Taking everything into account, GILT scores 4 out of 10 in our fundamental rating. GILT was compared to 48 industry peers in the Communications Equipment industry. GILT has only an average score on both its financial health and profitability. GILT shows excellent growth, but is valued quite expensive already.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
In the past 5 years GILT always reported a positive cash flow from operatings.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.51%, GILT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
GILT has a Return On Equity of 6.07%. This is in the better half of the industry: GILT outperforms 70.83% of its industry peers.
GILT's Return On Invested Capital of 4.00% is fine compared to the rest of the industry. GILT outperforms 62.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GILT is significantly below the industry average of 12.17%.

		Industry Rank	Sector Rank
ROA	3.51%
ROE	6.07%
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

With a decent Profit Margin value of 6.03%, GILT is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Profit Margin of GILT has declined.
GILT has a Operating Margin of 5.92%. This is in the better half of the industry: GILT outperforms 62.50% of its industry peers.
GILT's Operating Margin has declined in the last couple of years.
GILT has a worse Gross Margin (32.09%) than 72.92% 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	5.92%
PM (TTM)	6.03%
GM	32.09%

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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GILT is destroying value.
GILT has about the same amout of shares outstanding than it did 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

An Altman-Z score of 1.88 indicates that GILT is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of GILT (1.88) is comparable to the rest of the industry.
The Debt to FCF ratio of GILT is 1.82, which is an excellent value as it means it would take GILT, only 1.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GILT (1.82) is better than 68.75% of its industry peers.
GILT has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of GILT (0.14) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.14
Debt/FCF	1.82
Altman-Z	1.88

ROIC/WACC0.44

WACC9.08%

2.3 Liquidity

A Current Ratio of 1.72 indicates that GILT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.72, GILT is doing worse than 64.58% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that GILT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.45, GILT is not doing good in the industry: 60.42% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Current Ratio	1.72
Quick Ratio	1.45

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 72.41% over the past year.
Measured over the past years, GILT shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.97% on average per year.
The Revenue has grown by 29.67% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 3.49% on average over the past years.

EPS 1Y (TTM)72.41%

EPS 3YN/A

EPS 5Y-7.97%

EPS Q2Q%58.33%

Revenue 1Y (TTM)29.67%

Revenue growth 3Y12.42%

Revenue growth 5Y3.49%

Sales Q2Q%57.74%

3.2 Future

The Earnings Per Share is expected to grow by 12.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 24.07% on average over the next years. This is a very strong growth

EPS Next Y33.68%

EPS Next 2Y13.26%

EPS Next 3Y12.24%

EPS Next 5YN/A

Revenue Next Year44.63%

Revenue Next 2Y28.19%

Revenue Next 3Y24.07%

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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 36.84, GILT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of GILT indicates a somewhat cheap valuation: GILT is cheaper than 62.50% of the companies listed in the same industry.
GILT is valuated rather expensively when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 32.64, GILT can be considered very expensive at the moment.
The rest of the industry has a similar Price/Forward Earnings ratio as GILT.
The average S&P500 Price/Forward Earnings ratio is at 25.98. GILT is valued slightly more expensive when compared to this.

		Industry Rank	Sector Rank
PE	36.84
Fwd PE	32.64

4.2 Price Multiples

GILT's Enterprise Value to EBITDA ratio is in line with the industry average.
GILT's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	32.34
EV/EBITDA	22.75

4.3 Compensation for Growth

GILT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GILT's earnings are expected to grow with 12.24% in the coming years. This may justify a more expensive valuation.