Tera Light (TRLT) AI Stock Analysis

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Tera Light

(TASE:TRLT)

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Rating:40Underperform

Price Target:ILA 1,197.00▼(-3.08% Downside)

Action:reiterated

Date:08/29/26

Tera Light scores poorly, driven primarily by a stretched financial profile: a nearly $1 billion debt load at more than twice equity, deeply negative free cash flow of about -$160M from ongoing project spending, and continued net losses. The investment case rests on newly commissioned assets converting into sustained cash flow fast enough to service that debt. There are real bright spots — operating margins have turned solidly positive, EBITDA is strong, net losses have narrowed sharply from 2024, and operating cash flow has flipped positive — but consistency is unproven and revenue remains volatile. Technicals reinforce caution, with the price below all key moving averages and negative MACD momentum. Valuation adds no cushion given negative earnings and no dividend, though the low beta of 0.81 tempers volatility risk.

Positive Factors

Improved operating profitabilityThe stronger EBIT and gross margins indicate that core operations have improved meaningfully versus earlier periods. If maintained, this operating efficiency can provide a more resilient base for absorbing costs, supporting reinvestment, and eventually converting revenue into sustainable earnings.

Negative Factors

High financial leverageDebt is high relative to equity and has increased sharply, making the balance sheet structurally stretched. Elevated leverage can absorb more cash through financing costs, reduce flexibility during operating setbacks, and leave fewer resources available for growth or investment over the coming quarters.

Tera Light (TRLT) vs. iShares MSCI Israel ETF (EIS)

Market Cap: ILS 975.22M
Dividend Yield: ―
Average Volume (3M): 36.05K
Price to Earnings (P/E): -229.9
Beta (1Y): 0.97
Revenue Growth: ―
EPS Growth: ―
Country: Israel
Employees: 45
Sector: General
Sector Strength: 55
Industry: Renewable Utilities

Tera Light Business Overview & Revenue Model

Company Description

Tera Light Ltd engages in the construction, operation, and maintenance of photovoltaic systems in Israel. It engages in the provision of large ground-based photovoltaic installations; and construction, operation, and maintenance of small dual-use sol...

Tera Light Financial Statement Overview

Summary

Weak overall, though improving. The income statement (45) shows genuine operating progress — gross margin near 32%, operating margin swinging to +22% and EBITDA margin around 61% — but revenue is highly erratic (a collapse to $20M in 2024 before rebounding, with TTM revenue down ~3.6%) and the company remains net loss-making at -$4.3M (-7.1% margin). The balance sheet (38) is the biggest concern: total debt has ballooned from $43M to $959M, debt-to-equity sits at roughly 2.1x, debt funds about 62% of assets, and equity has stayed flat near $406M, leaving thin cushion against interest-rate or project cash flow disappointment. Cash flow (36) is the weakest link — operating cash flow has only recently turned positive ($5.9M TTM) while free cash flow remains deeply negative at about -$160M due to heavy construction spending, leaving the company dependent on lenders and capital markets to fund growth.

Income Statement

45Neutral

Balance Sheet

38Negative

Cash Flow

36Negative

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.77M	75.91M	20.09M	79.81M	56.23M	18.09M
Gross Profit	27.05M	25.37M	5.54M	21.98M	19.75M	5.13M
EBITDA	48.14M	43.00M	-14.10M	7.88M	-4.56M	-5.88M
Net Income	-4.33M	-6.77M	-40.41M	-11.38M	-8.35M	-7.46M
Balance Sheet
Total Assets	1.56B	1.42B	1.26B	1.17B	587.29M	492.27M
Cash, Cash Equivalents and Short-Term Investments	176.21M	163.16M	67.34M	191.37M	64.05M	168.06M
Total Debt	959.37M	888.21M	805.56M	701.51M	159.64M	42.94M
Total Liabilities	1.10B	959.50M	895.59M	745.03M	219.34M	128.50M
Stockholders Equity	405.85M	411.13M	303.36M	345.19M	352.29M	357.60M
Cash Flow
Free Cash Flow	-159.70M	-75.88M	-155.23M	-427.67M	-182.32M	-98.21M
Operating Cash Flow	5.85M	25.79M	-15.30M	-47.85M	-26.55M	-17.81M
Investing Cash Flow	-157.16M	-22.95M	-132.00M	-446.82M	-155.32M	-166.90M
Financing Cash Flow	228.65M	140.34M	87.91M	501.69M	68.69M	308.40M

Tera Light Technical Analysis

Technical Analysis SentimentNegative

Last Price1235.00

Price Trends

50DMA1516.32Negative

100DMA1651.72Negative

200DMA1735.47Negative

Market Momentum

MACD-78.38Positive

RSI26.12Positive

STOCH19.35Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TRLT, the sentiment is Negative. The current price of 1235.00 is below the 20-day moving average (MA) of 1407.25, below the 50-day MA of 1516.32, and below the 200-day MA of 1735.47, indicating a bearish trend. The MACD of -78.38 indicates Positive momentum. The RSI at 26.12 is Positive, neither overbought nor oversold. The STOCH value of 19.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IL:TRLT.

Tera Light Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IL:TRLT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IL:ECNR	55Neutral	ILS 4.59B	-20.95	―	―	2.40%	-570.07%
IL:ENLT	53Neutral	ILS 30.19B	94.34	2.17%	―	19.91%	-40.91%
IL:ELLO	46Neutral	ILS 805.08M	3.79	-1.46%	―	-1.19%	―
IL:MSKE	45Neutral	ILS 6.70B	-52.98	―	―	―	―
IL:TRLT	40Underperform	ILS 994.96M	-229.93	―	―	―	―
IL:ENRG	38Underperform	ILS 11.67B	78.16	―	2.05%	18.55%	-36.00%

* General Sector Average

Performance Comparison

IL:TRLT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IL:TRLT	Tera Light Ltd.	1235.00	83.00	7.20%
IL:ELLO	Ellomay Capital Ltd Ordinary Sh	5745.00	-935.00	-14.00%
IL:ENLT	Enlight Renewable Energy Ltd	21560.00	9360.00	76.72%
IL:ENRG	Energix-Renewable Energies Ltd.	1949.00	584.28	42.81%
IL:MSKE	Meshek Energy Renewable Energies Ltd.	903.50	253.60	39.02%
IL:ECNR	Econergy renewable energy Ltd	5857.00	1545.00	35.83%

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 29, 2026

Tera Light AI Stock Analysis