OTCPK:BZQI.Y

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

Reasonable growth potential and slightly overvalued.

Risks

  • Bezeq The Israel Telecommunication is covered by less than 3 analysts.

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

4.7%

OTCPK:BZQI.Y

3.1%

US Telecom

1.2%

US Market


1 Year Return

-47.9%

OTCPK:BZQI.Y

8.4%

US Telecom

1.7%

US Market

BZQI.Y underperformed the Telecom industry which returned 8.4% over the past year.

BZQI.Y underperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

BZQI.YIndustryMarket
7 Day4.7%3.1%1.2%
30 Day-7.8%7.5%4.9%
90 Day-6.4%9.8%3.7%
1 Year-46.9%-47.9%14.1%8.4%3.9%1.7%
3 Year-64.4%-67.6%18.1%0.9%47.2%37.7%
5 Year-59.5%-66.8%35.1%4.2%60.0%42.4%

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

Bezeq The Israel Telecommunication's share price is below the future cash flow value, and at a moderate discount (> 20%).

Bezeq The Israel Telecommunication's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Bezeq The Israel Telecommunication is loss making, we can't compare its value to the US Telecom industry average.

Bezeq The Israel Telecommunication 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 Bezeq The Israel Telecommunication, we can't assess if its growth is good value.


Price Based on Value of Assets

Bezeq The Israel Telecommunication has negative assets, we can't compare the value of its assets 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

Bezeq The Israel Telecommunication's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Bezeq The Israel Telecommunication's earnings are expected to grow significantly at over 20% yearly.

Bezeq The Israel Telecommunication's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Bezeq The Israel Telecommunication's earnings growth is expected to exceed the United States of America market average.

Bezeq The Israel Telecommunication's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Bezeq The Israel Telecommunication is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


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

Bezeq The Israel Telecommunication does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Bezeq The Israel Telecommunication's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Bezeq The Israel Telecommunication'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 Bezeq The Israel Telecommunication has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Bezeq The Israel Telecommunication 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 Bezeq The Israel Telecommunication 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 Bezeq The Israel Telecommunication's financial position?


Financial Position Analysis

Bezeq The Israel Telecommunication is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bezeq The Israel Telecommunication's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Bezeq The Israel Telecommunication has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Bezeq The Israel Telecommunication's debt level has increased considering it has negative shareholder equity.

Debt is well covered by operating cash flow (28.1%, greater than 20% of total debt).

Bezeq The Israel Telecommunication is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Bezeq The Israel Telecommunication 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?

6.16%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Bezeq The Israel Telecommunication's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Bezeq The Israel Telecommunication's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Bezeq The Israel Telecommunication has not reported any payouts.

Unable to verify if Bezeq The Israel Telecommunication's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Bezeq The Israel Telecommunication has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.9x coverage).


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?

2.9yrs

Average management tenure


CEO

Dudu Mizrahi (49yo)

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

Dudu's remuneration is lower than average for companies of similar size in United States of America.

Dudu's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

51.5yo

Average Age

The tenure for the Bezeq The Israel Telecommunication management team is about average.


Board Age and Tenure

1.4yrs

Average Tenure

68yo

Average Age

The average tenure for the Bezeq The Israel Telecommunication board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Ilan Yeshua

    CEO of Walla

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

    VP & Legal Counsel

    • Tenure: 10.7yrs
  • Moti Elmaliach (60yo)

    Chief Operating Officer of Bezeq International

    • Tenure: 0.7yrs
    • Compensation: ₪4.22m
  • Danny Oz (63yo)

    Deputy CFO

    • Tenure: 21yrs
  • Ran Guron (51yo)

    Chief Executive Officer of Pelephone

    • Tenure: 3.8yrs
    • Compensation: ₪3.41m
  • Eyal Kamil (58yo)

    Vice President of Operations & Logistics

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

    Chief Executive Officer

    • Tenure: 1yrs
    • Compensation: ₪1.81m
  • Naftali Sternlicht

    IR Manager

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

    VP of Finance & CFO

    • Tenure: 2yrs
  • Shelly Bainhoren (37yo)

    Group Secretary

    • Tenure: 1.6yrs

Board Members

  • Shlomo Rodav (70yo)

    Chairman of the Board

    • Tenure: 1.4yrs
    • Compensation: ₪6.26m
  • David Granot (72yo)

    Independent Director

    • Tenure: 2.3yrs
  • Zeev Vurembrand (68yo)

    External Director

    • Tenure: 2yrs
  • Doron Turgeman (51yo)

    Director

    • Tenure: 1.5yrs
  • Rami Nomkin (70yo)

    Employee Director

    • Tenure: 12.7yrs
    • Compensation: ₪587.00k
  • Amnon Dick (67yo)

    Director

    • Tenure: 1.4yrs
  • Dov Kotler (63yo)

    Director

    • Tenure: 1.4yrs
  • Ami Barlev (41yo)

    Director

    • Tenure: 1.4yrs
  • Edith Lusky (69yo)

    Director

    • Tenure: 1.4yrs

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.Y
  • Exchange: OTCPK
  • Founded: 1980
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₪6.026b
  • Listing Market Cap: ₪1.708b
  • 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 Analysis2019/09/15 00:09
End of Day Share Price2019/09/12 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.