Eltek (ELTK) AI Stock Analysis

• Market Cap: $76.07M
• Dividend Yield: 1.68%
• Average Volume (3M): 5.15K
• Price to Earnings (P/E): 24.7
• Beta (1Y): 0.26
• Revenue Growth: 6.75%
• EPS Growth: -52.37%
• Country: US
• Employees: 329
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 6,714,040
• 10 Day Avg. Volume: 3,262
• 30 Day Avg. Volume: 5,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 6.37
• Enterprise Value/Ebitda: 10.97
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: $12.50 ▲(10.33% Upside)

Eltek's strong financial performance and positive earnings call are significant strengths, reflecting robust profitability and growth in the defense sector. However, technical indicators suggest overbought conditions, and the high P/E ratio indicates potential overvaluation. Cash flow challenges and one-time financial expenses are areas of concern.

Eltek Business Overview & Revenue Model

Company Description

Eltek (ELTK) is a technology company specializing in the design and manufacturing of advanced power and thermal management solutions. It operates primarily in the telecommunications and data center sectors, providing products such as power systems, power supplies, and thermal management solutions that are crucial for maintaining the reliability and efficiency of electronic systems. Eltek focuses on innovation and sustainability, serving a global customer base with its high-performance solutions.

How the Company Makes Money

Eltek generates revenue through the sale of its power and thermal management products, which include power systems for telecommunications networks and data centers. The company utilizes a direct sales model, targeting both original equipment manufacturers (OEMs) and end-users. Key revenue streams include product sales, maintenance contracts, and service agreements. Eltek has established significant partnerships with major telecommunications companies and data center operators, which contribute to its earnings through long-term contracts and repeat business. Additionally, the company invests in research and development to create innovative solutions that can command premium pricing, further enhancing its revenue potential.

Eltek Financial Statement Overview

Summary

Eltek demonstrates strong financial health with robust profitability and a well-managed balance sheet. Stable margins and low leverage are strengths, but the decline in revenue and negative Free Cash Flow indicate areas for improvement.

Income Statement

Eltek shows a stable profitability with a Gross Profit Margin of 22.2% and a Net Profit Margin of 9.1% for 2024. However, there's a decline in revenue from the previous year by 0.4%, which indicates a need for revenue growth strategies. EBIT and EBITDA margins remain healthy, reflecting efficient operations despite the slight revenue dip.

Balance Sheet

The company's financial structure is strong, with a Debt-to-Equity Ratio of 0.15, indicating low leverage. A solid Return on Equity of 10.3% signifies effective use of equity capital. Furthermore, the Equity Ratio stands at 68.5%, showing a high proportion of assets financed by equity, enhancing financial stability.

Cash Flow

Eltek's cash flow situation is mixed, with negative Free Cash Flow indicating high capital expenditures. The Operating Cash Flow to Net Income Ratio of 1.07 suggests efficient cash generation from operations, but the Free Cash Flow to Net Income Ratio is negative, highlighting the impact of significant investments on cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	49.56M	46.53M	46.70M	39.65M	33.82M	36.71M
Gross Profit	10.68M	10.34M	13.10M	8.27M	6.90M	7.74M
EBITDA	6.21M	6.68M	9.16M	4.51M	3.73M	4.62M
Net Income	3.10M	4.22M	6.35M	3.19M	5.04M	2.61M
Balance Sheet
Total Assets	64.42M	60.16M	47.17M	41.52M	42.78M	35.16M
Cash, Cash Equivalents and Short-Term Investments	11.15M	17.24M	12.14M	7.37M	9.28M	4.74M
Total Debt	6.52M	6.02M	6.66M	11.30M	13.75M	11.19M
Total Liabilities	19.77M	18.96M	20.30M	20.50M	21.71M	19.89M
Stockholders Equity	44.65M	41.19M	26.87M	21.02M	21.07M	15.27M
Cash Flow
Free Cash Flow	-7.59M	-4.97M	6.43M	802.00K	2.34M	2.17M
Operating Cash Flow	-1.15M	4.54M	8.86M	3.83M	3.88M	3.25M
Investing Cash Flow	-5.74M	-15.87M	-2.96M	-3.03M	-1.65M	-1.14M
Financing Cash Flow	-1.23M	9.61M	-3.81M	-1.64M	2.12M	814.00K

Eltek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELTK, the sentiment is Positive. The current price of 11.33 is above the 20-day moving average (MA) of 11.15, above the 50-day MA of 10.61, and above the 200-day MA of 10.13, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 65.15 is Neutral, neither overbought nor oversold. The STOCH value of 90.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELTK.

