BCOM  B Communications Ltd.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Telecommunications Equipment

Market Cap.

590.19M

Vuru Grade

71.50/100

Current Price

$19.75
-0.23 (-1.15%)

Growth Price

$233.18
Undervalued by 1,080.64%

Stability Price

$32.06
Undervalued by 62.33%

Company Metrics

  • P/E 10.8958
  • P/S 0.22
  • P/B 1.90
  • EPS -1.25
  • Cash ROIC 16.01%
  • Cash Ratio 0.41
  • Dividend 3.66 / 17.06 %
  • Avg. Vol. 1,430.00
  • Shares 29.88M
  • Market Cap. 590.19M

Company Description

No description available... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

B Communications - Another Investment Opportunity Emerges
Seeking Alpha - Jan 10, 2017
I have been covering the stocks of B Communications (NASDAQ:BCOM) and Internet Gold (NASDAQ:IGLD) over the past two years. During that time, I published several articles regarding these companies.
B Communications Ltd. (BCOM) Ex-Dividend Date Scheduled for June 13, 2016
Nasdaq - Jun 10, 2016
B Communications Ltd. ( BCOM ) will begin trading ex-dividend on June 13, 2016. A cash dividend payment of $3.07 per share is scheduled to be paid on June 29, 2016.
B Communications Ltd. Announces a Private Placement of NIS 118 Million Par ...
PR Newswire (press release) - Jan 11, 2017
B Communications Ltd. (NASDAQ and TASE: BCOM), today announced a private placement of NIS 118,000,000 par value of its Series C Debentures to Israeli institutional investors for an aggregate consideration of approximately NIS 118 million ...
B Communications Ltd (BCOM) Offers Update on Bezeq Ownership Interest
StreetInsider.com - Feb 1, 2016
B Communications Ltd. (Nasdaq: BCOM) announces the following update with respect to its ownership interest in Bezeq The Israel Telecommunications Corp.
As B Communications Ltd. Trades Do Analysts Recommend You Sell?
The De Soto Edge - Nov 20, 2016
Ltd. (Bezeq), a provider of communications services in Israel. Bezeq and its subsidiaries operate through segments, including Bezeq, which offers fixed-line telephony services and fixed-line broadband Internet infrastructure access; Pelephone, which ...
B Communications Ltd. (NASDAQ:BCOM) Analyst Recommendation
NewsDen - Feb 21, 2017
Ltd. (Bezeq), a provider of communications services in Israel. Bezeq and its subsidiaries operate through segments, including Bezeq, which offers fixed-line telephony services and fixed-line broadband Internet infrastructure access; Pelephone, which ...
This Weeks Target Prices For B Communications Ltd. (NASDAQ:BCOM)
NewsDen - Jan 28, 2017
B Communications Ltd. is focused on the telecommunications industry. The Company's principal asset is its ownership interest in Bezeq The Israel Telecommunications Corp.
B Communications Ltd. (NASDAQ:BCOM) Under Analyst Spotlight
UK Market News - Jan 17, 2017
Amid volatile financial markets and the presidential election, various investment brokerages have made amendments to their price targets and ratings on shares of B Communications Ltd. (NASDAQ:BCOM). Based on the latest brokerage notes which have ...
Next Weeks Broker Price Targets For B Communications Ltd. (NASDAQ:BCOM)
Fiscal Standard - Jan 28, 2017
04/16/2014 - B Communications Ltd. was upgraded to “hold” by analysts at TheStreet. The share price of B Communications Ltd. (NASDAQ:BCOM) was down -4.88% during the last trading session, with a day high of 20.08. 7106 shares were traded on B ...
Which Analysts Are Watching B Communications Ltd. (NASDAQ:BCOM)?
Fiscal Standard - Feb 17, 2017
B Communications Ltd. is focused on the telecommunications industry. The Company's principal asset is its ownership interest in Bezeq The Israel Telecommunications Corp.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for BCOM to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate BCOM's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$19.75 Current Price

$233.18 Growth Price (DCF)

Undervalued by 1,080.64%


Growth Rate Assumed by Market: -80.99%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$32.06 Stability Price (EPV)

Undervalued by 62.33%


Discount Rate: 15.0%

$4.97 Book Price

Overvalued by 74.82%


Excellent Cash Return on Invested Capital over the past 5 years

BCOM has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

BCOM has created $16.01 of cash for every $100 invested.
Figures in ILS. Fiscal year ends in December
20112012201320142015
Free Cash Flow 1.64B 2.73B 3.10B 2.71B 2.02B
divided by
Invested Capital 17.60B 17.00B 14.73B 13.52B 14.81B
Cash ROIC 9.30% 16.03% 21.07% 20.03% 13.62%

