Bezeq (BEZQ) AI Stock Analysis

• Market Cap: $16.84B
• Dividend Yield: 4.71%
• Average Volume (3M): 7.53M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.81
• Revenue Growth: -1.51%
• EPS Growth: 8.99%
• Country: IL
• Employees: 5,425
• Sector: Communication Services
• Sector Strength: 90
• Industry: Telecommunications Services
• EPS (TTM): 15.00
• Shares Outstanding: 2,772,470,200
• 10 Day Avg. Volume: 7,445,914
• 30 Day Avg. Volume: 7,526,751
• 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: 1.35
• Enterprise Value/Revenue: 2.59
• Enterprise Value/Gross Profit: 3.05
• Enterprise Value/Ebitda: 6.29
• 1Y Price Target: $646.75
• Price Target Upside: 5.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: 662.00 ▲(8.05% 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 Corp Ltd, is the largest telecommunications group in Israel. It offers a comprehensive range of services, including fixed-line and cellular telephony, broadband Internet, and pay TV. The company operates through several subsidiaries, each specializing in different aspects of telecommunications, to provide integrated services to both individual and business customers. With a strong presence in the Israeli market, Bezeq is recognized for its advanced infrastructure and technology-driven solutions.

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's financial performance is solid with strong operating margins and cash flow generation. However, the high leverage and flat revenue growth pose potential risks.

Income Statement

Bezeq has maintained a stable gross profit margin and net profit margin over the years, with the TTM (Trailing-Twelve-Months) showing a Gross Profit Margin of 84.3% and a Net Profit Margin of 12.2%. However, the revenue growth has been mostly flat with a slight decline in recent years, which could hinder future profitability. The EBIT and EBITDA margins remain healthy, indicating efficient operations.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which is common in the telecommunications sector but poses potential risks. The Return on Equity (ROE) has improved to 38.5% in the TTM, showing strong profitability relative to equity. The equity ratio is relatively low at 18%, which highlights the high leverage but also reflects a controlled debt management approach.

Cash Flow

Bezeq's cash flow generation is strong, with a free cash flow of 1,521 million in the TTM period. The Operating Cash Flow to Net Income Ratio is high at 3.03, indicating robust cash generation from operations. However, the Free Cash Flow Growth Rate has seen some volatility, which is typical in the industry due to capital-intensive nature.

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: 612.70
• 50DMA: Positive
• 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 612.7 is below the 20-day moving average (MA) of 619.86, above the 50-day MA of 611.43, and above the 200-day MA of 560.66, indicating a neutral trend. The MACD of -2.02 indicates Positive momentum. The RSI at 47.89 is Neutral, neither overbought nor oversold. The STOCH value of 34.27 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
BEZQ	65 Neutral	$16.84B	13.81	45.10%	4.71%	-1.51%	8.99%
Sector *	60 Neutral	$43.56B	4.52	-12.81%	4.07%	1.87%	-43.08%
BCOMF	―	$639.57M	22.79	23.24%	0.66%	―	―
CELJF	―	$1.57B	23.76	9.29%	―	―	―
GLTL	75 Outperform	97.00M	8.40		―	―	―
PTNR	71 Outperform	5.95B	19.72		4.25%	-6.15%	55.79%
NXTM	―	133.56M	17.80		2.58%	―	―

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.