Telsys (TLSY) AI Stock Analysis

• Market Cap: 1.86B
• Dividend Yield: 7.24%
• Average Volume (3M): 39.15K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.04
• Revenue Growth: 2.96%
• EPS Growth: 16.98%
• 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: 76 Outperform
• Price Target: 24,498.00 ▲(18.92% Upside)

Telsys receives a strong overall stock score driven by its robust financial performance and positive technical indicators. The company's solid profitability, efficient cost management, and strong cash flow generation are key strengths. The fair valuation with a high dividend yield adds to its attractiveness, despite the lack of recent earnings call insights or notable corporate events.

Positive Factors

Strong Cash Flow Generation

Strong cash flow generation indicates Telsys's ability to effectively convert profits into cash, supporting long-term investments and financial stability.

Solid Balance Sheet

A low debt-to-equity ratio suggests prudent leverage management, providing Telsys with financial flexibility and resilience against market fluctuations.

High Profit Margins

High profit margins reflect efficient cost management and operational strength, enhancing Telsys's ability to sustain profitability in competitive markets.

Negative Factors

Declining Revenue Growth

A decline in revenue growth could indicate challenges in market expansion or product demand, potentially impacting Telsys's future earnings potential.

Negative EPS Growth

Negative EPS growth suggests declining profitability, which may affect investor confidence and the company's ability to reinvest in growth opportunities.

Lack of Recent Earnings Insights

The absence of recent earnings insights limits transparency and may hinder stakeholders' ability to assess Telsys's current and future performance accurately.

Telsys Business Overview & Revenue Model

Company Description

Telsys (TLSY) is a technology company specializing in advanced telecommunications solutions, primarily focused on providing integrated communication systems and services for businesses. Operating in the telecommunications sector, Telsys offers a range of products including VoIP (Voice over Internet Protocol) solutions, cloud-based communication platforms, and network infrastructure services. The company also provides consulting and support services to help organizations optimize their communication strategies and enhance operational efficiency.

How the Company Makes Money

Telsys generates revenue through a diversified model that includes subscription-based services, one-time product sales, and ongoing support and maintenance contracts. The primary revenue streams consist of monthly subscription fees from businesses utilizing its cloud communication platforms and VoIP services, which provide a steady income. Additionally, Telsys sells hardware, such as telephony equipment and network devices, contributing to its product sales revenue. The company also benefits from significant partnerships with major telecommunications carriers and technology providers, enabling it to offer bundled services and expand its market reach. These partnerships often include joint marketing initiatives and revenue-sharing agreements, further enhancing Telsys's earnings potential.

Telsys Financial Statement Overview

Summary

Telsys exhibits strong financial performance with robust profitability, a solid balance sheet, and efficient cash flow generation. The company has shown resilience with a recovery in revenue growth and consistent margin improvements. Low leverage and effective equity utilization further enhance its financial standing.

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	440.28M	392.06M	548.82M	432.99M	266.34M	323.37M
Gross Profit	189.82M	174.09M	251.34M	178.06M	105.08M	115.31M
EBITDA	153.44M	142.55M	216.40M	153.80M	87.76M	88.16M
Net Income	124.86M	95.68M	128.42M	89.05M	43.21M	40.13M
Balance Sheet
Total Assets	405.52M	416.00M	437.13M	444.21M	371.61M	322.40M
Cash, Cash Equivalents and Short-Term Investments	78.11M	87.93M	67.61M	62.10M	86.37M	47.85M
Total Debt	32.37M	34.96M	30.36M	14.20M	35.07M	42.76M
Total Liabilities	158.92M	133.09M	141.91M	191.87M	166.86M	92.61M
Stockholders Equity	245.82M	282.27M	263.12M	226.31M	187.23M	211.53M
Cash Flow
Free Cash Flow	155.33M	107.34M	150.22M	83.61M	125.05M	88.09M
Operating Cash Flow	162.57M	113.45M	155.53M	91.44M	133.00M	95.45M
Investing Cash Flow	-6.75M	-12.10M	-1.28M	-215.00K	-12.42M	-11.32M
Financing Cash Flow	-141.35M	-86.23M	-150.20M	-114.87M	-79.60M	-90.95M

Telsys Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20600.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TLSY, the sentiment is Neutral. The current price of 20600 is below the 20-day moving average (MA) of 21474.00, above the 50-day MA of 20345.80, and above the 200-day MA of 19404.20, indicating a neutral trend. The MACD of 299.16 indicates Positive momentum. The RSI at 42.78 is Neutral, neither overbought nor oversold. The STOCH value of 12.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:TLSY.

Telsys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLSY	76 Outperform	1.86B	14.93	―	7.24%	2.96%	16.98%
QLTU	75 Outperform	2.68B	49.80	―	2.47%	―	―
ORBI	71 Outperform	1.04B	22.48	―	4.40%	12.89%	13.69%
MLTM	62 Neutral	2.80B	27.60	―	―	11.90%	13.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%