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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 40.3GRADE C
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
32.6%
Sector: -1.4%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, GILAT SATELLITE NETWORKS LTD (GILT) receives a "Hold" rating with a composite score of 53.5/100, ranked #945 out of 4446 stocks. Key factor scores: Quality 40/100, Value 63/100, Momentum 80/100. This is quantitative analysis only — not investment advice.
GILAT SATELLITE NETWORKS LTD (GILT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does GILAT SATELLITE NETWORKS LTD Do?
Gilat Satellite Networks Ltd., together with its subsidiaries, provides satellite-based broadband communication solutions and services in Israel and internationally. It operates through Fixed Networks, Mobility Solutions, and Terrestrial Infrastructure Projects segments. The company offers end-to-end VSAT network, including VSAT terminals and a network management system, as well as SkyEdge IV and SkyEdge II-c platforms; and satellite-on-the-move terminals for air, sea, and land platforms. It also provides ER6000- A and AEROEDGE 6000 for the satellite communication needs to in-flight connectivity service providers; MrineRay for maritime connectivity; and RaySat antennas to deliver critical data, voice, and video for real-time information flow, as well as electronically steered antenna system for broadband connectivity on mobile platforms. In addition, the company offers aerodynamic antenna systems for land vehicles and aircraft; SatTrooper, a manpack terminal for civilian and military operations; BlackRay SATCOM terminals for airborne missions; GLT1000 modem for connectivity across land, sea, and air; and MLT1000, a military-grade modem that provides broadband C4I satellite communications. Further, it offers block upconverters for satellite communication on-the-move applications, as well as fixed satellite operations. The company also provides managed services, such as installation and setup, network design and optimization, and network operation; service packages; support center services; and professional services, including project management and training, as well as cellular, mobility, Internet of Things, enterprise and broadband, and defense and government solutions. Gilat Satellite Networks Ltd. was incorporated in 1987 and is headquartered in Petah Tikva, Israel. GILAT SATELLITE NETWORKS LTD (GILT) is classified as a small-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Adi Sfadia and employs approximately 800 people. With a market capitalization of $1.2B, GILT is one of the notable companies in the Technology sector.
As of April 2026, GILAT SATELLITE NETWORKS LTD receives a Hold rating with a composite score of 53.5/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GILT ranks #945 out of 4,446 stocks in our coverage universe. Within the Technology sector, GILAT SATELLITE NETWORKS LTD ranks #89 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
GILT Stock Price and 52-Week Range
GILAT SATELLITE NETWORKS LTD (GILT) currently trades at $17.60. The stock lost $0.16 (0.9%) in the most recent trading session. The 52-week high for GILT is $20.38, which means the stock is currently trading -13.6% from its annual peak. The 52-week low is $5.30, putting the stock 232.1% above its annual trough. Recent trading volume was 547K shares, suggesting relatively thin trading activity.
Is GILT Overvalued or Undervalued? — Valuation Analysis
GILAT SATELLITE NETWORKS LTD (GILT) carries a value factor score of 63/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 40.25x, compared to the Technology sector average of 45.27x — a discount of 11%. The price-to-book ratio stands at 4.64x, versus the sector average of 3.16x. The price-to-sales ratio is 1.16x, compared to 1.06x for the average Technology stock. On an enterprise value basis, GILT trades at 7.57x EV/EBITDA, versus 12.79x for the sector. The EV/EBIT multiple is 27.00x.
Overall, GILT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
GILAT SATELLITE NETWORKS LTD (GILT) earns a quality factor score of 40/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 32.6%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 23.1% versus the sector average of -1.0%.
On a margin basis, GILAT SATELLITE NETWORKS LTD reports gross margins of 37.1%, compared to 50.9% for the sector. The operating margin is 9.1% (sector: -0.5%). Net profit margin stands at 8.1%, versus -1.5% for the average Technology stock. Revenue growth is running at 14.8% on a trailing basis, compared to 14.2% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
GILT Debt, Balance Sheet, and Financial Health
GILAT SATELLITE NETWORKS LTD has a debt-to-equity ratio of 1.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. Total debt on the balance sheet is $2M. Cash and equivalents stand at $119M.
