Unitronics (UNIT) AI Stock Analysis

• Market Cap: ₪370.52M
• Dividend Yield: 12.83%
• Average Volume (3M): 16.63K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 0.74
• 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: 2,827.00 ▲(14.92% 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

Conservative balance sheet

Low leverage and a stable equity ratio provide durable financial flexibility, allowing Unitronics to fund R&D, support distributors, and weather industrial cycles without relying on costly external financing. This reduces insolvency risk and supports long-term strategic investments.

High gross margins

Sustained gross margins above 50% indicate strong product pricing, component-level cost control, and differentiated offerings in industrial automation. High unit economics protect operating profit against input-cost volatility and enable ongoing investment in product development and customer support.

Positive free cash flow trend

Improving free cash flow enhances self-funding capacity for capex, software development, and distributor support. Consistent cash generation reduces dependency on external capital, strengthens ability to return capital or weather cyclical demand, and supports durable operational continuity.

Negative Factors

Declining revenue

A ~20% decline in revenue signals weakening demand or market share loss in core PLC/HMI markets. Persisting top-line contraction can erode scale benefits, pressure gross and operating margins, and constrain reinvestment capacity, making long-term growth and margin sustainability harder to achieve.

Earnings contraction

A near-40% drop in EPS reflects meaningful deterioration in profitability per share, which may stem from lower volumes, adverse mix, or rising costs. Continued EPS weakness undermines returns to shareholders and limits resources available for strategic initiatives or resilience in tougher market conditions.

Weaker cash conversion efficiency

A declining FCF-to-net-income ratio signals worsening cash conversion, possibly from working capital shifts or higher capex. Reduced conversion can strain liquidity, limit the company’s ability to invest or sustain dividends, and increase reliance on external financing over the medium term.

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 robust profitability, conservative leverage, and positive cash flow trends. The company maintains healthy margins and a solid balance sheet, which provides stability and resilience. However, the decline in revenue growth and challenges in maintaining free cash flow efficiency warrant attention.

Income Statement

Unitronics shows strong profitability with a consistent gross profit margin above 50% in recent years, indicating effective cost management. However, the company experienced a decline in revenue growth rate, with a negative trend in the TTM period. The net profit margin remains healthy, although it has decreased slightly from the previous year. The EBIT and EBITDA margins are robust, reflecting efficient operations. Overall, the income statement reflects solid profitability but highlights concerns about revenue growth.

Balance Sheet

The balance sheet of Unitronics is strong, with a low debt-to-equity ratio indicating conservative leverage. The return on equity is impressive, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure. The company's financial stability is reinforced by its low debt levels and strong equity position, making it well-positioned to handle potential market fluctuations.

Cash Flow

Unitronics demonstrates positive cash flow trends, with a significant increase in free cash flow growth in the TTM period. The operating cash flow to net income ratio is moderate, suggesting efficient cash conversion from operations. However, the free cash flow to net income ratio has decreased compared to previous years, indicating potential challenges in maintaining free cash flow levels relative to net income. Overall, the cash flow statement reflects a positive trajectory but highlights areas for improvement in cash flow efficiency.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 2626.40, above the 50-day MA of 2379.42, and above the 200-day MA of 2403.49, indicating a neutral trend. The MACD of 78.11 indicates Positive momentum. The RSI at 56.86 is Neutral, neither overbought nor oversold. The STOCH value of 41.25 is Neutral, 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	₪592.08M	15.50	―	―	-1.73%	28.58%
QLTU	71 Outperform	₪3.08B	57.13	―	2.42%	―	―
UNIT	64 Neutral	₪370.52M	13.59	―	12.83%	-20.67%	-39.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%