Partner (PTNR) AI Stock Analysis

• Market Cap: 5.23B
• Dividend Yield: 4.73%
• Average Volume (3M): 580.53K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.23
• Revenue Growth: -6.28%
• EPS Growth: 50.36%
• Country: IL
• Employees: 2,405
• Sector: Communication Services
• Sector Strength: 83
• Industry: Telecommunications Services
• EPS (TTM): 43.00
• Shares Outstanding: 186,498,860
• 10 Day Avg. Volume: 542,140
• 30 Day Avg. Volume: 580,530
• PEG Ratio: 5.50
• Price to Book (P/B): 2.56
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.24
• 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: 2,700.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: 3,233.00 ▲(33.05%Upside)

Partner's strong financial performance, characterized by robust profitability and efficient cash management, is the most significant factor in its solid overall score. The technical analysis further enhances the stock's appeal, demonstrating strong momentum and positive market sentiment. While the valuation is reasonable, it does not indicate significant undervaluation, balancing growth with income potential.

Partner Business Overview & Revenue Model

Company Description

Partner Communications Company Ltd. (PTNR) is a leading telecommunications provider based in Israel. The company operates in the telecommunications sector, offering a wide range of services including mobile telephony, fixed-line telephony, internet services, and digital television. Partner Communications is known for its comprehensive telecom solutions catering to both individual consumers and business clients, providing quality service and innovative communication solutions across the country.

How the Company Makes Money

Partner Communications Company Ltd. generates revenue primarily through subscription fees for its mobile, internet, and television services. The company earns money from individual customers subscribing to various service plans, which include mobile data packages, fixed-line telephony services, and high-speed internet connections. Additionally, Partner Communications offers business solutions such as enterprise networking and connectivity services, contributing to its revenue streams. The company benefits from strategic partnerships with technology providers and content creators, enhancing its service offerings and attracting more subscribers. By maintaining a diverse portfolio of telecommunications services and continuously expanding its customer base, Partner Communications sustains its financial growth and market position.

Partner Financial Statement Overview

Summary

Partner demonstrates strong profitability and cash flow efficiency, with significant improvements in margins and cash flow metrics. Despite a minor decline in revenue growth, the company has enhanced operational efficiency and leverage management, contributing to its financial robustness.

Income Statement

Partner has demonstrated a strong improvement in profitability with a rising gross profit margin from 23.6% in 2023 to 26.0% in 2024 and a significant increase in net profit margin from 4.9% to 8.3% over the same period. Revenue growth, however, has been negative, declining by 0.7% from 2023 to 2024, indicating challenges in expanding top-line revenue. Still, the EBIT margin rose from 7.9% to 12.0%, and the EBITDA margin increased from 30.4% to 34.1%, showcasing enhanced operational efficiency.

Balance Sheet

The company's financial stability is mixed, with a debt-to-equity ratio improving from 0.94 in 2023 to 0.70 in 2024, reflecting better leverage management. The return on equity (ROE) improved substantially from 8.3% to 12.3%, highlighting enhanced shareholder returns. However, the equity ratio decreased slightly from 40.6% to 46.7%, which could indicate a strong reliance on equity financing.

Cash Flow

Partner has shown robust cash flow management, with a free cash flow growth rate of 50.5% from 2023 to 2024. The operating cash flow to net income ratio remains strong at 3.5, indicating effective cash management relative to net profitability. The free cash flow to net income ratio also improved significantly, reflecting increased efficiency in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.29B	3.32B	3.35B	3.46B	3.36B	3.19B
Gross Profit	875.00M	864.00M	758.00M	797.00M	631.00M	525.00M
EBITDA	1.30B	1.13B	1.02B	713.00M	880.00M	787.00M
Net Income	286.00M	277.00M	163.00M	-100.00M	115.00M	17.00M
Balance Sheet
Total Assets	4.67B	4.82B	4.83B	4.97B	5.39B	5.13B
Cash, Cash Equivalents and Short-Term Investments	552.00M	692.00M	648.00M	762.00M	652.00M	787.00M
Total Debt	1.54B	1.57B	1.84B	2.10B	2.40B	2.30B
Total Liabilities	2.61B	2.57B	2.87B	3.19B	3.53B	3.40B
Stockholders Equity	2.07B	2.25B	1.96B	1.78B	1.86B	1.72B
Cash Flow
Free Cash Flow	566.00M	444.00M	295.00M	247.00M	102.00M	213.00M
Operating Cash Flow	1.16B	971.00M	951.00M	931.00M	774.00M	786.00M
Investing Cash Flow	-279.00M	-717.00M	-429.00M	-219.00M	-727.00M	-581.00M
Financing Cash Flow	-714.00M	-421.00M	-434.00M	-460.00M	-115.00M	-128.00M

Partner Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2430.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 2430 is below the 20-day moving average (MA) of 2571.70, below the 50-day MA of 2493.76, and above the 200-day MA of 2258.57, indicating a bullish trend. The MACD of 96.30 indicates Negative momentum. The RSI at 70.32 is Negative, neither overbought nor oversold. The STOCH value of 83.50 is Negative, 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
PTNR	80 Outperform	5.23B	18.28		4.73%	-6.28%	50.36%
BEZQ	78 Outperform	16.80B	15.54	40.86%	4.67%	-2.06%	-8.02%
CEL	77 Outperform	4.79B	21.01	9.46%	―	-0.83%	129.69%
Sector *	74 Outperform	5.96B	19.02	25.23%	3.43%	-2.95%	56.65%
BCOM	59 Neutral	2.46B	33.68	20.21%	0.60%	―	―