Gilat Telecom (GLTL) AI Stock Analysis

• Market Cap: 112.72M
• Dividend Yield: N/A
• Average Volume (3M): 552.87K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.74
• 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: 93,937,310
• 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: 73 Outperform
• Price Target: 133.00 ▲(58.71% Upside)

The overall score reflects strong financial performance and attractive valuation, offset by technical indicators suggesting the stock is overbought. The company's high leverage and declining free cash flow growth are potential risks that need to be managed. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

The 13.2% revenue growth indicates strong demand for Gilat Telecom's services, suggesting a robust market position and potential for continued expansion.

Operational Efficiency

Enhanced operational efficiency and a strong ROE of 16.01% demonstrate effective management and the ability to generate profits from equity.

Market Position

As a leader in satellite communications, Gilat Telecom benefits from a strong market position, supporting long-term growth and competitive advantage.

Negative Factors

High Leverage

Significant leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns.

Declining Free Cash Flow

A decline in free cash flow growth could impact future liquidity, affecting the company's ability to invest in growth opportunities.

Low Net Profit Margin

A low net profit margin suggests room for improvement in profitability, which is crucial for sustaining long-term financial health.

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 exhibits strong revenue growth and improved profitability, with a significant increase in free cash flow. However, the high debt-to-equity ratio indicates 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	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: Positive
• 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 115.92, below the 50-day MA of 100.05, and below the 200-day MA of 88.83, indicating a bullish trend. The MACD of 6.03 indicates Positive momentum. The RSI at 58.54 is Neutral, neither overbought nor oversold. The STOCH value of 49.07 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
BEZQ	75 Outperform	19.51B	14.09	54.58%	5.00%	-2.17%	25.51%
GLTL	73 Outperform	112.72M	8.38	―	―	-5.29%	13.82%
PTNR	72 Outperform	7.19B	23.41	―	3.49%	-3.73%	37.55%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%