Stock in Focus: Gilat Satellite Networks Ltd. (GILT)

Company Profile:

Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions and services in Latin America, the Asia Pacific, North America, Europe, the Middle East, and Africa. It operates through three segments: Fixed Networks, Mobility Solutions, and Terrestrial Infrastructure Projects. The company designs and manufactures ground-based satellite communications equipment; and provides solutions and end-to-end services. Its portfolio consists of a cloud-based satellite network platform, very small aperture terminals, amplifiers, modems, on-the-move antennas, solid state amplifiers, block upconverters, transceivers, low-profile antennas, and on-the-move/on-the-pause terminals. The company was founded in 1987 and is headquartered in Petah Tikva, Israel.

Recent News:

On OCTOBER 5, 2020, Comtech Telecommunications Corp.(Nasdaq: CMTL) and Gilat Satellite Networks Ltd. announced that the companies have agreed to terminate the merger agreement first announced on January 29, 2020 and have settled all pending litigation in the Delaware Court of Chancery. In connection with the termination and settlement agreement, Comtech has agreed to make a payment of $70.0 million to Gilat.

For the second quarter ended June 30, 2020, the company reported revenues totaled $38.3 million compared with $59.7 million for the second quarter of 2019. Net loss was $4.2 million, or loss of $0.08 per diluted share, compared with net income of $3.4 million, or income of $0.06 per diluted share in Q2 2019.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

GILT’s strengths can be seen in its better profitability and strong solvency compared with its peers. Its earnins has increased over recent years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 48.28 with positive bias. We rate Gilat Satellite Networks Ltd. (GILT) a STRONG BUY.