Gilat Telecom (GLTL) AI Stock Analysis

• Market Cap: ₪151.32M
• Dividend Yield: N/A
• Average Volume (3M): 552.87K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.78
• 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: 97,248,270
• 10 Day Avg. Volume: 285,346
• 30 Day Avg. Volume: 552,869
• 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: 72 Outperform
• Price Target: 173.00 ▲(106.44% Upside)

The score is driven primarily by solid financial performance (strong growth and improving margins) balanced against leverage and weakening free cash flow growth. Technicals show strong momentum but with overbought risk, while valuation is supportive with a low P/E.

Positive Factors

Revenue growth and improving margins

TTM revenue growth of ~13% plus rising EBIT/EBITDA margins indicate durable demand for Gilat's satellite and managed services. Sustained contract-driven revenues and margin improvement point to scalable operations and tighter cost control, supporting medium-term cash generation and operational resilience.

High cash conversion (FCF to net income)

A 0.90 FCF-to-net-income ratio shows the company converts most accounting earnings into cash. This strong conversion is a durable strength: it supports reinvestment, service of obligations, and funding of growth initiatives without immediate reliance on external equity, improving financial flexibility over months.

Effective use of equity (strong ROE)

ROE at ~16% signals management effectiveness in generating returns from shareholders' equity. Over a multi-month horizon this suggests disciplined capital allocation and operational efficiency, aiding investor confidence and providing a structural advantage when competing for contracts and funding.

Negative Factors

High leverage

A debt-to-equity ratio above 2 indicates significant leverage which raises interest expense sensitivity and refinancing risk. Structurally, high leverage can limit strategic flexibility, constrain investment in network expansion, and amplify earnings volatility if revenue or margin momentum weakens.

Declining free cash flow growth

Although cash conversion is strong, falling free cash flow growth reduces available liquidity for capex, acquisitions, or debt repayment. Over several months this trend can pressure balance-sheet repair and require external funding or curtailed investment, weakening long-term growth optionality.

Low net profit margin

A net margin under 4% leaves limited buffer against cost shocks or rate increases. Despite improving operating metrics, low bottom-line profitability constrains the firm's ability to build reserves, absorb higher financing costs from leverage, and sustain shareholder returns in adverse scenarios.

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

Strong revenue growth (TTM +13.2%) and improving operating margins support performance, but high leverage (debt-to-equity 2.05) and declining free cash flow growth elevate risk despite solid cash conversion (FCF to net income 0.90).

Income Statement

Gilat Telecom has shown impressive revenue growth in the TTM (Trailing-Twelve-Months) with a 13.2% increase, indicating strong demand for its services. The company has maintained a healthy gross profit margin of 27.04% and a net profit margin of 3.70%, reflecting efficient cost management. The EBIT and EBITDA margins have also improved, showcasing enhanced operational efficiency. However, the net profit margin remains relatively low, suggesting room for improvement in profitability.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 2.05, indicating significant leverage, which could pose financial risks if not managed properly. However, the return on equity (ROE) of 16.01% is strong, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced approach to financing assets through equity.

Cash Flow

Gilat Telecom's cash flow analysis reveals a decline in free cash flow growth, which is a concern for future liquidity. The operating cash flow to net income ratio of 0.32 indicates that the company generates sufficient cash from operations to cover its net income. The free cash flow to net income ratio of 0.90 is strong, suggesting that the company is effectively converting its earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	71.36M	69.59M	55.15M	43.00M	51.82M	54.56M
Gross Profit	20.12M	16.12M	12.02M	10.49M	12.40M	15.14M
EBITDA	23.18M	14.53M	4.90M	10.20M	16.78M	20.95M
Net Income	3.61M	1.79M	715.00K	-4.06M	-5.44M	-1.65M
Balance Sheet
Total Assets	82.01M	65.33M	46.29M	44.63M	60.95M	73.62M
Cash, Cash Equivalents and Short-Term Investments	22.73M	11.02M	12.21M	14.88M	21.25M	4.88M
Total Debt	32.27M	29.04M	13.42M	18.12M	30.55M	33.10M
Total Liabilities	60.94M	49.48M	34.85M	34.79M	46.52M	55.81M
Stockholders Equity	21.07M	15.84M	11.44M	9.84M	14.44M	17.81M
Cash Flow
Free Cash Flow	15.51M	7.94M	5.44M	8.70M	12.22M	15.21M
Operating Cash Flow	17.14M	10.59M	8.72M	10.10M	14.03M	18.26M
Investing Cash Flow	-1.55M	-2.65M	594.00K	-3.73M	9.71M	-4.78M
Financing Cash Flow	-2.04M	-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: Negative
• STOCH: Negative

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 141.53, below the 50-day MA of 127.71, and below the 200-day MA of 98.59, indicating a bullish trend. The MACD of 6.60 indicates Negative momentum. The RSI at 75.08 is Negative, neither overbought nor oversold. The STOCH value of 86.11 is Negative, 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
BEZQ	75 Outperform	₪22.45B	16.20	54.58%	5.00%	-2.17%	25.51%
GLTL	72 Outperform	₪151.32M	11.12	―	―	-5.29%	13.82%
PTNR	72 Outperform	₪7.12B	23.17	―	3.49%	-3.73%	37.55%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%