M). While some of us are becoming more enthusiastic about communication services space, let's summarize Cellcom Israel in greater detail to make a better estimate of its debt utilization. " />

Continue to hold Cellcom (NYSE:CEL) based on its current debt obligations?

Cellcom Israel is scheduled to announce its earnings today. Cellcom Israel Asset Turnover is relatively stable at the moment as compared to the past year. The company's current value of Asset Turnover is estimated at 0.59. Current Ratio is expected to hike to 1.66 this year, although the value of Earnings before Tax will most likely fall to (133.4 M). While some of us are becoming more enthusiastic about communication services space, let's summarize Cellcom Israel in greater detail to make a better estimate of its debt utilization.
Published over a year ago
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Reviewed by Vlad Skutelnik

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

B
Assets Non Current
1.4 B
Goodwill
2.7 B
Current Assets
Total Assets6.74 Billion
Current Assets2.72 Billion
Assets Non Current4.02 Billion
Goodwill1.4 Billion
Tax Assets3.08 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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Editorial Staff

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 Terms of Use for any information regarding our disclosure principles.

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