Bezeq The Israel Telecommunication Corp Ltd (IL:BEZQ)
TASE:BEZQ
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Bezeq
(TASE:BEZQ)
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Rating:63Neutral
Price Target:
871.00
▲(36.09% Upside)
Action:DowngradedDate:03/17/26
The score is driven primarily by resilient profitability and cash generation, tempered by high leverage and weakening recent revenue trends. Earnings-call guidance and strategic milestones (fiber build completion and expected CapEx decline) provide a meaningful positive offset, while technical signals are mixed with near-term softness.
Positive Factors
Fiber network completion
Completing the fiber rollout (2.9M homes passed) materially lowers future maintenance and build CapEx beginning 2026. Lower structural CapEx improves free-cash-flow conversion, enables reallocation to product development or debt reduction, and strengthens long-term profitability resilience.
Negative Factors
Very high leverage
A heavily indebted capital structure limits financial flexibility and raises interest and refinancing risk. Elevated leverage reduces ability to absorb demand shocks, constrains strategic investments or M&A, and makes long-term earnings more sensitive to cash-flow volatility or rising rates.
Read all positive and negative factors
Positive Factors
Negative Factors
Fiber network completion
Completing the fiber rollout (2.9M homes passed) materially lowers future maintenance and build CapEx beginning 2026. Lower structural CapEx improves free-cash-flow conversion, enables reallocation to product development or debt reduction, and strengthens long-term profitability resilience.
Read all positive factors
Bezeq (BEZQ) vs. iShares MSCI Israel ETF (EIS)
Market Cap
₪21.36B
Dividend Yield5%
Average Volume (3M)8.74M
Price to Earnings (P/E)15.4
Beta (1Y)0.81
Revenue Growth-2.17%
EPS Growth25.51%
CountryIL
Employees5,425
SectorCommunication Services
Sector Strength97
IndustryTelecommunications Services
Share Statistics
EPS (TTM)9.00
Shares Outstanding2,777,668,500
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.5
Revenue Forecast (FY)₪8.81B
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:Nov 11, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with several strategic milestones achieved, including network expansion and strong growth in financial metrics. Despite some challenges with free cash flow and operating expenses, the company is well-positioned in key markets and poised for future growth.Positive Updates
Completion of Network Deployment
Bezeq reached its target of 2.9 million homes passed, completing network deployment across most of Israel. This milestone is set to decrease CapEx starting 2026.
Negative Updates
Free Cash Flow Impacted
Free cash flow was impacted by Bezeq Fixed Line tax assessment paid in Q1 2025 and a tax refund received in the corresponding period.
Read all updates
Q3-2025 Updates
Positive
Negative
Completion of Network Deployment
Bezeq reached its target of 2.9 million homes passed, completing network deployment across most of Israel. This milestone is set to decrease CapEx starting 2026.
Read all positive updates
Company Guidance
During Bezeq's 2025 Third Quarter Earnings Call, the company provided a range of financial and operational guidance metrics. The company reported stable growth across its business segments, achieving a milestone of 2.9 million homes passed with fiber, which is expected to result in a gradual decrease in CapEx starting in 2026. Core revenues grew by almost 2%, while adjusted EBITDA and net profit saw double-digit growth, with adjusted EBITDA increasing by 4% excluding the impact of yes's improved valuation. Bezeq also highlighted their 5G subscriber plans reaching 1.36 million and cellular ARPU growing over 4%. The company maintained a balanced capital structure with net debt at NIS 4.6 billion and a coverage ratio of 1.3x. For 2025, Bezeq is forecasting an adjusted EBITDA of NIS 3.85 billion, adjusted net profit of NIS 1.45 billion, and CapEx of NIS 1.75 billion. Additionally, the company's strategic focus includes leveraging its position in fiber and 5G, while also anticipating regulatory developments such as the potential removal of structural separation.Bezeq Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
44
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.70B | 8.88B | 9.10B | 9.03B | 8.82B |
| Gross Profit | 7.48B | 7.44B | 7.17B | 7.50B | 7.30B |
| EBITDA | 3.73B | 3.58B | 3.70B | 3.46B | 3.71B |
| Net Income | 1.42B | 1.07B | 1.19B | 1.00B | 1.18B |
Balance Sheet | |||||
| Total Assets | 15.94B | 15.16B | 13.88B | 13.41B | 13.93B |
| Cash, Cash Equivalents and Short-Term Investments | 2.83B | 2.69B | 1.76B | 1.64B | 1.93B |
| Total Debt | 9.77B | 9.61B | 9.00B | 9.18B | 10.04B |
| Total Liabilities | 12.98B | 12.66B | 11.68B | 11.79B | 12.84B |
| Stockholders Equity | 2.95B | 2.50B | 2.20B | 1.62B | 1.10B |
Cash Flow | |||||
| Free Cash Flow | 1.58B | 1.70B | 1.75B | 1.80B | 1.15B |
| Operating Cash Flow | 3.26B | 3.45B | 3.46B | 3.50B | 2.84B |
| Investing Cash Flow | -1.80B | -2.30B | -1.88B | -1.58B | -1.65B |
| Financing Cash Flow | -1.63B | -895.00M | -1.75B | -2.15B | -1.06B |
Bezeq Technical Analysis
Neutral
640.00
Price Trends
811.73
Negative
748.99
Positive
679.15
Positive
Market Momentum
-17.00
Positive
41.05
Neutral
20.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BEZQ, the sentiment is Neutral. The current price of 640 is below the 20-day moving average (MA) of 812.39, below the 50-day MA of 811.73, and below the 200-day MA of 679.15, indicating a neutral trend. The MACD of -17.00 indicates Positive momentum. The RSI at 41.05 is Neutral, neither overbought nor oversold. The STOCH value of 20.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | ₪202.57M | 5.60 | ― | ― | -5.29% | 13.82% | |
74 Outperform | ₪6.84B | 23.64 | ― | 3.49% | -3.73% | 37.55% | |
67 Neutral | ₪5.67B | 10.03 | 9.92% | 3.18% | -4.33% | 67.49% | |
63 Neutral | ₪21.36B | 15.40 | 54.58% | 5.00% | -2.17% | 25.51% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
IL:BEZQ
Bezeq
769.00
266.87
53.15%
IL:CEL
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3,371.00
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63.87%
IL:SNCM
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134.60
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15.00%
IL:SCC
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248.10
222.53
870.39%
IL:PTNR
Partner
3,651.00
1,355.45
59.05%
IL:GLTL
Gilat Telecom
187.90
122.30
186.43%
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.