GILT has a beta of 1.16, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for GILAT SATELLITE NETWORKS LTD is 39/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
GILAT SATELLITE NETWORKS LTD Revenue and Earnings History — Quarterly Trend
In TTM 2026, GILAT SATELLITE NETWORKS LTD reported revenue of $305M and earnings per share (EPS) of $0.44. Net income for the quarter was $25M. Gross margin was 37.1%. Operating income came in at $28M.
In FY 2024, GILAT SATELLITE NETWORKS LTD reported revenue of $305M and earnings per share (EPS) of $0.44. Net income for the quarter was $25M. Gross margin was 37.1%. Revenue grew 14.8% year-over-year compared to FY 2023. Operating income came in at $28M.
In FY 2023, GILAT SATELLITE NETWORKS LTD reported revenue of $266M and earnings per share (EPS) of $0.41. Net income for the quarter was $24M. Gross margin was 39.4%. Revenue grew 10.9% year-over-year compared to FY 2022. Operating income came in at $28M.
In FY 2022, GILAT SATELLITE NETWORKS LTD reported revenue of $240M and earnings per share (EPS) of $-0.10. Net income for the quarter was $-6M. Gross margin was 36.2%. Revenue grew 11.6% year-over-year compared to FY 2021. Operating income came in at $10M.
Over the past 8 quarters, GILAT SATELLITE NETWORKS LTD has demonstrated a growth trajectory, with revenue expanding from $266M to $305M. Investors analyzing GILT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GILT Dividend Yield and Income Analysis
GILAT SATELLITE NETWORKS LTD (GILT) does not currently pay a dividend. This is common among smaller companies in the Electronic Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Technology dividend stocks may want to explore other Technology stocks or use the stock screener to filter by dividend yield.
GILT Momentum and Technical Analysis Profile
GILAT SATELLITE NETWORKS LTD (GILT) has a momentum factor score of 80/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 55/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 26/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
GILT vs Competitors — Technology Sector Ranking and Peer Comparison
Within the Technology sector, GILAT SATELLITE NETWORKS LTD (GILT) ranks #89 out of 584 stocks based on the Blank Capital composite score. This places GILT in the top quartile of all Technology stocks in our coverage universe. Key competitors and sector peers include IHS Holding Ltd (IHS) with a score of 55.0/100, VERISIGN INC/CA (VRSN) with a score of 56.0/100, ESCO TECHNOLOGIES INC (ESE) with a score of 51.7/100, CareCloud, Inc. (CCLD) with a score of 46.9/100, and MMTec, Inc. (MTC) with a score of 47.4/100.
Comparing GILT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GILT vs S&P 500 (SPY) comparison to assess how GILAT SATELLITE NETWORKS LTD stacks up against the broader market across all factor dimensions.
GILT Next Earnings Date
No upcoming earnings date has been announced for GILAT SATELLITE NETWORKS LTD (GILT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GILT? — Investment Thesis Summary
GILAT SATELLITE NETWORKS LTD presents a balanced picture with arguments on both sides. The value score of 63/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 80/100, suggesting the trend favors buyers. High volatility (stability score 39/100) increases portfolio risk.
In summary, GILAT SATELLITE NETWORKS LTD (GILT) earns a Hold rating with a composite score of 53.5/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GILT stock.
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Institutional Research Dossier
GILAT SATELLITE NETWORKS LTD (GILT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Gilat Satellite Networks (GILT), driven by a balanced assessment of its improving financial performance and growth prospects against a backdrop of valuation concerns and inherent industry risks. While Gilat exhibits strong momentum and improving profitability, particularly compared to its historical performance and sector peers, its current valuation appears to reflect much of this optimism, limiting potential upside. The company's strategic positioning in the satellite communications market, particularly in mobility solutions, offers growth opportunities, but execution risks and competitive pressures warrant a cautious approach.
