Unitronics (UNIT) AI Stock Analysis

• Market Cap: 361.29M
• Dividend Yield: 12.83%
• Average Volume (3M): 16.63K
• Price to Earnings (P/E): 13.3
• Beta (1Y): 0.71
• Revenue Growth: -20.67%
• EPS Growth: -39.12%
• Country: IL
• Employees: 152
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 46.20
• Shares Outstanding: 13,992,552
• 10 Day Avg. Volume: 13,103
• 30 Day Avg. Volume: 16,625
• PEG Ratio: 0.74
• Price to Book (P/B): 4.02
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 15.81
• 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: 64 Neutral
• Price Target: 2,756.00 ▲(12.03% Upside)

Unitronics' overall stock score is driven by its strong financial performance and attractive valuation, which are offset by bearish technical indicators. The company's robust profitability and conservative leverage provide stability, while the low P/E ratio and high dividend yield suggest potential value. However, the negative market momentum and oversold technical indicators present risks that investors should consider.

Positive Factors

Balance Sheet Strength

Unitronics' low debt-to-equity and strong equity position provide durable financial flexibility. Conservative leverage reduces refinancing and solvency risk, enabling continued investment in R&D, product support and cyclical resilience over the next several quarters without compromising capital structure.

High Profit Margins

Sustained gross margins above 50% and healthy EBIT/EBITDA margins indicate strong pricing power and efficient cost structure in automation products. These structural margins support reinvestment in product development and cushioning of margin volatility from cyclical demand shifts over the medium term.

Positive Cash Flow Trends

A notable rise in free cash flow in the trailing period strengthens Unitronics' ability to fund capex, software development and service operations internally. Reliable cash generation supports strategic initiatives and shareholder returns and reduces reliance on external financing over ensuing quarters.

Negative Factors

Declining Revenue

A more than 20% year-on-year revenue contraction signals weakening demand or loss of sales momentum. Persistent top-line declines can erode economies of scale, pressure margins and limit funds available for R&D and market expansion, risking competitive position over multiple quarters.

Falling EPS

Near 40% EPS deterioration reflects declining profitability per share and may indicate margin compression, higher costs, or one-off impacts. Unless reversed, falling EPS constrains reinvestment and shareholder returns and undermines confidence in earnings sustainability across the medium term.

Reduced Free Cash Flow Efficiency

A declining FCF-to-net-income ratio suggests earnings are converting to cash less efficiently, possibly from working-capital strain or non-cash earnings. This weakens the reliability of cash to fund capex, services and dividends, increasing susceptibility to operational or market shocks.

Unitronics Business Overview & Revenue Model

Company Description

Unitronics (1989) (R"G) Ltd, together with its subsidiaries, designs, develops, produces, markets, and sells, programmable logic controllers (PLC) and automation products in Israel and internationally. Its PLC products are used to command and control machines, which perform automated operations, such as manufacturing systems and other automated installations. The company also markets and sells propulsion controllers. Unitronics (1989) (R"G) Ltd was incorporated in 1989 and is headquartered in Airport City, Israel.

How the Company Makes Money

Unitronics generates revenue through the sale of its automation products, including PLCs, HMIs, and IoT solutions, which are essential for various industrial applications. The company also earns income from software licensing, providing customers with proprietary automation software that complements its hardware offerings. Additionally, Unitronics benefits from service and maintenance contracts, ensuring ongoing support for its products. Strategic partnerships with distributors and industry leaders enhance its market reach and customer base, further contributing to its revenue streams. The company's commitment to innovation and customer satisfaction plays a crucial role in driving repeat business and attracting new clients.

Unitronics Financial Statement Overview

Summary

Unitronics presents a strong financial profile with solid profitability and low leverage. While revenue growth has slowed, the company maintains healthy margins and cash flow generation. Continued focus on revenue growth and cash conversion efficiency will be key to sustaining financial health.

Income Statement

Unitronics demonstrates strong profitability with a consistent gross profit margin above 50% in recent periods. However, the company faces challenges with declining revenue growth, as seen in the TTM period with a -7.13% growth rate. Despite this, net profit margins remain healthy, indicating effective cost management.

Balance Sheet

The company maintains a solid financial position with a low debt-to-equity ratio of 0.035 in the TTM period, indicating low leverage. Return on equity is robust at 34.42%, reflecting efficient use of equity capital. The equity ratio remains stable, showcasing a strong asset base.

Cash Flow

Unitronics shows positive free cash flow growth in the TTM period at 8.12%, indicating improved cash generation. However, the operating cash flow to net income ratio has decreased, suggesting potential challenges in converting income to cash. The free cash flow to net income ratio remains healthy, supporting ongoing operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	160.34M	192.24M	211.67M	155.52M	147.02M	126.16M
Gross Profit	81.19M	98.28M	105.58M	72.09M	67.08M	55.04M
EBITDA	47.46M	65.20M	65.02M	35.12M	35.44M	30.69M
Net Income	27.20M	43.71M	41.21M	18.86M	19.20M	14.90M
Balance Sheet
Total Assets	139.07M	142.99M	151.34M	152.62M	143.74M	132.79M
Cash, Cash Equivalents and Short-Term Investments	6.27M	2.68M	13.26M	6.94M	27.73M	26.41M
Total Debt	16.47M	5.40M	5.59M	6.06M	9.65M	18.61M
Total Liabilities	58.52M	51.89M	81.36M	75.99M	72.61M	61.21M
Stockholders Equity	80.56M	91.10M	69.98M	76.63M	71.13M	71.58M
Cash Flow
Free Cash Flow	23.48M	23.18M	48.64M	8.17M	22.37M	27.64M
Operating Cash Flow	36.78M	34.91M	58.38M	18.68M	32.11M	37.49M
Investing Cash Flow	-11.14M	-11.13M	-9.73M	-10.50M	-7.31M	-3.16M
Financing Cash Flow	-22.01M	-34.67M	-42.76M	-29.78M	-20.61M	-26.15M

Unitronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2460.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:UNIT, the sentiment is Positive. The current price of 2460 is above the 20-day moving average (MA) of 2305.55, above the 50-day MA of 2321.50, and above the 200-day MA of 2395.51, indicating a bullish trend. The MACD of 96.71 indicates Negative momentum. The RSI at 77.48 is Negative, neither overbought nor oversold. The STOCH value of 96.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:UNIT.

Unitronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMER	76 Outperform	575.15M	14.66	―	―	-1.73%	28.58%
QLTU	71 Outperform	3.01B	55.86	―	2.42%	―	―
UNIT	64 Neutral	361.29M	13.25	―	12.83%	-20.67%	-39.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%