Gilat Satellite Networks Ltd. Fundamental Analysis
Gilat Satellite Networks Ltd. (GILT) shows weak financial fundamentals with a PE ratio of 33.42, profit margin of 6.80%, and ROE of 7.33%. The company generates $0.4B in annual revenue with strong year-over-year growth of 47.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze GILT's fundamental strength across five key dimensions:
Efficiency Score
WeakGILT struggles to generate sufficient returns from assets.
Valuation Score
ModerateGILT shows balanced valuation metrics.
Growth Score
ModerateGILT shows steady but slowing expansion.
Financial Health Score
ExcellentGILT maintains a strong and stable balance sheet.
Profitability Score
WeakGILT struggles to sustain strong margins.
Key Financial Metrics
Is GILT Expensive or Cheap?
P/E Ratio
GILT trades at 33.42 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, GILT's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values Gilat Satellite Networks Ltd. at 1.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.55 times EBITDA. This signals the market has high growth expectations.
How Well Does GILT Make Money?
Net Profit Margin
For every $100 in sales, Gilat Satellite Networks Ltd. keeps $6.80 as profit after all expenses.
Operating Margin
Core operations generate 5.24 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.33 in profit for every $100 of shareholder equity.
ROA
Gilat Satellite Networks Ltd. generates $4.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Gilat Satellite Networks Ltd. generates limited operating cash flow of $14.02M, signaling weaker underlying cash strength.
Free Cash Flow
Gilat Satellite Networks Ltd. generates weak or negative free cash flow of $2.73M, restricting financial flexibility.
FCF Per Share
Each share generates $0.04 in free cash annually.
FCF Yield
GILT converts 0.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
33.42
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How GILT Stacks Against Its Sector Peers
| Metric | GILT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 33.42 | 36.36 | Neutral |
| ROE | 7.33% | 980.00% | Weak |
| Net Margin | 6.80% | 5969454258.00% | Weak |
| Debt/Equity | 0.01 | 0.36 | Strong (Low Leverage) |
| Current Ratio | 2.02 | 5.04 | Strong Liquidity |
| ROA | 4.23% | -298400.00% (disorted) | Weak |
GILT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Gilat Satellite Networks Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
153.96%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-44.81%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-55.25%
Industry Style: Growth, Innovation, High Beta
Declining