Gilat (GILT) AI Stock Analysis

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Gilat

(NASDAQ:GILT)

71Outperform

Gilat's overall stock score reflects strong financial performance with robust revenue growth and efficient profitability. The technical analysis indicates a stable but cautious outlook, while the valuation suggests fair pricing. The positive earnings call highlights growth potential, though challenges in certain markets may pose risks.

Positive Factors

Acquisition Impact

The recently closed Stellar Blu Systems acquisition is expected to impact revenue positively across newly defined customer segments.

Financial Performance

Strong gross margins and operating expense discipline contributed to a better than expected bottom line result.

Strategic Reorganization

The strategic reorganization is expected to drive increased focus on key growth segments in Defense, Commercial, and Peru business units.

Negative Factors

Revenue Expectations

Total revenue was 6% below consensus expectations.

Revenue Guidance

The expectation to deliver $120-$150 million in revenue appears delayed.

Supply Chain Constraints

There are some modest supply chain constraints for SBS that would make its second half performance stronger than the first half.

Gilat (GILT) vs. S&P 500 (SPY)

Market Cap

$376.31M

Dividend YieldN/A

Average Volume (3M)236.91K

Price to Earnings (P/E)15.1

Beta (1Y)0.98

Revenue Growth14.79%

EPS Growth5.04%

CountryUS

Employees1,118

SectorTechnology

Sector Strength65

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.15

Shares Outstanding57,017,033

10 Day Avg. Volume191,947

30 Day Avg. Volume236,914

Financial Highlights & Ratios

PEG Ratio0.29

Price to Book (P/B)1.22

Price to Sales (P/S)0.00

P/FCF Ratio14.84

Enterprise Value/Market Cap0.69

Enterprise Value/Revenue0.22

Enterprise Value/Gross Profit2.30

Enterprise Value/Ebitda1.71

Forecast

1Y Price Target

$8.50

Price Target Upside28.79% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Gilat Business Overview & Revenue Model

Company DescriptionGilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions in Israel and internationally. It operates through Fixed Networks, Mobility Solutions, and Terrestrial Infrastructure Projects segments. The company designs and manufactures ground-based satellite communications equipment; and provides solutions and end-to-end services. Its portfolio consists of very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state power amplifiers, block upconverters, transceivers, low-profile antennas, and on-the-move/on-the-pause terminals and modems. The company also offers turnkey integrated solutions, including managed satellite network services, network planning and optimization, satellite capacity, remote network operation, call center support, hub and field operations, and communication networks construction and installation services. In addition, it provides connectivity services, Internet access, and telephony services to enterprise, government, and residential customers; and builds telecommunication infrastructure using fiber-optic and wireless technologies for broadband connectivity. The company sells its products and solutions to communication service providers, satellite operators, governments, mobile network operators, telecommunication companies, and system integrators, as well as to defense and homeland security organizations, and directly to end-users. Gilat Satellite Networks Ltd. was incorporated in 1987 and is headquartered in Petah Tikva, Israel.

How the Company Makes MoneyGilat makes money primarily through the sale of satellite communication products and services. Its revenue streams include the sale of satellite ground segment equipment, such as Very Small Aperture Terminals (VSATs), modems, and antennas. Additionally, the company generates income from providing managed network services, which include the operation and maintenance of satellite communication networks for clients. Significant partnerships with telecommunications companies, government agencies, and enterprises also contribute to its earnings, as these collaborations often lead to long-term service contracts and joint ventures in developing satellite communication solutions.

Gilat Financial Statement Overview

Summary

Gilat's financial performance is strong with a revenue growth rate of 14.79%. The gross profit margin is at 37.09% and the net profit margin at 8.13%, indicating efficient cost management. The balance sheet shows low leverage with a debt-to-equity ratio of 0.03 and a strong equity base. Cash flow is positive with a free cash flow growth rate of 18.23%.

Income Statement

Positive

Gilat shows a strong revenue growth rate of 14.79% from 2023 to 2024, indicating expanding operations. The gross profit margin stands at 37.09%, and the net profit margin is 8.13%, which are solid figures for the industry, reflecting efficient cost management and profitability. EBIT and EBITDA margins are also healthy at 9.07% and 14.16%, respectively, showcasing operational efficiency and strong earnings before interest and taxes.

Balance Sheet

Positive

The company's balance sheet is robust with a low debt-to-equity ratio of 0.03, indicating low leverage and financial stability. The return on equity (ROE) is 8.16%, reflecting reasonable profitability relative to shareholder equity. The equity ratio is 70.85%, highlighting a strong equity base and reduced financial risk. Overall, the company is in a stable financial position with solid asset management.

Cash Flow

Positive

Gilat's free cash flow growth rate is 18.23% from 2023 to 2024, suggesting improved cash generation capability. The operating cash flow to net income ratio is 1.27, indicating that the company generates sufficient operating cash flow to cover its net income. The free cash flow to net income ratio is 1.01, showing that the company effectively converts its net income into free cash flow. Overall, the cash flow statements reflect a positive cash position and efficient cash management.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
305.45M	266.09M	239.84M	218.82M	165.88M
	Gross Profit
113.33M	104.94M	86.91M	71.62M	41.22M
	EBIT
27.70M	28.09M	9.95M	2.53M	-16.02M
	EBITDA
43.26M	41.83M	22.33M	13.82M	-5.57M
	Net Income Common Stockholders
24.85M	23.50M	-5.93M	-2.68M	35.08M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
119.38M	103.96M	86.59M	84.02M	88.75M
	Total Assets
429.75M	426.89M	385.41M	352.99M	393.81M
	Total Debt
8.57M	14.90M	3.83M	4.10M	8.90M
	Net Debt
-110.81M	-89.06M	-82.76M	-77.76M	-79.86M
	Total Liabilities
125.31M	152.20M	141.29M	120.90M	160.00M
	Stockholders Equity
304.44M	274.69M	244.13M	232.09M	233.81M
Cash Flow		Free Cash Flow
25.06M	21.20M	-1.98M	9.97M	38.44M
	Operating Cash Flow
31.67M	31.94M	10.81M	18.90M	43.16M
	Investing Cash Flow
-6.61M	-12.69M	-8.16M	-11.09M	-4.72M
	Financing Cash Flow
-8.11M	-1.59M	0.00	-39.00M	-24.09M

