Telsys (TLSY) AI Stock Analysis

• Market Cap: ₪2.07B
• Dividend Yield: 6.74%
• Average Volume (3M): 39.15K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.09
• 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: 27,064.00 ▲(18.34% 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

Margin Sustainability

Sustained high gross and net margins indicate durable pricing power and efficient cost structure. Over the medium term this margin profile supports reinvestment, dividend capacity and shock absorption against pricing or input cost pressures, underpinning long-term profitability.

Strong Cash Conversion

Consistent free cash flow growth and near-1:1 conversion of earnings to cash signal robust cash generation. This provides durable financial flexibility to fund capex, subscriptions platform investments, pay dividends, and pursue M&A without overreliance on external financing in the coming quarters.

Conservative Capital Structure

Very low leverage combined with high ROE and a strong equity ratio gives balance-sheet resilience. This conservative structure reduces refinancing risk, enables counter-cyclical investment and M&A optionality, and preserves stability across industry cycles over the medium term.

Negative Factors

Moderate Top-line Growth

Revenue growth is positive but modest relative to strong margins, suggesting expansion is driven more by margin gains than share gains. Over 2–6 months this pace may limit scale economies and revenue runway unless management accelerates customer acquisition or expands addressable markets.

Lumpy Revenue Mix

A mixed model of recurring subscriptions and one-off hardware sales creates revenue volatility and less predictable cash flows. Hardware cycles can compress margins and make near-term performance lumpy, reducing the durability of revenue visibility unless the business shifts further toward recurring streams.

Limited Investor Communications

Apparent lack of recent earnings call disclosures reduces visibility into management strategy, guidance and execution risks. Over a multi-month horizon this can impair external oversight, make forecasting harder for investors, and mask operational shifts until officially reported.

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 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 demonstrates strong financial performance with robust profitability, efficient cost management, and a solid balance sheet. The company has a high net profit margin and impressive return on equity, indicating effective use of resources. Strong cash flow generation further supports its financial health.

Income Statement

Telsys demonstrates strong profitability with a TTM gross profit margin of 44.38% and a net profit margin of 26.92%. The company has shown consistent revenue growth, with a 6.64% increase in the TTM period. EBIT and EBITDA margins are robust at 30.56% and 35.41%, respectively, indicating efficient cost management and operational strength.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.11, suggesting prudent leverage management. Return on equity is impressive at 40.42%, indicating effective use of shareholder funds. The equity ratio stands at 60.61%, highlighting a strong capital structure with significant equity backing.

Cash Flow

Cash flow analysis reveals a healthy free cash flow growth rate of 8.58% in the TTM period. The operating cash flow to net income ratio is 1.06, and the free cash flow to net income ratio is 0.95, both indicating strong cash generation relative to earnings. This suggests that Telsys is effectively converting its profits into cash.

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: 22870.00
• 50DMA: Negative
• 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 Neutral. The current price of 22870 is below the 20-day moving average (MA) of 23781.50, above the 50-day MA of 22729.53, and above the 200-day MA of 20416.79, indicating a neutral trend. The MACD of -6.16 indicates Positive momentum. The RSI at 40.19 is Neutral, neither overbought nor oversold. The STOCH value of 27.65 is Neutral, 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	₪2.07B	16.61	―	6.74%	2.96%	16.98%
QLTU	71 Outperform	₪3.00B	55.65	―	2.42%	―	―
ORBI	71 Outperform	₪1.04B	22.33	―	4.42%	12.89%	13.69%
MLTM	62 Neutral	₪2.89B	28.23	―	―	11.90%	13.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%