Telsys (TLSY) AI Stock Analysis

• Market Cap: 1.85B
• Dividend Yield: 7.29%
• Average Volume (3M): 39.15K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.12
• 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: 13,823
• 30 Day Avg. Volume: 39,151
• PEG Ratio: -0.40
• Price to Book (P/B): 6.04
• Price to Sales (P/S): 4.35
• P/FCF Ratio: 15.88
• 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: 72 Outperform
• Price Target: 21,157.00 ▲(12.12% Upside)

Telsys is well-positioned in the technology distribution industry with strong financial performance and attractive valuation metrics. However, technical indicators suggest potential bearish momentum, which slightly offsets the overall positive outlook.

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 shows strong financial performance with high profitability, a solid balance sheet, and robust cash flow generation. The company has a low debt-to-equity ratio and impressive return on equity, indicating effective use of equity. However, the slight decrease in stockholders' equity needs attention.

Income Statement

Telsys demonstrates strong profitability with a consistent increase in gross and net profit margins over the years. The TTM data shows a gross profit margin of 45.14% and a net profit margin of 26.71%, indicating efficient cost management and strong bottom-line performance. Revenue growth has been positive in the TTM period at 3.19%, recovering from a slight decline in previous years. EBIT and EBITDA margins are robust, reflecting operational efficiency.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.11 in the TTM period, indicating conservative leverage. Return on equity is impressive at 37.11%, showcasing effective use of equity to generate profits. The equity ratio is healthy, suggesting a strong capital structure. However, the slight decrease in stockholders' equity over the years warrants attention.

Cash Flow

Cash flow metrics are strong, with a significant free cash flow growth rate of 24.17% in the TTM period. The operating cash flow to net income ratio is 0.80, indicating good cash generation relative to net income. The free cash flow to net income ratio is high at 0.94, reflecting efficient cash conversion. Despite fluctuations in previous years, the current cash flow position is robust.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	412.87M	392.06M	548.82M	432.99M	266.34M	323.37M
Gross Profit	183.24M	174.09M	251.34M	178.06M	105.08M	115.31M
EBITDA	146.20M	142.55M	216.40M	153.80M	87.76M	88.16M
Net Income	111.13M	95.68M	128.42M	89.05M	43.21M	40.13M
Balance Sheet
Total Assets	406.12M	416.00M	437.13M	444.21M	371.61M	322.40M
Cash, Cash Equivalents and Short-Term Investments	103.39M	87.93M	67.61M	62.10M	86.37M	47.85M
Total Debt	28.03M	34.96M	30.36M	14.20M	35.07M	42.76M
Total Liabilities	156.38M	133.09M	141.91M	191.87M	166.86M	92.61M
Stockholders Equity	249.11M	282.27M	263.12M	226.31M	187.23M	211.53M
Cash Flow
Free Cash Flow	143.06M	107.34M	150.22M	83.61M	125.05M	88.09M
Operating Cash Flow	150.55M	113.45M	155.53M	91.44M	133.00M	95.45M
Investing Cash Flow	-7.00M	-12.10M	-1.28M	-215.00K	-12.42M	-11.32M
Financing Cash Flow	-135.03M	-86.23M	-150.20M	-114.87M	-79.60M	-90.95M

Telsys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18870.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 below the 20-day moving average (MA) of 20167.00, below the 50-day MA of 19484.47, and below the 200-day MA of 19035.85, indicating a bullish trend. The MACD of 167.08 indicates Positive momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 40.92 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
QLTU	75 Outperform	2.09B	38.76	―	3.12%	―	―
TLSY	72 Outperform	1.85B	16.65	―	7.29%	-13.85%	-15.46%
ORBI	71 Outperform	961.64M	20.83	―	4.44%	12.89%	13.69%
MLTM	63 Neutral	2.92B	28.51	―	―	11.90%	13.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%