Qualitau (QLTU) AI Stock Analysis

• Market Cap: 3.01B
• Dividend Yield: 2.42%
• Average Volume (3M): 11.78K
• Price to Earnings (P/E): 55.9
• Beta (1Y): 0.51
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 72
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 790.60
• Shares Outstanding: 4,560,639
• 10 Day Avg. Volume: 9,879
• 30 Day Avg. Volume: 11,776
• PEG Ratio: 1.20
• Price to Book (P/B): 6.49
• Price to Sales (P/S): 6.72
• P/FCF Ratio: 19.44
• 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: 71 Outperform
• Price Target: 72,212.00 ▲(21.96% Upside)

The score is driven primarily by strong profitability and a very low-leverage balance sheet, tempered by a sharp recent drop in operating/free cash flow. Technicals remain bullish but appear overextended, and valuation is a material headwind given the high P/E despite a moderate dividend yield.

Positive Factors

High profitability and margins

Sustained high gross and net margins alongside mid-teens TTM revenue growth indicate differentiated, high-value testing products. This profitability supports reinvestment in R&D and product development, enabling durable competitive positioning and strong returns on deployed capital.

Conservative balance sheet

Very low leverage and rising equity provide financial flexibility to fund R&D, absorb cyclical downturns, and pursue strategic partnerships without solvency pressure. High ROE reflects efficient capital use, improving resilience and optionality versus more leveraged peers.

Recurring B2B revenue mix

A revenue mix that includes equipment sales plus software licenses and maintenance services creates recurring revenue streams and deeper customer ties. This B2B model increases lifetime value, supports predictable cash flow when conversion is stable, and aids cross-sell opportunities.

Negative Factors

Weak recent cash generation

A large decline in operating and free cash flow reduces the reliability of earnings and limits the company's ability to self-fund capex, R&D, or dividends. Persistently weak cash conversion raises financing and execution risk over a multi-quarter horizon if not reversed.

Cyclicality of end markets

Qualitau's demand is tied to semiconductor capital spending cycles, which can sharply reduce test-equipment orders and compress margins in downturns. High current margins and ROE could normalize quickly in a cyclical trough, increasing revenue and profit volatility over the medium term.

Limited organizational scale

A relatively small headcount constrains capacity for large-scale deployments, global sales coverage, and simultaneous R&D programs. Limited scale can amplify execution risk, slow product development cadence, and reduce ability to diversify revenue across geographies and customer segments.

Qualitau Business Overview & Revenue Model

Company Description

Qualitau Ltd engages in the development, manufacture, and sale of test equipment and services for use in the semiconductor industry worldwide. The company provides reliability test systems, including package and wafer-level multi-application testing, package level pulse EM and BTS testing, package and wafer-level TDDB and HC testing, multi-site parallel wafer-level probing systems, and semi- auto probers. It also offers parametric and reliability solutions comprising desktop semiconductor parametric testers, fully automated multiplexers for automated wafer probing and testing, and micro-oven systems, as well as package and wafer level reliability test services. The company was founded in 1994 and is based in Ness Ziona, Israel.

How the Company Makes Money

Qualitau generates revenue through the sale of its automated test equipment and software solutions, which are essential for semiconductor manufacturers and electronic device producers. The company operates on a business-to-business (B2B) model, charging clients for the purchase of testing systems, software licenses, and ongoing maintenance services. Additionally, Qualitau may engage in service contracts that provide ongoing technical support and updates, contributing to a steady stream of recurring revenue. The company may also form strategic partnerships with semiconductor firms and research institutions to co-develop new technologies, further enhancing its market reach and revenue potential.

Qualitau Financial Statement Overview

Summary

Qualitau is in a robust financial position with strong profitability, low leverage, and excellent cash flow generation. The company has demonstrated consistent growth in revenue and profits, supported by efficient cost management and a solid capital structure. While the recent slowdown in revenue growth merits attention, the company's financial health provides a strong foundation for future expansion in the semiconductor industry.

Income Statement

Qualitau demonstrates a strong and consistent revenue growth, with a notable increase in total revenue from $29.05 million in 2021 to $46.25 million in 2024. The gross profit margin remains robust at approximately 67.1% in 2024. The company also maintains a solid net profit margin of 30.1% in 2024, reflecting strong cost management and profitability. However, the growth rate in revenue has slowed in the most recent year, signaling a need for continued strategic expansion.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.08 in 2024, highlighting low leverage and financial stability. The return on equity is high at 29%, indicating efficient use of shareholder funds. The equity ratio is 77.8%, suggesting a solid capital structure with a high proportion of assets financed by equity. The company has shown a consistent improvement in asset and equity positions over the years, reinforcing its financial health.

Cash Flow

Qualitau exhibits excellent cash flow management, with a significant increase in free cash flow from $72,000 in 2020 to $15.99 million in 2024. The operating cash flow to net income ratio is strong, reflecting effective conversion of income into cash. The free cash flow to net income ratio is also favorable, ensuring sufficient liquidity to support operations and growth initiatives. The consistent positive cash flow positions the company well for future investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.03M	46.25M	41.11M	41.17M	29.05M	22.52M
Gross Profit	44.68M	31.05M	27.65M	27.29M	17.89M	13.71M
EBITDA	30.51M	18.17M	14.32M	14.81M	6.19M	3.27M
Net Income	26.71M	13.91M	12.30M	11.64M	6.43M	2.74M
Balance Sheet
Total Assets	75.27M	61.56M	47.35M	40.46M	29.74M	25.99M
Cash, Cash Equivalents and Short-Term Investments	25.94M	35.31M	25.77M	14.94M	11.86M	9.55M
Total Debt	3.27M	3.69M	73.00K	2.15M	3.62M	7.59M
Total Liabilities	9.74M	13.64M	7.37M	8.83M	6.24M	6.40M
Stockholders Equity	65.52M	47.91M	39.98M	31.63M	23.51M	19.59M
Cash Flow
Free Cash Flow	4.50M	15.99M	16.24M	7.51M	5.81M	72.00K
Operating Cash Flow	4.59M	16.46M	16.29M	7.55M	5.86M	484.00K
Investing Cash Flow	-92.50K	-508.00K	-788.00K	-32.00K	-32.00K	-528.00K
Financing Cash Flow	-8.44M	-6.41M	-4.67M	-4.44M	-3.52M	770.00K

Qualitau Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59210.00
• 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:QLTU, the sentiment is Positive. The current price of 59210 is below the 20-day moving average (MA) of 61486.50, above the 50-day MA of 55039.40, and above the 200-day MA of 39745.45, indicating a bullish trend. The MACD of 2888.58 indicates Negative momentum. The RSI at 67.50 is Neutral, neither overbought nor oversold. The STOCH value of 94.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:QLTU.

Qualitau Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLSY	76 Outperform	2.23B	17.83	―	6.74%	2.96%	16.98%
QLTU	71 Outperform	3.01B	55.86	―	2.42%	―	―
ORBI	71 Outperform	1.07B	23.07	―	4.42%	12.89%	13.69%
UNIT	64 Neutral	361.29M	13.25	―	12.83%	-20.67%	-39.12%
MLTM	62 Neutral	3.05B	30.06	―	―	11.90%	13.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%