GILAT SATELLITE NETWORKS LTD (GILT) Stock Fundamental Analysis
USA - NASDAQ:GILT - IL0010825102 - Common Stock
11.4 USD
+0.26 (+2.33%)
11.26 USD
-0.14 (-1.23%)
GILT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While GILT is still in line with the averages on profitability rating, there are concerns on its financial health. GILT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
In the past year GILT was profitable.
GILT had a positive operating cash flow in the past year.
In multiple years GILT reported negative net income over the last 5 years.
GILT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.89%, GILT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a decent Return On Equity value of 7.10%, GILT is doing good in the industry, outperforming 72.92% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.41%, GILT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
GILT had an Average Return On Invested Capital over the past 3 years of 4.96%. This is significantly below the industry average of 13.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.1% | ||
| ROIC | 4.41% |
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
GILT's Profit Margin of 6.41% is fine compared to the rest of the industry. GILT outperforms 70.83% of its industry peers.
In the last couple of years the Profit Margin of GILT has declined.
With a decent Operating Margin value of 6.42%, GILT is doing good in the industry, outperforming 68.75% of the companies in the same industry.
In the last couple of years the Operating Margin of GILT has declined.
GILT's Gross Margin of 34.03% is on the low side compared to the rest of the industry. GILT is outperformed by 62.50% of its industry peers.
GILT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.42% | ||
| PM (TTM) | 6.41% | ||
| GM | 34.03% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GILT is destroying value.
GILT has about the same amout of shares outstanding than it did 1 year ago.
GILT has more shares outstanding than it did 5 years ago.
GILT has a better debt/assets ratio than last year.
2.2 Solvency
GILT has an Altman-Z score of 0.82. This is a bad value and indicates that GILT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.82, GILT perfoms like the industry average, outperforming 47.92% of the companies in the same industry.
GILT has a debt to FCF ratio of 2.81. This is a good value and a sign of high solvency as GILT would need 2.81 years to pay back of all of its debts.
The Debt to FCF ratio of GILT (2.81) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.18 indicates that GILT is not too dependend on debt financing.
GILT has a Debt to Equity ratio (0.18) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.5
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.50 indicates that GILT should not have too much problems paying its short term obligations.
GILT's Current ratio of 1.50 is on the low side compared to the rest of the industry. GILT is outperformed by 66.67% of its industry peers.
GILT has a Quick Ratio of 1.17. This is a normal value and indicates that GILT is financially healthy and should not expect problems in meeting its short term obligations.
GILT has a Quick ratio of 1.17. This is in the lower half of the industry: GILT underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
GILT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.86%, which is quite impressive.
The Earnings Per Share has been decreasing by -7.97% on average over the past years.
Looking at the last year, GILT shows a quite strong growth in Revenue. The Revenue has grown by 19.67% 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)22.86%
EPS 3YN/A
EPS 5Y-7.97%
EPS Q2Q%950%
Revenue 1Y (TTM)19.67%
Revenue growth 3Y12.42%
Revenue growth 5Y3.49%
Sales Q2Q%36.98%
3.2 Future
Based on estimates for the next years, GILT will show a very strong growth in Earnings Per Share. The EPS will grow by 28.72% on average per year.
Based on estimates for the next years, GILT will show a very strong growth in Revenue. The Revenue will grow by 23.85% on average per year.
EPS Next Y4.32%
EPS Next 2Y28.59%
EPS Next 3Y28.72%
EPS Next 5YN/A
Revenue Next Year42.41%
Revenue Next 2Y27.3%
Revenue Next 3Y23.85%
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
Based on the Price/Earnings ratio of 26.51, the valuation of GILT can be described as expensive.
Based on the Price/Earnings ratio, GILT is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
GILT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.67, the valuation of GILT can be described as correct.
GILT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GILT is cheaper than 79.17% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GILT to the average of the S&P500 Index (22.88), we can say GILT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 15.67 |
4.2 Price Multiples
GILT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GILT is cheaper than 70.83% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GILT is valued a bit cheaper than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.53 | ||
| EV/EBITDA | 16.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as GILT's earnings are expected to grow with 28.72% in the coming years.
PEG (NY)6.14
PEG (5Y)N/A
EPS Next 2Y28.59%
EPS Next 3Y28.72%
5. Dividend
5.1 Amount
No dividends for GILT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.4
+0.26 (+2.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners38.69%
Inst Owner Change3.41%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap650.03M
Analysts84.44
Price Target11.22 (-1.58%)
Short Float %2.09%
Short Ratio1.53
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)6.67%
Min EPS beat(2)-504.36%
Max EPS beat(2)517.71%
EPS beat(4)3
Avg EPS beat(4)44.33%
Min EPS beat(4)-504.36%
Max EPS beat(4)517.71%
EPS beat(8)5
Avg EPS beat(8)70.2%
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)1
Avg Revenue beat(2)-3.56%
Min Revenue beat(2)-9.94%
Max Revenue beat(2)2.82%
Revenue beat(4)1
Avg Revenue beat(4)-4.72%
Min Revenue beat(4)-9.94%
Max Revenue beat(4)2.82%
Revenue beat(8)2
Avg Revenue beat(8)-3.87%
Revenue beat(12)3
Avg Revenue beat(12)-4.17%
Revenue beat(16)4
Avg Revenue beat(16)-4.63%
PT rev (1m)30.95%
PT rev (3m)30.95%
EPS NQ rev (1m)15.38%
EPS NQ rev (3m)42.86%
EPS NY rev (1m)23.85%
EPS NY rev (3m)11.57%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)3.01%
Revenue NY rev (3m)3.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.51 | ||
| Fwd PE | 15.67 | ||
| P/S | 1.86 | ||
| P/FCF | 30.53 | ||
| P/OCF | 22.03 | ||
| P/B | 2.06 | ||
| P/tB | 7.53 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)0.43
EY3.77%
EPS(NY)0.73
Fwd EY6.38%
FCF(TTM)0.37
FCFY3.28%
OCF(TTM)0.52
OCFY4.54%
SpS6.13
BVpS5.54
TBVpS1.51
PEG (NY)6.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 7.1% | ||
| ROCE | 5.24% | ||
| ROIC | 4.41% | ||
| ROICexc | 5.2% | ||
| ROICexgc | 14.08% | ||
| OM | 6.42% | ||
| PM (TTM) | 6.41% | ||
| GM | 34.03% | ||
| FCFM | 6.09% |
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 Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.81 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 50.83% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 76.42% | ||
| Profit Quality | 94.98% | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 0.82 |
F-Score3
WACC8.81%
ROIC/WACC0.5
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)22.86%
EPS 3YN/A
EPS 5Y-7.97%
EPS Q2Q%950%
EPS Next Y4.32%
EPS Next 2Y28.59%
EPS Next 3Y28.72%
EPS Next 5YN/A
Revenue 1Y (TTM)19.67%
Revenue growth 3Y12.42%
Revenue growth 5Y3.49%
Sales Q2Q%36.98%
Revenue Next Year42.41%
Revenue Next 2Y27.3%
Revenue Next 3Y23.85%
Revenue Next 5YN/A
EBIT growth 1Y-5.67%
EBIT growth 3Y84.04%
EBIT growth 5Y-7.01%
EBIT Next Year81.39%
EBIT Next 3Y40.46%
EBIT Next 5YN/A
FCF growth 1Y43.09%
FCF growth 3Y35.96%
FCF growth 5Y-1.33%
OCF growth 1Y-0.68%
OCF growth 3Y18.77%
OCF growth 5Y-1.86%