Cellcom (CEL) AI Stock Analysis

• Market Cap: $5.66B
• Dividend Yield: N/A
• Average Volume (3M): 209.63K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.29
• Revenue Growth: -2.67%
• EPS Growth: 57.93%
• Country: IL
• Employees: 2,758
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 38.30
• Shares Outstanding: 168,019,130
• 10 Day Avg. Volume: 192,794
• 30 Day Avg. Volume: 209,629
• 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: 1.18
• Enterprise Value/Revenue: 1.53
• Enterprise Value/Gross Profit: 4.73
• Enterprise Value/Ebitda: 4.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: 3,377.00 ▲(1.59% Upside)

Cellcom's overall stock score reflects strong financial performance and positive technical indicators, despite challenges in revenue growth and a moderate valuation. The absence of dividend yield and lack of recent earnings call data slightly temper the score.

Cellcom Business Overview & Revenue Model

Company Description

Cellcom Israel Ltd. provides cellular communications services in Israel. It operates in two segments, Real Estate and Net. The company offers internet access and infrastructure, internet television, international telephony, landline telephony, and transmission services for business customers and telecommunications operators. It also provides switchboard, communication systems management, and information security services; and conference call, server hosting, and cloud services, as well as equipment and repair services for end equipment. As of December 31, 2021, it had approximately 10.7 million cellular subscribers. Cellcom Israel Ltd. was incorporated in 1994 and is headquartered in Netanya, Israel. Cellcom Israel Ltd. operates as a subsidiary of Discount Investment Corporation Ltd.

How the Company Makes Money

Cellcom generates revenue primarily through subscription fees for its mobile phone services, which include voice, text, and data plans for consumers and businesses. Additionally, the company earns income from its internet services, offering broadband and fiber-optic internet packages. Television services also contribute to its revenue streams, with customers subscribing to a variety of channel packages. Beyond these core services, Cellcom benefits from value-added services and products such as international roaming, device sales, and customer support services. The company's earnings are further supported by strategic partnerships with content providers, technology firms, and other telecommunications companies, which enhance its service offerings and market reach.

Cellcom Financial Statement Overview

Summary

Cellcom demonstrates solid financial health with strong cash flow and improving profitability. The company has managed to enhance its profit margins and reduce leverage, although revenue growth remains a challenge.

Income Statement

Cellcom's income statement shows a stable gross profit margin of around 32% in TTM, indicating efficient cost management. The net profit margin improved to 5.1% in TTM from 3.9% in the previous year, reflecting enhanced profitability. However, the revenue growth rate is negative at -1.2% in TTM, suggesting a decline in sales. The EBIT and EBITDA margins have shown slight improvements, indicating better operational efficiency.

Balance Sheet

The balance sheet reveals a decreasing debt-to-equity ratio, now at 0.97 in TTM, which indicates improved financial leverage. The return on equity has increased to 9.3% in TTM, showcasing better returns for shareholders. However, the equity ratio remains moderate, suggesting a balanced capital structure but with room for improvement in asset financing.

Cash Flow

Cash flow analysis shows a positive trend with a 7.4% growth in free cash flow in TTM, indicating strong cash generation. The operating cash flow to net income ratio is stable, reflecting consistent cash conversion. The free cash flow to net income ratio is healthy at 45.6%, suggesting efficient cash utilization relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.37B	4.44B	4.40B	4.30B	4.10B	3.68B
Gross Profit	1.42B	1.41B	1.34B	1.27B	1.14B	876.00M
EBITDA	1.40B	1.31B	1.22B	1.18B	1.10B	883.00M
Net Income	235.00M	173.00M	134.00M	157.00M	27.00M	-170.00M
Balance Sheet
Total Assets	6.32B	6.50B	6.62B	7.00B	6.57B	7.16B
Cash, Cash Equivalents and Short-Term Investments	305.00M	371.00M	497.00M	773.00M	644.00M	719.00M
Total Debt	2.45B	2.66B	2.99B	3.61B	3.42B	3.96B
Total Liabilities	3.73B	4.05B	4.36B	4.89B	4.65B	5.28B
Stockholders Equity	2.58B	2.45B	2.26B	2.10B	1.92B	1.88B
Cash Flow
Free Cash Flow	597.00M	530.00M	510.00M	484.00M	454.00M	494.00M
Operating Cash Flow	1.25B	1.20B	1.17B	1.08B	1.05B	993.00M
Investing Cash Flow	-634.00M	-654.00M	-525.00M	-704.00M	-192.00M	-1.01B
Financing Cash Flow	-860.00M	-642.00M	-949.00M	-243.00M	-933.00M	-265.00M

Cellcom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3324.00
• 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:CEL, the sentiment is Positive. The current price of 3324 is above the 20-day moving average (MA) of 3294.80, above the 50-day MA of 3169.28, and above the 200-day MA of 2665.07, indicating a bullish trend. The MACD of 56.10 indicates Positive momentum. The RSI at 52.52 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:CEL.

Cellcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEL	73 Outperform	$5.66B	23.21	9.29%	―	-2.67%	57.93%
PTNR	71 Outperform	6.07B	20.08	―	4.04%	-1.06%	55.80%
BEZQ	65 Neutral	$18.56B	15.21	45.10%	5.31%	-1.51%	8.99%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BCOM	56 Neutral	2.44B	25.04	23.24%	0.60%	―	―

Cellcom Corporate Events

Cellcom Israel Approves Private Issuance of 10 Million Options

Cellcom Israel Ltd. announced the approval of a private issuance of 10 million options, intended to increase the company’s issued and paid-up capital. These options are designated for employees, managers, and consultants, highlighting the company’s emphasis on rewarding and motivating its internal stakeholders. This strategic move could boost employee engagement and retention, potentially strengthening the company’s industry position.

Cellcom Israel Ltd. to Discuss 1999 Financial Performance and Future Plans

Cellcom Israel Ltd. has announced a meeting to discuss its annual financial report for 1999. The meeting will cover the company’s financial performance, strategic initiatives, market positioning, and future growth plans, including addressing potential challenges and regulatory issues. Shareholders will have the opportunity to engage with the company’s strategy, governance, and sustainability efforts, showcasing Cellcom’s commitment to transparency and delivering shareholder value.