Eltek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACFN	75 Outperform	$59.56M	8.43	222.70%	―	50.98%	1506.44%
ELTK	70 Outperform	$76.07M	24.75	7.51%	1.68%	6.75%	-52.37%
CPSH	62 Neutral	$68.50M	-29.70	-11.74%	―	7.47%	-133.39%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SOTK	56 Neutral	$65.18M	43.27	8.45%	―	-0.21%	-0.41%
NEON	41 Neutral	$53.54M	-8.55	-48.54%	―	-41.25%	47.09%

Eltek Corporate Events

Eltek Ltd. Approves Key Resolutions at Annual General Meeting

On September 18, 2025, Eltek Ltd. held its Annual General Meeting where all proposed resolutions were approved. Key decisions included the re-election of board members, approval of an amended compensation policy, and the extension of indemnification and exculpation letters for Yitzhak Nissan. Additionally, Kost Forer Gabbay & Kasierer was re-appointed as the company’s independent auditor for the upcoming year. These outcomes are expected to reinforce Eltek’s governance structure and operational continuity.

Eltek Secures $2.4 Million Defense Orders

On August 25, 2025, Eltek Ltd. announced it received purchase orders totaling $2.4 million from a leading Israeli defense company. The orders, which involve critical PCB components previously supplied to the customer, are scheduled for delivery mainly in 2026 and 2027. This development underscores Eltek’s strong positioning in the defense sector and its capability to provide advanced technological solutions, potentially enhancing its market presence and stakeholder confidence.

Eltek Ltd. Announces Annual General Meeting for September 2025

Eltek Ltd. has announced its upcoming annual general meeting of shareholders, scheduled for September 18, 2025. The meeting will address several key issues, including the re-election of board members, approval of the company’s amended compensation policy, and the re-appointment of its independent auditors. The outcomes of these resolutions are crucial for the company’s governance and operational continuity, impacting both its strategic direction and stakeholder relations.

Eltek Ltd. Reports Strong Q2 2025 Financial Results

Eltek Ltd. reported strong financial results for the second quarter of 2025, with a 20% increase in revenue compared to the same period in 2024, reaching $12.5 million. The company’s gross margin expanded to 24%, driven by growth in its defense and medical segments, operational improvements, and a favorable product mix. Despite a non-cash financial expense due to currency fluctuations, Eltek’s operating profit more than tripled to $1.5 million. The company is expanding its production capacity, although there is a delay in the delivery of new coating lines. Eltek is adjusting its pricing model to counteract the impact of currency fluctuations, aiming to protect future margins.

Eltek Ltd. Releases Mid-2025 Financial Results

Eltek Ltd. released its interim condensed consolidated financial statements for the six months ending June 30, 2025, showing a slight decrease in total assets compared to December 31, 2024. The financial results highlight changes in cash equivalents and trade receivables, indicating shifts in the company’s financial management strategies. These results may impact Eltek’s operational strategies and stakeholder expectations in the coming months.

Eltek Announces Q2 2025 Earnings Release and Conference Call

On August 4, 2025, Eltek Ltd. announced that it will release its financial results for the second quarter of 2025 on August 14, 2025, before the market opens. The company will also hold a conference call on the same day at 9:00 a.m. Eastern Time to discuss the results, featuring remarks from CEO Eli Yaffe and CFO Ron Freund. This announcement is significant as it provides stakeholders with insights into Eltek’s financial performance and strategic positioning in the technologically advanced PCB market.