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Eltek
(NASDAQ:ELTK)
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Rating:49Neutral
Price Target:
$8.00
▲(0.00% Upside)
Action:Reiterated
Date:09/16/26
Overall score is held back primarily by weak financial performance (recent losses and volatile/negative free cash flow). Earnings-call takeaways are mixed—credible operational progress and strong backlog, but continued profitability and execution headwinds with no formal guidance. Technicals and valuation are secondary: momentum is mixed with longer-term trend pressure, and the dividend helps but a negative P/E limits valuation support.
Positive Factors
Specialized PCB positioning
Eltek's focus on specialized, higher-complexity PCBs, including flexible and rigid-flex boards, supports a differentiated position versus commodity fabrication. Such engineering-intensive work can sustain customer relevance and pricing potential across varied electronics applications.
Negative Factors
Sharp profitability deterioration
The move from several profitable years to a meaningful TTM loss indicates that Eltek's earnings model is currently under pressure. Persistently weak margins would reduce internal funding capacity, weaken returns on capital, and make recovery dependent on successful operational improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Specialized PCB positioning
Eltek's focus on specialized, higher-complexity PCBs, including flexible and rigid-flex boards, supports a differentiated position versus commodity fabrication. Such engineering-intensive work can sustain customer relevance and pricing potential across varied electronics applications.
Read all positive factors
Eltek (ELTK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$52.89M
Dividend Yield2.41%
Average Volume (3M)10.63K
Price to Earnings (P/E)―
Beta (1Y)0.45
Revenue Growth-2.20%
EPS Growth-297.64%
CountryUS
Employees352
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.91
Shares Outstanding6,720,827
10 Day Avg. Volume2,358
30 Day Avg. Volume10,633
Financial Highlights & Ratios
PEG Ratio-0.89
Price to Book (P/B)1.24
Price to Sales (P/S)1.12
P/FCF Ratio-12.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.25
Revenue Forecast (FY)$58.99M
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...
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 flex...
Eltek Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Negative
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.Positive Updates
Strong Demand and Healthy Backlog
Management reported continued strong demand and a high backlog, providing solid visibility for future sales; backlog composition noted as ~1/3 long-term POs, ~1/3 at exchange ~3.2, and ~1/3 at current exchange (~3.0), with the most profitable portion in the most recent ~1/3 of the backlog.
Negative Updates
Revenue Decline Year-over-Year
Q2 2026 revenue was $11.5 million versus $12.5 million in Q2 2025, a decline of $1.0 million or approximately -8.0% year-over-year. First-half 2026 revenue was approximately $22 million, which management acknowledged is below the level required to leverage fixed costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Demand and Healthy Backlog
Management reported continued strong demand and a high backlog, providing solid visibility for future sales; backlog composition noted as ~1/3 long-term POs, ~1/3 at exchange ~3.2, and ~1/3 at current exchange (~3.0), with the most profitable portion in the most recent ~1/3 of the backlog.
Read all positive 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
Income Statement
38
Negative
Balance Sheet
66
Positive
Cash Flow
41
Neutral
| 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
Negative
8.00
Price Trends
8.34
Negative
8.63
Negative
8.67
Negative
Market Momentum
-0.10
Positive
43.09
Neutral
21.12
Neutral
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 8 is below the 20-day moving average (MA) of 8.16, below the 50-day MA of 8.34, and below the 200-day MA of 8.67, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 43.09 is Neutral, neither overbought nor oversold. The STOCH value of 21.12 is Neutral, 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Eltek Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $92.73M | 43.09 | 10.54% | ― | 4.04% | 44.65% | |
70 Outperform | $50.19M | 31.33 | 18.95% | 7635.60% | -27.50% | -78.54% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $15.01M | 1.84 | 34.15% | ― | -21.65% | ― | |
49 Neutral | $52.89M | -8.62 | -13.57% | 2.41% | -2.20% | -297.64% | |
47 Neutral | $72.51M | 823.91 | 0.15% | ― | 25.56% | ― |
* Technology Sector Average
ELTK
Eltek
7.83
-3.07
-28.15%
ACFN
Acorn Energy
19.35
-8.95
-31.63%
NEON
Neonode
0.90
-2.80
-75.65%
CPSH
CPS Technologies
3.79
0.15
4.12%
SOTK
Sono-Tek
5.82
1.33
29.62%
HOLO
MicroCloud Hologram
1.59
-3.69
-69.89%
Eltek Corporate Events
Eltek Announces CEO Transition as Eli Yaffe Retires and Ron Freund Steps In
Sep 9, 2026
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 s...
Eltek Posts Second-Quarter Loss as Manufacturing Transition Weighs on 2026 Results
Aug 18, 2026
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 year̵...
Eltek Confirms Board Lineup and Auditor Mandate at August 2026 AGM
Aug 11, 2026
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 an...
Eltek Schedules Q2 2026 Earnings Release and Investor Call for August 18
Aug 11, 2026
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 i...
Eltek Calls August 11 Annual Meeting to Vote on Board, Director Protections and Auditor
Jul 2, 2026
Eltek Ltd., an Israel-based foreign private issuer with ordinary shares listed abroad, is subject to both U.S. reporting requirements and Israeli corporate law. The company’s governance framework includes specific quorum rules, classificatio...
Eltek Announces Leadership Changes in Audit and Compensation Committees
Jun 29, 2026
Eltek Ltd., an Israel-based foreign private issuer reporting under Form 20-F, maintains board-level Audit and Compensation Committees to oversee its financial reporting and executive remuneration. Its presence in U.S. capital markets underscores t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.