Eltek AI Stock Analysis
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Eltek (ELTK) AI Stock Analysis
Eltek
(NASDAQ:ELTK)
The overall score of 39 reflects a high-risk investment profile. The most significant factor is the severe and rapid deterioration in financial performance, with the company swinging from profitability to deep losses and negative free cash flow. This is compounded by a bearish technical trend and a negative P/E ratio. The earnings call, while noting some operational progress and a strong backlog, confirms that these challenges are ongoing and a return to profitability is not imminent. The company's debt-free balance sheet is the sole mitigating factor, but it is insufficient to offset the overwhelming operational and market headwinds.
Eltek (ELTK) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $39.12M
- Dividend Yield
- ―
- Average Volume (3M)
- 8,168
- Price to Earnings (P/E)
- -6.4
- Beta (1Y)
- 0.57
- Revenue Growth
- -2.20%
- EPS Growth
- -297.64%
- Country
- US
- Employees
- 352
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Hardware, Equipment & Parts
Eltek Business Overview & Revenue Model
Company Description
Eltek Ltd. is an international supplier of printed circuit boards (PCBs), overseeing their manufacturing, distribution, and sale across various regions including Israel, Europe, North America, India, and the Netherlands. The company's product line fe...
How the Company Makes Money
Eltek primarily makes money by manufacturing and selling printed circuit boards to customers, recognizing revenue from product sales based on orders delivered. Its key revenue stream is PCB fabrication, including higher-value products such as flexibl...
Eltek Earnings Call Summary
The call presents a mixed operational picture: solid market demand and a strong backlog alongside meaningful operational progress (new plating line, ERP rollout, workforce additions, and improved selling prices). However, financial results deteriorated year-over-year with lower revenue (-8%), a swing from gross profit to gross loss, negative EBITDA and a $2.7 million net loss. Supply-chain constraints, production inefficiencies and a portion of backlog locked at historical, less-favorable FX levels are significant short-term headwinds. While management outlined credible actions and early improvements (QoQ gross-loss reduction, cash generation and no debt), these positives have not yet translated into sustained profitability.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
The company gave no formal forward-looking guidance or forecasts, but said it expects a gradual improvement as several metrics and initiatives come together: Q2 revenue was $11.5M (H1 ≈ $22M) versus $12.5M in Q2 2025, with a Q2 gross loss of $1.0M (improved from a Q1 gross loss of $1.8M and down from a prior-year gross profit of $3.0M), an operating loss of $2.5M (vs. operating profit $1.5M prior-year), financial expenses of $0.7M (vs. $1.0M), net loss $2.7M or $0.41/sh (vs. net income $0.4M or $0.05/sh), and an EBITDA loss of $1.9M (vs. EBITDA $1.9M prior-year); operating activities generated $0.7M cash in the quarter, and the company holds $11.5M cash with no debt. Management highlighted operational milestones (ERP implementation underway; first PCB plating line installed with acceptance testing and a demonstration plating this week, official customer qualification to start in Q3 and expected to take several months; second plating line due by year‑end with supplier penalties for delay), workforce additions (≈15 foreign employees integrated and ≈15 more being brought in), backlog mix (~1/3 tied to historical FX rates, ~1/3 at ~3.2 ILS/USD and ~1/3 at ~3.0), ongoing raw‑material constraints (notably fiberglass) and pricing adjustments to reflect higher costs as the drivers of the anticipated margin recovery.
Eltek Financial Statement Overview
Summary
Financial performance is critically weak. The income statement shows a collapse in profitability with TTM gross margin near zero and a net loss margin of -6.1%. Cash flow is severely strained, with an 86% plunge in free cash flow growth and an inability to generate positive free cash flow. The balance sheet is the only relative bright spot due to low debt, but it is being eroded by ongoing losses, resulting in a negative return on equity.
