NasdaqGS:BCOM

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.

Risks

  • B Communications has significant price volatility in the past 3 months.
  • B Communications is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.3%

NasdaqGS:BCOM

2.4%

US Telecom

0.9%

US Market


1 Year Return

-82.4%

NasdaqGS:BCOM

2.4%

US Telecom

0.3%

US Market

BCOM underperformed the Telecom industry which returned 1.4% over the past year.

BCOM underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

BCOMIndustryMarket
7 Day1.3%2.4%0.9%
30 Day-19.0%4.0%-1.9%
90 Day-18.5%2.5%1.6%
1 Year-82.4%-82.4%7.9%2.4%2.6%0.3%
3 Year-94.4%-94.4%9.2%-6.6%41.0%31.8%
5 Year-91.5%-92.9%29.9%0.1%55.2%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is B Communications undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

B Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).

B Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

B Communications is loss making, we can't compare its value to the US Telecom industry average.

B Communications is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for B Communications, we can't assess if its growth is good value.


Price Based on Value of Assets

B Communications is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

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

51.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if B Communications is high growth as no revenue estimate data is available.

B Communications's earnings are expected to grow significantly at over 20% yearly.

Unable to compare B Communications's revenue growth to the United States of America market average as no estimate data is available.

B Communications's earnings growth is expected to exceed the United States of America market average.

B Communications's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if B Communications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has B Communications performed over the past 5 years?

-55.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

B Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare B Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare B Communications's 1-year growth to the US Telecom industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if B Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if B Communications has efficiently used its assets last year compared to the US Telecom industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if B Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is B Communications's financial position?


Financial Position Analysis

B Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

B Communications's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

B Communications's level of debt (1213.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (385.9% vs 1213.1% today).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.4x 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.

Whilst loss making B Communications has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making B Communications has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 2.6% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate B Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate B Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as B Communications has not reported any payouts.

Unable to verify if B Communications's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as B Communications has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Ami Barlev (41yo)

0.6yrs

Tenure

0

Adv. Ami Barlev has been Chief Executive Officer and Director of B Communications Ltd since January 16, 2019. Adv. Barlev has been Director of Bezeq The Israel Telecommunication Corp, Limited. since April  ...


Management Age and Tenure

3.8yrs

Average Tenure

52.5yo

Average Age

The tenure for the B Communications management team is about average.


Board Age and Tenure

3.8yrs

Average Tenure

52yo

Average Age

The tenure for the B Communications board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Ron Eilon (54yo)

    Chief Executive Officer of DBS

    • Tenure: 13.0yrs
    • Compensation: ₪4.02m
  • Moti Elmaliach (60yo)

    Chief Operating Officer of Bezeq International

    • Tenure: 0.0yrs
    • Compensation: ₪3.48m
  • Ran Guron (51yo)

    Chief Executive Officer of Pelephone

    • Tenure: 3.8yrs
    • Compensation: ₪3.41m
  • Yaackov Nadborny (54yo)

    Vice President of Marketing

    • Tenure: 12.6yrs
  • Ami Barlev (41yo)

    CEO & Director

    • Tenure: 0.6yrs
  • Kobi Paz (56yo)

    Acting Chief Executive Officer of Bezeq

    • Tenure: 1.5yrs
  • Itzik Tadmor (38yo)

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: ₪90.50k
  • Yaniv Salomon

    Financial Controller & Investor Relations Manager

    • Tenure: 1.3yrs
  • Yehali Rotenberg (48yo)

    Chief Financial Officer of the Bezeq Group

    • Tenure: 0.0yrs
  • Yuval Snir

    Financial Controller

    • Tenure: 0.0yrs

Board Members

  • Shlomo Zohar (68yo)

    Chairman of the Board

    • Tenure: 0.6yrs
  • Ami Barlev (41yo)

    CEO & Director

    • Tenure: 0.6yrs
  • Debbie Saperia (52yo)

    External Director

    • Tenure: 11.6yrs
  • Moshe Rosenthal (52yo)

    External Director

    • Tenure: 8.8yrs
  • Benny Gabbay (54yo)

    Independent Director

    • Tenure: 6.0yrs
  • Sharon Avidar (38yo)

    Director

    • Tenure: 0.5yrs

Company Information

B Communications Ltd's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: B Communications Ltd
  • Ticker: BCOM
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₪178.993m
  • Listing Market Cap: ₪50.778m
  • Shares outstanding: 37.27m
  • Website: https://www.bcommunications.co.il

Number of Employees


Location

  • B Communications Ltd
  • 2 Dov Friedman Street
  • Ramat Gan
  • 5250301
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCOMNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDOct 2007
BCOMTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSOct 2007

Biography

B Communications Ltd., through its subsidiaries, provides a range of telecommunications services for business and private customers in Israel. The company offers fixed-line telephony, fixed-line broadband  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:09
End of Day Share Price2019/08/19 00:00
Earnings2019/03/31
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.