Bezeq (BEZQ) AI Stock Analysis

• Market Cap: $17.34B
• Dividend Yield: 5.54%
• Average Volume (3M): 5.63M
• Price to Earnings (P/E): 14.2
• 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): 15.00
• Shares Outstanding: 2,772,961,000
• 10 Day Avg. Volume: 5,908,281
• 30 Day Avg. Volume: 5,625,545
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 3.05
• Enterprise Value/Ebitda: 6.29
• 1Y Price Target: $619.86
• Price Target Upside: -2.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 65 Neutral
• Price Target: 662.00 ▲(4.30% Upside)

Bezeq's stock score is primarily driven by its solid valuation and technical indicators, which show a positive trend. Financial performance is a concern due to high leverage and declining revenue, but strong operational efficiency and a reasonable P/E ratio with a good dividend yield provide support.

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 generates revenue primarily through its telecommunications services, which include fixed-line telephony, broadband Internet, and cellular services. The company earns money from subscription fees, usage charges, and data packages offered to customers. Additionally, Bezeq's pay TV services contribute to its revenue through subscription and on-demand content fees. The company also benefits from business solutions such as cloud services, data center hosting, and ICT solutions for enterprises. Strategic partnerships and investments in technological advancements enhance its service offerings, contributing to its overall earnings.

Bezeq Financial Statement Overview

Summary

Bezeq demonstrates strong operational efficiency with high gross and EBIT margins, but faces challenges with declining revenue and high leverage. The balance sheet's high debt levels could be a risk, although the company effectively generates returns on equity. 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	3.65B
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: 634.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 634.7 is above the 20-day moving average (MA) of 609.23, above the 50-day MA of 607.64, and above the 200-day MA of 553.36, indicating a bullish trend. The MACD of 4.49 indicates Negative momentum. The RSI at 60.12 is Neutral, neither overbought nor oversold. The STOCH value of 62.66 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	73 Outperform	5.45B	23.27	9.09%	―	-2.67%	57.93%
PTNR	71 Outperform	5.80B	19.21	14.07%	4.23%	-1.06%	55.80%
GLTL	65 Neutral	87.81M	7.76	15.35%	―	―	―
BEZQ	65 Neutral	$17.34B	14.21	45.10%	5.54%	-1.51%	8.99%
BCOM	48 Neutral	2.25B	23.09	17.24%	0.64%	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Bezeq Corporate Events

Bezeq Reports Derivative Claim Request, Highlights Operational Shift

Bezeq The Israel Telecommunication Corp. Ltd. reported a request for approval of a derivative claim, marking an event outside its ordinary business operations. The company, described as a shell company under stock exchange regulations, had delayed reporting this due to unspecified obstacles. The impact of this announcement on Bezeq’s operations or its positioning within the industry is yet to be detailed.

Bezeq Reports Deviation in Business Activities Due to Legal Matter

Bezeq has reported an event deviating from its regular business activities related to a request for approval of a derivative lawsuit. The report highlights the company’s compliance with regulatory requirements, and it was signed by an authorized signatory, indicating an adherence to corporate governance practices.

Bezeq Reports Unusual Business Activity with Derivative Claim Request

Bezeq has reported a deviation from its ordinary business activities, filing a request for approval of a derivative claim. The report was delayed due to unspecified hindrances, which have now been resolved. This development could have implications for Bezeq’s operational transparency and regulatory compliance, affecting stakeholder confidence.

Bezeq Seeks Approval for Derivative Claim

Bezeq has announced a request for approval of a derivative claim, following directives from its board and audit committee. This move signifies a notable deviation from the company’s regular business activities, potentially impacting its operational strategies and signaling a proactive approach to governance and compliance.