NasdaqCM:ELTK

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

Fundamentals

Mediocre balance sheet and slightly overvalued.


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


Market Performance


7 Day Return

3.6%

ELTK

4.0%

US Electronic

1.8%

US Market


1 Year Return

-12.4%

ELTK

13.3%

US Electronic

7.3%

US Market

Return vs Industry: ELTK underperformed the US Electronic industry which returned 13.3% over the past year.

Return vs Market: ELTK underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

ELTKIndustryMarket
7 Day3.6%4.0%1.8%
30 Day-14.0%1.1%-0.7%
90 Day-15.2%4.2%0.06%
1 Year-12.4%-12.4%14.4%13.3%9.7%7.3%
3 Year-31.7%-31.7%54.7%50.4%46.3%36.9%
5 Year-56.7%-56.7%88.7%79.6%64.5%46.5%

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

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

Undervalued: ELTK ($3.45) is trading below our estimate of fair value ($13.03)

Significantly Undervalued: ELTK is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ELTK is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: ELTK is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ELTK is overvalued based on its PB Ratio (2.9x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

21.0%

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?

-28.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ELTK is unprofitable, and losses have increased over the past 5 years at a rate of -28.4% per year.

Accelerating Growth: Unable to compare ELTK's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ELTK is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (58.6%).


Return on Equity

High ROE: ELTK has a negative Return on Equity (-1.17%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ELTK is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ELTK is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Eltek's financial position?


Financial Position Analysis

Short Term Liabilities: ELTK's short term assets ($13.7M) do not cover its short term liabilities ($15.6M)

Long Term Liabilities: ELTK's short term assets (13.7M) exceeds its long term liabilities (2.3M)


Debt to Equity History and Analysis

Debt Level: ELTK's debt to equity ratio (121.2%) is considered high

Reducing Debt: ELTK's debt to equity ratio has increased from 16.1% to 121.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ELTK's debt is covered by short term assets (assets are 2.133150x 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: Whilst unprofitable ELTK has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ELTK is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -14.7% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if ELTK'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 ELTK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Eltek's salary, the management and board of directors tenure and is there insider trading?

1.3yrs

Average management tenure


CEO

Eli Yaffe (64yo)

1.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

1.3yrs

Average Tenure

60yo

Average Age

Experienced Management: ELTK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

6.0yrs

Average Tenure

70.5yo

Average Age

Experienced Board: ELTK's board of directors are considered experienced (6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$165,49403 Jun 19
Yitzhak Nissan
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares200,000
Max PriceUS$0.83
BuyUS$815,23116 Jan 19
Nistec Golan Ltd.
EntityCompany
Shares1,024,419
Max PriceUS$0.80

Ownership Breakdown


Management Team

  • Eli Dvora (63yo)

    Vice President of Operations

    • Tenure: 20.1yrs
  • Eli Yaffe (64yo)

    Chief Executive Officer

    • Tenure: 1.3yrs
    • Compensation: US$326.97k
  • Alon Mualem (52yo)

    CFO & VP of Finance

    • Tenure: 0.8yrs
  • Shmuel Wider (60yo)

    Vice President of Sales & Marketing

    • Tenure: 1.2yrs
  • Assi Bachar (51yo)

    Chief Information Officer & Procurement officer

    • Tenure: 1.8yrs

Board Members

  • Tibor Rubner (79yo)

    Director

    • Tenure: 6yrs
  • Erez Meltzer (62yo)

    Director

    • Tenure: 10.2yrs
  • Ilana Lurie (46yo)

    External Director

    • Tenure: 1.1yrs
  • Yitzhak Nissan (69yo)

    Chairman of the Board

    • Tenure: 5.9yrs
    • Compensation: US$312.10k
  • Mordechai Marmorstein (72yo)

    Director

    • Tenure: 6yrs
  • Gad Dovev (72yo)

    External Director

    • Tenure: 5yrs

Company Information

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


Key Information

  • Name: Eltek Ltd.
  • Ticker: ELTK
  • Exchange: NasdaqCM
  • Founded: 1970
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: US$15.112m
  • 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:45
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
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.