BCOM  B Communications Ltd.

Exchange

NASDAQ

Sector

Consumer Services

Industry

Telecommunications Equipment

Market Cap.

601.02M

Vuru Grade

70.62/100

Current Price

$20.19
-0.0968 (-0.4772%)

Growth Price

$238.46
Undervalued by 1,081.17%

Company Metrics

  • P/E 10.8958
  • P/S 0.2205
  • P/B 1.8166
  • EPS -1.6060
  • Cash ROIC 17.03%
  • Cash Ratio 0.39
  • Dividend 3.6600 / 17.0600 %
  • Avg. Vol. 1,256.00
  • Shares 29.77M
  • Market Cap. 601.02M

Company Description

No description available... more


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

News

B Communications Ltd. Announces Filing of Annual Report
PR Newswire (press release) - Apr 26, 2017
RAMAT GAN, Israel, April 26, 2017 /PRNewswire/ -- B Communications Ltd. (NASDAQ Global Select Market and TASE: BCOM) today announced that its annual report on Form 20-F containing audited consolidated financial statements for the year ended ...
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 Reports Financial Results For the First Quarter of 2017
PR Newswire (press release) - May 18, 2017
RAMAT GAN, Israel, May 18, 2017 /PRNewswire/ -- B Communications Ltd. (Nasdaq-GM: BCOM; TASE: BCOM), a holding company with a controlling interest in Israel's largest telecommunications provider, Bezeq, The Israel Telecommunication Corporation ...
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) 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.
Midroog Ltd. Approves Aa3.il Rating for B Communications Ltd.'s Series C ...
PR Newswire (press release) - Sep 4, 2016
B Communications Ltd. (the "Company") is pleased to announce that today Midroog approved an Aa3.il with a stable outlook rating for the Company's new Series C Debentures, in a scope of up to NIS 1.9 billion par value, that are expected to be offered ...
B Communications Ltd (NASDAQ:BCOM) Runs 4.12% For the Past 5 Trading Days
Concord Register - 13 hours ago
B Communications Ltd (NASDAQ:BCOM) shares have moved 4.12% on the week. The stock closed the most recent session at $20.19 after seeing 564 shares trade hands.
EPS for B Communications Ltd (BCOM) Expected At $0.00
Finance News Daily - May 24, 2017
Analysts await B Communications Ltd (NASDAQ:BCOM) to report earnings on May, 25. The stock increased 2.35% or $0.45 on May 23, reaching $19.56.
B Communications (BCOM) Receiving Somewhat Critical Press Coverage, Report Finds - BBNS
$0.00 EPS Expected for B Communications Ltd (BCOM) - WeeklyHub
B Communications Ltd (BCOM) EPS Estimated At $0.00; Shorts at Catalyst ...
Wolcott Daily - May 24, 2017
Analysts expect B Communications Ltd (NASDAQ:BCOM) to report $0.00 EPS on May, 25. The stock increased 2.35% or $0.45 on May 23, reaching $19.56.
Analysts See $0.00 EPS for B Communications Ltd (BCOM); Wells Fargo Advantage ...
Wolcott Daily - May 18, 2017
Analysts expect B Communications Ltd (NASDAQ:BCOM) to report $0.00 EPS on May, 25. The stock decreased 0.25% or $0.05 on May 17, reaching $19.95.
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.

$20.19 Current Price

$238.46 Growth Price (DCF)

Undervalued by 1,081.17%


Growth Rate Assumed by Market: -84.35%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$5.35 Book Price

Overvalued by 73.50%


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 $17.03 of cash for every $100 invested.
Figures in ILS. Fiscal year ends in December
20122013201420152016
Free Cash Flow 2.73B 3.10B 2.71B 2.02B 2.05B
divided by
Invested Capital 17.00B 14.73B 13.52B 14.81B 14.22B
Cash ROIC 16.03% 21.07% 20.03% 13.62% 14.39%

