Orbit (ORBI) AI Stock Analysis

• Market Cap: 961.64M
• Dividend Yield: 4.45%
• Average Volume (3M): 45.64K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 0.84
• Revenue Growth: 12.89%
• EPS Growth: 13.69%
• Country: IL
• Employees: 213
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 44.90
• Shares Outstanding: 25,403,850
• 10 Day Avg. Volume: 34,926
• 30 Day Avg. Volume: 45,643
• PEG Ratio: 0.95
• Price to Book (P/B): 2.49
• Price to Sales (P/S): 2.80
• P/FCF Ratio: 18.50
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: 4,612.00 ▲(11.32% Upside)

Orbit's strong financial performance, particularly in revenue growth and profitability, is the most significant factor driving its stock score. Technical analysis supports a positive outlook with bullish price trends. Valuation is moderate, with a reasonable P/E ratio and an attractive dividend yield. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Profitability

High profitability margins reflect efficient operations and pricing power, which can sustain competitive advantages and shareholder returns.

Balance Sheet Health

A low debt-to-equity ratio signifies conservative financial management, providing flexibility for future investments and resilience against economic downturns.

Negative Factors

Cash Flow Management

Poor cash flow management can limit the company's ability to invest in growth opportunities and meet financial obligations, affecting long-term viability.

Free Cash Flow Generation

Suboptimal free cash flow generation relative to net income suggests inefficiencies in converting profits into cash, which could impact liquidity and investment capacity.

Cash Flow Challenges

A low operating cash flow to net income ratio indicates potential issues in cash conversion, which may hinder the company's ability to fund operations and growth initiatives.

Orbit Business Overview & Revenue Model

Company Description

Orbit Technologies Ltd provides airborne communications, and satellite-tracking maritime and ground-station solutions in Israel and internationally. It provides audio management systems; business aviation, airborne, maritime, and land mobile SATCOM products; telemetry and tracking, and land and airborne audio management systems. The company was incorporated in 1950 and is headquartered in Netanya, Israel.

How the Company Makes Money

Orbit generates revenue primarily through the sale of its satellite communication systems and services, which include hardware, software, and ongoing support contracts. Additional revenue streams come from licensing its proprietary technology to other companies in the aerospace and telecommunications sectors. Significant partnerships with government agencies and private aerospace companies further contribute to its earnings, as they often involve long-term contracts and collaborative projects that require Orbit's specialized technology and expertise.

Orbit Financial Statement Overview

Summary

Orbit's financial performance is commendable, with strong revenue growth and profitability metrics. The balance sheet is solid, characterized by low leverage and effective equity utilization. However, challenges in cash flow management need addressing to ensure long-term financial health.

Income Statement

Orbit demonstrates strong revenue growth with a TTM revenue growth rate of 4.26%, supported by consistent improvements in gross profit margin (39.04%) and net profit margin (16.33%). The EBIT margin of 20.86% and EBITDA margin of 25.95% indicate efficient operational management. Overall, the income statement reflects robust profitability and growth momentum.

Balance Sheet

The balance sheet shows a healthy financial position with a low debt-to-equity ratio of 0.12, indicating conservative leverage. The return on equity (ROE) of 14.88% suggests effective use of equity capital. The equity ratio of 66.20% highlights strong equity financing, providing stability. However, there is room for improvement in asset utilization.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth (-20.06%), which is a concern. However, the operating cash flow to net income ratio of 0.30 and free cash flow to net income ratio of 0.70 indicate reasonable cash generation relative to profits. The company needs to focus on improving cash flow sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	79.91M	70.05M	63.01M	59.01M	54.79M	52.26M
Gross Profit	31.52M	26.89M	23.68M	21.83M	20.23M	17.73M
EBITDA	20.61M	18.17M	15.96M	14.69M	9.56M	7.76M
Net Income	12.95M	11.75M	9.90M	9.68M	7.28M	4.61M
Balance Sheet
Total Assets	134.64M	119.33M	120.38M	106.12M	76.91M	61.33M
Cash, Cash Equivalents and Short-Term Investments	25.30M	34.19M	38.80M	34.56M	29.89M	23.55M
Total Debt	10.66M	10.24M	10.07M	11.02M	11.21M	5.51M
Total Liabilities	45.96M	40.51M	40.36M	36.78M	33.38M	25.63M
Stockholders Equity	88.68M	78.83M	80.01M	69.34M	43.53M	35.70M
Cash Flow
Free Cash Flow	880.00K	10.60M	4.86M	-8.05M	7.93M	10.05M
Operating Cash Flow	3.94M	13.51M	11.89M	137.00K	10.01M	11.23M
Investing Cash Flow	-4.02M	-1.22M	-13.96M	-22.33M	-2.08M	3.97M
Financing Cash Flow	-15.49M	-15.20M	-1.56M	13.73M	-1.56M	-3.77M

Orbit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4143.00
• 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:ORBI, the sentiment is Positive. The current price of 4143 is below the 20-day moving average (MA) of 4153.25, above the 50-day MA of 4012.56, and above the 200-day MA of 3827.11, indicating a neutral trend. The MACD of 34.36 indicates Positive momentum. The RSI at 53.59 is Neutral, neither overbought nor oversold. The STOCH value of 64.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ORBI.

Orbit Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ORBI	71 Outperform	961.64M	20.83	―	4.45%	12.89%	13.69%
ISHI	62 Neutral	3.11B	64.83	―	0.63%	10.92%	-24.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BSEN	59 Neutral	5.93B	21.26	―	―	14.00%	20.33%