Telsys (TLSY) AI Stock Analysis

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Telsys

(TASE:TLSY)

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Rating:65Neutral

Price Target:ILA 34,314.00▲(19.56% Upside)

Action:downgraded

Date:08/27/26

The overall score reflects a company with a solid capital structure and consistently strong cash generation, but now facing a pronounced earnings reversal that significantly heightens risk and reduces visibility, while neutral-to-positive technical trends and a middling valuation offer some support but do not fully offset the fragile current profit trajectory.

Positive Factors

Conservative leverageLow debt relative to equity gives Telsys financial flexibility as it manages current earnings pressure. A conservative capital structure can reduce balance-sheet strain, preserve borrowing capacity, and allow management to support operations or invest in recovery without excessive leverage.

Negative Factors

Sharp TTM revenue deteriorationA negative TTM revenue result and material decline from the prior period represent a serious deterioration in the operating base. If sustained, weaker revenue would reduce scale benefits, pressure cash generation, and make a return to the company’s earlier margin profile more difficult.

Telsys (TLSY) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 2.92B
Dividend Yield: 0.05%
Average Volume (3M): 28.53K
Price to Earnings (P/E): -30.9
Beta (1Y): 0.62
Revenue Growth: 38.16%
EPS Growth: 32.91%
Country: Israel
Employees: 136
Sector: General
Sector Strength: 55
Industry: Technology Distributors

Telsys Business Overview & Revenue Model

Company Description

Based in Petah Tikva, Israel, Telsys Ltd., established in 1963, specializes in the procurement, promotion, and supply of electronic components across the Israeli market. Its comprehensive product portfolio encompasses semiconductor devices, integrate...

Telsys Financial Statement Overview

Summary

Financial performance is mixed: a strong, low-leverage balance sheet and consistently positive cash flows are offset by a sharp recent swing from solid profitability to a sizable loss, which materially increases earnings risk despite the company’s current financial resilience.

Income Statement

44Neutral

Balance Sheet

80Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	-290.04M	432.30M	107.60M	152.01M	125.54M	85.59M
Gross Profit	-143.48M	176.79M	47.78M	69.62M	51.63M	33.77M
EBITDA	-104.39M	140.58M	39.12M	59.94M	44.59M	28.20M
Net Income	-95.13M	115.68M	26.26M	35.57M	25.82M	13.89M
Balance Sheet
Total Assets	593.37M	466.26M	114.17M	121.08M	128.80M	119.42M
Cash, Cash Equivalents and Short-Term Investments	159.32M	137.81M	24.13M	18.73M	19.12M	28.66M
Total Debt	54.26M	68.65M	9.60M	8.41M	7.61M	11.27M
Total Liabilities	340.19M	227.82M	36.53M	39.31M	55.63M	53.62M
Stockholders Equity	251.11M	237.41M	77.47M	72.88M	65.62M	60.17M
Cash Flow
Free Cash Flow	121.41M	143.72M	29.46M	41.61M	24.24M	40.19M
Operating Cash Flow	124.30M	150.78M	31.14M	43.08M	26.51M	42.74M
Investing Cash Flow	-41.01M	-6.74M	-3.32M	-353.71K	-62.34K	-3.99M
Financing Cash Flow	-40.96M	-88.27M	-23.67M	-41.60M	-33.31M	-25.58M

Telsys Technical Analysis

Technical Analysis SentimentNegative

Last Price28700.00

Price Trends

50DMA34840.88Negative

100DMA34941.42Negative

200DMA30182.02Positive

Market Momentum

MACD-795.46Negative

RSI40.78Neutral

STOCH42.54Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TLSY, the sentiment is Negative. The current price of 28700.00 is below the 20-day moving average (MA) of 32834.63, below the 50-day MA of 34840.88, and below the 200-day MA of 30182.02, indicating a neutral trend. The MACD of -795.46 indicates Negative momentum. The RSI at 40.78 is Neutral, neither overbought nor oversold. The STOCH value of 42.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:TLSY.

Telsys Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:TLSY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IL:HLAN	78Outperform	ILS 5.23B	19.29	22.56%	2.18%	6.23%	5.62%
IL:AFHL	70Outperform	ILS 2.87B	27.24	―	1.98%	1.71%	35.58%
IL:TLSY	65Neutral	ILS 2.92B	-30.87	―	0.05%	38.16%	32.91%
IL:NYAX	56Neutral	ILS 5.87B	226.21	―	―	12.76%	-62.42%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:TDRN	43Neutral	ILS 1.44B	59.79	―	―	-1.95%	―

* General Sector Average

Performance Comparison

IL:TLSY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:TLSY	Telsys Ltd.	28700.00	9222.71	47.35%
IL:HLAN	Hilan	22970.00	-2466.28	-9.70%
IL:TDRN	Tadiran Group Ltd	16310.00	-1320.00	-7.49%
IL:AFHL	AFCON Holdings Ltd	45450.00	17725.70	63.94%
IL:NYAX	Nayax Ltd.	15210.00	2120.00	16.20%

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 27, 2026

Telsys AI Stock Analysis