Priortech (PRTC) AI Stock Analysis

• Market Cap: ₪2.92B
• Dividend Yield: N/A
• Average Volume (3M): 22.82K
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.24
• Revenue Growth: N/A
• EPS Growth: 20.99%
• Country: IL
• Employees: 2,067
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 403.10
• Shares Outstanding: 11,757,413
• 10 Day Avg. Volume: 20,892
• 30 Day Avg. Volume: 22,822
• PEG Ratio: 0.36
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 709.35
• P/FCF Ratio: -332.10
• 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: 61 Neutral
• Price Target: 27,430.00 ▲(26.11% Upside)

The score is primarily held back by weak cash generation and negative operating profit signals despite strong reported net margins. Technicals are a clear positive with strong uptrend and momentum, while valuation is neutral-to-slightly expensive with no dividend yield data to offset it.

Positive Factors

Modest Revenue Growth

Sustained mid-single-digit revenue growth indicates stable demand and modest expansion of product or market penetration. Over 2–6 months this supports planning for incremental investment and signals the business is not in secular decline, aiding medium-term revenue predictability.

Reasonably Solid Balance Sheet and ROE

Moderate leverage combined with growing equity and a ~14% ROE shows the company efficiently deploys capital and retains a cushion to withstand shocks. This durability supports longer-term investment capacity and financial resilience if operating performance stabilizes.

Strong Reported Net and EBITDA Margins

High reported net and EBITDA margins point to either a favorable cost structure or pricing power in the business. If these margins persist at the operating level, they can provide cash buffer for R&D, capex, or deleveraging, improving long-term competitiveness and strategic flexibility.

Negative Factors

Negative Operating and Free Cash Flow

Consistent negative operating and free cash flow erodes internal funding for operations and growth, forcing reliance on external financing. Over months this raises liquidity risk, constrains reinvestment, and makes the company vulnerable to tightening credit or higher borrowing costs.

Persistently Negative EBIT

Negative EBIT across periods signals core operations are loss-making before non-operating items. This is a structural earnings-quality issue: without operational improvement, reliance on one-time items or financing to report net profits is unsustainable and compresses long-term profitability.

Rising Leverage Reduces Flexibility

A meaningful step-up in debt-to-equity over the last year increases fixed obligations and reduces balance sheet flexibility. If cash generation remains weak, higher leverage elevates refinancing and interest-rate risk, limiting the company's ability to invest or absorb operational setbacks.

Priortech Business Overview & Revenue Model

Company Description

Priortech Ltd, through its subsidiaries, develops, manufactures, and markets optical systems for automatic testing and measurement in Israel and internationally. It offers machines, semiconductors, semiconductor components, semiconductor wafers, and electronic substrates. Priortech Ltd was incorporated in 1980 and is based in Migdal HaEmek, Israel.

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

Mixed fundamentals: modest TTM revenue growth (~4.7%) and a reasonably solid balance sheet (debt-to-equity ~0.51; ROE ~14%) are positives, but persistently negative EBIT and consistently negative operating/free cash flow (TTM FCF about -1.9M) are major quality-of-earnings and sustainability concerns.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew ~4.7% versus the prior year, showing modest top-line momentum. Reported profitability is very strong on the surface (TTM net margin ~43% and high EBITDA margin), but the company also reports negative EBIT in every period shown (including TTM), which is a notable quality-of-earnings red flag and suggests results may be heavily influenced by items below operating profit. Overall: strong reported net profitability, but mixed operating performance and only modest growth.

Balance Sheet

The balance sheet looks reasonably solid with moderate leverage: debt-to-equity is ~0.51 in TTM (Trailing-Twelve-Months), up meaningfully from ~0.26 in 2024, indicating rising reliance on debt. Equity has grown over time and returns on equity are healthy (TTM ~14%), supporting financial strength. Key watchout is the sharp step-up in total debt in TTM, which reduces flexibility if earnings quality or cash generation remains weak.

Cash Flow

Cash generation is the weakest area: operating cash flow and free cash flow are negative across all periods provided, including TTM (Trailing-Twelve-Months) at about -1.9M. While TTM free cash flow improved versus 2024 (positive growth), the business is still not converting reported profits into cash, which raises sustainability risk and can increase dependence on financing. Until operating cash flow turns consistently positive, liquidity and funding needs remain a key concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	849.00K	787.00K	670.00K	659.00K	686.00K	619.00K
Gross Profit	849.00K	787.00K	632.00K	659.00K	686.00K	619.00K
EBITDA	50.16M	38.13M	27.36M	45.37M	26.57M	22.37M
Net Income	36.78M	33.55M	23.65M	37.50M	20.83M	14.64M
Balance Sheet
Total Assets	401.00M	323.87M	308.16M	285.44M	257.21M	187.66M
Cash, Cash Equivalents and Short-Term Investments	59.97M	1.91M	8.05M	11.69M	3.58M	37.80M
Total Debt	130.25M	64.94M	64.99M	66.07M	71.42M	24.87M
Total Liabilities	133.85M	68.49M	67.75M	68.64M	75.00M	32.95M
Stockholders Equity	255.95M	247.89M	234.70M	212.45M	182.00M	160.98M
Cash Flow
Free Cash Flow	-1.92M	-1.68M	-1.17M	-1.30M	-6.44M	-571.00K
Operating Cash Flow	-1.92M	-1.68M	-1.17M	-1.30M	-6.44M	-571.00K
Investing Cash Flow	-45.82M	16.60M	-3.92M	-38.14M	-29.06M	30.80M
Financing Cash Flow	58.78M	-16.10M	0.00	47.57M	-205.00K	-8.66M

Priortech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21750.00
• 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:PRTC, the sentiment is Positive. The current price of 21750 is below the 20-day moving average (MA) of 24688.00, below the 50-day MA of 22965.40, and above the 200-day MA of 19308.90, indicating a bullish trend. The MACD of 700.39 indicates Positive momentum. The RSI at 56.01 is Neutral, neither overbought nor oversold. The STOCH value of 46.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:PRTC.

Priortech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFHL	65 Neutral	₪1.84B	22.91	―	1.12%	-8.18%	329.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRTC	61 Neutral	₪2.92B	22.41	―	―	―	20.99%
LEVI	54 Neutral	₪2.86B	-764.73	―	0.96%	―	―