Accel (ACCL) AI Stock Analysis

• Market Cap: 369.73M
• Dividend Yield: N/A
• Average Volume (3M): 481.24K
• Price to Earnings (P/E): 39.7
• Beta (1Y): 0.82
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 172
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 0.10
• Shares Outstanding: 193,172,650
• 10 Day Avg. Volume: 365,730
• 30 Day Avg. Volume: 481,239
• PEG Ratio: 6.84
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 7.95
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 197.00 ▲(3.41% Upside)

Accel's overall stock score is primarily influenced by its financial performance, which shows strong revenue growth but significant challenges in profitability and cash flow. The technical analysis indicates a bearish trend, and the valuation suggests the stock is expensive with no dividend yield. These factors combined result in a moderate overall score.

Positive Factors

Diversified recurring revenue streams

A multi-channel revenue model—enterprise licensing, cloud subscriptions and consulting—creates durable, recurring cash inflows and reduces customer concentration risk. Strategic partnerships and upsell paths support steady growth and improve lifetime value, strengthening long-term revenue stability.

Stable gross profit margin (~21%)

A consistent ~21% gross margin implies the company maintains pricing power and cost control in core products. This baseline margin supports the potential for operating leverage as revenues scale, enabling sustainable improvements in operating profitability over the medium term.

Conservative leverage and strong equity base

Low debt relative to equity provides financial flexibility to invest in R&D, inorganic growth or weather downturns without immediate refinancing pressure. A strong equity ratio underpins balance-sheet resilience and limits insolvency risk, supporting strategic optionality over time.

Negative Factors

Negative operating and free cash flows

Sustained negative operating and free cash flows indicate the business is not self-funding its growth, increasing reliance on external capital. Over months, this can constrain investments, raise financing costs, and limit the company’s ability to execute strategic initiatives or absorb shocks.

Declining return on equity (2.76%)

A falling ROE near 2.8% signals weak capital efficiency and that shareholder capital is producing limited returns. Persistently low ROE can reflect operational issues or poor allocation decisions, undermining long-term shareholder value creation and constraining growth funded from earnings.

Very low net profit margin (~0.98%)

Net margins under 1% despite revenue growth show difficulty converting sales into sustainable profits. This limits internally generated cash for reinvestment, reduces buffer against cost inflation, and implies the company must materially improve operating efficiency to achieve durable profitability.

Accel Business Overview & Revenue Model

Company Description

Accel Solutions Group Ltd imports and integrates telecom equipment for the telecom market in Israeli. The company offers networking solutions, such as routers, switches, and IP cameras, as well as mobile broadband solutions; software solutions for private customers; smart sensors and IoT devices, including intelligent sensors, interconnected alarm systems, and others; and business software and cyber solutions. It also engages in the importation, distribution, and localization of mobile devices, including smartphones and feature phones; and integration of cloud software and solutions. The company was incorporated in 1971 and is based in Petah Tikva, Israel.

How the Company Makes Money

Accel generates revenue through multiple streams, including software licensing fees, subscription services for its cloud-based solutions, and consulting fees for its professional services. The company primarily earns money from enterprise clients who subscribe to its software services on a recurring basis, ensuring a steady revenue flow. Additionally, Accel has established strategic partnerships with leading technology firms, which enhance its product offerings and reach, contributing significantly to its earnings. The company also benefits from upselling additional features and services to existing customers, further bolstering its financial performance.

Accel Financial Statement Overview

Summary

Accel shows consistent revenue growth and a stable balance sheet, but faces challenges in profitability and cash flow management. The net profit margin and cash flow volatility are key concerns.

Income Statement

Accel shows a consistent revenue growth trend, with a TTM revenue growth rate of 2.83%. Gross profit margin is stable at around 21%, indicating efficient cost management. However, the net profit margin has decreased to 0.98% in the TTM, suggesting pressure on profitability. EBIT and EBITDA margins have also seen slight declines, reflecting potential operational challenges.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.33, indicating a balanced approach to leveraging. Return on equity has decreased to 2.76% in the TTM, which may concern investors looking for higher returns. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Cash flow performance has been volatile, with a significant decline in free cash flow growth rate by 83.04% in the TTM. The operating cash flow to net income ratio is low at 0.01, indicating potential liquidity issues. The free cash flow to net income ratio is relatively healthy at 0.69, but the overall cash flow situation requires close monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	413.40M	361.38M	274.46M	208.31M	115.52M	66.35M
Gross Profit	87.04M	73.51M	52.06M	41.34M	24.69M	13.73M
EBITDA	26.84M	21.61M	14.48M	13.47M	10.15M	4.25M
Net Income	2.71M	8.85M	8.44M	8.29M	4.28M	-6.05M
Balance Sheet
Total Assets	551.89M	349.99M	218.38M	219.03M	130.06M	75.11M
Cash, Cash Equivalents and Short-Term Investments	45.46M	24.82M	16.76M	26.38M	34.54M	22.41M
Total Debt	135.34M	54.52M	35.96M	23.32M	3.74M	3.03M
Total Liabilities	299.60M	169.18M	88.64M	102.95M	44.20M	30.82M
Stockholders Equity	187.75M	139.55M	114.64M	108.85M	76.37M	41.53M
Cash Flow
Free Cash Flow	-10.48M	25.49M	-1.09M	-1.71M	-591.00K	-3.62M
Operating Cash Flow	-9.32M	26.16M	-830.00K	-1.15M	-72.00K	-2.58M
Investing Cash Flow	-70.36M	-29.97M	-9.37M	-5.69M	-11.44M	-2.29M
Financing Cash Flow	100.44M	16.58M	126.00K	-1.90M	19.36M	24.43M

Accel Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 190.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ACCL, the sentiment is Positive. The current price of 190.5 is above the 20-day moving average (MA) of 184.11, above the 50-day MA of 170.19, and above the 200-day MA of 180.89, indicating a bullish trend. The MACD of 6.16 indicates Positive momentum. The RSI at 65.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ACCL.

Accel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STG	69 Neutral	325.87M	12.26	―	5.38%	12.03%	35.37%
ALAR	65 Neutral	222.39M	51.63	―	―	9.00%	-84.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ACCL	56 Neutral	369.73M	39.66	―	―	―	―