GILTGilat Satellite Networks Ltd.
Is the business good?
A genuinely good business: earnings fully cash-backed (1.1×) and margins widening.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 4% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is GILT?
Gilat Satellite Networks Ltd. earns 5.8% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 3.2 points below what the capital costs: growth destroys value
- Operating margin
- 5.2%
Operating margin · Communication Equipment median 5.0% · fiscal year to FY2025
- Cash conversion
- 1.12×
Cash conversion · 1.34× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +5.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 23% |
| FY2021 | 1.0% |
| FY2022 | 4.2% |
| FY2023 | 11% |
| FY2024 | 9.1% |
| FY2025 | 5.2% |
Details›
- Gross marginfiscal year to FY2025
- 30%
- Operating marginfiscal year to FY2025
- 5.2%
- Net marginfiscal year to FY2025
- 4.6%
- Free cash flow margin
- 2.0%
- R&D as % of revenue
- 10%
- Revenue, trailing twelve months
- $452M
- Free cash flow, trailing twelve months
- $9.2M
- Net income, trailing twelve months
- $21M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 5.8%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Communication Equipment
Ranks #3 of 20 by RyuScore