Gilat Satellite Networks Ltd. Ordinary Shares (GILT)

FairStock Score: 30/100 — RISKY

Key Financials

Strengths

• Generates $70 million in annual free cash flow (5.3% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Revenue growth of 75.3% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($7) with negative 144% margin of safety—limited downside protection

AI Analysis

Gilat Satellite Networks Ltd. Ordinary Shares is a micro-cap technology company valued at $1.3 billion. The business generates $452 million in annual revenue with a 1.9% net margin and $70 million in free cash flow. From a quality standpoint, Gilat shows Altman Z-Score of 2.6 in the grey zone and modest 5% ROE. On valuation, the stock is commanding a steep 51.9x multiple, with trades far above its Graham Number ($7) with no margin of safety. Growth dynamics show revenue growing at 75.3% and profit growth of -25.3%. Our composite FairStock Score of 30/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Gilat's 75% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $70 million in annual free cash flow (5.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 52x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer