GILAT SATELLITE NETWORKS LTD (GILT) Stock Fundamental Analysis
NASDAQ:GILT - Nasdaq - IL0010825102 - Common Stock - Currency: USD
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. 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
GILT had positive earnings in the past year.
In the past year GILT had a positive cash flow from operations.
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
The Return On Assets of GILT (2.38%) is better than 66.67% of its industry peers.
The Return On Equity of GILT (4.64%) is better than 68.75% of its industry peers.
GILT's Return On Invested Capital of 4.00% is fine compared to the rest of the industry. GILT outperforms 68.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GILT is significantly below the industry average of 13.64%.
| 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
GILT has a better Profit Margin (4.32%) than 66.67% of its industry peers.
In the last couple of years the Profit Margin of GILT has declined.
The Operating Margin of GILT (6.09%) is better than 66.67% of its industry peers.
GILT's Operating Margin has declined in the last couple of years.
GILT has a Gross Margin of 35.37%. This is in the lower half of the industry: GILT underperforms 60.42% 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
GILT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, GILT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.35, we must say that GILT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.35, GILT is in line with its industry, outperforming 45.83% of the companies in the same industry.
The Debt to FCF ratio of GILT is 4.47, which is a neutral value as it means it would take GILT, 4.47 years of fcf income to pay off all of its debts.
GILT has a Debt to FCF ratio (4.47) which is in line with its industry peers.
A Debt/Equity ratio of 0.19 indicates that GILT is not too dependend on debt financing.
The Debt to Equity ratio of GILT (0.19) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 4.47 | ||
| Altman-Z | 0.35 |
ROIC/WACC0.44
WACC9.06%
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 70.83% 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.
GILT has a worse Quick ratio (1.06) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.41 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.86% 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.
GILT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.79%.
The Revenue has been growing slightly by 3.49% on average over the past years.
EPS 1Y (TTM)22.86%
EPS 3YN/A
EPS 5Y-7.97%
EPS Q2Q%950%
Revenue 1Y (TTM)14.79%
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 quite strong growth in Earnings Per Share. The EPS will grow by 16.38% on average per year.
The Revenue is expected to grow by 20.75% on average over the next years. This is a very strong growth
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.
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
With a Price/Earnings ratio of 21.16, GILT is valued on the expensive side.
GILT's Price/Earnings ratio is a bit cheaper when compared to the industry. GILT is cheaper than 68.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.73, GILT is valued a bit cheaper.
GILT is valuated correctly with a Price/Forward Earnings ratio of 14.01.
72.92% of the companies in the same industry are more expensive than GILT, based on the Price/Forward Earnings ratio.
GILT is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.61, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 14.01 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than GILT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GILT is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.35 | ||
| EV/EBITDA | 15.09 |
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
No dividends for GILT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.1
+0.15 (+1.68%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners38.69%
Inst Owner Change2.48%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap518.88M
Analysts84.44
Price Target8.57 (-5.82%)
Short Float %1.91%
Short Ratio2.08
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)0%
EPS NQ rev (3m)-37.5%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.16 | ||
| Fwd PE | 14.01 | ||
| P/S | 1.61 | ||
| P/FCF | 38.35 | ||
| P/OCF | 24.9 | ||
| P/B | 1.73 | ||
| P/tB | 7.97 | ||
| EV/EBITDA | 15.09 |
EPS(TTM)0.43
EY4.73%
EPS(NY)0.65
Fwd EY7.14%
FCF(TTM)0.24
FCFY2.61%
OCF(TTM)0.37
OCFY4.02%
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 | 0.35 |
F-Score3
WACC9.06%
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)22.86%
EPS 3YN/A
EPS 5Y-7.97%
EPS Q2Q%950%
EPS Next Y-15.77%
EPS Next 2Y21.49%
EPS Next 3Y16.38%
EPS Next 5YN/A
Revenue 1Y (TTM)14.79%
Revenue growth 3Y12.42%
Revenue growth 5Y3.49%
Sales Q2Q%36.98%
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 Year81.39%
EBIT Next 3Y40.46%
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%