B Communications (TASE:BCOM) - Share price, News & Analysis

BCOM fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

BCOM Stock Overview

B Communications Ltd., through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel.

Rewards

Trading at 89.1% below our estimate of its fair value

Risk Analysis

Has a high level of debt

B Communications Competitors

Price History & Performance

Summary of all time highs, changes and price drops for B Communications
Historical stock prices
Current Share Price	₪13.30
52 Week High	₪15.21
52 Week Low	₪6.00
Beta	0.92
1 Month Change	-11.80%
3 Month Change	-7.32%
1 Year Change	117.25%
3 Year Change	123.98%
5 Year Change	-81.19%
Change since IPO	-72.28%

Shareholder Returns

	BCOM	IL Telecom	IL Market
7D	0.9%	0.2%	0.8%
1Y	117.2%	48.3%	14.2%

Return vs Industry: BCOM exceeded the IL Telecom industry which returned 48.3% over the past year.

Return vs Market: BCOM exceeded the IL Market which returned 14.4% over the past year.

Price Volatility

Is BCOM's price volatile compared to industry and market?
BCOM volatility
BCOM Average Weekly Movement	3.8%
Telecom Industry Average Movement	5.1%
Market Average Movement	5.4%
10% most volatile stocks in IL Market	9.2%
10% least volatile stocks in IL Market	3.6%

Stable Share Price: BCOM is less volatile than 75% of IL stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BCOM's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1999	9,458	Tomer Raved	https://www.bcommunications.co.il

B Communications Ltd., through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel. The company offers landline communication services, mobile telephone radio services, data transmission and communication services, international communication services, multi-channel satellite and network television services, Internet infrastructure and access services, call center services, and maintenance and development of communications infrastructure services. It also engages in the provision of communications services to other communications providers, including wholesale market services, distribution of television and radio broadcasts, and supply and maintenance of equipment and services in customer premises.

B Communications Fundamentals Summary

How do B Communications's earnings and revenue compare to its market cap?
BCOM fundamental statistics
Market Cap	₪1.51b
Earnings (TTM)	₪129.00m
Revenue (TTM)	₪8.82b

11.7x

P/E Ratio

0.2x

P/S Ratio

Is BCOM overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCOM income statement (TTM)
Revenue	₪8.82b
Cost of Revenue	₪1.90b
Gross Profit	₪6.93b
Other Expenses	₪6.80b
Earnings	₪129.00m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	1.13
Gross Margin	78.52%
Net Profit Margin	1.46%
Debt/Equity Ratio	683.5%

How did BCOM perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BCOM (₪13.3) is trading below our estimate of fair value (₪121.71)

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

Price To Earnings Ratio

PE vs Industry: BCOM is good value based on its PE Ratio (11.7x) compared to the Asian Telecom industry average (18.4x).

PE vs Market: BCOM is poor value based on its PE Ratio (11.7x) compared to the IL market (11.6x).

Price to Earnings Growth Ratio

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

Price to Book Ratio

PB vs Industry: BCOM is overvalued based on its PB Ratio (94.6x) compared to the IL Telecom industry average (1.3x).

Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

9.5%

Forecasted Telecom 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 B Communications 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.

Past Performance

How has B Communications performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BCOM has high quality earnings.

Growing Profit Margin: BCOM's current net profit margins (1.5%) are lower than last year (1.8%).

Past Earnings Growth Analysis

Earnings Trend: BCOM has become profitable over the past 5 years, growing earnings by 10.6% per year.

Accelerating Growth: BCOM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BCOM had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Telecom industry average (17.5%).

Return on Equity

High ROE: Whilst BCOM's Return on Equity (67.76%) is outstanding, this metric is skewed due to their high level of debt.

Financial Health

How is B Communications's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BCOM's short term assets (₪4.3B) exceed its short term liabilities (₪3.8B).

Long Term Liabilities: BCOM's short term assets (₪4.3B) do not cover its long term liabilities (₪11.3B).

Debt to Equity History and Analysis

Debt Level: BCOM's net debt to equity ratio (538.5%) is considered high.

Reducing Debt: BCOM's debt to equity ratio has increased from 408.4% to 683.5% over the past 5 years.

Debt Coverage: BCOM's debt is well covered by operating cash flow (28.1%).

Interest Coverage: BCOM's interest payments on its debt are well covered by EBIT (5.1x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

Earnings Coverage: BCOM is not paying a notable dividend for the IL market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BCOM has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Telecom industry.

Management

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

4.1yrs

Average management tenure

CEO

Tomer Raved (36 yo)

2.33yrs

Tenure

₪1,926,000

Compensation

Mr. Tomer Raved serves as Chief Executive Officer and Director at B Communications Ltd. since January 09, 2020. He serves as Director at Bezeq The Israel Telecommunication Corp, Limited since May 14, 2020....

CEO Compensation Analysis

Compensation vs Market: Tomer's total compensation ($USD567.69K) is about average for companies of similar size in the IL market ($USD634.96K).

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

Leadership Team

Experienced Management: BCOM's management team is considered experienced (4.1 years average tenure).

Board Members

Experienced Board: BCOM's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31