Bezeq (BEZQ) AI Stock Analysis

• Market Cap: 18.16B
• Dividend Yield: 5.3%
• Average Volume (3M): 8.73M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.74
• Revenue Growth: -2.17%
• EPS Growth: 25.51%
• Country: IL
• Employees: 5,425
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 16.00
• Shares Outstanding: 2,773,214,000
• 10 Day Avg. Volume: 12,954,389
• 30 Day Avg. Volume: 8,731,371
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 761.26
• Price Target Upside: 18.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 45.36
• Revenue Forecast (FY): 882.20B

• Rating: 69 Neutral
• Price Target: 748.00 ▲(16.88% 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.

Positive Factors

Network Expansion

The completion of network deployment is a significant milestone that reduces future CapEx and strengthens Bezeq's market position, enhancing long-term growth potential.

5G and Fiber Growth

Growth in 5G and fiber subscribers indicates strong demand for advanced services, positioning Bezeq well in the evolving telecommunications landscape.

Strong Financial Performance

Consistent revenue and EBITDA growth reflect operational efficiency and market demand, supporting Bezeq's financial stability and future investment capacity.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns, impacting long-term sustainability.

Declining Revenue

A decline in revenue suggests challenges in maintaining market share or pricing power, which could affect future profitability and growth prospects.

Cash Flow Concerns

Significant decline in free cash flow growth indicates potential issues in cash generation, which could constrain investment capabilities and financial resilience.

Bezeq Business Overview & Revenue Model

Company Description

Bezeq (BEZQ) is Israel's largest telecommunications provider, offering a comprehensive range of services including fixed-line telephony, broadband internet, television broadcasting, and mobile communications. The company operates through several segments, including Bezeq International, which provides international telecommunication services, and yes, which offers television services. Bezeq is a key player in the Israeli telecommunications market and aims to enhance connectivity and digital services for individuals and businesses alike.

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: 640.00
• 50DMA: Negative
• 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 640 is below the 20-day moving average (MA) of 660.11, below the 50-day MA of 650.14, and above the 200-day MA of 580.78, indicating a neutral trend. The MACD of -3.26 indicates Positive momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 51.48 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	6.50B	24.83	9.92%	3.08%	-4.33%	67.49%
GLTL	73 Outperform	93.94M	7.64	―	―	-5.29%	13.82%
BEZQ	69 Neutral	18.16B	13.11	54.58%	5.30%	-2.17%	25.51%
PTNR	66 Neutral	6.26B	20.71	―	3.53%	-3.73%	37.55%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BCOM	56 Neutral	―	―	36.20%	0.56%	-2.17%	-5.89%

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.