Partner (PTNR) AI Stock Analysis

• Market Cap: ₪7.12B
• Dividend Yield: 3.49%
• Average Volume (3M): 306.99K
• Price to Earnings (P/E): 23.2
• Beta (1Y): 1.03
• Revenue Growth: -3.73%
• EPS Growth: 37.55%
• Country: IL
• Employees: 2,405
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 48.10
• Shares Outstanding: 187,248,840
• 10 Day Avg. Volume: 311,040
• 30 Day Avg. Volume: 306,985
• PEG Ratio: 0.23
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 1.34
• P/FCF Ratio: 10.02
• 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: 72 Outperform
• Price Target: 4,339.00 ▲(11.89% Upside)

The overall stock score of 72 reflects strong technical indicators and solid financial performance, despite concerns about revenue and cash flow growth. The valuation is fair, providing a balanced outlook for investors.

Positive Factors

Operational Efficiency

Strong operational efficiency and improved return on equity indicate effective management and resource utilization, supporting long-term profitability.

Cash Generation

Efficient cash generation relative to net income suggests robust financial health, enabling sustained operations and potential for reinvestment.

Profit Margins

Improved net profit margins indicate effective cost management and pricing strategies, enhancing long-term profitability and competitiveness.

Negative Factors

Revenue Decline

Declining revenue growth poses a risk to future earnings and market position, necessitating strategic initiatives to reverse the trend.

Free Cash Flow Decline

A decline in free cash flow growth could limit future investment capabilities and financial flexibility, impacting long-term growth prospects.

Debt Levels

Moderate reliance on debt financing requires careful monitoring to avoid financial strain, which could affect long-term stability and growth.

Partner Business Overview & Revenue Model

Company Description

Partner (PTNR) is a telecommunications and internet service provider based in Israel, focused on delivering a broad range of communication solutions to both residential and business customers. The company operates in the telecom sector, providing services such as mobile telephony, fixed-line telephony, internet services, and television offerings. Partner is known for its innovative approaches to customer service and technology integration, catering to a diverse clientele with tailored packages to meet their connectivity needs.

How the Company Makes Money

Partner generates revenue through multiple streams, primarily from mobile and fixed-line telecommunications services, including voice, text, and data plans for both individual and corporate customers. Additional revenue is derived from internet service subscriptions and TV services. The company also partners with various content providers to offer bundled services, enhancing its value proposition to customers. Furthermore, Partner benefits from strategic alliances with technology firms and infrastructure providers, which help reduce operational costs and expand service offerings, thus contributing positively to its earnings.

Partner Financial Statement Overview

Summary

Partner exhibits strong profitability and operational efficiency, with solid margins and improved return on equity. However, negative revenue growth and declining free cash flow growth rate are concerns. The company should focus on reversing the revenue decline and enhancing cash flow generation to sustain long-term growth.

Income Statement

Partner has demonstrated solid profitability with a consistent gross profit margin around 26% in the TTM, indicating effective cost management. The net profit margin has improved to 9.2% in the TTM, reflecting enhanced operational efficiency. However, the revenue growth rate has been negative, with a decline of 2.05% in the TTM, which is a concern for future growth prospects. The EBIT and EBITDA margins have shown strength, particularly the EBITDA margin at 40.2%, suggesting robust operational performance.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.64 in the TTM, indicating a balanced approach to leveraging. Return on equity has improved to 13.96%, showcasing effective use of equity to generate profits. However, the equity ratio stands at 48.6%, suggesting a moderate reliance on debt financing. The overall financial stability is sound, but the company should monitor its debt levels closely.

Cash Flow

Operating cash flow remains strong, with a high operating cash flow to net income ratio of 0.95 in the TTM, indicating efficient cash generation relative to net income. However, the free cash flow growth rate has declined by 14.31% in the TTM, which could impact future investment capabilities. The free cash flow to net income ratio is healthy at 0.52, suggesting good cash conversion, but the decline in free cash flow growth is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.20B	3.32B	3.35B	3.46B	3.36B	3.19B
Gross Profit	825.00M	864.00M	758.00M	797.00M	631.00M	525.00M
EBITDA	1.43B	1.13B	1.02B	713.00M	880.00M	787.00M
Net Income	306.00M	277.00M	163.00M	-100.00M	115.00M	17.00M
Balance Sheet
Total Assets	4.59B	4.82B	4.83B	4.97B	5.39B	5.13B
Cash, Cash Equivalents and Short-Term Investments	630.00M	692.00M	648.00M	762.00M	652.00M	787.00M
Total Debt	1.37B	1.57B	1.84B	2.10B	2.40B	2.30B
Total Liabilities	2.36B	2.57B	2.87B	3.19B	3.53B	3.40B
Stockholders Equity	2.23B	2.25B	1.96B	1.78B	1.86B	1.72B
Cash Flow
Free Cash Flow	539.00M	444.00M	295.00M	247.00M	102.00M	213.00M
Operating Cash Flow	1.15B	971.00M	951.00M	931.00M	774.00M	786.00M
Investing Cash Flow	-407.00M	-717.00M	-429.00M	-219.00M	-727.00M	-581.00M
Financing Cash Flow	-599.00M	-421.00M	-434.00M	-460.00M	-115.00M	-128.00M

Partner Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3878.00
• 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:PTNR, the sentiment is Positive. The current price of 3878 is above the 20-day moving average (MA) of 3789.90, above the 50-day MA of 3826.04, and above the 200-day MA of 3165.72, indicating a bullish trend. The MACD of -0.47 indicates Negative momentum. The RSI at 55.87 is Neutral, neither overbought nor oversold. The STOCH value of 73.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:PTNR.

Partner Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEZQ	75 Outperform	₪22.45B	16.20	54.58%	5.00%	-2.17%	25.51%
CEL	74 Outperform	₪6.34B	24.70	9.92%	3.18%	-4.33%	67.49%
PTNR	72 Outperform	₪7.12B	23.17	―	3.49%	-3.73%	37.55%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%