9.0159 USD
+0.32 (+3.63%)
We assign a fundamental rating of 6 out of 10 to ELTK. ELTK was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. ELTK has an excellent financial health rating, but there are some minor concerns on its profitability. ELTK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year ELTK was profitable.
- In the past year ELTK has reported a negative cash flow from operations.
- ELTK had positive earnings in each of the past 5 years.
- Each year in the past 5 years ELTK had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 1.78%, ELTK perfoms like the industry average, outperforming 56.10% of the companies in the same industry.
- ELTK has a Return On Equity (2.55%) which is in line with its industry peers.
- The Return On Invested Capital of ELTK (4.16%) is comparable to the rest of the industry.
- ELTK had an Average Return On Invested Capital over the past 3 years of 11.27%. This is above the industry average of 8.87%.
- The 3 year average ROIC (11.27%) for ELTK is well above the current ROIC(4.16%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.78% | ||
| ROE | 2.55% | ||
| ROIC | 4.16% |
ROA(3y)9.39%
ROA(5y)9.48%
ROE(3y)16.36%
ROE(5y)18.02%
ROIC(3y)11.27%
ROIC(5y)9.69%
1.3 Margins
- With a Profit Margin value of 2.35%, ELTK perfoms like the industry average, outperforming 57.72% of the companies in the same industry.
- ELTK's Profit Margin has improved in the last couple of years.
- ELTK's Operating Margin of 5.25% is fine compared to the rest of the industry. ELTK outperforms 66.67% of its industry peers.
- ELTK's Operating Margin has improved in the last couple of years.
- ELTK's Gross Margin of 17.77% is on the low side compared to the rest of the industry. ELTK is outperformed by 68.29% of its industry peers.
- ELTK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | 2.35% | ||
| GM | 17.77% |
OM growth 3Y17.86%
OM growth 5Y18.76%
PM growth 3Y-15.23%
PM growth 5Y12.03%
GM growth 3Y2.89%
GM growth 5Y5.16%
2. Health
2.1 Basic Checks
- ELTK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, ELTK has more shares outstanding
- ELTK has more shares outstanding than it did 5 years ago.
- There is no outstanding debt for ELTK. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- ELTK has an Altman-Z score of 3.18. This indicates that ELTK is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.18, ELTK is in line with its industry, outperforming 45.53% of the companies in the same industry.
- ELTK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.18 |
ROIC/WACC0.48
WACC8.73%
2.3 Liquidity
- A Current Ratio of 2.82 indicates that ELTK has no problem at all paying its short term obligations.
- The Current ratio of ELTK (2.82) is comparable to the rest of the industry.
- A Quick Ratio of 1.92 indicates that ELTK should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.92, ELTK perfoms like the industry average, outperforming 57.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.82 | ||
| Quick Ratio | 1.92 |
3. Growth
3.1 Past
- ELTK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -80.00%.
- The Earnings Per Share has been growing slightly by 5.60% on average over the past years.
- The Revenue has been growing slightly by 2.54% in the past year.
- Measured over the past years, ELTK shows a small growth in Revenue. The Revenue has been growing by 5.99% on average per year.
EPS 1Y (TTM)-80%
EPS 3Y-9.84%
EPS 5Y5.6%
EPS Q2Q%-112%
Revenue 1Y (TTM)2.54%
Revenue growth 3Y11.22%
Revenue growth 5Y5.99%
Sales Q2Q%-1.85%
3.2 Future
- ELTK is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 42.26% yearly.
- ELTK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.50% yearly.
EPS Next Y65.14%
EPS Next 2Y42.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.96%
Revenue Next 2Y9.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- ELTK is valuated quite expensively with a Price/Earnings ratio of 53.03.
- ELTK's Price/Earnings ratio is in line with the industry average.
- ELTK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 7.07, the valuation of ELTK can be described as very cheap.
- ELTK's Price/Forward Earnings ratio is rather cheap when compared to the industry. ELTK is cheaper than 97.56% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, ELTK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.03 | ||
| Fwd PE | 7.07 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, ELTK is valued cheaper than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.25 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of ELTK may justify a higher PE ratio.
- A more expensive valuation may be justified as ELTK's earnings are expected to grow with 42.26% in the coming years.
PEG (NY)0.81
PEG (5Y)9.47
EPS Next 2Y42.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- ELTK has a Yearly Dividend Yield of 2.06%. Purely for dividend investing, there may be better candidates out there.
- The stock price of ELTK dropped by -20.00% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- ELTK's Dividend Yield is rather good when compared to the industry average which is at 0.46. ELTK pays more dividend than 95.12% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, ELTK has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.06% |
5.2 History
- ELTK has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 110.19% of the earnings are spent on dividend by ELTK. This is not a sustainable payout ratio.
DP110.19%
EPS Next 2Y42.26%
EPS Next 3YN/A
ELTEK LTD / ELTK FAQ
Can you provide the ChartMill fundamental rating for ELTEK LTD?
ChartMill assigns a fundamental rating of 6 / 10 to ELTK.
What is the valuation status of ELTEK LTD (ELTK) stock?
ChartMill assigns a valuation rating of 6 / 10 to ELTEK LTD (ELTK). This can be considered as Fairly Valued.
Can you provide the profitability details for ELTEK LTD?
ELTEK LTD (ELTK) has a profitability rating of 6 / 10.
Can you provide the financial health for ELTK stock?
The financial health rating of ELTEK LTD (ELTK) is 7 / 10.
Can you provide the expected EPS growth for ELTK stock?
The Earnings per Share (EPS) of ELTEK LTD (ELTK) is expected to grow by 65.14% in the next year.