Cellcom (CEL) AI Stock Analysis

• Market Cap: ₪6.34B
• Dividend Yield: 3.18%
• Average Volume (3M): 209.63K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.20
• Revenue Growth: -4.33%
• EPS Growth: 67.49%
• Country: IL
• Employees: 2,758
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 45.00
• Shares Outstanding: 168,079,830
• 10 Day Avg. Volume: 192,794
• 30 Day Avg. Volume: 209,629
• PEG Ratio: 0.69
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.77
• P/FCF Ratio: 6.44
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 4,329.00 ▲(11.95% Upside)

Cellcom's overall stock score is driven primarily by its strong technical indicators, reflecting positive market momentum. Financial performance is stable, with solid operational efficiency and cash flow management, though revenue growth remains a concern. The valuation suggests the stock might be overvalued, but the dividend yield offers some compensation. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Operational Efficiency

Strong operational efficiency, as evidenced by healthy EBIT and EBITDA margins, indicates effective management and cost control, supporting long-term profitability.

Cash Flow Management

Robust cash flow management, with significant free cash flow growth, ensures liquidity and financial flexibility, enabling strategic investments and debt servicing.

Balance Sheet Health

A stable balance sheet with manageable leverage provides a solid foundation for financial stability and resilience against economic fluctuations.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential market share loss or competitive pressures, which could impact long-term profitability and market position.

High Historical Debt Levels

Past high leverage could pose risks if not managed properly, potentially affecting future borrowing capacity and financial stability.

Low Net Profit Margin

A low net profit margin indicates limited profitability, which may constrain reinvestment capabilities and shareholder returns over the long term.

Cellcom Business Overview & Revenue Model

Company Description

Cellcom (CEL) is a leading telecommunications provider in Israel, specializing in mobile and fixed-line services. The company operates in the telecommunications sector, offering a range of products and services including voice, data, and internet services to both individual consumers and businesses. Cellcom is known for its innovative solutions and competitive pricing, catering to a diverse customer base across the country.

How the Company Makes Money

Cellcom generates revenue through multiple streams, primarily from mobile service subscriptions, which include voice and data plans for individual and business customers. The company also earns money from fixed-line services, internet services, and various value-added services such as content and cloud solutions. Additionally, Cellcom benefits from partnerships with content providers and device manufacturers, which can enhance its service offerings and customer retention. The company's revenue model is supplemented by promotional campaigns and bundled service packages, designed to attract new customers and encourage existing customers to upgrade their plans.

Cellcom Financial Statement Overview

Summary

Cellcom demonstrates solid operational efficiency with strong EBIT and EBITDA margins. While profitability is improving, revenue growth remains a challenge. The balance sheet is stable with manageable leverage, but historical high debt levels warrant caution. Cash flow performance is strong, supporting the company's financial health. Overall, Cellcom is on a stable financial footing but should focus on revenue growth to enhance profitability.

Income Statement

Cellcom's income statement shows a stable gross profit margin of around 32% in the TTM, indicating effective cost management. However, the net profit margin is relatively low at 5.38%, suggesting limited profitability. Revenue growth has been negative recently, which is a concern. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.95 in the TTM, indicating manageable leverage. Return on equity has improved to 9.45%, showing better utilization of equity. The equity ratio is stable, suggesting a balanced capital structure. However, the company has had high leverage in the past, which could pose risks if not managed properly.

Cash Flow

Cash flow analysis indicates a positive trend with a 9.55% growth in free cash flow in the TTM. The operating cash flow to net income ratio is strong at 0.64, highlighting efficient cash generation. The free cash flow to net income ratio is also healthy, suggesting good cash conversion. Overall, cash flow management appears robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.29B	4.44B	4.40B	4.30B	4.10B	3.68B
Gross Profit	1.44B	1.41B	1.34B	1.27B	1.14B	876.00M
EBITDA	1.42B	1.31B	1.22B	1.20B	1.10B	883.00M
Net Income	255.00M	173.00M	134.00M	157.00M	27.00M	-170.00M
Balance Sheet
Total Assets	6.17B	6.50B	6.62B	7.00B	6.57B	7.16B
Cash, Cash Equivalents and Short-Term Investments	160.00M	371.00M	497.00M	773.00M	644.00M	719.00M
Total Debt	2.21B	2.66B	2.99B	3.61B	3.42B	3.96B
Total Liabilities	3.50B	4.05B	4.36B	4.89B	4.65B	5.28B
Stockholders Equity	2.67B	2.45B	2.26B	2.10B	1.92B	1.88B
Cash Flow
Free Cash Flow	654.00M	530.00M	510.00M	484.00M	454.00M	494.00M
Operating Cash Flow	1.23B	1.20B	1.17B	1.08B	1.05B	993.00M
Investing Cash Flow	-615.00M	-654.00M	-525.00M	-704.00M	-192.00M	-1.01B
Financing Cash Flow	-668.00M	-642.00M	-949.00M	-243.00M	-933.00M	-265.00M

Cellcom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3867.00
• 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:CEL, the sentiment is Neutral. The current price of 3867 is above the 20-day moving average (MA) of 3758.70, above the 50-day MA of 3765.89, and above the 200-day MA of 3074.50, indicating a neutral trend. The MACD of -3.96 indicates Positive momentum. The RSI at 47.23 is Neutral, neither overbought nor oversold. The STOCH value of 55.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:CEL.

Cellcom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEZQ	75 Outperform	₪22.45B	16.20	54.58%	5.00%	-2.17%	25.51%
CEL	74 Outperform	₪6.34B	24.70	9.92%	3.18%	-4.33%	67.49%
PTNR	72 Outperform	₪7.12B	23.17	―	3.49%	-3.73%	37.55%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%