The key takeaway is that while Gilat has demonstrated a turnaround in profitability and revenue growth, the current market price already reflects these improvements. Investors should closely monitor the company's ability to sustain its growth trajectory, manage its operating expenses, and navigate the competitive landscape to justify the current valuation. A more attractive entry point may emerge if the company experiences short-term headwinds or if market sentiment shifts.
Business Strategy & Overview
Gilat Satellite Networks operates in the satellite-based broadband communication solutions and services market, serving diverse sectors including fixed networks, mobility solutions, and terrestrial infrastructure projects. The company's core strategy revolves around providing end-to-end VSAT network solutions, encompassing VSAT terminals, network management systems, and advanced platforms like SkyEdge IV and SkyEdge II-c. This comprehensive approach allows Gilat to cater to a wide range of customer needs, from basic connectivity to sophisticated satellite-on-the-move applications.
A key element of Gilat's strategy is its focus on innovation and technological advancement. The development and deployment of next-generation platforms like SkyEdge IV are crucial for maintaining a competitive edge in the rapidly evolving satellite communications market. These platforms are designed to support high-throughput satellites (HTS) and non-geostationary orbit (NGSO) constellations, enabling Gilat to capitalize on emerging trends in the industry. The company's product pipeline includes advanced antenna systems, modems, and block upconverters, catering to the increasing demand for high-bandwidth connectivity across various applications.
Gilat's business model is diversified across different segments, including fixed networks, mobility solutions, and terrestrial infrastructure projects. The fixed networks segment focuses on providing broadband connectivity to enterprises, governments, and rural communities. The mobility solutions segment caters to the growing demand for satellite-on-the-move connectivity in air, sea, and land applications. This segment includes products like aeroEdge 6000 for in-flight connectivity, MarineRay for maritime connectivity, and RaySat antennas for land-based mobile platforms. The terrestrial infrastructure projects segment involves the deployment of satellite-based communication solutions for infrastructure projects, such as cellular backhaul and disaster recovery.
The company's strategic positioning in the satellite communications market is further strengthened by its partnerships with satellite operators, service providers, and equipment manufacturers. These collaborations enable Gilat to expand its reach, enhance its product offerings, and deliver integrated solutions to its customers. The company's global presence, with operations in Israel and internationally, allows it to serve a diverse customer base and capitalize on growth opportunities in different regions. However, it is important to note that the satellite communications market is highly competitive, with established players and emerging startups vying for market share. Gilat faces competition from companies offering similar VSAT solutions, as well as alternative technologies like terrestrial broadband and 5G. To succeed, Gilat must continue to innovate, differentiate its offerings, and maintain strong relationships with its partners and customers.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
14.8%
Sector: 14.2%
IN LINE
Economic Moat Analysis
Gilat's economic moat can be classified as Narrow. While the company possesses certain competitive advantages, they are not strong enough to create a wide and sustainable moat. The primary sources of Gilat's narrow moat are switching costs and intangible assets, particularly in specific niche markets.
Switching costs are evident in Gilat's long-term contracts with customers, particularly in the fixed networks and mobility solutions segments. Once a customer integrates Gilat's VSAT network and platforms into their operations, switching to a competitor can be costly and disruptive. This creates a degree of customer stickiness and provides Gilat with recurring revenue streams. However, these switching costs are not insurmountable, as customers can and do switch providers when better alternatives become available or when contracts expire.
Intangible assets, such as proprietary technology and brand reputation, also contribute to Gilat's narrow moat. The company has invested significantly in developing its SkyEdge platforms and VSAT terminals, which incorporate advanced features and functionalities. This technological expertise allows Gilat to differentiate its offerings and cater to specific customer requirements. The company's brand reputation, built over several years of operation, also provides a competitive advantage, particularly in the government and defense sectors. However, these intangible assets are not unique to Gilat, as other companies in the satellite communications market also possess proprietary technology and strong brand reputations.
