GILAT SATELLITE NETWORKS LTD (GILT) Stock Fundamental Analysis
NASDAQ:GILT - Nasdaq - IL0010825102 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to GILT. GILT was compared to 50 industry peers in the Communications Equipment industry. GILT has a medium profitability rating, but doesn't score so well on its financial health evaluation. GILT is not valued too expensively and it also shows a decent 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.
The reported net income has been mixed in the past 5 years: GILT reported negative net income in multiple years.
In the past 5 years GILT always reported a positive cash flow from operatings.
1.2 Ratios
GILT's Return On Assets of 2.38% is fine compared to the rest 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.
With a decent Return On Invested Capital value of 4.00%, GILT is doing good in the industry, outperforming 68.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GILT is significantly below the industry average of 13.73%.
| 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
The Profit Margin of GILT (4.32%) is better than 72.00% of its industry peers.
GILT's Profit Margin has declined in the last couple of years.
GILT's Operating Margin of 6.09% is fine compared to the rest of the industry. GILT outperforms 66.00% of its industry peers.
In the last couple of years the Operating Margin of GILT has declined.
Looking at the Gross Margin, with a value of 35.37%, GILT is doing worse than 62.00% of the companies in the same industry.
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
GILT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GILT remains at a similar level compared to 1 year ago.
The number of shares outstanding for GILT has been increased compared to 5 years ago.
The debt/assets ratio for GILT has been reduced compared to a year ago.
2.2 Solvency
GILT has an Altman-Z score of 0.02. This is a bad value and indicates that GILT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.02, GILT is doing worse than 66.00% of the companies in the same industry.
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 in line with its industry peers.
GILT has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.19, GILT perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 0.02 |
ROIC/WACC0.44
WACC9%
2.3 Liquidity
GILT has a Current Ratio of 1.41. This is a normal value and indicates that GILT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.41, GILT is doing worse than 66.00% of the companies in the same industry.
GILT has a Quick Ratio of 1.06. This is a normal value and indicates that GILT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.06, GILT is not doing good in the industry: 66.00% of the companies in the same industry are doing better.
| 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%.
The Earnings Per Share has been decreasing by -7.97% on average over the past years.
The Revenue has grown by 13.49% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 22.35% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 19.18% on average over the next years. This is quite good.
EPS Next Y-6.5%
EPS Next 2Y19.56%
EPS Next 3Y22.35%
EPS Next 5YN/A
Revenue Next Year38.24%
Revenue Next 2Y25.13%
Revenue Next 3Y19.18%
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
With a Price/Earnings ratio of 27.04, GILT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, GILT is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
GILT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.35.
The Price/Forward Earnings ratio is 10.32, which indicates a very decent valuation of GILT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GILT indicates a rather cheap valuation: GILT is cheaper than 88.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, GILT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.04 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GILT is valued a bit cheaper than 78.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GILT is valued a bit cheaper than the industry average as 62.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.35 | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
GILT's earnings are expected to grow with 22.35% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y19.56%
EPS Next 3Y22.35%
5. Dividend
5.1 Amount
No dividends for GILT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
6.49
+0.25 (+4.01%)
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 Cap370.06M
Analysts84.44
Price Target8.57 (32.05%)
Short Float %1.75%
Short Ratio2.77
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)0%
EPS NY rev (3m)-8.33%
Revenue NQ rev (1m)-3.34%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-1.66%
Revenue NY rev (3m)-1.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.04 | ||
| Fwd PE | 10.32 | ||
| P/S | 1.15 | ||
| P/FCF | 27.35 | ||
| P/OCF | 17.76 | ||
| P/B | 1.24 | ||
| P/tB | 5.68 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)0.24
EY3.7%
EPS(NY)0.63
Fwd EY9.69%
FCF(TTM)0.24
FCFY3.66%
OCF(TTM)0.37
OCFY5.63%
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 | 0.02 |
F-Score3
WACC9%
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-6.5%
EPS Next 2Y19.56%
EPS Next 3Y22.35%
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 3Y19.18%
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%