Gilat Technical Analysis

Technical Analysis Sentiment

Positive

Last Price6.60

Price Trends

50DMA

6.47

Positive

100DMA

6.62

Negative

200DMA

5.81

Positive

Market Momentum

MACD

0.05

Negative

RSI

57.71

Neutral

STOCH

66.21

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GILT, the sentiment is Positive. The current price of 6.6 is above the 20-day moving average (MA) of 6.33, above the 50-day MA of 6.47, and above the 200-day MA of 5.81, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 57.71 is Neutral, neither overbought nor oversold. The STOCH value of 66.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GILT.

Gilat Risk Analysis

Gilat disclosed 60 risk factors in its most recent earnings report. Gilat reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Gilat Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GILT	71 Outperform	$376.31M	15.14	8.58%	―	14.79%	5.04%
AVNW	70 Outperform	$259.56M	―	-1.32%	―	12.39%	-123.62%
CRNT	69 Neutral	$206.11M	9.04	15.02%	―	11.94%	377.86%
CLFD	68 Neutral	$502.89M	―	-0.68%	―	-2.14%	44.13%
AUDC	63 Neutral	$262.96M	15.72	9.33%	4.18%	-1.13%	61.49%
Sector *	60 Neutral	$11.39B	10.50	-6.42%	2.97%	7.77%	-11.17%
SATX	40 Underperform	$176.77M	―	50.55%	―	92.43%	-43.49%

* Technology Sector Average

Performance Comparison

GILT

Gilat

6.60

1.04

18.71%

AUDC

Audiocodes

8.86

-1.02

-10.32%

AVNW

Aviat Networks

20.45

-10.70

-34.35%

CRNT

Ceragon Networks

2.50

-0.17

-6.37%

CLFD

Clearfield

36.36

-0.54

-1.46%

SATX

SatixFy Communications

2.04

1.44

240.00%

Gilat Earnings Call Summary

Earnings Call Date:Feb 12, 2025

(Q4-2024)

% Change Since: -10.69%|

Next Earnings Date:May 19, 2025

Earnings Call Sentiment Positive

Overall, Gilat reported strong revenue and EBITDA growth driven by strategic acquisitions and significant orders in key markets. The company faces some challenges in Russia and Peru, and expects slight pressure on EBITDA margins due to ongoing investments. However, the positive outlook for 2025 and strategic positioning in high-growth sectors like defense and IFC suggest a strongly positive trajectory.

Q4-2024 Updates

Positive Updates

Strong Revenue and EBITDA Growth

Q4 revenue reached $78.1 million, driving full year revenues to $305.4 million, a 15% increase year-over-year. Adjusted EBITDA also saw significant growth with Q4 reaching $12.1 million and the full year hitting $42.2 million, a 16% growth year-over-year.

Strategic Acquisitions Bolster Market Position

The acquisition of Stellar Blu and DataPath strengthens Gilat's position in the IFC market and defense sector, respectively. These acquisitions are expected to drive future growth and innovation.

Significant Orders and Partnerships

Received orders of approximately $19 million for network equipment from IFC partners. Strong partnerships with Intelsat, SES, and other major players continue to drive revenue growth.

Strong Performance in Defense Vertical

Gilat DataPath secured key deals, including $9 million in orders from the U.S. DoD and other international defense organizations.

Positive Outlook for 2025

Gilat expects 2025 revenues of between $415 million and $455 million and an adjusted EBITDA of between $47 million and $53 million, indicating continued growth.

Negative Updates

Challenges in Russia and Peru Impacting Revenue

The termination of activities in Russia led to a decline in revenue from this region. Additionally, Peru experienced delays in contract renewals, affecting short-term revenue projections.

Pressure on EBITDA Margins

Despite overall growth, the EBITDA margin is expected to slightly decrease in 2025 due to the lower gross profit from Stellar Blu and increased R&D and marketing expenses in the defense division.

Company Guidance

During Gilat's Fourth Quarter 2024 Results Conference Call on February 12, 2025, the company reported strong financial performance and provided guidance for 2025. Gilat achieved a Q4 revenue of $78.1 million, contributing to full-year revenue of $305.4 million, a 15% increase year-over-year. The adjusted EBITDA for Q4 was $12.1 million, with a full-year figure of $42.2 million, marking a 16% growth from the previous year. Looking ahead, Gilat anticipates 2025 revenues between $415 million and $455 million and an adjusted EBITDA ranging from $47 million to $53 million. The company attributed its growth prospects to strategic acquisitions, particularly Stellar Blu and DataPath, and a new organizational structure focusing on three divisions: Gilat Defense, Gilat Commercial, and Gilat Peru. These changes are expected to drive expansion in the defense and commercial markets, including in-flight connectivity and NGSO satellite solutions, despite some anticipated challenges in the Peruvian market.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.