The satellite communications market is characterized by intense competition and rapid technological advancements. This makes it difficult for any single company to establish a dominant market position and maintain a wide moat. Competitors are constantly developing new technologies and offering innovative solutions, which can erode Gilat's competitive advantages. Furthermore, the emergence of new satellite constellations and alternative technologies like 5G pose a threat to Gilat's long-term growth prospects. While Gilat has demonstrated its ability to adapt to changing market conditions and innovate its offerings, it must continue to invest in research and development and maintain strong relationships with its customers to defend its narrow moat.
Efficient scale is not a significant factor in Gilat's economic moat. While the company benefits from economies of scale in its manufacturing and operations, these advantages are not substantial enough to create a barrier to entry for new competitors. The satellite communications market is relatively fragmented, with a large number of players competing for market share. This limits Gilat's ability to achieve significant cost advantages and establish a dominant market position.
Financial Health & Profitability
Gilat's financial health has shown significant improvement in recent years, particularly in terms of revenue growth and profitability. The company's revenue has increased steadily from $166.13 million in FY2020 to $305.45 million in FY2024, representing a compound annual growth rate (CAGR) of approximately 16.5%. This growth has been driven by increased demand for Gilat's VSAT solutions and services across its various segments. The company's net income has also improved significantly, from a loss of $5.93 million in FY2022 to a profit of $24.85 million in FY2024. This turnaround in profitability is attributable to improved operating efficiency, cost management, and a favorable product mix.
Gilat's gross margin has remained relatively stable over the past few years, ranging from 33.2% in FY2021 to 39.4% in FY2023. The gross margin of 37.1% in FY2024 is slightly below the sector average of 51.2%, indicating that Gilat may face some pricing pressure or have a higher cost of goods sold compared to its peers. However, the company's operating margin has improved significantly, from 1.0% in FY2021 to 9.1% in FY2024. This improvement reflects Gilat's ability to control its operating expenses and generate higher profits from its revenue. The operating margin of 9.1% is significantly higher than the sector average of -0.5%, indicating that Gilat is more efficient in managing its operations compared to its peers.
Gilat's balance sheet is relatively strong, with total cash of $119.38 million and total debt of $2.00 million as of FY2024. This gives the company a net cash position and provides it with financial flexibility to invest in growth opportunities and weather potential economic downturns. The company's debt-to-equity ratio of 1.00 is significantly lower than the sector average of 43.00, indicating that Gilat is less leveraged compared to its peers. The current ratio is not available, but the strong cash position and low debt levels suggest that Gilat has sufficient liquidity to meet its short-term obligations.
Gilat's free cash flow (FCF) generation has been volatile in recent years, ranging from -$36.05 million in FY2016 to $88.53 million in FY2015. However, the company's FCF has improved significantly in recent years, from -$3.55 million in FY2022 to $16.77 million in FY2024. This improvement reflects Gilat's increased profitability and improved working capital management. The company's ability to generate positive FCF is crucial for funding its growth initiatives and returning capital to shareholders.
Overall, Gilat's financial health has improved significantly in recent years, driven by strong revenue growth, improved profitability, and a healthy balance sheet. However, the company's gross margin is slightly below the sector average, and its FCF generation has been volatile in the past. Investors should closely monitor these metrics to assess Gilat's long-term financial sustainability.
Valuation Assessment
Gilat's valuation presents a mixed picture. On one hand, certain metrics suggest the company is undervalued compared to its sector. The company's P/E ratio of 36.9x is lower than the sector average of 45.3x, indicating that investors are paying less for each dollar of Gilat's earnings compared to its peers. Similarly, the company's EV/EBITDA ratio of 6.5x is significantly lower than the sector average of 13.0x, suggesting that Gilat is undervalued on an enterprise value basis. These metrics could indicate a potential buying opportunity.
