Gilat Satellite Networks Ltd. (GILT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Arlo Technologies, Inc.

Calix, Inc.

Ciena Corp.

ViaSat, Inc.

Gilat Satellite Networks Ltd.

Digi International, Inc.

InterDigital, Inc.

Harmonic, Inc.

CommScope Holding Co., Inc.

Clearfield, Inc.

Infinera Corp.

Why is Gilat Satellite Networks Ltd. ?

Poor Management Efficiency with a low ROE of 2.80%

The company has been able to generate a Return on Equity (avg) of 2.80% signifying low profitability per unit of shareholders funds

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 22.18% over the last 5 years

With a growth in Operating Profit of 829.19%, the company declared Very Positive results in Mar 26

PRE-TAX PROFIT(Q) At USD 5.68 MM has Grown at 254.25%
NET SALES(HY) At USD 247.43 MM has Grown at 45.41%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 4.14%, it has a fair valuation with a 2.29 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 93.68%, its profits have fallen by -16.6%

High Institutional Holdings at 49.06%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 2.3% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gilat Satellite Networks Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Gilat Satellite Networks Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Gilat Satellite Networks Ltd.

85.02%

1.92

72.47%

S&P 500

22.24%

1.91

13.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.18%

EBIT Growth (5y)

26.04%

EBIT to Interest (avg)

9.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.95

Tax Ratio

29.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

49.06%

ROCE (avg)

5.78%

ROE (avg)

2.80%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.29

EV to EBIT

47.60

EV to EBITDA

21.95

EV to Capital Employed

3.01

EV to Sales

2.13

PEG Ratio

Dividend Yield

ROCE (Latest)

6.33%

ROE (Latest)

4.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

21What is working for the Company

PRE-TAX PROFIT(Q)

At USD 5.68 MM has Grown at 254.25%

NET SALES(HY)

At USD 247.43 MM has Grown at 45.41%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

NET PROFIT(Q)

At USD 5.23 MM has Grown at 187.29%

RAW MATERIAL COST(Y)

Fallen by -10.82% (YoY

CASH AND EQV(HY)

Highest at USD 356.51 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 6.28 times

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 16.37 MM

INTEREST(HY)

At USD 1.35 MM has Grown at 44.02%

Here's what is working for Gilat Satellite Networks Ltd.

Pre-Tax Profit

At USD 5.68 MM has Grown at 254.25%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 5.23 MM has Grown at 187.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

At USD 247.43 MM has Grown at 45.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 356.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 6.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Gilat Satellite Networks Ltd.

Operating Cash Flow

Lowest at USD 16.37 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Interest

At USD 1.35 MM has Grown at 44.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)