Bezeq (BEZQ) AI Stock Analysis

• Market Cap: $18.65B
• Dividend Yield: 5.15%
• Average Volume (3M): 5.13M
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.81
• Revenue Growth: -1.51%
• EPS Growth: 8.99%
• Country: IL
• Employees: 5,425
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 16.00
• Shares Outstanding: 2,772,961,000
• 10 Day Avg. Volume: 4,182,208
• 30 Day Avg. Volume: 5,125,975
• PEG Ratio: -1.17
• Price to Book (P/B): 5.83
• Price to Sales (P/S): 1.64
• P/FCF Ratio: 8.58
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 3.05
• Enterprise Value/Ebitda: 6.29
• 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: 69 Neutral
• Price Target: 748.00 ▲(9.44% Upside)

Bezeq's overall stock score reflects strong technical indicators and a positive earnings call, indicating potential for future growth. However, financial performance is moderated by high leverage and declining revenue, which are risks that need to be managed. The valuation is fair, with an attractive dividend yield supporting the stock's appeal.

Bezeq Business Overview & Revenue Model

Company Description

Bezeq The Israel Telecommunication Corporation Limited provides communications services to business and private customers in Israel. It operates in four segments: Fixed-line Domestic Communication; Cellular Communication; Internet, International Communications, and NEP Services and ICT Solutions; and Multi-channel Television. The company offers telephony services, including basic telephony services on the domestic telephone line, as well as associated services, such as voice mail and caller ID; national numbering services; broadband Internet access infrastructure services; and transmission and data-communication services. It also provides virtual server services; Bcyber services; smart business services; private virtual PBX services; and B144 service, an advertising platform for digital advertising and marketing to small businesses, BCam, Wi-Fi, SMS, and remote backup. In addition, the company offers infrastructure services, company's network connection, billing services, and space leasing; and operates and maintains radio transmitters for broadcasting of radio and television contents. Further, it provides basic telephone, browsing and data communications, messaging, push to talk, Internet of Things, roaming, and servicing and repair services, as well as sells terminal equipment; installs, operates, and maintains cellular communication equipment and systems; and offers infrastructure and communication technologies solutions, as well as data transmission, NEP, PBX, multi-channel digital satellite television, over the Internet and value added services. The company was founded in 1980 and is based in Holon, Israel.

How the Company Makes Money

Bezeq primarily generates revenue through multiple streams, including fixed-line services, broadband internet subscriptions, mobile services, and television subscriptions. The company benefits from a large customer base in Israel, providing essential communication services that are essential for both residential and business customers. Key revenue streams include monthly subscription fees from customers, pay-per-view services from its television arm, and international calling services through Bezeq International. Additionally, Bezeq has formed strategic partnerships with content providers and technology companies to enhance its service offerings, further contributing to its revenue through bundled services and promotional deals.

Bezeq Financial Statement Overview

Summary

Bezeq shows strong operational efficiency with high gross and EBIT margins. However, it faces challenges with declining revenue and high leverage, which could pose financial risks. Cash flow metrics indicate potential issues with cash generation, necessitating careful management to sustain financial health.

Income Statement

Bezeq's income statement shows a strong gross profit margin of 84.79% for TTM, indicating efficient cost management. However, the net profit margin is moderate at 13.84%, and revenue has declined by 6.32% in the TTM period, reflecting potential challenges in revenue generation. The EBIT and EBITDA margins are healthy at 21.30% and 41.14%, respectively, suggesting solid operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.32, indicating significant leverage, which could pose financial risks. Return on equity is robust at 46.69%, showcasing effective use of equity to generate profits. The equity ratio stands at 18.67%, reflecting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 282.7% in the TTM period, raising concerns about cash generation. The operating cash flow to net income ratio is 0.71, indicating reasonable cash conversion. The free cash flow to net income ratio is 0.48, suggesting moderate cash flow relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.81B	8.88B	9.10B	9.03B	8.82B	8.72B
Gross Profit	7.47B	7.44B	7.17B	7.50B	7.30B	7.20B
EBITDA	3.62B	3.58B	3.70B	3.46B	3.71B	3.22B
Net Income	1.22B	1.07B	1.19B	1.00B	1.18B	796.00M
Balance Sheet
Total Assets	15.22B	15.16B	13.88B	13.41B	13.93B	13.24B
Cash, Cash Equivalents and Short-Term Investments	2.58B	2.69B	1.76B	1.64B	1.93B	1.56B
Total Debt	9.45B	9.61B	9.00B	9.18B	10.04B	10.31B
Total Liabilities	12.37B	12.66B	11.68B	11.79B	12.84B	13.39B
Stockholders Equity	2.84B	2.50B	2.20B	1.62B	1.10B	-150.00M
Cash Flow
Free Cash Flow	1.48B	1.70B	1.75B	1.80B	1.15B	1.72B
Operating Cash Flow	3.07B	3.45B	3.46B	3.50B	2.84B	3.22B
Investing Cash Flow	-1.24B	-2.30B	-1.88B	-1.58B	-1.65B	-839.00M
Financing Cash Flow	-1.95B	-895.00M	-1.75B	-2.15B	-1.06B	-1.94B

Bezeq Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 683.50
• 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:BEZQ, the sentiment is Positive. The current price of 683.5 is above the 20-day moving average (MA) of 670.60, above the 50-day MA of 636.49, and above the 200-day MA of 573.91, indicating a bullish trend. The MACD of 13.00 indicates Positive momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 73.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:BEZQ.

Bezeq Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEL	72 Outperform	$5.82B	25.87	9.29%	―	-2.67%	57.93%
BEZQ	69 Neutral	$18.65B	15.28	54.58%	5.15%	-1.51%	8.99%
GLTL	67 Neutral	85.09M	7.34	―	―	6.11%	118.28%
PTNR	66 Neutral	6.26B	20.71	―	3.64%	-1.06%	55.80%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BCOM	56 Neutral	2.54B	25.15	23.24%	0.58%	―	―

Bezeq Corporate Events

Bezeq Reports Strong Q3 2025 Financial Performance

Bezeq, The Israel Telecommunication Corp., is Israel’s leading telecommunications provider, offering a comprehensive range of services including broadband Internet, cellular services, and multi-channel TV. In its third quarter of 2025 financial results, Bezeq reported a 2% increase in core revenues to NIS 2 billion and a significant 59% rise in net profit to NIS 446 million, driven by growth in fiber and 5G subscribers. The company also achieved a 14% increase in adjusted EBITDA to NIS 1.04 billion, reflecting strong execution of its business plan across all segments.