ELTEK LTD (ELTK)
IL0010828411 - Common Stock
We assign a fundamental rating of 7 out of 10 to ELTK. ELTK was compared to 127 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. An interesting combination arises when we look at growth and value: ELTK is growing strongly while it also seems undervalued. With these ratings, ELTK could be worth investigating further for value and growth and quality investing!.
1. Profitability
1.1 Basic Checks
ELTK had positive earnings in the past year.
In the past year ELTK had a positive cash flow from operations.
In the past 5 years ELTK has always been profitable.
Each year in the past 5 years ELTK had a positive operating cash flow.
1.2 Ratios
ELTK has a Return On Assets of 13.46%. This is amongst the best in the industry. ELTK outperforms 96.03% of its industry peers.
With an excellent Return On Equity value of 23.62%, ELTK belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.15%, ELTK belongs to the top of the industry, outperforming 97.62% of the companies in the same industry.
ELTK had an Average Return On Invested Capital over the past 3 years of 10.29%. This is in line with the industry average of 9.44%.
The last Return On Invested Capital (18.15%) for ELTK is above the 3 year average (10.29%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 23.62% | ||
| ROIC | 18.15% |
ROA(3y)10.98%
ROA(5y)9.64%
ROE(3y)20.91%
ROE(5y)21.68%
ROIC(3y)10.29%
ROIC(5y)10.99%
1.3 Margins
ELTK's Profit Margin of 13.60% is amongst the best of the industry. ELTK outperforms 92.86% of its industry peers.
In the last couple of years the Profit Margin of ELTK has grown nicely.
The Operating Margin of ELTK (15.62%) is better than 91.27% of its industry peers.
ELTK's Operating Margin has improved in the last couple of years.
ELTK has a Gross Margin of 28.07%. This is comparable to the rest of the industry: ELTK outperforms 49.21% of its industry peers.
ELTK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.62% | ||
| PM (TTM) | 13.6% | ||
| GM | 28.07% |
OM growth 3Y23.7%
OM growth 5YN/A
PM growth 3Y24.15%
PM growth 5YN/A
GM growth 3Y9.99%
GM growth 5Y29.65%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ELTK is creating 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.
ELTK has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
ELTK has an Altman-Z score of 3.96. This indicates that ELTK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ELTK (3.96) is better than 71.43% of its industry peers.
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 | 0 | ||
| Altman-Z | 3.96 |
ROIC/WACC2.04
WACC8.9%
2.3 Liquidity
ELTK has a Current Ratio of 2.15. This indicates that ELTK is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ELTK (2.15) is comparable to the rest of the industry.
A Quick Ratio of 1.71 indicates that ELTK should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.71, ELTK is in line with its industry, outperforming 52.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 94.33% over the past year.
ELTK shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.51% yearly.
ELTK shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.73%.
Measured over the past years, ELTK shows a small growth in Revenue. The Revenue has been growing by 6.59% on average per year.
EPS 1Y (TTM)94.33%
EPS 3Y22.51%
EPS 5YN/A
EPS growth Q2Q57.14%
Revenue 1Y (TTM)17.73%
Revenue growth 3Y8.35%
Revenue growth 5Y6.59%
Revenue growth Q2Q17.57%
3.2 Future
The Earnings Per Share is expected to grow by 10.03% on average over the next years. This is quite good.
ELTK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.60% yearly.
EPS Next Y6.77%
EPS Next 2Y10.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.21%
Revenue Next 2Y10.6%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
The Price/Earnings ratio is 10.37, which indicates a very decent valuation of ELTK.
Based on the Price/Earnings ratio, ELTK is valued cheaper than 91.27% of the companies in the same industry.
ELTK is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.72, which indicates a very decent valuation of ELTK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ELTK indicates a rather cheap valuation: ELTK is cheaper than 92.86% 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 | 10.37 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
ELTK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ELTK is cheaper than 86.51% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ELTK is valued cheaper than 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.57 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
ELTK's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ELTK may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)N/A
EPS Next 2Y10.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.96%, ELTK has a reasonable but not impressive dividend return.
The stock price of ELTK dropped by -43.08% 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.
Compared to an average industry Dividend Yield of 1.78, ELTK pays a better dividend. On top of this ELTK pays more dividend than 94.44% of the companies listed in the same industry.
ELTK's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
ELTK is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
20.81% of the earnings are spent on dividend by ELTK. This is a low number and sustainable payout ratio.
DP20.81%
EPS Next 2Y10.03%
EPS Next 3YN/A
ELTEK LTD
NASDAQ:ELTK (4/24/2024, 4:20:01 PM)
After market: 10.8 -0.3 (-2.7%)11.1
+0.31 (+2.87%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap74.37M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.37 | ||
| Fwd PE | 9.72 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.46% | ||
| ROE | 23.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.62% | ||
| PM (TTM) | 13.6% | ||
| GM | 28.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)94.33%
EPS 3Y22.51%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.77%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.73%
Revenue growth 3Y8.35%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y