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 $88.94 of Earnings for every $100 of Shareholders' Equity.
Figures in ILS. Fiscal year ends in December
20122013201420152016
Net Income 790.00M 939.00M 1.13B 1.14B 488.00M
divided by
Stockholders' Equity 961.00M 995.00M 961.00M 1.05B 1.17B
Return on Equity 82.21% 94.37% 117.69% 108.71% 41.71%

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
2007200820092010201120122013201420152016
Free Cash Flow 171.47M 152.75M 91.19M 1.61B 1.64B 2.73B 3.10B 2.71B 2.02B 2.05B

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
2007200820092010201120122013201420152016
Cash 230.07M 137.39M 1.04B 1.17B 2.65B 862.00M 2.41B 3.82B 2.12B 1.67B
Current Assets 463.13M 381.28M 2.41B 4.48B 6.37B 5.79B 5.74B 6.50B 4.73B 3.99B
Total Assets 1.56B 1.60B 2.41B 24.03B 24.91B 22.63B 21.08B 21.24B 22.12B 20.15B
Current Liabilities 378.19M 470.67M 1.15B 4.16B 4.66B 4.77B 3.95B 3.90B 5.20B 4.26B
Total Liabilities 900.69M 914.70M 1.49B 22.82B 23.97B 21.67B 20.09B 20.28B 21.08B 18.98B
Stockholder' Equity 654.55M 688.27M 921.16M 1.21B 936.00M 961.00M 995.00M 961.00M 1.05B 1.17B
Current Ratio 1.22 0.81 2.10 1.08 1.37 1.21 1.45 1.67 0.91 0.94
TL-to-TA 0.58 0.57 0.62 0.95 0.96 0.96 0.95 0.95 0.95 0.94

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
2007200820092010201120122013201420152016
Retained Earnings 39.92M 88.37M 300.23M 174.00M -37.00M 2.00M 43.00M 23.00M 106.00M 156.00M
Retained Earnings Growth - 121.37% 239.73% -42.05% -121.26% 105.41% 2,050.00% -46.51% 360.87% 47.17%

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 $6.32 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in ILS. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 39.92M 48.48M 147.30M -140.00M -219.00M 790.00M 939.00M 1.13B 1.14B 488.00M
divided by
Revenue 1.10B 1.11B 1.17B 8.66B 11.37B 10.28B 9.56B 9.06B 9.99B 10.08B
Net Profit Margin 3.62% 4.38% 12.56% -1.62% -1.93% 7.69% 9.82% 12.49% 11.38% 4.84%

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.

$86.28 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
2007200820092010201120122013201420152016
Gross Profit 340.95M 352.79M 1.17B 8.66B 11.37B 10.28B 9.56B 9.06B 9.99B 10.08B
divided by
Revenue 1.10B 1.11B 1.17B 8.66B 11.37B 10.28B 9.56B 9.06B 9.99B 10.08B
Gross Margin 30.89% 31.89% 100.00% 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.

144.00% 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
2007200820092010201120122013201420152016
Capital Expenditure 50.85M 56.14M 158.09M 998.00M 1.55B 1.27B 1.04B 1.08B 1.64B 1.42B
divided by
Net Income 39.92M 48.48M 147.30M -140.00M -219.00M 790.00M 939.00M 1.13B 1.14B 488.00M
Capital Expenditure Ratio 127.37% 115.79% 107.33% -712.86% -706.85% 160.89% 110.97% 95.58% 143.93% 290.16%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 19.49M 25.36M 25.35M 28.72M 29.89M 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 20.18
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
2007200820092010201120122013201420152016
Shares Outstanding 19.49M 25.36M 25.35M 28.72M 29.89M 29.89M 29.89M 29.89M 29.89M 29.89M
Stock Bought Back - -23.13% 0.06% -11.74% -3.92% - - - - -
Share your thoughts about BCOM

Sign Up or Log In to start contributing!


Discussion

Nothing here yet. Be the first to post!