OTCPK:BZQI.Y

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Bezeq The Israel Telecommunication

Executive Summary

Bezeq The Israel Telecommunication Corporation Limited, together with its subsidiaries, provides telecommunications services for its business and private customers in Israel. More Details


Snowflake Analysis

Fair value with limited growth.


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

Stable Share Price: BZQI.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

BZQI.Y

0.9%

US Telecom

1.0%

US Market


1 Year Return

87.6%

BZQI.Y

-11.2%

US Telecom

13.6%

US Market

Return vs Industry: BZQI.Y exceeded the US Telecom industry which returned -11.2% over the past year.

Return vs Market: BZQI.Y exceeded the US Market which returned 13.6% over the past year.


Shareholder returns

BZQI.YIndustryMarket
7 Day2.2%0.9%1.0%
30 Day9.2%-0.04%-0.4%
90 Day6.2%2.1%8.9%
1 Year87.6%87.6%-6.7%-11.2%16.2%13.6%
3 Year-19.9%-25.4%8.0%-7.5%40.2%30.8%
5 Year-34.4%-44.6%32.8%3.0%89.6%68.2%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BZQI.Y ($5.46) is trading below our estimate of fair value ($18.17)

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


Price To Earnings Ratio

PE vs Industry: BZQI.Y is poor value based on its PE Ratio (14.1x) compared to the US Telecom industry average (11.5x).

PE vs Market: BZQI.Y is good value based on its PE Ratio (14.1x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BZQI.Y is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: BZQI.Y 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 forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

8.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BZQI.Y's forecast earnings growth (8.6% per year) is above the savings rate (2.2%).

Earnings vs Market: BZQI.Y's earnings (8.6% per year) are forecast to grow slower than the US market (23.2% per year).

High Growth Earnings: BZQI.Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: BZQI.Y's revenue (0.3% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: BZQI.Y's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BZQI.Y's Return on Equity is forecast to be very high in 3 years time (103.6%).


Next Steps

Past Performance

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

-50.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BZQI.Y has a large one-off loss of ₪943.0M impacting its June 30 2020 financial results.

Growing Profit Margin: BZQI.Y became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: BZQI.Y's earnings have declined by 50.5% per year over the past 5 years.

Accelerating Growth: BZQI.Y has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BZQI.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Telecom industry (-12.9%).


Return on Equity

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


Next Steps

Financial Health

How is Bezeq The Israel Telecommunication's financial position?


Financial Position Analysis

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

Long Term Liabilities: BZQI.Y 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.Y has negative shareholder equity, which is a more serious situation than a high debt level.

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

Debt Coverage: BZQI.Y's debt is well covered by operating cash flow (31.4%).

Interest Coverage: BZQI.Y's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.53%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: BZQI.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BZQI.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

Dudu Mizrahi (50 yo)

2yrs

Tenure

₪4,995,000

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's total compensation ($USD1.46M) is below average for companies of similar size in the US market ($USD5.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Mizrahi
Chief Executive Officer2yrs₪5.00m0.0020%
₪ 65.7k
Ran Guron
Chief Executive Officer of Pelephone4.83yrs₪4.32mno data
Ilan Yeshua
CEO of Wallano data₪2.90mno data
Yahali Rothenberg
VP of Finance & CFO3yrsno datano data
Eyal Kamil
Vice President of Operations & Logistics13.75yrsno data0.0011%
₪ 34.7k
Danny Oz
Deputy CFO22yrsno data0.0030%
₪ 98.5k
Naftali Sternlicht
Head of Investor Relationsno datano datano data
Amir Nachlieli
VP & Legal Counsel11.67yrsno datano data
Shelly Bainhoren
Group Secretary2.58yrsno datano data
Guy Hadass
Vice President of Corporate Communications12.75yrsno datano data
Keren Leizerowicz
Vice President of Marketing & Innovation1.75yrsno datano data
Ehud Mezuman
Vice President of Human Resources12.92yrsno data0.0043%
₪ 140.7k

8.3yrs

Average Tenure

51yo

Average Age

Experienced Management: BZQI.Y's management team is seasoned and experienced (8.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Darren Glatt
Director0.75yrno datano data
David Granot
Independent Director3.33yrsno datano data
Zeev Vurembrand
External Independent Director3yrsno datano data
Amnon Dick
Independent Director2.42yrsno datano data
Edith Lusky
Independent Director2.42yrsno datano data
Gil Sharon
Chairman0.083yr₪5.26mno data
Ran Fuhrer
Director0.75yrno datano data
Tomer Raved
Director0.33yrno datano data
Joseph Abergel
Employee Director0.67yrno datano data
Philip Beckel
Alternate Director0.75yrno datano data
Tal Forer
Alternate Director0.75yrno datano data

0.8yrs

Average Tenure

57yo

Average Age

Experienced Board: BZQI.Y's board of directors are not considered experienced ( 0.8 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.


Top Shareholders

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: 1984
  • Industry: Integrated Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₪11.178b
  • Listing Market Cap: ₪3.271b
  • 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
0DBHLSE (London Stock Exchange)YesOrdinary SharesGBUSDJul 1994
BZQI.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDOct 2008

Biography

Bezeq The Israel Telecommunication Corporation Limited, together with its subsidiaries, provides telecommunications services for its business and private customers in Israel. The company offers fixed-line ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/19 06:26
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.