Income Statement
18Very NegativeBalance Sheet
55NeutralCash Flow
10Very Negative| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 48.48M | 51.79M | 46.53M | 46.70M | 39.65M | 33.82M |
| Gross Profit | -63.00K | 7.98M | 10.34M | 13.10M | 8.27M | 6.90M |
| EBITDA | -4.67M | 3.18M | 6.64M | 9.12M | 5.53M | 3.31M |
| Net Income | -6.14M | 826.00K | 4.22M | 6.35M | 3.19M | 5.04M |
Balance Sheet | ||||||
| Total Assets | 73.14M | 66.26M | 60.16M | 47.17M | 40.98M | 42.78M |
| Cash, Cash Equivalents and Short-Term Investments | 11.51M | 12.12M | 17.24M | 12.14M | 7.37M | 9.28M |
| Total Debt | 12.92M | 6.40M | 6.02M | 6.66M | 10.76M | 13.75M |
| Total Liabilities | 28.77M | 19.52M | 18.96M | 20.30M | 19.96M | 21.71M |
| Stockholders Equity | 44.36M | 46.74M | 41.19M | 26.87M | 21.02M | 21.07M |
Cash Flow | ||||||
| Free Cash Flow | -709.18K | -4.72M | -4.97M | 6.43M | 802.00K | 2.34M |
| Operating Cash Flow | 3.79M | 632.00K | 4.54M | 8.86M | 3.83M | 3.88M |
| Investing Cash Flow | 3.35M | -4.82M | -15.87M | -2.96M | -3.03M | -1.65M |
| Financing Cash Flow | -35.93K | -1.24M | 9.61M | -3.81M | -1.64M | 2.12M |
Eltek Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELTK, the sentiment is Negative. The current price of 5.82 is below the 20-day moving average (MA) of 6.26, below the 50-day MA of 7.27, and below the 200-day MA of 8.33, indicating a bearish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 32.65 is Neutral, neither overbought nor oversold. The STOCH value of 4.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ELTK.
Eltek Risk Analysis
Eltek disclosed 49 risk factors in its most recent earnings report. Eltek reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksEltek Peers Comparison
Overall Rating
SOTK68Neutral
ACFN66Neutral
CPSH49Neutral- ELTK39Underperform
NEON39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SOTK | 68Neutral | $66.47M | 33.20 | 9.95% | ― | 4.37% | 32.92% |
| ACFN | 66Neutral | $37.84M | 16.79 | 25.26% | ― | -23.33% | -66.84% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| CPSH | 49Neutral | $79.75M | 495.12 | 0.60% | ― | 7.01% | ― |
| ELTK | 39Underperform | $39.12M | -6.39 | -13.57% | ― | -2.20% | -297.64% |
| NEON | 39Underperform | $9.74M | -1.35 | -32.76% | ― | -2.32% | -180.18% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| ELTK | Eltek | 5.82 | -5.58 | -48.95% | |
| ACFN | Acorn Energy, Inc. | 14.93 | 1.39 | 10.27% | |
| NEON | Neonode | 0.58 | -1.55 | -72.77% | |
| CPSH | CPS Technologies Corp. | 4.06 | 0.69 | 20.47% | |
| SOTK | Sono-Tek Corporation | 4.22 | 0.11 | 2.68% | |
| HOLO | Microcloud Hologram Inc. | 1.18 | -2.00 | -62.89% |
Eltek Corporate Events
Eltek Sets Nov. 17 Date for Third-Quarter 2026 Results
Eltek Ltd. is an Israeli manufacturer and supplier of technologically advanced printed circuit boards, including complex, high-quality HDI, multilayered and flex-rigid boards. The company focuses on high-end defense, aerospace and medical markets and...
Eltek Secures $6.8 Million Follow-On PCB Orders from International Customer
Eltek Ltd., a leading Israeli manufacturer of high-end printed circuit boards for defense, aerospace and medical customers worldwide, concentrates its operations, R&D and production in Israel while extending its reach through a North American subsidi...
Eltek Announces CEO Transition as Eli Yaffe Retires and Ron Freund Steps In
On September 9, 2026, Eltek Ltd. announced that Chief Executive Officer Eli Yaffe will retire effective September 23, 2026, with current Chief Financial Officer Ron Freund appointed as the new CEO on the same date. Yaffe, who has led the company sinc...
Eltek Posts Second-Quarter Loss as Manufacturing Transition Weighs on 2026 Results
On August 18, 2026, Eltek reported that second-quarter 2026 revenues fell to $11.5 million from $12.5 million a year earlier, with a gross loss of $1.0 million versus a prior gross profit and an operating loss of $2.5 million versus last year’s opera...
Eltek Confirms Board Lineup and Auditor Mandate at August 2026 AGM
Eltek Ltd., a foreign private issuer based in Petach Tikva, Israel, operates under U.S. securities regulations through Form 20-F reporting and uses Ernst & Young-affiliated auditors for its financials. Its governance framework, including a board and...
Eltek Schedules Q2 2026 Earnings Release and Investor Call for August 18
Eltek Ltd., a leading global PCB manufacturer based in Israel, specializes in complex, high-quality boards used as core circuitry in advanced electronic systems. Serving defense, aerospace and medical clients worldwide, the company operates from its...
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.
Date of analysis: Nov 11, 2026