B Communication (BCOM) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 0.67%
• Average Volume (3M): 141.11K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.06
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IL
• Employees: 8,737
• Sector: Communication Services
• Sector Strength: 97
• Industry: Telecommunications Services
• EPS (TTM): 77.60
• Shares Outstanding: 104,269,875
• 10 Day Avg. Volume: 115,409
• 30 Day Avg. Volume: 141,112
• 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: 6.04
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 1.52
• Enterprise Value/Ebitda: 3.79
• 1Y Price Target: $2,083.33
• Price Target Upside: -1.64% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 47 Neutral
• Price Target: 2,080.00 ▼(-1.79% Downside)

B Communication's overall stock score is primarily impacted by its financial performance, which is hindered by high leverage and declining revenue growth. Technical analysis indicates weak momentum, and the valuation suggests potential overvaluation. The lack of earnings call data and corporate events does not influence the score.

B Communication Business Overview & Revenue Model

Company Description

B Communications Ltd, through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel. The company offers landline interior communications, including telephony, internet access and infrastructure, transmission and data communication, and wholesale services; and cellular radio-telephone services. It is also involved in the installation, operation, and maintenance of equipment and systems in the field of cellular communications; and marketing of equipment. In addition, the company provides international communication, network endpoint, and ICT solutions; and digital multi-channel tv broadcasting services to subscriptions over satellite and over the internet, as well as value-added services to subscribers. B Communications Ltd was formerly known as 012 Smile. Communications Ltd. and changed its name to B Communications Ltd in March 2010. The company was incorporated in 1999 and is based in Tel Aviv-Yafo, Israel.

How the Company Makes Money

B Communication (BCOM) generates revenue through a variety of channels, primarily selling communication services such as mobile and fixed-line telephony, internet services, and data packages. A significant portion of its earnings is derived from monthly subscription fees paid by consumers and businesses for these services. The company may also engage in strategic partnerships with other telecom providers, technology firms, or content creators to enhance its service offerings and reach. Additionally, BCOM could earn from ancillary services, including international roaming charges, equipment sales, and advertising fees through its platforms. These diverse revenue streams enable BCOM to maintain a steady influx of income while expanding its market presence.

B Communication Financial Statement Overview

Summary

B Communication shows strong gross margins and cash flow generation, but faces challenges with declining revenue growth and high leverage. The high debt levels pose a risk to financial stability, impacting future growth and stability.

Income Statement

The income statement shows a mixed performance. The company has a high gross profit margin, indicating strong cost management. However, the net profit margin is low, suggesting challenges in converting revenue into profit. Revenue growth is negative in the TTM period, which is concerning for future prospects. EBIT and EBITDA margins are stable, but the declining revenue trend needs attention.

Balance Sheet

The balance sheet reveals significant leverage with a very high debt-to-equity ratio, posing a risk to financial stability. Return on equity is positive but declining, indicating reduced efficiency in generating returns from equity. The equity ratio is low, reflecting a heavy reliance on debt financing, which could be risky in volatile market conditions.

Cash Flow

Cash flow analysis shows a strong free cash flow growth in the TTM period, which is a positive sign. The operating cash flow to net income ratio is healthy, indicating good cash generation relative to net income. However, the free cash flow to net income ratio suggests that not all net income is translating into free cash flow, which could be a concern if it persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.81B	8.88B	9.10B	8.99B	8.82B	8.72B
Gross Profit	8.81B	8.88B	7.17B	7.15B	6.93B	6.82B
EBITDA	3.53B	3.52B	3.67B	3.45B	3.71B	3.50B
Net Income	100.00M	108.00M	187.00M	158.00M	129.00M	157.00M
Balance Sheet
Total Assets	17.67B	17.69B	16.35B	15.86B	16.56B	15.95B
Cash, Cash Equivalents and Short-Term Investments	2.69B	2.86B	1.89B	1.71B	2.13B	1.77B
Total Debt	10.52B	11.66B	10.94B	11.09B	12.03B	12.18B
Total Liabilities	13.71B	14.98B	13.91B	13.96B	15.09B	15.53B
Stockholders Equity	580.00M	233.00M	189.00M	54.00M	16.00M	-107.00M
Cash Flow
Free Cash Flow	1.50B	1.66B	1.73B	1.79B	1.14B	1.71B
Operating Cash Flow	3.26B	3.41B	3.44B	3.49B	2.83B	3.21B
Investing Cash Flow	-1.44B	-2.32B	-1.83B	-1.42B	-1.58B	-1.07B
Financing Cash Flow	-1.86B	-809.00M	-1.72B	-2.31B	-1.14B	-2.06B

B Communication Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2118.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:BCOM, the sentiment is Negative. The current price of 2118 is below the 20-day moving average (MA) of 2126.20, below the 50-day MA of 2256.40, and above the 200-day MA of 2017.02, indicating a neutral trend. The MACD of -18.64 indicates Negative momentum. The RSI at 45.79 is Neutral, neither overbought nor oversold. The STOCH value of 31.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:BCOM.

B Communication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEL	73 Outperform	5.38B	22.66	9.09%	―	-2.67%	57.93%
PTNR	71 Outperform	5.81B	19.24	14.07%	4.31%	-1.06%	55.80%
BEZQ	65 Neutral	17.38B	14.24	42.89%	4.60%	-1.51%	8.99%
BCOM	47 Neutral	$2.21B	22.10	23.24%	0.67%	―	―
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%