Varying Return on Equity over the past 5 years

BCOM has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

BCOM has generated $75.92 of Earnings for every $100 of Shareholders' Equity.
Figures in ILS. Fiscal year ends in December
20112012201320142015
Net Income -219.00M 790.00M 939.00M 1.13B 1.14B
divided by
Stockholders' Equity 936.00M 961.00M 995.00M 961.00M 1.05B
Return on Equity -23.40% 82.21% 94.37% 117.69% 108.71%

Excellent Business Performance over the past 10 years

BCOM has been able to maintain profitability in good times and bad. This could mean BCOM has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

BCOM has created positive free cash flow for 9 or more of the past 10 years.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Free Cash Flow 26.72M 171.47M 152.75M 91.19M 1.61B 1.64B 2.73B 3.10B 2.71B 2.02B

Weak Balance Sheet

BCOM's financial position is not ideal. The key is to check whether BCOM is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Cash 38.57M 230.07M 137.39M 1.04B 1.17B 2.65B 862.00M 2.41B 3.82B 2.12B
Current Assets 258.40M 463.13M 381.28M 2.41B 4.48B 6.37B 5.79B 5.74B 6.50B 4.73B
Total Assets 1.36B 1.56B 1.60B 2.41B 24.03B 24.91B 22.63B 21.08B 21.24B 22.12B
Current Liabilities 1.13B 378.19M 470.67M 1.15B 4.16B 4.66B 4.77B 3.95B 3.90B 5.20B
Total Liabilities 1.22B 900.69M 914.70M 1.49B 22.82B 23.97B 21.67B 20.09B 20.28B 21.08B
Stockholder' Equity 143.43M 654.55M 688.27M 921.16M 1.21B 936.00M 961.00M 995.00M 961.00M 1.05B
Current Ratio 0.23 1.22 0.81 2.10 1.08 1.37 1.21 1.45 1.67 0.91
TL-to-TA 0.89 0.58 0.57 0.62 0.95 0.96 0.96 0.95 0.95 0.95

Consistent Reinvestment of Profits over the past 10 years

BCOM has consistently retained profits. This may put BCOM in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, BCOM can greatly improve their long-term economic picture.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Retained Earnings - 39.92M 88.37M 300.23M 174.00M -37.00M 2.00M 43.00M 23.00M 106.00M
Retained Earnings Growth - - 121.37% 239.73% -42.05% -121.26% 105.41% 2,050.00% -46.51% 360.87%

Competitive Industry over the past 10 years

BCOM is likely operating in an industry with medium to low barriers to entry. This may mean that BCOM doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that BCOM invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.78 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -2.02M 39.92M 48.48M 147.30M -140.00M -219.00M 790.00M 939.00M 1.13B 1.14B
divided by
Revenue 340.42M 1.10B 1.11B 1.17B 8.66B 11.37B 10.28B 9.56B 9.06B 9.99B
Net Profit Margin -0.59% 3.62% 4.38% 12.56% -1.62% -1.93% 7.69% 9.82% 12.49% 11.38%

Varying Pricing Power over the past 10 years

BCOM has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$79.73 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Gross Profit 117.60M 340.95M 352.79M 1.17B 8.66B 11.37B 10.28B 9.56B 9.06B 9.99B
divided by
Revenue 340.42M 1.10B 1.11B 1.17B 8.66B 11.37B 10.28B 9.56B 9.06B 9.99B
Gross Margin 34.55% 30.89% 31.89% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

High Capital Intensity over the past 10 years

BCOM spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

123.12% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Capital Expenditure 11.09M 50.85M 56.14M 158.09M 998.00M 1.55B 1.27B 1.04B 1.08B 1.64B
divided by
Net Income -2.02M 39.92M 48.48M 147.30M -140.00M -219.00M 790.00M 939.00M 1.13B 1.14B
Capital Expenditure Ratio -549.06% 127.37% 115.79% 107.33% -712.86% -706.85% 160.89% 110.97% 95.58% 143.93%

No Dividend History over the past 10 years

BCOM has never distributed dividends or has recently suspended their dividend distribution.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 18.37M 19.49M 25.36M 25.35M 28.72M 29.89M 29.89M 29.89M 29.89M 29.89M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - 12.61 4.00 21.72 37.90 14.72 4.30 17.10 17.55 26.00
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

BCOM has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in ILS. Fiscal year ends in December
2006200720082009201020112012201320142015
Shares Outstanding 18.37M 19.49M 25.36M 25.35M 28.72M 29.89M 29.89M 29.89M 29.89M 29.89M
Stock Bought Back - -5.76% -23.13% 0.06% -11.74% -3.92% - - - -
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