Bezeq The Israel Telecommunication Corp. Ltd
Bezeq The Israel Telecommunication Corp. Ltd Fundamental Analysis
Bezeq The Israel Telecommunication Corp. Ltd (BZQIY) shows moderate financial fundamentals with a PE ratio of 16.26, profit margin of 15.87%, and ROE of 50.99%. The company generates $8.7B in annual revenue with weak year-over-year growth of -2.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BZQIY's fundamental strength across five key dimensions:
Efficiency Score
WeakBZQIY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBZQIY trades at attractive valuation levels.
Growth Score
WeakBZQIY faces weak or negative growth trends.
Financial Health Score
WeakBZQIY carries high financial risk with limited liquidity.
Profitability Score
ExcellentBZQIY achieves industry-leading margins.
Key Financial Metrics
Is BZQIY Expensive or Cheap?
P/E Ratio
BZQIY trades at 16.26 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BZQIY's PEG of 0.37 indicates potential undervaluation.
Price to Book
The market values Bezeq The Israel Telecommunication Corp. Ltd at 8.31 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 3.72 times EBITDA. This is generally considered low.
How Well Does BZQIY Make Money?
Net Profit Margin
For every $100 in sales, Bezeq The Israel Telecommunication Corp. Ltd keeps $15.87 as profit after all expenses.
Operating Margin
Core operations generate 23.34 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $50.99 in profit for every $100 of shareholder equity.
ROA
Bezeq The Israel Telecommunication Corp. Ltd generates $8.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bezeq The Israel Telecommunication Corp. Ltd generates strong operating cash flow of $3.01B, reflecting robust business health.
Free Cash Flow
Bezeq The Israel Telecommunication Corp. Ltd generates strong free cash flow of $1.44B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.60 in free cash annually.
FCF Yield
BZQIY converts 6.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.26
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.37
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.31
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.51
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.19
vs 25 benchmark
How BZQIY Stacks Against Its Sector Peers
| Metric | BZQIY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.26 | 21.66 | Better (Cheaper) |
| ROE | 50.99% | 1190.00% | Weak |
| Net Margin | 15.87% | -55754.00% (disorted) | Strong |
| Debt/Equity | 3.50 | 1.32 | Weak (High Leverage) |
| Current Ratio | 0.90 | 1.59 | Weak Liquidity |
| ROA | 8.77% | -202359.00% (disorted) | Weak |
BZQIY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bezeq The Israel Telecommunication Corp. Ltd's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.10%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
197.04%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
15.96%
Industry Style: Growth, Technology, Streaming
High Growth