Gilat Telecom (GLTL) AI Stock Analysis

• Market Cap: 93.94M
• Dividend Yield: N/A
• Average Volume (3M): 436.04K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.61
• Revenue Growth: -5.29%
• EPS Growth: 13.82%
• Country: IL
• Employees: 100
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 7.50
• Shares Outstanding: 93,848,330
• 10 Day Avg. Volume: 873,327
• 30 Day Avg. Volume: 436,044
• PEG Ratio: 0.07
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 1.91
• 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: 73 Outperform
• Price Target: 113.00 ▲(34.84% Upside)

The overall stock score of 73 reflects strong technical momentum and attractive valuation, despite financial risks associated with high leverage. The company's robust revenue growth and profitability improvements are significant positives, but operational margin volatility and financial leverage are areas to watch.

Positive Factors

Revenue Growth

The robust revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Cash Generation

Strong free cash flow growth enhances financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Profitability Improvements

Improved profitability margins suggest effective cost management and pricing strategies, contributing to sustainable financial health.

Negative Factors

High Leverage

High leverage can increase financial risk, potentially impacting the company's ability to invest in growth and weather economic downturns.

Operational Margin Volatility

Margin volatility may indicate operational inefficiencies or market pressures, which could affect long-term profitability and stability.

Equity Financing

A moderate equity ratio suggests limited equity financing, which may constrain the company's ability to fund growth without increasing debt.

Gilat Telecom Business Overview & Revenue Model

Company Description

Gilat Telecom (GLTL) is a leading provider of satellite communication services, specializing in offering broadband connectivity solutions across various sectors, including telecommunications, government, and enterprise markets. The company focuses on delivering high-performance satellite networks, value-added services, and integrated solutions that cater to both urban and remote areas, ensuring reliable connectivity regardless of geographical challenges. Gilat Telecom's core products include satellite bandwidth, managed services, and infrastructure solutions that support a wide range of applications, from internet access to IoT connectivity.

How the Company Makes Money

Gilat Telecom generates revenue primarily through the sale of satellite bandwidth and managed services. Its revenue model is based on long-term contracts with customers in various sectors, which ensures a steady income stream. Key revenue streams include subscription fees for satellite services, one-time setup fees for network installations, and ongoing maintenance and support services. Additionally, the company engages in significant partnerships with telecommunications providers and government agencies, facilitating the deployment of its technologies in challenging environments. These strategic alliances enhance Gilat Telecom's market reach and contribute to its earnings by expanding its customer base and enabling the delivery of innovative communication solutions.

Gilat Telecom Financial Statement Overview

Summary

Gilat Telecom shows strong revenue growth and improved profitability, with a notable increase in free cash flow. However, the high debt-to-equity ratio poses a financial risk, and there is some volatility in operational margins.

Income Statement

Gilat Telecom has shown strong revenue growth with a TTM increase of 65.9%, indicating robust expansion. The gross profit margin improved to 25.19% in the TTM, reflecting efficient cost management. Net profit margin also increased to 4.61%, showcasing improved profitability. However, the company has experienced volatility in EBIT and EBITDA margins over the years, which could indicate operational challenges.

Balance Sheet

The company's debt-to-equity ratio is high at 2.08 in the TTM, suggesting significant leverage and potential financial risk. However, the return on equity improved to 21.56%, indicating effective use of equity to generate profits. The equity ratio stands at 21.11%, showing a moderate level of equity financing relative to total assets.

Cash Flow

Free cash flow growth is strong at 38.09% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.28, suggesting that operating cash flow is covering net income adequately. The free cash flow to net income ratio is high at 0.86, reflecting efficient conversion of net income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	70.56M	69.59M	55.15M	43.00M	51.82M	54.56M
Gross Profit	19.08M	16.12M	12.02M	10.49M	12.40M	15.14M
EBITDA	20.72M	14.53M	4.90M	10.20M	16.78M	20.95M
Net Income	2.61M	1.79M	715.00K	-4.06M	-5.44M	-1.65M
Balance Sheet
Total Assets	80.43M	65.33M	46.29M	44.63M	60.95M	73.62M
Cash, Cash Equivalents and Short-Term Investments	19.78M	11.02M	12.21M	14.88M	21.25M	4.88M
Total Debt	34.77M	29.04M	13.42M	18.12M	30.55M	33.10M
Total Liabilities	63.44M	49.48M	34.85M	34.79M	46.52M	55.81M
Stockholders Equity	16.98M	15.84M	11.44M	9.84M	14.44M	17.81M
Cash Flow
Free Cash Flow	15.73M	7.94M	5.44M	8.70M	12.22M	15.21M
Operating Cash Flow	17.49M	10.59M	8.72M	10.10M	14.03M	18.26M
Investing Cash Flow	-1.69M	-2.65M	594.00K	-3.73M	9.71M	-4.78M
Financing Cash Flow	-3.65M	-8.98M	-7.46M	-14.64M	-7.98M	-12.17M

Gilat Telecom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 83.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:GLTL, the sentiment is Positive. The current price of 83.8 is below the 20-day moving average (MA) of 94.41, below the 50-day MA of 91.27, and below the 200-day MA of 84.82, indicating a bullish trend. The MACD of 3.35 indicates Negative momentum. The RSI at 63.68 is Neutral, neither overbought nor oversold. The STOCH value of 69.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:GLTL.

Gilat Telecom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLTL	73 Outperform	93.94M	7.64	―	―	-5.29%	13.82%
BEZQ	69 Neutral	18.16B	13.11	54.58%	5.30%	-2.17%	25.51%
PTNR	66 Neutral	6.26B	20.71	―	3.47%	-3.73%	37.55%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%