ELTEK LTD (ELTK) Stock Fundamental Analysis
NASDAQ:ELTK - Nasdaq - IL0010828411 - Common Stock - Currency: USD
Taking everything into account, ELTK scores 6 out of 10 in our fundamental rating. ELTK was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making ELTK a very profitable company, without any liquidiy or solvency issues. ELTK has a decent growth rate and is not valued too expensively. These ratings would make ELTK suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ELTK was profitable.
ELTK had a positive operating cash flow in the past year.
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
ELTK has a Return On Assets of 5.71%. This is in the better half of the industry: ELTK outperforms 78.40% of its industry peers.
ELTK has a Return On Equity of 8.40%. This is in the better half of the industry: ELTK outperforms 72.00% of its industry peers.
ELTK has a better Return On Invested Capital (5.95%) than 68.00% of its industry peers.
ELTK had an Average Return On Invested Capital over the past 3 years of 11.27%. This is in line with the industry average of 9.38%.
The 3 year average ROIC (11.27%) for ELTK is well above the current ROIC(5.95%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 8.4% | ||
| ROIC | 5.95% |
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 decent Profit Margin value of 7.34%, ELTK is doing good in the industry, outperforming 76.00% of the companies in the same industry.
In the last couple of years the Profit Margin of ELTK has grown nicely.
With a decent Operating Margin value of 7.15%, ELTK is doing good in the industry, outperforming 73.60% of the companies in the same industry.
In the last couple of years the Operating Margin of ELTK has grown nicely.
Looking at the Gross Margin, with a value of 19.58%, ELTK is doing worse than 65.60% of the companies in the same industry.
In the last couple of years the Gross Margin of ELTK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.15% | ||
| PM (TTM) | 7.34% | ||
| GM | 19.58% |
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.
The number of shares outstanding for ELTK has been increased compared to 1 year ago.
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 3.68. This indicates that ELTK is financially healthy and has little risk of bankruptcy at the moment.
ELTK has a better Altman-Z score (3.68) than 62.40% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.68 |
ROIC/WACC0.66
WACC9.07%
2.3 Liquidity
A Current Ratio of 2.78 indicates that ELTK has no problem at all paying its short term obligations.
The Current ratio of ELTK (2.78) is comparable to the rest of the industry.
A Quick Ratio of 2.06 indicates that ELTK has no problem at all paying its short term obligations.
ELTK has a better Quick ratio (2.06) than 62.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
ELTK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -52.34%.
Measured over the past 5 years, ELTK shows a small growth in Earnings Per Share. The EPS has been growing by 5.60% on average per year.
ELTK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.05%.
The Revenue has been growing slightly by 5.99% on average over the past years.
EPS 1Y (TTM)-52.34%
EPS 3Y-9.84%
EPS 5Y5.6%
EPS Q2Q%-44.44%
Revenue 1Y (TTM)1.05%
Revenue growth 3Y11.22%
Revenue growth 5Y5.99%
Sales Q2Q%8.29%
3.2 Future
Based on estimates for the next years, ELTK will show a very strong growth in Earnings Per Share. The EPS will grow by 42.26% on average per year.
Based on estimates for the next years, ELTK will show a quite strong growth in Revenue. The Revenue will grow by 9.50% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.02, the valuation of ELTK can be described as rather expensive.
Based on the Price/Earnings ratio, ELTK is valued a bit cheaper than 75.20% of the companies in the same industry.
ELTK is valuated rather cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.41, the valuation of ELTK can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELTK indicates a rather cheap valuation: ELTK is cheaper than 97.60% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, ELTK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 8.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ELTK indicates a rather cheap valuation: ELTK is cheaper than 91.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.02 |
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.
ELTK has a very decent profitability rating, which may justify a higher PE ratio.
ELTK's earnings are expected to grow with 42.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.32
PEG (5Y)3.75
EPS Next 2Y42.26%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ELTK has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.95, ELTK pays a better dividend. On top of this ELTK pays more dividend than 92.80% of the companies listed in the same industry.
ELTK's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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
DP0%
EPS Next 2Y42.26%
EPS Next 3YN/A
10.72
+0.22 (+2.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners11.48%
Inst Owner Change12.19%
Ins Owners2.67%
Ins Owner ChangeN/A
Market Cap71.93M
Analysts82.86
Price Target18.36 (71.27%)
Short Float %0.26%
Short Ratio0.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.02 | ||
| Fwd PE | 8.41 | ||
| P/S | 1.51 | ||
| P/FCF | N/A | ||
| P/OCF | 21.37 | ||
| P/B | 1.73 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 9.02 |
EPS(TTM)0.51
EY4.76%
EPS(NY)1.27
Fwd EY11.89%
FCF(TTM)-0.68
FCFYN/A
OCF(TTM)0.5
OCFY4.68%
SpS7.08
BVpS6.19
TBVpS6.19
PEG (NY)0.32
PEG (5Y)3.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.71% | ||
| ROE | 8.4% | ||
| ROCE | 7.2% | ||
| ROIC | 5.95% | ||
| ROICexc | 8.93% | ||
| ROICexgc | 8.93% | ||
| OM | 7.15% | ||
| PM (TTM) | 7.34% | ||
| GM | 19.58% | ||
| FCFM | N/A |
ROA(3y)9.39%
ROA(5y)9.48%
ROE(3y)16.36%
ROE(5y)18.02%
ROIC(3y)11.27%
ROIC(5y)9.69%
ROICexc(3y)17.08%
ROICexc(5y)13.99%
ROICexgc(3y)17.08%
ROICexgc(5y)13.99%
ROCE(3y)13.64%
ROCE(5y)11.73%
ROICexcg growth 3Y22.66%
ROICexcg growth 5Y-7.24%
ROICexc growth 3Y22.66%
ROICexc growth 5Y-7.24%
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%
F-Score3
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 480.68% | ||
| Cap/Sales | 16.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 66.76% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.78 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 3.68 |
F-Score3
WACC9.07%
ROIC/WACC0.66
Cap/Depr(3y)332.1%
Cap/Depr(5y)230.15%
Cap/Sales(3y)11.09%
Cap/Sales(5y)8.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-52.34%
EPS 3Y-9.84%
EPS 5Y5.6%
EPS Q2Q%-44.44%
EPS Next Y65.14%
EPS Next 2Y42.26%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.05%
Revenue growth 3Y11.22%
Revenue growth 5Y5.99%
Sales Q2Q%8.29%
Revenue Next Year9.96%
Revenue Next 2Y9.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-54.25%
EBIT growth 3Y31.08%
EBIT growth 5Y25.87%
EBIT Next Year138253%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-241.62%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-46.23%
OCF growth 3Y5.38%
OCF growth 5Y11.97%