Bezeq (BEZQ) AI Stock Analysis

• Market Cap: $17.10B
• Dividend Yield: 4.58%
• Average Volume (3M): 6.50M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.85
• Revenue Growth: -2.06%
• EPS Growth: -8.02%
• Country: IL
• Employees: 5,425
• Sector: Communication Services
• Sector Strength: 81
• Industry: Telecommunications Services
• EPS (TTM): 11.00
• Shares Outstanding: 2,771,292,200
• 10 Day Avg. Volume: 8,949,238
• 30 Day Avg. Volume: 6,500,970
• PEG Ratio: N/A
• Price to Book (P/B): 5.95
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.04
• 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: $610.35
• Price Target Upside: -2.20% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: 690.00 ▲(10.56%Upside)

The stock's overall score is driven primarily by strong financial performance and technical indicators. The high leverage and flat revenue growth are concerns, but robust margins and operating cash flows offer a positive outlook. Technical indicators support bullish sentiment, and valuation metrics suggest reasonable pricing.

Bezeq Business Overview & Revenue Model

Company Description

Bezeq, The Israel Telecommunication Corp., Ltd., is a leading telecommunications provider in Israel. The company operates in multiple sectors including fixed-line telephony, broadband internet, and digital television. Bezeq offers a comprehensive range of services such as voice, internet, and data communications solutions, catering to both residential and business customers across the country.

How the Company Makes Money

Bezeq generates revenue through several key streams, primarily from its fixed-line telephony services, broadband internet services, and digital television offerings. The company earns money from subscriptions, usage fees, and value-added services provided to its diverse customer base. Additionally, Bezeq benefits from its ownership of telecommunications infrastructure, which allows it to offer competitive pricing and packages. Partnerships and collaborations with other service providers and technology companies also enhance its service offerings and contribute to its revenue growth. Regulatory factors and market competition are significant influences on Bezeq's ability to maintain and grow its earnings.

Bezeq Financial Statement Overview

Summary

Bezeq's financial statements depict a solid financial position with strong profit margins and effective cash flow management. Despite a slight decline in revenue and free cash flow, the company maintains profitability and operational efficiency. However, high leverage presents a potential risk, requiring vigilant debt management. Overall, Bezeq demonstrates stability in its financial performance, with areas for improvement in revenue growth and debt management.

Income Statement

Bezeq's income statement shows a stable performance with a slight decline in Total Revenue from 2023 to 2024, decreasing by approximately 2.4%. The Gross Profit Margin remains strong at around 83.8% in 2024, indicating efficient cost management. Net Profit Margin also stands well at 12.1% for 2024, though slightly lower than the previous year, reflecting a minor decrease in profitability. EBIT and EBITDA margins continue to be robust, maintaining the company's operational profitability. Overall, the income statement reflects a strong performance with minor concerns over decreasing revenue.

Balance Sheet

Bezeq's balance sheet indicates a significant reliance on debt, with a Debt-to-Equity ratio of 3.84 in 2024, hinting at potential leverage risks. The Return on Equity (ROE) shows improvement, reaching 42.8% in 2024, showcasing effective utilization of equity to generate profits. However, the Equity Ratio remains low at 16.5%, suggesting low equity financing relative to total assets. The balance sheet is stable but reflects potential risks due to high leverage, necessitating careful debt management.

Cash Flow

Bezeq's cash flow statement demonstrates strong cash generation capabilities with an Operating Cash Flow to Net Income ratio of 3.21 in 2024, indicating excellent cash conversion efficiency. However, Free Cash Flow decreased slightly from 2023, reflecting a 2.7% decline, but remains positive, supporting the company's ability to fund its operations and investments. The Free Cash Flow to Net Income ratio also remains strong at 1.59. Overall, the cash flow situation is robust, despite a minor decline in free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.86B	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	3.57B	3.58B	3.70B	3.46B	3.71B	3.65B
Net Income	1.08B	1.07B	1.19B	1.00B	1.18B	796.00M
Balance Sheet
Total Assets	15.58B	15.16B	13.88B	13.41B	13.93B	13.24B
Cash, Cash Equivalents and Short-Term Investments	2.97B	2.69B	1.76B	1.64B	1.93B	1.56B
Total Debt	9.61B	9.61B	9.00B	9.18B	10.04B	10.31B
Total Liabilities	12.77B	12.66B	11.68B	11.79B	12.84B	13.39B
Stockholders Equity	2.81B	2.50B	2.20B	1.62B	1.10B	-150.00M
Cash Flow
Free Cash Flow	1.52B	1.70B	1.75B	1.80B	1.15B	1.72B
Operating Cash Flow	3.28B	3.45B	3.46B	3.50B	2.84B	3.22B
Investing Cash Flow	-1.62B	-2.30B	-1.88B	-1.58B	-1.65B	-839.00M
Financing Cash Flow	-2.01B	-895.00M	-1.75B	-2.15B	-1.06B	-1.94B

Bezeq Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 624.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 624.1 is above the 20-day moving average (MA) of 572.86, above the 50-day MA of 560.54, and above the 200-day MA of 528.48, indicating a bullish trend. The MACD of 12.24 indicates Negative momentum. The RSI at 72.53 is Negative, neither overbought nor oversold. The STOCH value of 91.02 is Negative, 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
PTNR	80 Outperform	5.29B	18.47		4.76%	-6.28%	50.36%
BEZQ	78 Outperform	$17.10B	15.82	40.86%	4.58%	-2.06%	-8.02%
CEL	77 Outperform	4.82B	21.17	9.46%	―	-0.83%	129.69%
GLTL	76 Outperform	82.20M	6.21		―	―	―
Sector *	74 Outperform	5.99B	19.02	25.23%	3.42%	-2.95%	56.65%
BCOM	59 Neutral	2.49B	34.00	20.21%	0.59%	―	―

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.