One-glance verdict
Within fair range
$8.26 our estimate vs market $8.03
Wall Street consensus: $19.20 (132.5% higher than our fair-value estimate)
3% below our estimate
Fundamentals snapshot
Gilat Satellite Networks Ltd.
GILT · NMS · Technology · Communication Equipment
Current price
$8.03
52-week range
$7.75 - $20.93
Market cap
$618.55M
Balance sheet
Healthy
2.89x Stretched
Net cash $149.54M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 47.9% last year.
- Reward Returns 7.0% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 7/10 years.
What this company does
Gilat Satellite Networks Ltd.
Gilat Satellite Networks builds the ground equipment and technology, like antennas and modems, that make satellite communication possible. The company earns most of its revenue (money from sales) by selling these systems to governments and other large companies that use them to provide internet on airplanes, ships, and in remote areas. Gilat also gets paid to build and manage these complex communication networks for its clients.
How the company got here
Founded in 1987 in Israel, Gilat started with a focus on developing satellite-based communication products for the civilian market. A key early success was providing the technology for satellite-based phone networks in remote parts of South America. Over the years, Gilat has grown by acquiring other companies to expand its technology, such as those making amplifiers and antennas for satellite networks. The company has also secured large, long-term government contracts, like building and operating regional communication networks in Peru, which have been significant for its growth. This has established Gilat as a major provider of the ground-based equipment and services needed for satellite communication, rather than owning the satellites themselves.
What it actually does
Imagine you're in a place with no cell service or internet cables, like a rural village, on a plane, or in a military operation. Gilat provides the technology that connects you to the internet and phone services via satellite. They don't own the satellites in space; instead, they design and build the equipment on the ground—like small satellite dishes (called VSATs), modems, and antennas—that sends and receives signals to and from those satellites. They also provide the software and services to manage these networks, ensuring reliable communication for governments, businesses, and mobile network operators.
Commercial
This is Gilat's largest business area, making up the majority of its revenue. It serves a wide range of customers, including telecom companies, internet service providers, and large businesses that need reliable internet and communication services, especially in remote areas. For example, they provide the equipment that allows mobile network operators to extend their coverage to rural locations using satellites. This segment also includes providing in-flight connectivity (the technology that gives you Wi-Fi on an airplane).
Defense
Gilat provides secure and reliable communication systems for military and government organizations around the world, including the U.S. Department of Defense. This includes specialized equipment that can be used on the move—in vehicles, on ships, or in the air—to ensure that critical communications are maintained during operations. This part of the business is a major focus for growth and involves providing rugged, high-performance terminals and management systems for mission-critical situations.
Peru
This segment is unique because it focuses on a large-scale, long-term project with the government of Peru to bring internet and telephone services to remote and underserved areas of the country. Gilat not only supplied the technology but also operates the network, providing what are known as managed services (handling the day-to-day operations of the network for a client). This project is a significant part of Gilat's business and highlights their work in digital inclusion, which means bringing internet access to people and places that have been left out.
What management is betting on now
Management is focused on expanding its business in the defense and in-flight connectivity markets, seeing these as major growth areas. They are also investing in technology that works with new types of satellite networks, including those with satellites in different orbits, to provide more flexible and powerful communication solutions. A key part of their strategy includes acquiring other companies to bring in new technologies and expand their presence, particularly in the U.S. defense market. The company is also continuing to pursue large-scale projects with governments aimed at bridging the digital divide (the gap between those who have internet access and those who don't).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$25.06M
FY2025 Q4
$9.19M
Revenue
$451.66M
Net income
$20.72M
Diluted EPS
0.34
Operating cash flow
$20.68M
Free cash flow
$9.19M
Fetching…
Sources
Revenue
$305.45M
Net income
$24.85M
Diluted EPS
0.44
Operating cash flow
$31.67M
Free cash flow
$25.06M
Fetching…
Sources
Is it cheap or expensive?
Fair value $8.26 vs current price $8.03
Wall Street consensus is the average analyst price target: $19.20 (132.5% higher than our fair-value estimate).
Our most-likely fair value is $8.26 a share — about 2.8% away from today's price of $8.03, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $149.5M - more cash than debt. Interest coverage 2.9x.
Net debt
$-149.54M
Interest coverage
2.89x
Gilat Satellite Networks Ltd.'s profit covers its interest bill about 2.9 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
GILT
BASELINE
Gilat Satellite Networks Ltd.
Total debt $9.62M Interest coverage 2.89x This is the baseline the peer rows are being compared against.
Total debt $6.93B Interest coverage 0.30x -90% vs GILT Carries about 9.6x less debt cushion than GILT.
Total debt $217.97M Interest coverage -1.20x -100% vs GILT This peer has almost no interest-payment cushion compared with GILT.
Total debt $193.60M Interest coverage 2.89x -0% vs GILT Has roughly the same debt cushion as GILT.
What you should know
The case for and against GILT
3 Rewards
0 Risks
Rewards
-
Revenue grew 47.9% last year.
-
Returns 7.0% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
18.25x
Forward P/E
10.47x
P/B
1.14x
P/S
1.27x
EV/EBITDA
8.36x
PEG ratio
4.99x
Profitability
How much profit each dollar creates
Gross margin
30.3%
Operating margin
9.5%
Net margin
6.2%
ROE
7.0%
ROA
3.0%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
1.97x
Quick ratio
1.48x
Total debt
$9.62M
Total cash
$159.16M
Growth
How the business has been compounding
Revenue TTM
$1.26B
Revenue 5Y CAGR
20.4%
EPS TTM
0.44
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$95.10M
Free CF TTM
$9.19M
FCF margin
0.7%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2021-01-08