Unitronics (UNIT) AI Stock Analysis

• Market Cap: ₪325.47M
• Dividend Yield: 12.83%
• Average Volume (3M): 16.63K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.73
• 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: 2,759.00 ▲(12.15% Upside)
• Action: Reiterated Date: 12/11/25
• Date: Action: Reiterated 12/11/25

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

High Gross Margins

Sustained gross margins above 50% indicate durable product-level pricing power and effective cost control in Unitronics' PLC and integrated controller business. High margins support reinvestment, buffer cyclical revenue swings, and underpin long-term operating profitability.

Conservative Leverage / Strong Balance Sheet

A low debt-to-equity profile and stable equity ratio provide financial resilience, allowing Unitronics to fund capex, R&D, and working capital without heavy interest burdens. Conservative leverage enhances flexibility through industry cycles and reduces refinancing risk over months.

Positive Cash Flow Trends

Growing free cash flow in the trailing twelve months shows improving cash conversion from operations, strengthening the company’s ability to fund dividends, maintain capex, and invest in product development—key for sustaining competitive automation offerings.

Negative Factors

Declining Revenue

A ~20% revenue contraction signals weakening demand or lost market share in the core PLC/HMI markets. Persistent top-line declines constrain scalability, pressure fixed-cost absorption, and can erode long-term investment capacity and commercial momentum if not reversed.

Earnings Decline

Nearly 40% EPS contraction points to profit pressure beyond revenue decline, possibly from lower operating leverage or one-off items. Sustained EPS weakness reduces retained earnings available for reinvestment and undermines the company’s ability to fund strategic initiatives long term.

Deteriorating FCF Efficiency

A falling free cash flow to net income ratio implies weaker cash realization from reported profits, which can limit financing flexibility for R&D, capex, or dividends. If the trend persists it raises questions about earnings quality and long-run cash-generation sustainability.

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: Negative
• Last Price: 2460.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:UNIT, the sentiment is Negative. The current price of 2460 is below the 20-day moving average (MA) of 2464.25, above the 50-day MA of 2420.86, and above the 200-day MA of 2403.44, indicating a bearish trend. The MACD of -52.03 indicates Positive momentum. The RSI at 39.04 is Neutral, neither overbought nor oversold. The STOCH value of 19.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₪552.35M	14.26	―	―	-1.73%	28.58%
QLTU	71 Outperform	₪3.01B	55.78	―	2.42%	―	―
UNIT	64 Neutral	₪325.47M	11.94	―	12.83%	-20.67%	-39.12%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%