Accel (ACCL) AI Stock Analysis

• Market Cap: ₪356.55M
• Dividend Yield: N/A
• Average Volume (3M): 481.24K
• Price to Earnings (P/E): 38.7
• 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: 193,249,570
• 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: 198.00 ▲(3.94% 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

Consistent Revenue Growth

Sustained TTM revenue growth near 6% indicates expanding sales and stable demand for Accel's automotive components. Over a multi-month horizon this supports capacity utilization, supplier relationships, and incremental scale benefits that underpin durable top-line expansion if market conditions persist.

Stable Gross Profit Margin

A consistent ~21% gross margin suggests structural cost control and reasonable pricing power across OEM and aftermarket channels. This margin stability provides a buffer for operating leverage to improve profits over time if revenue growth continues and fixed costs are absorbed.

Conservative Leverage

Low leverage (0.33 D/E) and a strong equity base give Accel financial flexibility to fund capex, R&D, or weather cyclical downturns without overreliance on external debt. This structural balance sheet strength supports investment and resilience over several months to years.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flows constrain the company's ability to self-fund operations, capital expenditures, and strategic initiatives. Over a multi-month horizon this heightens refinancing and liquidity risk and can necessitate dilutive financing or cost cuts that impair long-term competitiveness.

Very Low Net Profit Margin

A sub-1% net margin shows weak conversion of revenue into shareholder returns, limiting retained earnings and reinvestment capacity. Structurally low profitability reduces the cushion for shocks, limits ability to build reserves, and can impede funding for growth or technological upgrades over months.

Declining Return on Equity

Falling ROE to under 3% signals deteriorating effectiveness in generating shareholder returns from equity. Over the medium term this may reflect margin pressure or capital allocation issues, reducing investor confidence in management's ability to translate assets into sustained profit 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 strong revenue growth and a stable gross profit margin, but faces challenges in profitability and cash flow management. The balance sheet is solid with a reasonable debt level, but declining return on equity and negative cash flows highlight areas for improvement.

Income Statement

Accel has shown consistent revenue growth with a TTM growth rate of 5.96%, indicating a positive trajectory. The gross profit margin has remained stable around 21%, which is healthy for the industry. However, the net profit margin has decreased to 0.98% in the TTM, reflecting challenges in converting revenue into profit. The EBIT and EBITDA margins are moderate, suggesting room for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio is at a manageable level of 0.33 in the TTM, indicating a balanced capital structure. Return on equity has decreased to 2.76% in the TTM, showing reduced profitability for shareholders. The equity ratio remains strong, suggesting financial stability and a solid asset base.

Cash Flow

Accel's cash flow situation is concerning, with negative operating and free cash flows in the TTM. The free cash flow growth rate is significantly negative, and the operating cash flow to net income ratio is low, indicating potential liquidity issues. The free cash flow to net income ratio is relatively high, suggesting that cash flow generation is not aligned with reported earnings.

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: Negative
• Last Price: 190.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 190.5 is above the 20-day moving average (MA) of 189.22, above the 50-day MA of 177.02, and above the 200-day MA of 182.26, indicating a neutral trend. The MACD of 0.65 indicates Positive momentum. The RSI at 41.88 is Neutral, neither overbought nor oversold. The STOCH value of 21.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:ACCL.

Accel Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STG	78 Outperform	₪352.40M	13.26	―	5.38%	12.03%	35.37%
ALAR	65 Neutral	₪170.11M	37.21	―	―	9.00%	-84.50%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ACCL	56 Neutral	₪356.55M	38.66	―	―	―	―