Telsys (TLSY) AI Stock Analysis

• Market Cap: 1.93B
• Dividend Yield: 6.99%
• Average Volume (3M): 15.06K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.84
• Revenue Growth: -23.60%
• EPS Growth: -31.60%
• Country: IL
• Employees: 129
• Sector: Technology
• Sector Strength: 94
• Industry: Technology Distributors
• EPS (TTM): 356.10
• Shares Outstanding: 9,052,601
• 10 Day Avg. Volume: 17,870
• 30 Day Avg. Volume: 15,063
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 23,766.00
• Price Target Upside: 8.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: 23,766.00 ▲(8.37% Upside)

Telsys presents a strong financial profile with high profitability and robust cash flow, which are the most significant factors driving its score. The stock's technical indicators suggest potential short-term weakness, but its reasonable valuation and attractive dividend yield provide a balanced investment case.

Telsys Business Overview & Revenue Model

Company Description

Telsys (TLSY) is a technology company specializing in telecommunications and information technology solutions. Operating primarily in the sectors of cloud computing, software development, and network infrastructure, Telsys provides a range of core products and services including VoIP systems, data analytics platforms, and customized IT solutions for businesses. The company aims to enhance communication efficiency and operational productivity for its clients through innovative technology solutions.

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 exhibits a strong financial performance with consistent revenue growth, high profitability margins, and robust cash flow management. The low leverage and strong equity position further highlight its financial stability, making it a well-managed and financially sound organization.

Income Statement

The income statement reflects strong financial health with a consistent increase in total revenue, reaching $400.1M in TTM, indicating a solid growth trajectory. The gross profit margin stands at 45.1% and the net profit margin at 26.7%, both reflecting efficient cost management and profitability. Additionally, the EBIT and EBITDA margins are robust at 30.4% and 36.3%, respectively. The revenue growth rate for the TTM is 2.1%, showcasing steady growth despite a dip in the previous year.

Balance Sheet

Telsys maintains a healthy balance sheet with a debt-to-equity ratio of 0.11, indicating low leverage and financial stability. The equity ratio is 61.8%, showing a strong equity position relative to total assets. Return on Equity (ROE) is commendable at 38.0%, reflecting efficient use of equity to generate income. The company's strong equity position combined with low debt levels suggests a solid foundation, although the slight decrease in stockholders' equity warrants attention.

Cash Flow

The cash flow statement highlights a positive trend in cash generation with a free cash flow of $115.2M in TTM, representing a 7.3% growth from the previous period. The operating cash flow to net income ratio is 1.14, indicating effective cash generation relative to net income. The free cash flow to net income ratio is remarkably high at 1.08, underscoring the company's ability to convert earnings into cash. Overall, Telsys demonstrates robust cash flow performance, supporting its growth and operational needs.

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

Telsys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21930.00
• 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:TLSY, the sentiment is Positive. The current price of 21930 is above the 20-day moving average (MA) of 21522.50, above the 50-day MA of 21740.61, and above the 200-day MA of 18422.87, indicating a bullish trend. The MACD of -94.93 indicates Negative momentum. The RSI at 55.14 is Neutral, neither overbought nor oversold. The STOCH value of 84.36 is Negative, 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	74 Outperform	1.93B	18.08		6.99%	-23.60%	-31.60%
ORBI	74 Outperform	1.02B	21.13		4.59%	12.22%	21.63%
MLTM	74 Outperform	2.34B	24.01		―	15.05%	48.85%
QLTU	71 Outperform	1.77B	32.80		3.72%	―	―
Sector *	62 Neutral	£501.04M	27.14	0.85%	2.82%	3.88%	-21.07%

Telsys Corporate Events

Telsys Schedules Investor Call for Q4 2024 Financial Discussion

Telsys Ltd has announced a conference call with investors to discuss its financial reports for the fourth quarter of 2024. This call, to be led by CEO Amir Yitzhak and CFO Moshe Cohen, is scheduled for March 25, 2025, and will provide insights into the company’s financial performance, potentially affecting stakeholder perspectives and market positioning.

Telsys Ltd. Schedules Q4 2024 Financial Review Call

Telsys Ltd. has announced a conference call with investors to discuss the financial statements for Q4 2024. The company will host the call on March 25, 2025, via Zoom, with the CEO and CFO present to provide insights and answer questions. This initiative reflects Telsys’ commitment to transparency and engagement with its stakeholders, potentially impacting investor confidence and company valuation.