Accel (ACCL) AI Stock Analysis

• Market Cap: 341.34M
• Dividend Yield: N/A
• Average Volume (3M): 481.24K
• Price to Earnings (P/E): 38.2
• Beta (1Y): 0.90
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 156.00 ▼(-11.71% Downside)

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

Revenue Growth

Consistent revenue growth indicates a positive trajectory and strong market demand for Accel's products and services, enhancing long-term business prospects.

Stable Gross Profit Margin

A stable gross profit margin suggests effective cost management and pricing power, supporting sustainable profitability over the long term.

Balanced Capital Structure

A balanced capital structure with a reasonable debt level provides financial stability and flexibility to invest in growth opportunities.

Negative Factors

Profitability Challenges

Decreasing net profit margins indicate difficulties in converting revenue into profit, which may hinder long-term financial performance.

Negative Cash Flows

Negative cash flows suggest liquidity issues and may limit the company's ability to fund operations and growth initiatives sustainably.

Declining Return on Equity

A declining return on equity reflects reduced profitability for shareholders, potentially impacting investor confidence and long-term growth.

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: 176.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 176.7 is above the 20-day moving average (MA) of 161.85, above the 50-day MA of 165.55, and below the 200-day MA of 179.97, indicating a bullish trend. The MACD of 4.28 indicates Negative momentum. The RSI at 66.08 is Neutral, neither overbought nor oversold. The STOCH value of 91.15 is Negative, 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	278.98M	10.49	―	5.38%	12.03%	35.37%
ALAR	65 Neutral	173.12M	39.87	―	―	9.00%	-84.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ACCL	56 Neutral	341.34M	38.22	―	―	―	―