Eltek Ltd. Ordinary Shares (ELTK)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that can earn good returns on capital for years, bought at a sensible price. Eltek makes custom printed circuit boards, a useful but competitive niche. In fiscal Q2 2026, the latest quarter shown, revenue was $11.5 million and net income was negative $2.7 million, a -23.79% net margin. That is not the profile of a durable moat; it is a manufacturer fighting pricing and demand, and the supplied figures point to declining revenue and a collapse in profit. At the 2026-10-13 close of $7.51, the market cap is $56.1 million, and FairStock calculations give P/E -8.25, P/B 1.14, ROE -13.79%, ROCE -5.13%, and a FairStock score of 30/100. Debt is moderate at D/E 0.29, and Piotroski is 6/9, but liquidity is less comforting: Altman Z 1.39 sits in distress territory. Trailing free cash flow is barely positive at $99,000, a 0.2% FCF yield. The 2.30% dividend yield is not supported by current earnings and should be watched. With the stock near the low end of its 52-week $7.00-$11.59 range, the price is not demanding on book value, but book value alone is no bargain if capital is being eroded. I would want several quarters of stable or improving revenue, positive net income, and stronger cash generation before calling this a sound value proposition.

In plain English: Eltek makes custom printed circuit boards for electronics customers. The business looks weak right now: in its latest quarter it lost money and sales were lower, and it has been unprofitable over the trailing period. At $7.51 a share, the price is near the bottom of its 52-week range and only a little above the net asset value shown by the numbers, so it looks more like a struggling company than a clear bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer