges in the Peru segment, a decrease in gross margin, and a reported net loss. The acquisition of Stellar Blu shows potential, but its impact on margins and the net loss are concerns.

Q1-2025 Updates

Positive Updates

Record Revenue Growth

Q1 2025 revenues reached $92 million, a 21% increase year-over-year, driven by the acquisition of Stellar Blu and strong demand in the Defense segment.

Stellar Blu Acquisition Impact

Stellar Blu contributed $25 million to the top line, with expectations for annual revenue between $120 million and $150 million.

Defense Segment Expansion

Gilat Defense was awarded over $5 million for US DoD and international projects, with additional contracts totaling $44 million for various defense-related technologies and services.

Commercial Aviation Advances

Intelsat installed the Sidewinder ESA on over 150 aircraft, achieving 70,000 flight hours. Panasonic certified the Sidewinder ESA, boosting market validation.

Negative Updates

Peru Segment Revenue Decline

Revenue for the Peru segment decreased to $4.8 million from $17.7 million in Q1 2024 due to project delays and slower progress in existing projects.

Decrease in Gross Margin

GAAP gross margin decreased to 30.9% from 36.9% year-over-year, primarily due to lower margins in Stellar Blu and Peru.

GAAP Operating Loss

The company reported a GAAP operating loss of $2.7 million compared to a GAAP operating income of $5.4 million in Q1 2024.

Net Loss in Q1

Gilat reported a GAAP net loss of $6 million or a loss per share of $0.10 compared to a GAAP net income of $5 million or $0.09 per share in Q1 2024.

Company Guidance

During the first quarter of 2025, Gilat reported revenues of $92 million, marking a 21% increase year-over-year. The adjusted EBITDA for the quarter was $7.6 million, with Stellar Blu, a recent acquisition, contributing approximately $25 million to the top line but incurring an adjusted EBITDA loss of around $3.6 million. Excluding this loss, the adjusted EBITDA was $11.2 million, a 20% year-over-year increase. Stellar Blu is expected to generate between $120 million and $150 million in revenue for the year and to reach a 10% adjusted EBITDA margin run rate in the second half. The company is strategically positioned for growth, with strong demand in its Defense and Commercial segments, reinforced by a healthy backlog covering nearly 80% of its annual revenue guidance of $415 million to $455 million.

Gilat Financial Statement Overview

Summary

Gilat demonstrates strong financial performance with robust revenue growth, efficient profitability, and solid cash flow management. The company shows stability with low leverage and a strong equity base, positioning it well within the industry. However, the cash flow and balance sheet scores slightly lower the overall financial performance score.

Income Statement

Positive

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

Positive

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

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
27.70M	28.09M	9.95M	2.53M	-16.02M
	EBITDA
43.26M	41.83M	22.33M	13.82M	-5.57M
	Net Income Common Stockholders
24.85M	23.50M	-5.93M	-2.68M	35.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.38M	103.96M	86.59M	84.02M	88.75M
	Total Assets
429.75M	426.89M	385.41M	352.99M	393.81M
	Total Debt
8.57M	14.90M	3.83M	4.10M	8.90M
	Net Debt
-110.81M	-89.06M	-82.76M	-77.76M	-79.86M
	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

Positive

Last Price6.24

Price Trends

50DMA

6.16

Positive

100DMA

6.55

Negative

200DMA

6.01

Positive

Market Momentum

MACD

0.03

Negative

RSI

52.68

Neutral

STOCH

68.61

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 6.24 is above the 20-day moving average (MA) of 5.96, above the 50-day MA of 6.16, and above the 200-day MA of 6.01, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.68 is Neutral, neither overbought nor oversold. The STOCH value of 68.61 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 (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRNT	68 Neutral	$203.44M	8.93	15.02%	―	11.94%	377.86%
CLFD	68 Neutral	$549.78M	―	-0.68%	―	-2.14%	44.13%
AVNW	67 Neutral	$286.42M	―	-1.32%	―	12.39%	-123.62%
GILT	64 Neutral	$355.79M	25.62	4.79%	―	13.49%	-39.61%
AUDC	62 Neutral	$270.68M	16.18	9.33%	3.81%	-1.13%	61.49%
Sector *	62 Neutral	$11.95B	9.93	-7.21%	4.85%	7.32%	-8.25%
SATX	42 Neutral	$250.42M	―	50.55%	―	130.79%	-392.49%

* Technology Sector Average

Performance Comparison

GILT

Gilat

6.24

1.64

35.65%

AUDC

Audiocodes

9.45

-0.22

-2.28%

AVNW

Aviat Networks

22.49

-6.25

-21.75%

CRNT

Ceragon Networks

2.29

-0.19

-7.66%

CLFD

Clearfield

39.75

2.22

5.92%

SATX

SatixFy Communications

2.89

2.23

337.88%

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.