B Communication (BCOM) AI Stock Analysis

• Market Cap: 1.95B
• Dividend Yield: 0.76%
• Average Volume (3M): 217.90K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.22
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 8,737
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): 28.80
• Shares Outstanding: 104,162,260
• 10 Day Avg. Volume: 160,337
• 30 Day Avg. Volume: 217,895
• PEG Ratio: -0.01
• Price to Book (P/B): -1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.13
• 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

• Rating: 50 Neutral
• Price Target: 1,871.00 ▼(-0.11%Downside)

The stock score is primarily impacted by financial performance concerns, including declining net income and high financial leverage. Technical analysis suggests bearish momentum, further weighing on the score. Valuation metrics indicate potential overvaluation, with a high P/E ratio and low dividend yield, adding additional risk to the overall assessment.

B Communication Business Overview & Revenue Model

Company Description

B Communications Ltd, through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel. The company offers landline interior communications, including telephony, internet access and infrastructure, transmission and data communication, and wholesale services; and cellular radio-telephone services. It is also involved in the installation, operation, and maintenance of equipment and systems in the field of cellular communications; and marketing of equipment. In addition, the company provides international communication, network endpoint, and ICT solutions; and digital multi-channel tv broadcasting services to subscriptions over satellite and over the internet, as well as value-added services to subscribers. B Communications Ltd was formerly known as 012 Smile. Communications Ltd. and changed its name to B Communications Ltd in March 2010. The company was incorporated in 1999 and is based in Tel Aviv-Yafo, Israel.

How the Company Makes Money

BCOM generates revenue primarily through subscription-based services. Key revenue streams include monthly fees from individual and business customers for mobile and fixed-line services, broadband internet subscriptions, and digital television packages. The company also earns revenue through value-added services such as premium content, mobile applications, and enterprise solutions. Additionally, BCOM leverages strategic partnerships with content providers, technology firms, and infrastructure companies to expand its service offerings and enhance its network capabilities, further contributing to its earnings.

B Communication Financial Statement Overview

Summary

B Communication exhibits stable revenue generation but is facing profitability challenges, as evidenced by declining net income. The high leverage reflected in the balance sheet is a significant concern, with a low equity base increasing financial risk. While cash flows remain positive, the downward trend in free cash flow and net income could hinder future financial flexibility.

Income Statement

The income statement shows steady total revenue with minor fluctuations over the years. The gross profit margin is strong at 100% for 2024 due to the absence of cost of goods sold. However, net income has significantly declined from previous years, impacting the net profit margin negatively. EBIT and EBITDA margins remain robust but have shown slight declines, indicating some pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio due to substantial total debt and relatively low stockholders' equity, posing a risk of financial instability. Despite this, the company's assets have generally increased, suggesting potential for future growth. The equity ratio is low, emphasizing financial leverage concerns.

Cash Flow

The cash flow statement reveals consistent operating cash flow, though free cash flow has decreased in 2024, indicating reduced cash available for future investments or debt repayment. The operating cash flow to net income ratio is high, suggesting strong cash conversion, but the decrease in net income raises concerns about long-term profitability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
8.88B	9.10B	8.99B	8.82B	8.72B
	Gross Profit
8.88B	7.17B	7.15B	6.93B	6.82B
	EBIT
1.64B	1.75B	1.63B	1.86B	1.71B
	EBITDA
3.50B	3.67B	3.45B	3.71B	3.50B
	Net Income Common Stockholders
108.00M	187.00M	158.00M	129.00M	157.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.86B	1.89B	1.71B	2.13B	1.77B
	Total Assets
17.69B	16.35B	15.86B	16.56B	15.95B
	Total Debt
11.66B	10.94B	11.09B	12.03B	12.18B
	Net Debt
10.77B	10.30B	10.33B	11.03B	11.28B
	Total Liabilities
14.98B	13.91B	13.96B	15.09B	15.53B
	Stockholders Equity
233.00M	189.00M	54.00M	16.00M	-107.00M
Cash Flow		Free Cash Flow
1.66B	1.73B	1.79B	1.14B	1.71B
	Operating Cash Flow
3.41B	3.44B	3.49B	2.83B	3.21B
	Investing Cash Flow
-2.32B	-1.83B	-1.42B	-1.58B	-1.07B
	Financing Cash Flow
-809.00M	-1.72B	-2.31B	-1.14B	-2.06B

B Communication Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1873.00
• 50DMA: Negative
• 100DMA: Negative
• 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:BCOM, the sentiment is Negative. The current price of 1873 is below the 20-day moving average (MA) of 1935.45, below the 50-day MA of 1955.14, and above the 200-day MA of 1716.23, indicating a neutral trend. The MACD of -22.35 indicates Positive momentum. The RSI at 42.66 is Neutral, neither overbought nor oversold. The STOCH value of 27.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:BCOM.

B Communication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%
BCOM	50 Neutral	1.95B	26.73	20.21%	0.76%	―	―
CELJF		$1.14B	18.30	9.46%	―	―	―
BZQIF		$4.16B	13.85	40.86%	5.38%	―	―
PTNR	70 Neutral	4.42B	15.46		5.65%	-6.28%	50.36%
GUID		72.17M	―		―	―	―
RPAC		639.51M	15.59		7.19%	―	―

B Communication Corporate Events

B Communications to File Derivative Lawsuit Over Subsidiary Sale

B Communications Ltd., traded on the Tel Aviv Stock Exchange under the symbol BCOM, is focused on legal actions regarding a recent transaction involving its subsidiary. The company’s board has approved a plan to file a derivative lawsuit against its parent company and controlling shareholder, arguing that the cash consideration received from the completed sale of its subsidiary’s shares does not reflect the subsidiary’s actual value. Legal preparations for the lawsuit are underway, and shareholders will be updated on its progress.

B Communications Reports Deviation in Operations

B Communications Ltd, a shell company, has filed an immediate report concerning an event that deviates from its normal business operations. The report was submitted following regulations for periodic and immediate reports and signals corporate activity that stakeholders may need to monitor closely.

B Communications Faces Derivative Lawsuit Over ‘Yes’ Board Decisions

B Communications Ltd. has received a motion for approval of a derivative lawsuit against ‘Yes’ and its directors, alleging decisions that caused financial damage to shareholders. The company is reviewing the lawsuit and plans to respond, but does not anticipate a significant impact on its operations or financial performance.

B Communications Seeks Settlement in Shareholder Derivative Action

B Communications Ltd. reported that a derivative action request regarding a content purchase transaction between Bezeq and ‘yes’ was submitted by a shareholder. To avoid litigation costs, the company entered negotiations and found the transaction to be legally compliant, without any misconduct. The company aims to settle the matter without liability or financial compensation, reaffirming its commitment to corporate governance.