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Telsys Ltd. (IL:TLSY)
TASE:TLSY
Israel Market
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Telsys (TLSY) AI Stock Analysis

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IL:TLSY

Telsys

(TASE:TLSY)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
42,270.00
▲(84.83% Upside)
Action:Upgraded
Date:05/30/26
The score is driven primarily by strong margins, solid cash-flow quality, and manageable leverage, supported by clear bullish technical momentum (price above key moving averages with positive MACD). These positives are meaningfully offset by a steep recent revenue contraction and declining free cash flow trend, and a high P/E that makes the stock look expensive despite the dividend yield.
Positive Factors
High Profitability
Sustained high gross and net margins indicate durable pricing power and cost structure advantages. Over a multi-month horizon this margin profile supports resilient earnings, funds reinvestment and dividends, and cushions operating performance against cyclical revenue weakness.
Negative Factors
Sharp Revenue Decline
A near-50% TTM revenue contraction materially reduces growth runway and can erode scale advantages. Over several months this drop risks damaging customer relationships, lowering operating leverage, and forcing strategic trade-offs that could impair medium-term recovery prospects.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability
Sustained high gross and net margins indicate durable pricing power and cost structure advantages. Over a multi-month horizon this margin profile supports resilient earnings, funds reinvestment and dividends, and cushions operating performance against cyclical revenue weakness.
Read all positive factors

Telsys (TLSY) vs. iShares MSCI Israel ETF (EIS)

Telsys Business Overview & Revenue Model

Company Description
Based in Petah Tikva, Israel, Telsys Ltd., established in 1963, specializes in the procurement, promotion, and supply of electronic components across the Israeli market. Its comprehensive product portfolio encompasses semiconductor devices, integr...

Telsys Financial Statement Overview

Summary
Strong profitability and cash generation underpin the score (TTM gross margin ~40.9%, net margin ~26.8%; operating cash flow ~2.47x net income with FCF ~0.96x net income) and leverage is moderate (debt-to-equity ~0.29). The main offset is sharply deteriorating growth and momentum, with TTM revenue down ~49.9% and TTM free cash flow down ~25.5%.
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
85
Very Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue-435.55M432.30M107.60M152.01M125.54M85.59M
Gross Profit-199.70M176.79M47.78M69.62M51.63M33.77M
EBITDA-151.75M140.58M39.12M59.94M44.59M28.20M
Net Income-132.80M115.68M26.26M35.57M25.82M13.89M
Balance Sheet
Total Assets554.98M466.26M114.17M121.08M128.80M119.42M
Cash, Cash Equivalents and Short-Term Investments169.16M137.81M24.13M18.73M19.12M28.66M
Total Debt61.68M68.65M9.60M8.41M4.12M11.27M
Total Liabilities310.10M227.82M36.53M39.31M55.63M53.62M
Stockholders Equity243.30M237.41M77.47M72.88M65.62M60.17M
Cash Flow
Free Cash Flow107.08M143.72M29.46M41.61M24.24M40.19M
Operating Cash Flow110.28M150.78M31.14M43.08M26.51M42.74M
Investing Cash Flow-52.15M-6.74M-3.32M-353.71K-62.34K-3.99M
Financing Cash Flow-26.93M-88.27M-23.67M-41.60M-33.31M-25.58M

Telsys Technical Analysis

Technical Analysis Sentiment
Positive
Last Price22870.00
Price Trends
50DMA
34106.73
Positive
100DMA
29296.03
Positive
200DMA
24962.63
Positive
Market Momentum
MACD
536.26
Positive
RSI
54.60
Neutral
STOCH
35.89
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 22870 is below the 20-day moving average (MA) of 36108.66, below the 50-day MA of 34106.73, and below the 200-day MA of 24962.63, indicating a bullish trend. The MACD of 536.26 indicates Positive momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 35.89 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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
₪4.85B18.2222.56%1.88%4.81%4.24%
73
Outperform
₪3.26B-24.396.74%25.82%24.63%
61
Neutral
₪6.89B77.2915.81%327.88%
59
Neutral
₪3.19B33.661.12%-5.62%47.74%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₪1.77B23.639.07%-22.97%
48
Neutral
₪1.63B-45.450.76%-3.94%-928.53%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IL:TLSY
Telsys
36,390.00
14,326.19
64.93%
IL:HLAN
Hilan
21,500.00
-4,921.48
-18.63%
IL:MLTM
Malam Team
8,076.00
-2,624.00
-24.52%
IL:TDRN
Tadiran Group
18,880.00
1,480.00
8.51%
IL:AFHL
Afcon Hold
57,450.00
39,776.12
225.06%
IL:NYAX
Nayax
19,260.00
4,520.00
30.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 30, 2026