The entity has 956.5
M in debt with debt to equity (D/E) ratio of 2.04, meaning that Cellcom Israel heavily relies on borrowing funds for operations. The firm has a current ratio of 1.59, which is typical for the industry and considered as normal. We provide trade advice to complement the prevailing
expert consensus on Cellcom Israel. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
How important is Cellcom Israel's Liquidity
Cellcom Israel
financial leverage refers to using borrowed capital as a funding source to finance Cellcom Israel ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Cellcom Israel financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Cellcom Israel's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Cellcom Israel's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Cellcom Israel's total debt and its cash.
What is driving Cellcom Israel Investor Appetite?
Cellcom Israel reported the last year's revenue of 1.03
B. Reported Net Loss for the year was (4.94
M) with profit before taxes, overhead, and interest of 983
M.
Asset Breakdown
| Total Assets | 6.74 Billion |
| Current Assets | 2.72 Billion |
| Assets Non Current | 4.02 Billion |
| Goodwill | 1.4 Billion |
| Tax Assets | 3.08 Million |
Some Cellcom technical indicators suggest turnaround
The semi deviation is down to 2.38 as of today. Cellcom Israel currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.34. However, we do advice investors to further question Cellcom Israel expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Conclusion on Cellcom Israel
While many of the other players under the telecom services industry are still a bit expensive, Cellcom Israel may offer a potential longer-term growth to stakeholders. The bottom line, as of the 17th of August 2020, our analysis shows that Cellcom Israel moves indifferently to market moves. The company is
overvalued and projects
below average probability of distress for the next 2 years. Our overall 30 days buy-hold-sell advice on the company is
Hold.
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Gabriel Shpitalnik is a Member of Macroaxis Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Cellcom Israel. Please refer to our
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