Cellcom (CEL) AI Stock Analysis

• Market Cap: 6.50B
• Dividend Yield: 3.12%
• Average Volume (3M): 209.63K
• Price to Earnings (P/E): 24.8
• Beta (1Y): 1.23
• 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: 168,021,670
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: 4,304.00 ▲(12.85% Upside)

Cellcom's overall stock score reflects strong technical momentum and solid financial performance, despite challenges in revenue growth and a high valuation. The absence of a dividend yield and lack of earnings call data limit the score.

Positive Factors

Profitability Improvement

Improved net profit margins indicate better cost management and operational efficiency, enhancing long-term profitability.

Cash Flow Strength

Strong cash generation and efficient cash utilization support financial stability and future investment capacity.

Leverage Reduction

Reduced leverage improves financial flexibility and reduces risk, supporting sustainable growth and shareholder value.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in market expansion and customer acquisition, which can impact long-term growth prospects.

Lack of Revenue Growth

Stagnant revenue growth can hinder the company's ability to invest in new opportunities and maintain competitive positioning.

Moderate Equity Ratio

A moderate equity ratio indicates potential vulnerability in capital structure, which could affect long-term financial health.

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 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	1.20B	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: 3814.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3814 is above the 20-day moving average (MA) of 3529.81, above the 50-day MA of 3353.07, and above the 200-day MA of 2756.53, indicating a bullish trend. The MACD of 114.37 indicates Negative momentum. The RSI at 65.12 is Neutral, neither overbought nor oversold. The STOCH value of 89.51 is Negative, 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	6.50B	24.83	9.92%	3.12%	-4.33%	67.49%
BEZQ	69 Neutral	18.16B	13.11	54.58%	5.31%	-2.17%	25.51%
PTNR	66 Neutral	6.26B	20.71	―	3.47%	-3.73%	37.55%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
BCOM	56 Neutral	―	―	36.20%	0.56%	-2.17%	-5.89%