Gilat Telecom (GLTL) AI Stock Analysis

• Market Cap: 67.22M
• Dividend Yield: N/A
• Average Volume (3M): 252.04K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.77
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 100
• Sector: Communication Services
• Sector Strength: 85
• Industry: Telecommunications Services
• EPS (TTM): 1.80
• Shares Outstanding: 86,069,060
• 10 Day Avg. Volume: 283,013
• 30 Day Avg. Volume: 252,038
• PEG Ratio: 0.05
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.56
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.75
• Enterprise Value/Ebitda: 0.27
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: 83.00 ▲(10.81%Upside)

Gilat Telecom's stock score is driven by strong financial performance characterized by revenue growth and robust cash flow management, despite facing challenges in profitability and leverage. The valuation appears attractive due to a low P/E ratio, and technical indicators suggest stable market conditions. The absence of earnings call insights and corporate events limits additional context.

Gilat Telecom Business Overview & Revenue Model

Company Description

Gilat Telecom (GLTL) is a leading telecommunications company that specializes in providing broadband connectivity solutions across sub-Saharan Africa and the Middle East. The company delivers a variety of services, including satellite communication, fiber optic connectivity, and managed network services to a diverse clientele, such as businesses, governments, and service providers. With a focus on innovation and customer-centric solutions, Gilat Telecom is committed to enhancing digital connectivity in underserved regions.

How the Company Makes Money

Gilat Telecom generates revenue through multiple streams, primarily by offering satellite and fiber optic communication services. The company sells bandwidth and connectivity solutions to ISPs, enterprises, and government entities. Additionally, Gilat Telecom provides managed network services, which include network design, implementation, and maintenance, allowing clients to optimize their telecommunications infrastructure. Key partnerships with satellite operators and technology providers enable Gilat Telecom to offer competitive and reliable service packages, contributing significantly to its earnings.

Gilat Telecom Financial Statement Overview

Summary

Gilat Telecom exhibits positive revenue growth and efficient cash flow management, which are critical strengths. However, the company faces challenges with low net profit margins and high leverage. Maintaining strong cash flows and improving profitability will be essential for sustaining long-term growth and financial health.

Income Statement

Gilat Telecom's income statement shows a positive trend in revenue growth, with a substantial increase of 26.2% from 2023 to 2024. The gross profit margin for 2024 stands at 23.2%, which is a reasonable level for the industry. However, the net profit margin is relatively low at 2.6%, indicating thin profitability. The EBIT and EBITDA margins are also modest at 7.1% and 20.9%, respectively, suggesting operational efficiency but limited bottom-line profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.83, indicating significant leverage, which can pose financial risks. The return on equity (ROE) is fairly low at 11.3%, and the equity ratio is 24.3%, reflecting a moderate equity base relative to total assets. The company has managed to maintain a stable equity position despite fluctuations in total assets and liabilities.

Cash Flow

Cash flow analysis shows strong free cash flow growth of 45.9% from 2023 to 2024, highlighting effective cash management. The operating cash flow to net income ratio is 5.9, and the free cash flow to net income ratio is 4.4, both indicating robust cash generation relative to reported earnings. This strong cash position supports operational and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
69.59M	55.15M	43.00M	51.82M	54.56M
	Gross Profit
16.12M	12.02M	10.49M	12.40M	15.14M
	EBIT
4.95M	2.18M	-1.50M	-2.84M	3.65M
	EBITDA
14.53M	4.90M	10.20M	16.78M	20.95M
	Net Income Common Stockholders
1.79M	715.00K	-4.06M	-5.44M	-1.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.02M	12.21M	14.88M	21.25M	4.88M
	Total Assets
65.33M	46.29M	44.63M	60.95M	73.62M
	Total Debt
29.04M	13.42M	18.12M	30.55M	33.10M
	Net Debt
18.03M	1.20M	7.22M	9.31M	28.22M
	Total Liabilities
49.48M	34.85M	34.79M	46.52M	55.81M
	Stockholders Equity
15.84M	11.44M	9.84M	14.44M	17.81M
Cash Flow		Free Cash Flow
7.94M	5.44M	8.70M	12.22M	15.21M
	Operating Cash Flow
10.59M	8.72M	10.10M	14.03M	18.26M
	Investing Cash Flow
-2.65M	594.00K	-3.73M	9.71M	-4.78M
	Financing Cash Flow
-8.98M	-7.46M	-14.64M	-7.98M	-12.17M

Gilat Telecom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.90
• 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 74.9 is below the 20-day moving average (MA) of 76.76, above the 50-day MA of 74.31, and above the 200-day MA of 69.97, indicating a bullish trend. The MACD of 1.71 indicates Negative momentum. The RSI at 53.93 is Neutral, neither overbought nor oversold. The STOCH value of 39.68 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	67.22M	5.04		―	―	―
ELCO	65 Neutral	4.41B	―		7.89%	9.65%	58.93%
GILT	64 Neutral	$346.66M	24.96	4.79%	―	13.49%	-39.61%
Sector *	61 Neutral	$14.56B	5.82	-4.02%	6.41%	2.72%	-31.67%