DB:EK1

Stock Analysis Report

Executive Summary

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally.


Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

How has Eltek's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EK1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-13.2%

EK1

-8.8%

DE Electronic

-9.1%

DE Market


1 Year Return

70.8%

EK1

-5.2%

DE Electronic

2.9%

DE Market

Return vs Industry: EK1 exceeded the German Electronic industry which returned -5.2% over the past year.

Return vs Market: EK1 exceeded the German Market which returned 2.9% over the past year.


Shareholder returns

EK1IndustryMarket
7 Day-13.2%-8.8%-9.1%
30 Day-18.8%2.0%-7.2%
90 Day5.1%-0.5%-6.5%
1 Year70.8%70.8%-3.2%-5.2%6.1%2.9%
3 Yearn/a31.2%27.0%3.5%-5.6%
5 Yearn/a94.3%80.2%8.0%-6.8%

Price Volatility Vs. Market

How volatile is Eltek's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Eltek undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EK1 (€3.52) is trading below our estimate of fair value (€36.72)

Significantly Below Fair Value: EK1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EK1 is good value based on its PE Ratio (14.5x) compared to the Electronic industry average (24.9x).

PE vs Market: EK1 is good value based on its PE Ratio (14.5x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EK1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EK1 is overvalued based on its PB Ratio (2.8x) compared to the DE Electronic industry average (1.7x).


Next Steps

Future Growth

How is Eltek forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.8%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Eltek has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Eltek performed over the past 5 years?

-12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EK1 has high quality earnings.

Growing Profit Margin: EK1 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: EK1 has become profitable over the past 5 years, growing earnings by -12.7% per year.

Accelerating Growth: EK1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: EK1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: EK1's Return on Equity (13.6%) is considered low.


Next Steps

Financial Health

How is Eltek's financial position?


Financial Position Analysis

Short Term Liabilities: EK1's short term assets ($13.5M) do not cover its short term liabilities ($15.3M).

Long Term Liabilities: EK1's short term assets ($13.5M) exceed its long term liabilities ($2.0M).


Debt to Equity History and Analysis

Debt Level: EK1's debt to equity ratio (95.6%) is considered high.

Reducing Debt: EK1's debt to equity ratio has increased from 23.1% to 95.6% over the past 5 years.


Balance Sheet

Inventory Level: EK1 has a high level of physical assets or inventory.

Debt Coverage by Assets: EK1's debt is covered by short term assets (assets are 2.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EK1 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: EK1 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Eltek's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EK1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate EK1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EK1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EK1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EK1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Eli Yaffe (64yo)

1.6yrs

Tenure

US$326,968

Compensation

Mr. Eli Yaffe has been the Chief Executive Officer of Eltek Ltd. since July 1, 2018. Mr. Yaffe served as the Chief Executive Officer of Carmel Forge Ltd. (Aerospace), and prior thereto he served as the Chi ...


CEO Compensation Analysis

Compensation vs Market: Eli's total compensation ($USD326.97K) is about average for companies of similar size in the German market ($USD419.45K).

Compensation vs Earnings: Insufficient data to compare Eli's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Eli Yaffe
Chief Executive Officer1.6yrsUS$326.97kno data
Alon Mualem
CFO & VP of Finance1.1yrsno datano data
Eliyahu Dvora
Vice President of Operations20.4yrsno datano data
Assi Bachar
Chief Information Officer & Procurement officer2.1yrsno datano data
Shmuel Wider
Vice President of Sales & Marketing1.5yrsno datano data

1.6yrs

Average Tenure

60yo

Average Age

Experienced Management: EK1's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Rubner
Director6.3yrsno datano data
Erez Meltzer
Director10.5yrsno datano data
Ilana Lurie
External Director1.4yrsno datano data
Yitzhak Nissan
Chairman of the Board6.3yrsUS$312.10k2.98% $435.1k
Mordechai Marmorstein
Director6.3yrsno datano data
Gad Dovev
External Director5.3yrsno datano data

6.3yrs

Average Tenure

70.5yo

Average Age

Experienced Board: EK1's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EK1 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.1%.


Top Shareholders

Company Information

Eltek Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Eltek Ltd.
  • Ticker: EK1
  • Exchange: DB
  • Founded: 1970
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$16.032m
  • Listing Market Cap: US$14.578m
  • Shares outstanding: 4.38m
  • Website: https://www.nisteceltek.com

Number of Employees


Location

  • Eltek Ltd.
  • Sgoola Industrial Zone
  • 20 Ben Zion Gelis Street
  • Petach Tikva
  • 4927920
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELTKNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDJan 1997
EK1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1997

Biography

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. The company offers a range of custom designed PCBs, including rigid, double-sided, and multi-layer PCBs; and flexible circuitry, such as flex and flex rigid boards. It serves manufacturers of defense and aerospace, medical, industrial, telecom, and networking equipment, as well as contract electronic manufacturers and other industries. The company markets and sells its products primarily through direct sales personnel, sales representatives, and PCB trading and manufacturing companies. Eltek Ltd. was founded in 1970 and is headquartered in Petach Tikva, Israel. Eltek Ltd. is a subsidiary of Nistec Golan Ltd. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 22:41
End of Day Share Price2020/02/28 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.