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Bezeq The Israel Telecommunication Corp.

BEZQ.TA
51
Telecommunications Services · Communication Services
Price
776.00 ILA
+0.00 (+0.00%)
Market Cap
21.41B ILA
Exchange
Tel Aviv Stock Exchange
Winston Score
51
Winston is curious
Mixed quality — meaningful strengths and weaknesses.
Data as of Sep 14, 2026 · filings through Jun 30, 2026

§How the score breaks down

Quality
Strong
Growth
Weak
Cash Flow
Exceptional
Stability
Mixed
Valuation
Good
Dividends
Strong

§Winston Score History

The full picture

Bezeq is Israel's largest telecommunications company. It provides landline phone service, broadband internet, and television to homes and businesses across Israel. Through its subsidiaries, including Pelephone for mobile service and yes for satellite and internet TV, it covers nearly every type of telecom need in the country.

Bezeq makes money by charging customers monthly fees for internet, phone, mobile, and TV subscriptions. As the dominant telecom provider in Israel, it benefits from owning extensive fixed-line infrastructure that competitors cannot easily replicate. The company faces ongoing competitive pressure from smaller Israeli carriers on pricing, and its long-term growth depends on expanding fiber-optic broadband coverage and bundling services to retain subscribers.

Share count broadly stable

+0.4% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 2.77B (2021) → 2.77B (2025)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
31.3%
Modest — 31.3% gross margin
Profit after running costs
Operating Margin
22.1%
Excellent — 22.1% operating margin
Return on the money invested
ROCE
21.4%
Exceptional — 21.4% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
-1.6%
Shrinking sales (-1.6% YoY)
Profit growth
EPS YoY
-0.3%
Earnings shrinking (-0.3% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
270%
Turns 270% of profit into real cash
Spare cash per sale
FCF Margin
22.7%
Converts sales into free cash efficiently (22.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns
Debt / Equity
2.56
Heavy debt load (2.56)
Covers its interest
Interest Cover
5.90x
Adequate interest coverage (5.9x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
17.9x
Fair value — P/E 17.9

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

Cheaper or dearer next year
P/E vs Forward
+1.6
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Dividend
Dividend Yield
3.89%
Moderate income — 3.89% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+36.6%
Dividend growing fast (36.6% YoY)

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