OTCPK:BZQI.F

Stock Analysis Report

Bezeq The Israel Telecommunication

Executive Summary

Bezeq The Israel Telecommunication Corporation Limited provides communications services to business and private customers in Israel.

Snowflake

Fundamentals

Slightly overvalued with concerning outlook.


Similar Companies

Share Price & News

How has Bezeq The Israel Telecommunication's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

BZQI.F

-0.3%

US Telecom

1.0%

US Market


1 Year Return

-47.8%

BZQI.F

10.9%

US Telecom

6.7%

US Market

Return vs Industry: BZQI.F underperformed the US Telecom industry which returned 10.9% over the past year.

Return vs Market: BZQI.F underperformed the US Market which returned 6.7% over the past year.


Share holder returns

BZQI.FIndustryMarket
7 Day0%-0.3%1.0%
30 Day0.9%-1.0%-1.8%
90 Day-12.3%7.1%-1.8%
1 Year-47.8%-47.8%16.7%10.9%9.1%6.7%
3 Year-67.6%-67.6%19.6%2.2%46.1%36.6%
5 Year-65.6%-65.6%39.4%7.7%66.9%48.6%

Price Volatility Vs. Market

How volatile is Bezeq The Israel Telecommunication's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bezeq The Israel Telecommunication 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

Undervalued: BZQI.F ($0.63) is trading below our estimate of fair value ($2.69)

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


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: BZQI.F has negative assets, so we can't compare its PB Ratio to the US Telecom industry average.


Next Steps

Future Growth

How is Bezeq The Israel Telecommunication expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

80.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BZQI.F is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BZQI.F is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BZQI.F is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BZQI.F's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: BZQI.F's revenue is forecast to decline over the next 3 years (-1.3%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: BZQI.F's Return on Equity is forecast to be very high in 3 years time (53%).


Next Steps

Past Performance

How has Bezeq The Israel Telecommunication performed over the past 5 years?

-41.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BZQI.F is unprofitable, and losses have increased over the past 5 years at a rate of -41.1% per year.

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

Earnings vs Industry: BZQI.F is unprofitable, making it difficult to compare its past year earnings growth to the Telecom industry (-23%).


Return on Equity

High ROE: BZQI.F's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Bezeq The Israel Telecommunication's financial position?


Financial Position Analysis

Short Term Liabilities: BZQI.F has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: BZQI.F has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: BZQI.F has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: BZQI.F's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

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

Interest Coverage: BZQI.F is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: BZQI.F has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Bezeq The Israel Telecommunication's current dividend yield, its reliability and sustainability?

5.69%

Expected Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years5.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

High Dividend: Unable to evaluate BZQI.F'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 BZQI.F's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: BZQI.F is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BZQI.F'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 Bezeq The Israel Telecommunication's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Dudu Mizrahi (49yo)

1.1yrs

Tenure

₪1,808,000

Compensation

Mr. David Mizrahi, also known as Dudu, has been Chief Executive Officer of Bezeq - The Israel Telecommunications Corp. (Bezeq) since September 1, 2018. Mr. Mizrahi serves as Deputy Chief Executive Officer  ...


CEO Compensation Analysis

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

Compensation vs Earnings: Dudu's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.0yrs

Average Tenure

51.5yo

Average Age

Experienced Management: BZQI.F's management team is considered experienced (3 years average tenure).


Board Age and Tenure

1.5yrs

Average Tenure

68.5yo

Average Age

Experienced Board: BZQI.F's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Ilan Yeshua

    CEO of Walla

    • Tenure: 0yrs
    • Compensation: ₪3.46m
  • Amir Nachlieli (52yo)

    VP & Legal Counsel

    • Tenure: 10.8yrs
  • Moti Elmaliach (60yo)

    Chief Operating Officer of Bezeq International

    • Tenure: 0.8yrs
    • Compensation: ₪4.22m
  • Danny Oz (63yo)

    Deputy CFO

    • Tenure: 21.1yrs
  • Ran Guron (51yo)

    Chief Executive Officer of Pelephone

    • Tenure: 3.9yrs
    • Compensation: ₪3.41m
  • Eyal Kamil (58yo)

    Vice President of Operations & Logistics

    • Tenure: 12.8yrs
  • Dudu Mizrahi (49yo)

    Chief Executive Officer

    • Tenure: 1.1yrs
    • Compensation: ₪1.81m
  • Naftali Sternlicht

    IR Manager

    • Tenure: 0yrs
  • Yali Rotenberg (45yo)

    VP of Finance & CFO

    • Tenure: 2.1yrs
  • Shelly Bainhoren (37yo)

    Group Secretary

    • Tenure: 1.7yrs

Board Members

  • Shlomo Rodav (70yo)

    Chairman of the Board

    • Tenure: 1.5yrs
    • Compensation: ₪6.26m
  • David Granot (72yo)

    Independent Director

    • Tenure: 2.4yrs
  • Zeev Vurembrand (68yo)

    External Director

    • Tenure: 2.1yrs
  • Doron Turgeman (51yo)

    Director

    • Tenure: 1.6yrs
  • Rami Nomkin (70yo)

    Employee Director

    • Tenure: 12.8yrs
    • Compensation: ₪587.00k
  • Amnon Dick (67yo)

    Independent Director

    • Tenure: 1.5yrs
  • Ami Barlev (41yo)

    Director

    • Tenure: 1.5yrs
  • Edith Lusky (69yo)

    Independent Director

    • Tenure: 1.5yrs

Company Information

Bezeq The Israel Telecommunication Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bezeq The Israel Telecommunication Corporation Limited
  • Ticker: BZQI.F
  • Exchange: OTCPK
  • Founded: 1980
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₪6.527b
  • Listing Market Cap: ₪1.863b
  • Shares outstanding: 2.77b
  • Website: https://www.bezeq.co.il

Number of Employees


Location

  • Bezeq The Israel Telecommunication Corporation Limited
  • Triangle Tower
  • 27th Floor
  • Tel Aviv
  • 61620
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZQI.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1994
BEZQTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSJul 1994
BZQI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Bezeq The Israel Telecommunication Corporation Limited provides communications services to business and private customers in Israel. It operates in four segments: Fixed Line Domestic Communications; Cellul ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:41
End of Day Share Price2019/10/04 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.

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