Priortech (PRTC) AI Stock Analysis

• Market Cap: 1.85B
• Dividend Yield: N/A
• Average Volume (3M): 33.67K
• Price to Earnings (P/E): 16.9
• Beta (1Y): 1.19
• Revenue Growth: N/A
• EPS Growth: 7.88%
• Country: IL
• Employees: 2,067
• Sector: Industrials
• Sector Strength: 73
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 140.30
• Shares Outstanding: 11,691,151
• 10 Day Avg. Volume: 35,296
• 30 Day Avg. Volume: 33,674
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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

• Rating: 59 Neutral
• Price Target: ―

Priortech shows strong financial performance with notable profitability and revenue growth, supported by a robust balance sheet. However, negative cash flows and operational inefficiencies are significant concerns. The technical analysis indicates a bearish trend, which may dampen investor sentiment. Valuation appears reasonable but lacks a dividend, which could deter income investors.

Priortech Business Overview & Revenue Model

Company Description

Priortech Ltd. (PRTC) is a high-tech holding company primarily engaged in the development, manufacture, and marketing of advanced technologies in the sectors of semiconductor capital equipment, printed circuit boards, and electronic components. Through its subsidiaries, Priortech offers a diversified portfolio of products and services that cater to the needs of global industries in electronics, communications, and automotive sectors.

How the Company Makes Money

Priortech generates revenue primarily through its subsidiaries that operate in various high-technology markets. The company's revenue model hinges on the sale of semiconductor capital equipment, printed circuit boards, and electronic components. These subsidiaries design, manufacture, and market advanced technological solutions, with key revenue streams coming from product sales, long-term supply agreements, and service contracts. Additionally, Priortech may benefit from strategic partnerships and collaborations with industry leaders, enhancing its market presence and driving sales through innovative offerings.

Priortech Financial Statement Overview

Summary

Priortech demonstrates strong profitability and revenue growth with a solid balance sheet characterized by low financial leverage. However, operational inefficiencies and cash flow issues could pose risks if not addressed. The company is well-positioned in terms of equity but needs to focus on improving operational cash generation.

Income Statement

Priortech has shown a positive revenue growth rate of 17.46% from 2023 to 2024, and a strong net profit margin of 42.63% in 2024. However, the company is experiencing negative EBIT margins which suggest operational inefficiencies. Despite this, the substantial EBITDA margin of 48.45% indicates strong underlying earnings power when excluding non-cash expenses.

Balance Sheet

The balance sheet of Priortech is relatively strong with a debt-to-equity ratio of 0.26 in 2024, indicating low financial leverage and potential for growth. The return on equity is robust at 13.53%, highlighting effective use of shareholder funds. However, the equity ratio of 76.52% suggests a high reliance on equity financing.

Cash Flow

Priortech's cash flow situation is concerning, with negative free cash flow and operating cash flow in 2024. The operating cash flow to net income ratio is negative, which indicates challenges in converting earnings into cash. Despite this, the company has managed its investing and financing activities to maintain liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	811.00K	787.00K	670.00K	659.00K	686.00K	619.00K
Gross Profit	811.00K	787.00K	632.00K	659.00K	686.00K	619.00K
EBITDA	40.53M	38.13M	27.36M	45.37M	26.57M	22.37M
Net Income	31.11M	33.55M	23.65M	37.50M	20.83M	14.64M
Balance Sheet
Total Assets	403.79M	323.87M	308.16M	285.44M	257.21M	187.66M
Cash, Cash Equivalents and Short-Term Investments	1.00M	1.91M	8.05M	11.69M	3.58M	37.80M
Total Debt	127.14M	64.94M	64.99M	66.07M	71.42M	24.87M
Total Liabilities	131.50M	68.49M	67.75M	68.64M	75.00M	32.95M
Stockholders Equity	263.18M	247.89M	234.70M	212.45M	182.00M	160.98M
Cash Flow
Free Cash Flow	-1.91M	-1.68M	-1.17M	-1.30M	-6.44M	-571.00K
Operating Cash Flow	-1.91M	-1.68M	-1.17M	-1.30M	-6.44M	-571.00K
Investing Cash Flow	-58.40M	16.60M	-3.92M	-38.14M	-29.06M	30.80M
Financing Cash Flow	56.14M	-16.10M	0.00	47.57M	-205.00K	-8.66M

Priortech Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16390.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:PRTC, the sentiment is Negative. The current price of 16390 is above the 20-day moving average (MA) of 16014.00, below the 50-day MA of 18009.40, and below the 200-day MA of 16944.75, indicating a bearish trend. The MACD of -607.37 indicates Positive momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 9.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:PRTC.

Priortech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.73B	15.32	7.37%	2.01%	2.86%	-14.57%
PRTC	59 Neutral	1.85B	16.93		―	―	7.88%
CISY	―	447.63M	―		0.52%	―	―
PCBT	―	803.16M	20.23		4.18%	―	―
AFHL	64 Neutral	1.17B	17.28		1.68%	-16.04%	1025.81%
LEVI	49 Neutral	2.10B	251.83		1.06%	―	―

Priortech Corporate Events

Priortech Ltd. Announces Key General Assembly Meeting

Priortech Ltd. has announced a General Assembly meeting to discuss key agenda items including the approval of the company’s financial statements for the year ending December 31, 2024, reappointment of auditors and directors, and the company’s future plans. The meeting will take place on March 12, 2025, in Tel Aviv, Israel. This meeting is significant for stakeholders as it will confirm the company’s financial position and outline strategic directions, potentially influencing investor confidence and the company’s market positioning.

Priortech Ltd. Announces Key Transactions with Controlling Shareholder

Priortech Ltd. is planning to hold a special general meeting on March 12, 2025, to discuss several transactions involving its controlling shareholder, Mr. Daniel Shoshani. The agenda includes the approval of a private placement of 3,000,000 options to Mr. Shoshani, an amendment to a loan agreement with PriorTech Ltd., and the renewal of management services with ZhuHai Access Semiconductor. These transactions could significantly impact the company’s governance and financial arrangements, enhancing Mr. Shoshani’s influence on the company’s strategic decisions.