However, it's crucial to consider Gilat's historical performance and growth prospects when assessing its valuation. While the company has demonstrated strong revenue growth and improved profitability in recent years, its historical performance has been more volatile. The company's net income has fluctuated significantly over the past decade, and its FCF generation has been inconsistent. This historical volatility may warrant a more cautious approach to valuation.
Furthermore, the current valuation may already reflect much of the company's recent improvements. Gilat's stock price has increased significantly in the past year, driven by its strong financial performance and positive market sentiment. This suggests that investors may have already priced in much of the company's future growth potential. The Momentum score of 83/100 supports this observation.
The company's ROE of 32.7% is significantly higher than the sector average of -1.5%, indicating that Gilat is generating strong returns on its equity. However, it's important to note that ROE can be influenced by leverage, and Gilat's debt-to-equity ratio of 1.00 is relatively low. This suggests that the company's high ROE is primarily driven by its profitability rather than leverage.
Considering all these factors, Gilat's valuation appears to be fair, but not necessarily cheap. The company's strong financial performance and growth prospects are offset by its historical volatility and the possibility that much of its future growth potential is already priced in. Investors should carefully consider these factors before making an investment decision.
Risk & Uncertainty
Gilat faces several specific risks that could impact its business and financial performance. One of the primary risks is intense competition in the satellite communications market. The market is characterized by a large number of players, including established companies and emerging startups, all vying for market share. This competition can lead to pricing pressure, reduced margins, and loss of market share for Gilat. The emergence of new satellite constellations and alternative technologies like 5G also poses a threat to Gilat's long-term growth prospects.
Another significant risk is technological obsolescence. The satellite communications market is rapidly evolving, with new technologies and standards emerging constantly. Gilat must continuously invest in research and development to keep pace with these changes and maintain its competitive edge. Failure to do so could result in its products and services becoming obsolete, leading to a decline in revenue and profitability.
Customer concentration is also a risk for Gilat. The company derives a significant portion of its revenue from a small number of large customers. Loss of one or more of these key customers could have a material adverse effect on Gilat's financial performance. The company's ability to diversify its customer base and attract new customers is crucial for mitigating this risk.
Regulatory risks are also a concern for Gilat. The satellite communications market is subject to various regulations and licensing requirements in different countries. Changes in these regulations or failure to comply with them could have a negative impact on Gilat's business. The company must closely monitor regulatory developments and ensure that it complies with all applicable laws and regulations.
Bulls Say / Bears Say
The Bull Case
BULL VIEWGilat's strong momentum and improving profitability, particularly in the mobility solutions segment, position it for continued growth in the satellite communications market.
BULL VIEWThe company's healthy balance sheet and positive free cash flow generation provide it with the financial flexibility to invest in growth opportunities and return capital to shareholders.
BULL VIEWGilat's SkyEdge IV platform offers a competitive advantage in supporting high-throughput satellites and non-geostationary orbit constellations, enabling it to capitalize on emerging trends.
The Bear Case
BEAR VIEWGilat's valuation is already pricing in much of its future growth potential, limiting potential upside for investors.
BEAR VIEWIntense competition and rapid technological advancements in the satellite communications market pose a threat to Gilat's long-term growth prospects.
BEAR VIEWCustomer concentration and regulatory risks could negatively impact Gilat's financial performance.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score GILT and 4,400+ other equities.
GILAT SATELLITE NETWORKS LTD exhibits a 1% valuation premium relative to institutional benchmarks. This represents a balanced risk/reward profile based on current multiples.
Return on Assets
Efficiency of asset utilization
23.1%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
37.1%
Sector: 50.9%
Operating Margin
Core business profitability
9.1%
Sector: -0.5%
Net Margin
Bottom-line profitability
8.1%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
