GILAT SATELLITE NETWORKS LTD (GILT) Stock Fundamental Analysis
NASDAQ:GILT - Nasdaq - IL0010825102 - Common Stock - Currency: USD
GILT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Communications Equipment industry. There are concerns on the financial health of GILT while its profitability can be described as average. GILT has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
GILT had positive earnings in the past year.
GILT had a positive operating cash flow in the past year.
In multiple years GILT reported negative net income over the last 5 years.
Each year in the past 5 years GILT had a positive operating cash flow.
1.2 Ratios
GILT has a Return On Assets of 2.38%. This is in the better half of the industry: GILT outperforms 70.00% of its industry peers.
GILT has a Return On Equity of 4.64%. This is in the better half of the industry: GILT outperforms 72.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.00%, GILT is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GILT is significantly below the industry average of 13.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 4.64% | ||
| ROIC | 4% |
ROA(3y)3.25%
ROA(5y)3.49%
ROE(3y)4.77%
ROE(5y)5.42%
ROIC(3y)4.96%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 4.32%, GILT is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
GILT's Profit Margin has declined in the last couple of years.
GILT has a Operating Margin of 6.09%. This is in the better half of the industry: GILT outperforms 66.00% of its industry peers.
In the last couple of years the Operating Margin of GILT has declined.
The Gross Margin of GILT (35.37%) is worse than 62.00% of its industry peers.
In the last couple of years the Gross Margin of GILT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.09% | ||
| PM (TTM) | 4.32% | ||
| GM | 35.37% |
OM growth 3Y63.71%
OM growth 5Y-10.15%
PM growth 3YN/A
PM growth 5Y-10.72%
GM growth 3Y3.81%
GM growth 5Y-0.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GILT is destroying value.
The number of shares outstanding for GILT remains at a similar level compared to 1 year ago.
Compared to 5 years ago, GILT has more shares outstanding
GILT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.13, we must say that GILT is in the distress zone and has some risk of bankruptcy.
GILT has a worse Altman-Z score (0.13) than 64.00% of its industry peers.
GILT has a debt to FCF ratio of 4.47. This is a neutral value as GILT would need 4.47 years to pay back of all of its debts.
GILT has a Debt to FCF ratio (4.47) which is comparable to the rest of the industry.
GILT has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
GILT has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.44
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.41 indicates that GILT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.41, GILT is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
A Quick Ratio of 1.06 indicates that GILT should not have too much problems paying its short term obligations.
GILT has a Quick ratio of 1.06. This is in the lower half of the industry: GILT underperforms 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
GILT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -41.46%.
GILT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.97% yearly.
Looking at the last year, GILT shows a quite strong growth in Revenue. The Revenue has grown by 13.49% in the last year.
Measured over the past years, GILT shows a small growth in Revenue. The Revenue has been growing by 3.49% on average per year.
EPS 1Y (TTM)-41.46%
EPS 3YN/A
EPS 5Y-7.97%
EPS Q2Q%-222.22%
Revenue 1Y (TTM)13.49%
Revenue growth 3Y12.42%
Revenue growth 5Y3.49%
Sales Q2Q%20.98%
3.2 Future
Based on estimates for the next years, GILT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.38% on average per year.
GILT is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 20.75% yearly.
EPS Next Y-15.77%
EPS Next 2Y21.49%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue Next Year38.24%
Revenue Next 2Y25.13%
Revenue Next 3Y20.75%
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.
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
GILT is valuated quite expensively with a Price/Earnings ratio of 30.04.
GILT's Price/Earnings ratio is a bit cheaper when compared to the industry. GILT is cheaper than 62.00% of the companies in the same industry.
GILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.10, the valuation of GILT can be described as very reasonable.
GILT's Price/Forward Earnings ratio is rather cheap when compared to the industry. GILT is cheaper than 88.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, GILT is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 11.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILT is valued a bit cheaper than 74.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GILT indicates a somewhat cheap valuation: GILT is cheaper than 64.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.39 | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
A more expensive valuation may be justified as GILT's earnings are expected to grow with 16.38% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y21.49%
EPS Next 3Y16.38%
5. Dividend
5.1 Amount
GILT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.21
+0.07 (+0.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners33.95%
Inst Owner Change4.86%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap411.11M
Analysts84.44
Price Target8.57 (18.86%)
Short Float %1.65%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-237.84%
Min EPS beat(2)-504.36%
Max EPS beat(2)28.68%
EPS beat(4)2
Avg EPS beat(4)-97.84%
Min EPS beat(4)-504.36%
Max EPS beat(4)135.29%
EPS beat(8)5
Avg EPS beat(8)25.67%
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)0
Avg Revenue beat(2)-8.38%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)-6.82%
Revenue beat(4)1
Avg Revenue beat(4)-5.08%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)1.39%
Revenue beat(8)2
Avg Revenue beat(8)-3.74%
Revenue beat(12)2
Avg Revenue beat(12)-4.68%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-118.75%
EPS NQ rev (3m)-120%
EPS NY rev (1m)-9.92%
EPS NY rev (3m)-17.42%
Revenue NQ rev (1m)-3.53%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-1.66%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.04 | ||
| Fwd PE | 11.1 | ||
| P/S | 1.28 | ||
| P/FCF | 30.39 | ||
| P/OCF | 19.73 | ||
| P/B | 1.37 | ||
| P/tB | 6.31 | ||
| EV/EBITDA | 12.02 |
EPS(TTM)0.24
EY3.33%
EPS(NY)0.65
Fwd EY9.01%
FCF(TTM)0.24
FCFY3.29%
OCF(TTM)0.37
OCFY5.07%
SpS5.64
BVpS5.25
TBVpS1.14
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.38% | ||
| ROE | 4.64% | ||
| ROCE | 4.74% | ||
| ROIC | 4% | ||
| ROICexc | 4.73% | ||
| ROICexgc | 14.44% | ||
| OM | 6.09% | ||
| PM (TTM) | 4.32% | ||
| GM | 35.37% | ||
| FCFM | 4.21% |
ROA(3y)3.25%
ROA(5y)3.49%
ROE(3y)4.77%
ROE(5y)5.42%
ROIC(3y)4.96%
ROIC(5y)N/A
ROICexc(3y)7.57%
ROICexc(5y)N/A
ROICexgc(3y)11.07%
ROICexgc(5y)N/A
ROCE(3y)5.95%
ROCE(5y)N/A
ROICexcg growth 3Y79.52%
ROICexcg growth 5Y-6.06%
ROICexc growth 3Y74.24%
ROICexc growth 5Y-8.19%
OM growth 3Y63.71%
OM growth 5Y-10.15%
PM growth 3YN/A
PM growth 5Y-10.72%
GM growth 3Y3.81%
GM growth 5Y-0.15%
F-Score3
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 4.47 | ||
| Debt/EBITDA | 1.71 | ||
| Cap/Depr | 52.07% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.03% | ||
| Profit Quality | 97.42% | ||
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 0.13 |
F-Score3
WACC9.05%
ROIC/WACC0.44
Cap/Depr(3y)79.7%
Cap/Depr(5y)73.25%
Cap/Sales(3y)3.85%
Cap/Sales(5y)3.71%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-41.46%
EPS 3YN/A
EPS 5Y-7.97%
EPS Q2Q%-222.22%
EPS Next Y-15.77%
EPS Next 2Y21.49%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue 1Y (TTM)13.49%
Revenue growth 3Y12.42%
Revenue growth 5Y3.49%
Sales Q2Q%20.98%
Revenue Next Year38.24%
Revenue Next 2Y25.13%
Revenue Next 3Y20.75%
Revenue Next 5YN/A
EBIT growth 1Y-26.08%
EBIT growth 3Y84.04%
EBIT growth 5Y-7.01%
EBIT Next Year83.12%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.63%
FCF growth 3Y35.96%
FCF growth 5Y-1.33%
OCF growth 1Y-14.57%
OCF growth 3Y18.77%
OCF growth 5Y-1.86%