Cellcom (CEL) AI Stock Analysis

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Cellcom

(TASE:CEL)

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Rating:74Outperform

Price Target:ILA 3,249.00▲(2.69% Upside)

Action:upgraded

Date:08/19/26

The score is driven primarily by improved financial performance (stronger margins, better leverage metrics, and solid free cash flow) and supportive valuation (low P/E with a high dividend yield). Offsetting these strengths, technicals are mixed with the price still below longer-term moving averages and a negative MACD, indicating momentum is not yet strongly positive.

Positive Factors

Improved profitabilityThe sharp expansion in net and operating margins indicates stronger earnings conversion from revenue and improves the company’s ability to fund operations internally. If maintained, this profitability provides greater resilience and supports investment, debt service, and shareholder distributions over the next several quarters.

Negative Factors

Uneven revenue trajectoryThe sharp swing from contraction to rebound shows that revenue performance has not followed a stable growth path. Such volatility makes subscriber economics and future earnings harder to predict, and may leave margins and cash generation sensitive to pricing, costs, or other operating factors.

Cellcom (CEL) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 5.35B
Dividend Yield: 7.52%
Average Volume (3M): 254.61K
Price to Earnings (P/E): 8.7
Beta (1Y): 1.32
Revenue Growth: -4.74%
EPS Growth: 154.35%
Country: Israel
Employees: 2,501
Sector: General
Sector Strength: 55
Industry: Telecommunications Services

Cellcom Business Overview & Revenue Model

Company Description

Cellcom Israel Ltd. provides cellular communications services in Israel. The company offers wired communication services, including internet access and infrastructure, television services over the Internet, fixed telephony, and transmission services...

How the Company Makes Money

Cellcom makes money primarily by charging customers recurring fees for telecommunications services. Its core revenue stream is service revenue from mobile subscribers, including monthly access/plan charges and usage-based fees (e.g., voice, messaging...

Cellcom Financial Statement Overview

Summary

Financial performance is improved but not fully stable: profitability stepped up sharply in the latest TTM (net margin ~14.5%, EBIT margin ~11.0%), leverage metrics improved (debt-to-equity ~0.69) and ROE strengthened (~21.9%), and free cash flow is healthy (~810M). The main constraint is volatility—revenue has been uneven (2025 decline followed by a large TTM rebound) and cash flow/debt coverage is good but not exceptionally fast (OCF ~56% of total debt).

Income Statement

74Positive

Balance Sheet

67Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.16B	4.24B	4.44B	4.40B	4.30B	4.10B
Gross Profit	1.52B	1.13B	1.41B	1.34B	1.27B	1.14B
EBITDA	1.37B	1.35B	1.31B	1.22B	1.20B	1.10B
Net Income	604.00M	564.00M	173.00M	134.00M	157.00M	27.00M
Balance Sheet
Total Assets	6.20B	6.50B	6.50B	6.62B	7.00B	6.57B
Cash, Cash Equivalents and Short-Term Investments	247.00M	487.00M	371.00M	497.00M	773.00M	644.00M
Total Debt	1.93B	2.21B	2.66B	2.99B	3.61B	3.42B
Total Liabilities	3.39B	3.67B	4.05B	4.36B	4.89B	4.65B
Stockholders Equity	2.81B	2.83B	2.45B	2.26B	2.10B	1.92B
Cash Flow
Free Cash Flow	810.00M	740.00M	530.00M	510.00M	484.00M	454.00M
Operating Cash Flow	1.16B	1.15B	1.20B	1.17B	1.08B	1.05B
Investing Cash Flow	-53.00M	-95.00M	-654.00M	-525.00M	-704.00M	-192.00M
Financing Cash Flow	-1.17B	-946.00M	-642.00M	-949.00M	-243.00M	-933.00M

Cellcom Technical Analysis

Technical Analysis SentimentNegative

Last Price3164.00

Price Trends

50DMA3421.16Negative

100DMA3332.48Negative

200DMA3463.45Negative

Market Momentum

MACD-106.68Negative

RSI47.00Neutral

STOCH75.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:CEL, the sentiment is Negative. The current price of 3164.00 is below the 20-day moving average (MA) of 3197.10, below the 50-day MA of 3421.16, and below the 200-day MA of 3463.45, indicating a bearish trend. The MACD of -106.68 indicates Negative momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 75.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:CEL.

Cellcom Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:CEL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:CEL	74Outperform	ILS 5.32B	8.74	9.92%	7.52%	-4.74%	154.35%
IL:PTNR	72Outperform	ILS 6.38B	18.87	―	7.05%	-0.25%	9.58%
IL:GLTL	70Outperform	ILS 210.13M	5.24	―	―	7.17%	176.38%
IL:BEZQ	65Neutral	ILS 18.92B	15.90	54.58%	4.87%	-1.62%	-1.00%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IL:CEL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:CEL	Cellcom Israel Ltd.	3164.00	-328.51	-9.41%
IL:BEZQ	Bezeq The Israel Telecommunication Corp	716.00	94.39	15.18%
IL:SCC	Space-Communication	175.40	-183.10	-51.07%
IL:PTNR	Partner Communications Co. Ltd.	3519.00	-66.20	-1.85%
IL:GLTL	Gilat Telecom Global Ltd	180.30	89.70	99.01%
IL:NXTM	Nextcom Ltd. (Israel)	933.20	128.20	15.93%

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.

Date of analysis: Aug 19, 2026

Cellcom AI Stock Analysis