Bezeq The Israel Telecommunication Corp Ltd (IL:BEZQ)
TASE:BEZQ
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Bezeq
(TASE:BEZQ)
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Rating:59Neutral
Price Target:
805.00
▲(25.78% Upside)
Action:Reiterated
Date:05/19/26
The score is anchored by moderate financial strength (strong margins and cash generation but leveraged balance sheet, mixed cash conversion, and weak revenue momentum). Valuation is supportive due to the high dividend yield and reasonable P/E, while the latest earnings call was broadly constructive with reiterated guidance and strong fiber/5G progress. These positives are tempered by weak technical momentum.
Positive Factors
Profitability & cash generation
Bezeq's sector-leading margins and sizable operating cash flow provide durable internal funding for network investment and shareholder returns. Consistent absolute FCF supports capex, dividends and buybacks, enhancing resilience versus peers reliant on external financing.
Negative Factors
Elevated leverage
Material leverage is a persistent structural constraint for a capital-intensive telco: it limits financial flexibility for large fiber/infra projects, raises refinancing risk in stress, and means returns are partially leverage-amplified rather than purely operational.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & cash generation
Bezeq's sector-leading margins and sizable operating cash flow provide durable internal funding for network investment and shareholder returns. Consistent absolute FCF supports capex, dividends and buybacks, enhancing resilience versus peers reliant on external financing.
Read all positive factors
Bezeq (BEZQ) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪21.97B
Dividend Yield5%
Average Volume (3M)8.74M
Price to Earnings (P/E)16.6
Beta (1Y)0.84
Revenue Growth-2.57%
EPS Growth22.49%
CountryIL
Employees5,425
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)0.47
Shares Outstanding2,767,158,700
10 Day Avg. Volume5,525,810
30 Day Avg. Volume8,741,070
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)6.67
Price to Sales (P/S)2.26
P/FCF Ratio12.44
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₪880.00Price Target Upside37.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.47
Revenue Forecast (FY)₪8.85B
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 s...
How the Company Makes Money
Bezeq makes money primarily by charging customers recurring service fees for connectivity and communication services. Key revenue streams typically include (1) fixed-line services (voice and data communications delivered over its fixed network), (...
Bezeq Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: revenue, EBITDA and net profit grew modestly, fiber and 5G adoption showed strong momentum, yes and Bezeq International delivered notable turnarounds, and capital returns plus an AA rating support confidence. Key risks include a roaming-related hit to Pelephone (war-driven), some one-time drivers of free cash flow (tax refund/working capital), ongoing competitive pressures, and regulatory uncertainty around structural separation. On balance, the positive growth drivers and strategic initiatives outweigh the transitory and structural challenges.Positive Updates
Group revenue and profitability growth
Core revenue grew 2.6% year-over-year to over ILS 2.0 billion; comparable EBITDA rose 1.2% and comparable net profit increased over 4%, driven by higher revenues across the group.
Negative Updates
Roaming impact from regional conflict hitting Pelephone
Pelephone's revenues, comp EBITDA and comp net profit were negatively impacted by a decline in roaming revenues related to the war with Iran. Reported mobile ARPU declined ~2.2% year-over-year to ILS 44; management said excluding roaming, service revenues would have risen ≈2%.
Read all updates
Q1-2026 Updates
Positive
Negative
Group revenue and profitability growth
Core revenue grew 2.6% year-over-year to over ILS 2.0 billion; comparable EBITDA rose 1.2% and comparable net profit increased over 4%, driven by higher revenues across the group.
Read all positive updates
Company Guidance
Management reiterated unchanged 2026 outlook and 2029 targets and guided to continued double‑digit annual free cash flow growth, while aiming to maintain an AA rating and to increase shareholder returns; key numeric targets include pushing retail broadband ARPU toward ILS 150 (Q1 ARPU ILS 139, +3.7% YoY), growing 5G MAX subscribers to >300,000 by year‑end (Q1: 184,000), and advancing fiber (3.0 million homes passed, 35% take‑up, >1.0 million active fiber subs = 65% of broadband). Q1 performance underpinning guidance: core revenue +2.6% to >ILS 2.0bn, comp EBITDA +1.2%, comp net profit >+4%, group free cash flow +74% (Fixed Line FCF +84% to ILS 404m), Pelephone FCF ILS 15m (vs –ILS 5m prior year), yes revenues +7.5% to ILS 343m with ARPU ILS 202, Bezeq International comp net profit ILS 8m (vs –ILS 2m), net debt down ILS 122m to ILS 4.6bn (net debt/comp EBITDA 1.4x), dividend of ILS 549m (80% of H2‑2025 net profit) and an ILS 150m buyback (~50% completed); CapEx trends: Fixed Line –8.2% in Q1 while group CapEx was slightly up.Bezeq Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
46
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.64B | 8.70B | 8.88B | 9.10B | 9.03B | 8.82B |
| Gross Profit | 6.23B | 7.48B | 7.44B | 7.17B | 7.50B | 7.30B |
| EBITDA | 3.73B | 3.73B | 3.58B | 3.70B | 3.46B | 3.71B |
| Net Income | 1.32B | 1.42B | 1.07B | 1.19B | 1.00B | 1.18B |
Balance Sheet | ||||||
| Total Assets | 16.36B | 15.94B | 15.16B | 13.88B | 13.41B | 13.93B |
| Cash, Cash Equivalents and Short-Term Investments | 3.26B | 2.83B | 2.69B | 1.76B | 1.64B | 1.93B |
| Total Debt | 9.75B | 9.77B | 9.61B | 9.00B | 9.18B | 10.04B |
| Total Liabilities | 13.19B | 12.98B | 12.66B | 11.68B | 11.79B | 12.84B |
| Stockholders Equity | 3.17B | 2.95B | 2.50B | 2.20B | 1.62B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 1.89B | 1.58B | 1.70B | 1.75B | 1.80B | 1.15B |
| Operating Cash Flow | 3.17B | 3.26B | 3.45B | 3.46B | 3.50B | 2.84B |
| Investing Cash Flow | -1.36B | -1.88B | -2.30B | -1.88B | -1.58B | -1.65B |
| Financing Cash Flow | -1.49B | -1.39B | -895.00M | -1.75B | -2.15B | -1.06B |
Bezeq Technical Analysis
Positive
640.00
Price Trends
795.71
Negative
772.62
Positive
696.66
Positive
Market Momentum
-1.03
Positive
50.23
Neutral
26.89
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 798.50, below the 50-day MA of 795.71, and below the 200-day MA of 696.66, indicating a neutral trend. The MACD of -1.03 indicates Positive momentum. The RSI at 50.23 is Neutral, neither overbought nor oversold. The STOCH value of 26.89 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₪266.58M | 2.81 | ― | ― | 1.12% | 160.07% | |
70 Outperform | ₪7.57B | 22.21 | ― | 3.49% | -3.92% | 9.33% | |
67 Neutral | ₪6.00B | 10.61 | 9.92% | 3.18% | -4.71% | 222.17% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
59 Neutral | ₪21.97B | 16.62 | 54.58% | 5.00% | -2.57% | 22.49% |
* Communication Services Sector Average
IL:BEZQ
Bezeq
799.00
282.57
54.72%
IL:CEL
Cellcom
3,584.00
1,152.81
47.42%
IL:SNCM
Suny Commun
145.30
17.02
13.26%
IL:SCC
Space Com
250.90
222.07
770.30%
IL:PTNR
Partner
4,100.00
1,785.60
77.15%
IL:GLTL
Gilat Telecom
223.90
150.50
205.04%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.