Cellcom (CEL) AI Stock Analysis

• Market Cap: ₪6.35B
• Dividend Yield: 3.18%
• Average Volume (3M): 209.63K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.28
• Revenue Growth: -4.33%
• EPS Growth: 67.49%
• Country: IL
• Employees: 2,758
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 216.60
• Shares Outstanding: 168,097,260
• 10 Day Avg. Volume: 192,794
• 30 Day Avg. Volume: 209,629
• PEG Ratio: 0.05
• Price to Book (P/B): 2.22
• Price to Sales (P/S): 1.49
• P/FCF Ratio: 8.52
• 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): 1.65
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 4,090.00 ▲(5.77% Upside)
• Action: Downgraded Date: 03/20/26
• Date: Action: Downgraded 03/20/26

The score is primarily supported by improving profitability, strong free cash flow, and reduced leverage, while the main offsets are weak 2025 top-line/gross margin trends and only mixed near-term technical signals. Valuation is a secondary positive with a low P/E and moderate dividend yield.

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 primarily generates revenue by selling telecommunications services to customers under subscription and usage-based arrangements. Key revenue streams typically include: (1) mobile service revenues from recurring plan fees (e.g., voice, messaging, and data bundles) and any usage charges beyond plan allowances; (2) interconnection and roaming-related revenues, where applicable, tied to calls or data sessions that traverse other operators' networks; and (3) device-related revenues from the sale of mobile handsets and other equipment, often alongside service plans. Additional material revenue streams, specific service lines (e.g., fixed-line internet/TV, enterprise solutions), and significant partnerships or wholesale arrangements are null because they are not available from the information provided here.

Cellcom Financial Statement Overview

Summary

Improving profitability and returns (notably stronger 2025 bottom-line), steady operating cash flow with a free-cash-flow step-up in 2025, and a clear deleveraging trend support the score. Offsetting risks are 2025 revenue decline and weaker gross margin, plus still-sizable absolute debt and cash flow not fully matching accounting earnings.

Income Statement

Profitability has improved meaningfully versus 2020, with solid operating profitability and EBITDA margins holding up through 2021–2025. Net profit margin expanded sharply in 2025, supported by stronger bottom-line results, but revenue momentum is a clear weak spot: growth turned slightly positive in 2022–2024 and then fell in 2025. Gross margin also declined in 2025 versus 2024, suggesting some pressure on pricing and/or costs despite better net results.

Balance Sheet

Leverage has moved in the right direction, with debt-to-equity improving steadily from elevated levels in 2020–2022 to a more moderate level by 2025, alongside higher equity. Returns to shareholders also strengthened materially in 2025 versus the prior years, indicating improved earnings power. The main risk remains that absolute debt is still sizable for a telecom operator, leaving the company somewhat exposed if earnings soften or funding costs rise.

Cash Flow

Cash generation is consistently strong: operating cash flow has been stable across the cycle and free cash flow is solid, with a notable step-up in 2025 and strong free-cash-flow growth that year. Free cash flow covers a meaningful portion of net income (and improved in 2025), supporting balance sheet repair and shareholder flexibility. A watch-out is that cash flow does not fully cover accounting earnings, implying part of profitability may be less cash-backed than ideal.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.24B	4.44B	4.40B	4.30B	4.10B
Gross Profit	1.13B	1.41B	1.34B	1.27B	1.14B
EBITDA	1.35B	1.31B	1.22B	1.20B	1.10B
Net Income	564.00M	173.00M	134.00M	157.00M	27.00M
Balance Sheet
Total Assets	6.50B	6.50B	6.62B	7.00B	6.57B
Cash, Cash Equivalents and Short-Term Investments	487.00M	371.00M	497.00M	773.00M	644.00M
Total Debt	2.21B	2.66B	2.99B	3.61B	3.42B
Total Liabilities	3.67B	4.05B	4.36B	4.89B	4.65B
Stockholders Equity	2.83B	2.45B	2.26B	2.10B	1.92B
Cash Flow
Free Cash Flow	740.00M	530.00M	510.00M	484.00M	454.00M
Operating Cash Flow	1.15B	1.20B	1.17B	1.08B	1.05B
Investing Cash Flow	-95.00M	-654.00M	-525.00M	-704.00M	-192.00M
Financing Cash Flow	-946.00M	-642.00M	-949.00M	-243.00M	-933.00M

Cellcom Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3867.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 3870.80, above the 50-day MA of 3790.28, and above the 200-day MA of 3302.20, indicating a neutral trend. The MACD of 17.08 indicates Positive momentum. The RSI at 46.67 is Neutral, neither overbought nor oversold. The STOCH value of 16.34 is Positive, 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
PTNR	74 Outperform	₪7.40B	23.64	―	3.49%	-3.73%	37.55%
GLTL	72 Outperform	₪198.36M	3.15	―	―	-5.29%	13.82%
CEL	67 Neutral	₪6.35B	11.27	9.92%	3.18%	-4.33%	67.49%
BEZQ	63 Neutral	₪22.80B	16.44	54.58%	5.00%	-2.17%	25.51%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%