Telsys (TLSY) AI Stock Analysis

• Market Cap: 1.73B
• Dividend Yield: 7.79%
• Average Volume (3M): 14.31K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.91
• Revenue Growth: -13.85%
• EPS Growth: -15.46%
• Country: IL
• Employees: 129
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 360.50
• Shares Outstanding: 9,052,601
• 10 Day Avg. Volume: 24,549
• 30 Day Avg. Volume: 14,307
• 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: 73 Outperform
• Price Target: 21,341.00 ▲(13.09% Upside)

Telsys is well-positioned in the technology distribution industry, with strong financial performance and a reasonable valuation. However, mixed technical indicators suggest caution in the short term. The high dividend yield enhances the stock's attractiveness for income-focused investors.

Telsys Business Overview & Revenue Model

Company Description

Telsys Ltd. imports, markets, and distributes electronic components in Israel. The company offers semiconductors, subsystems, passives, connectors, microwaves, telecom/datacom products, and others. It also provides specialized services. The company was founded in 1963 and is based in Petah Tikva, Israel.

How the Company Makes Money

Telsys generates revenue through multiple streams, primarily by offering subscription-based services for its cloud-based telecommunications solutions. This includes billing clients on a monthly or annual basis for their VoIP services and data management tools. Additionally, the company earns revenue from one-time fees associated with software licensing, implementation services, and ongoing technical support. Partnerships with major telecom providers and technology firms enhance Telsys's market reach and credibility, allowing it to tap into larger client bases and provide integrated solutions. Moreover, revenue is bolstered through consulting services that assist businesses in optimizing their IT infrastructure and improving communication workflows.

Telsys Financial Statement Overview

Summary

Telsys demonstrates strong financial performance with high profitability, efficient capital structure, and robust cash flow generation. Despite challenges in sustaining revenue growth, the company's low leverage and strong cash position provide a solid foundation for future opportunities.

Income Statement

Telsys demonstrates strong profitability with a TTM gross profit margin of 45.15% and a net profit margin of 26.72%. The revenue growth rate from the previous annual report is 2.05%, indicating steady growth. The EBIT margin of 30.44% and EBITDA margin of 36.29% further highlight operational efficiency. However, the slight decline in revenue from 2023 to 2024 suggests potential challenges in maintaining growth momentum.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.11, indicating minimal leverage. The return on equity (ROE) is robust at 37.98%, reflecting efficient use of equity capital. The equity ratio of 61.83% underscores a strong capital structure. However, the decrease in stockholders' equity from 2023 to TTM could be a point of concern for future financial stability.

Cash Flow

Telsys exhibits healthy cash flow management with a free cash flow growth rate of 7.34% in the TTM period. The operating cash flow to net income ratio of 1.14 and free cash flow to net income ratio of 1.08 indicate strong cash generation relative to earnings. The consistent positive free cash flow supports ongoing operational and investment activities, despite fluctuations in investing and financing cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	400.10M	392.06M	548.82M	432.99M	266.34M	323.37M
Gross Profit	180.62M	174.09M	251.34M	178.06M	105.08M	115.31M
EBITDA	145.20M	142.55M	216.40M	153.80M	87.76M	88.16M
Net Income	106.87M	95.68M	128.42M	89.05M	43.21M	40.13M
Balance Sheet
Total Assets	455.26M	416.00M	437.13M	444.21M	371.61M	322.40M
Cash, Cash Equivalents and Short-Term Investments	114.82M	87.93M	67.61M	62.10M	86.37M	47.85M
Total Debt	31.87M	34.96M	30.36M	14.20M	35.07M	42.76M
Total Liabilities	172.99M	133.09M	141.91M	191.87M	166.86M	92.61M
Stockholders Equity	281.38M	282.27M	263.12M	226.31M	187.23M	211.53M
Cash Flow
Free Cash Flow	115.22M	107.34M	150.22M	83.61M	125.05M	88.09M
Operating Cash Flow	122.07M	113.45M	155.53M	91.44M	133.00M	95.45M
Investing Cash Flow	-13.55M	-12.10M	-1.28M	-215.00K	-12.42M	-11.32M
Financing Cash Flow	-113.63M	-86.23M	-150.20M	-114.87M	-79.60M	-90.95M

Telsys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18870.00
• 50DMA: Negative
• 100DMA: Negative
• 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:TLSY, the sentiment is Positive. The current price of 18870 is above the 20-day moving average (MA) of 18867.00, below the 50-day MA of 19919.66, and above the 200-day MA of 18726.33, indicating a neutral trend. The MACD of -236.72 indicates Negative momentum. The RSI at 48.77 is Neutral, neither overbought nor oversold. The STOCH value of 49.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:TLSY.

Telsys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLSY	73 Outperform	1.73B	15.59	―	7.79%	-13.85%	-15.46%
ORBI	72 Outperform	958.61M	20.77	―	4.86%	13.62%	10.28%
MLTM	72 Outperform	3.07B	30.80	―	―	12.51%	45.01%
QLTU	71 Outperform	2.26B	41.92	―	2.94%	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%