Orbit (ORBI) AI Stock Analysis

• Market Cap: ₪1.07B
• Dividend Yield: 4.42%
• Average Volume (3M): 45.64K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.78
• 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: 25,416,220
• 10 Day Avg. Volume: 34,926
• 30 Day Avg. Volume: 45,643
• PEG Ratio: 1.91
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 3.62
• P/FCF Ratio: 33.58
• 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: 68 Neutral
• Price Target: 4,524.00 ▲(9.54% Upside)
• Action: Downgraded Date: 02/21/26
• Date: Action: Downgraded 02/21/26

The score is driven primarily by strong financial performance (steady growth and robust margins), tempered by weaker cash-flow quality and a 2025 debt increase. Technicals are neutral-to-soft (negative MACD with otherwise neutral oscillators), while valuation is supported by a strong dividend yield but limited by a mid-to-high P/E.

Positive Factors

Diverse revenue streams & long-term contracts

Orbit's business model spans hardware, software, licensing and support contracts, with significant government and private aerospace partnerships. This mix creates recurring revenue, sticky customer relationships and multi-year contract visibility that support durable revenue and strategic resilience over months.

Steady revenue growth and robust margins

Consistent top-line growth and high gross/EBITDA margins indicate scalable products and pricing power in aerospace communications. Sustained margins near 25–38% provide operational cushion, enabling investment in R&D and support of contract obligations without relying on volatile one-off revenue drivers.

Generally manageable leverage and larger equity base

A moderate debt-to-equity ratio and materially expanded equity/assets give Orbit balance sheet resilience. The thicker equity base and asset growth improve capacity to absorb shocks, fund growth projects or secure contract performance bonds, supporting stability across the medium term.

Negative Factors

Uneven cash conversion from earnings

Earnings have not consistently translated into operating cash, with weak 2022 OCF and muted conversion in 2023–2025. Persistent low cash conversion risks funding flexibility for capex, R&D, dividends or debt service if revenue or margins soften, making liquidity management a structural concern.

Sharp debt increase in 2025

A near-doubling of debt in 2025 materially raises leverage and interest obligations relative to prior years. Even with current moderate ratios, this step-up tightens financial flexibility, increases refinancing and covenant risk, and could constrain strategic investments if cash generation lags.

Net margin dip in 2025

A decline in net margin despite revenue growth signals rising operating or non-operating costs that erode profitability. If persistent, such margin pressure can reduce free cash flow and return on capital, limiting reinvestment capacity and weakening the long-run earnings quality profile.

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

Strong and improving operations with steady revenue growth and attractive margins (gross ~37–38%, EBITDA ~25–26%). Offsetting this are uneven cash conversion (notably weak 2022 and still-low operating cash flow vs. earnings) and a sharp rise in debt in 2025, which reduces flexibility.

Income Statement

Revenue has grown steadily from 2020–2025 (2025 up ~12% year over year), showing improving scale and demand. Profitability is strong and relatively consistent, with gross margin ~37–38% and EBITDA margin ~25–26% in recent years; operating margin also improved meaningfully versus 2020. The main weakness is a modest dip in net margin in 2025 versus 2024 (despite higher revenue), suggesting higher costs or below-the-line pressure.

Balance Sheet

Leverage remains moderate, with debt-to-equity at ~0.25 in 2025, which is generally manageable for the sector. Equity and assets have expanded substantially over time, supporting balance sheet resilience. The key concern is debt increased sharply in 2025 versus 2024 (from ~10.2M to ~22.6M), reducing balance sheet flexibility if earnings or cash generation were to weaken.

Cash Flow

Cash generation is positive in recent years, with free cash flow positive from 2023–2025 and free cash flow running below net income but still solid in 2024–2025 (roughly ~78–86% of net income). However, cash flow quality is somewhat uneven: 2022 saw very weak operating cash flow and materially negative free cash flow, and operating cash flow relative to net income remains low in 2023–2025, indicating earnings are not consistently converting into cash at a high rate.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	89.88M	70.05M	63.01M	59.01M	54.79M
Gross Profit	34.08M	26.89M	23.68M	21.83M	20.23M
EBITDA	23.17M	18.17M	15.96M	14.69M	9.56M
Net Income	13.32M	11.75M	9.90M	9.68M	7.28M
Balance Sheet
Total Assets	138.57M	119.33M	120.38M	106.12M	76.91M
Cash, Cash Equivalents and Short-Term Investments	39.54M	34.19M	38.80M	34.56M	29.89M
Total Debt	22.64M	10.24M	10.07M	11.02M	11.21M
Total Liabilities	46.23M	40.51M	40.36M	36.78M	33.38M
Stockholders Equity	91.68M	78.83M	80.01M	69.34M	43.53M
Cash Flow
Free Cash Flow	9.69M	10.60M	4.86M	-8.05M	7.93M
Operating Cash Flow	11.30M	13.51M	11.89M	137.00K	10.01M
Investing Cash Flow	4.21M	-1.22M	-13.96M	-22.33M	-2.08M
Financing Cash Flow	-2.06M	-15.20M	-1.56M	13.73M	-1.56M

Orbit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4130.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 4130 is above the 20-day moving average (MA) of 4129.85, below the 50-day MA of 4152.66, and above the 200-day MA of 4052.45, indicating a bullish trend. The MACD of 18.41 indicates Negative momentum. The RSI at 57.98 is Neutral, neither overbought nor oversold. The STOCH value of 90.03 is Negative, 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	68 Neutral	₪1.07B	24.43	―	4.42%	12.89%	13.69%
BSEN	65 Neutral	₪8.05B	44.56	―	―	14.00%	20.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ISHI	58 Neutral	₪4.06B	87.81	―	0.57%	10.92%	-24.52%