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ZYBERNO

Stock Report

Updated Sep 1, 2026

ELTEK LTD. (ELTK)

Technology • NASDAQ

$8.05

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

26.0/100

POOR BUSINESS

ELTEK LTD. (ELTK) scores 26/100 — concerning metrics indicating significant structural or financial risks.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full ELTK quality analysis & detailed breakdown

VALUATION SIGNAL

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

-8.9%

Market Overestimates

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full ELTK valuation analysis · → View full ELTK Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):CRITICAL (0.0%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.27x)

Operating Margin (Operational Efficiency):CRITICAL (0.0%)

Return on Capital (Capital Efficiency):CRITICAL (3.4%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

ELTEK LTD. (ELTK) stock report — Zyberno Score 26/100 (POOR BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, ELTEK LTD. (ELTK) shows a Brina Gap of -8.9%, which weakens the case: based on the company's ROIC (3.4%) and reinvestment rate (168.3%), the business can fundamentally grow at 5.8% — but the current enterprise value implies the market expects 14.7%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:8.05

Market Cap:$54.06M

Valuation Multiples (3)

P/B Ratio:1.16x

P/S Ratio:1.04x

Peg Ratio:-999.00x

Enterprise Metrics (2)

Enterprise Value:$63.44M

Ev Ebitda Ratio:14.25x

Price Action & Momentum (3)

12-1 Momentum:

-21.7% (28th pctile)

📈 Click to view full ELTK Momentum analysis →

Momentum Percentile:28 / 100

% of 52-Week High:69.5%

B. Profitability Assessment

Return Metrics (5)

Roic:

3.4%

📊 Click to view full ELTK ROIC analysis →

Reinvestment Rate:168.3%

Fundamental Growth Rate (g):5.8%

Market-Implied Growth Rate:14.7%

Brina Gap:

-8.9%

☷ Click to view full ELTK Brina Gap analysis →

Margin Analysis (1)

Ebitda Margin:8.6%

Yield Metrics (2)

Earnings Yield:-$999.00

Dividend Yield:2.2%

C. Log-Linear Regression Growth Trends

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):5.9%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-5.8%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):81.9%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:2.82x

Quick Ratio:2.01x

Cash Ratio:0.18x

Leverage Analysis (3)

Debt To Equity Ttm:0.27x

Debt-to-Equity Ratio:0.27x

Debt To Ebitda:2.66x

Coverage Ratios (2)

Interest Coverage Ratio:5.64x

Times Interest Earned:5.64

Capital Structure (4)

Working Capital:24,962,000.00

Cash And Cash Equivalents:2,481,000.00

Long Term Debt:$5.30M

Net Debt:$9.38M

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $51.79M

Linear Growth: 5.9%

📊 Click to view full ELTK Revenue analysis & methodology →

Cost Of Revenue Ttm:$43.81M

Profitability Breakdown (2)

Gross profit TTM: $7.98M

Linear Growth: 13.8%

📊 Click to view full ELTK Gross Profit analysis & methodology →

Operating income TTM: $2.35M

Linear Growth: 81.9%

📊 Click to view full ELTK Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $826.00K

Linear Growth: -5.8%

📊 Click to view full ELTK Net Income analysis & methodology →

Income Before Tax:$444.00K

Ebitda Ttm:4,451,000.00

Operating Expenses (5)

Operating Expenses:0.00

R And D Expense:65,000.00

Sga Expense:5,385,000.00

Income Tax Expense:$515.00K

Interest Expense:416,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.5%

Sga To Revenue Percentage:43.0%

Ebitda Margin:8.6%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$66.26M

Current Assets:$38.67M

Ppe Net:20,862,000.00

Goodwill:0.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:19,523,000.00

Current Liabilities:13,712,000.00

Long Term Debt:$5.30M

Short Term Debt:$6.57M

Equity & Capital (3)

Equity:$46.74M

Retained Earnings:-$1.07M

Common Stock:6,012,000.00

Working Capital Items (3)

Accounts Receivable:14,789,000.00

Inventory:11,154,000.00

Accounts Payable:0.00

Special Items (2)

Contract Liabilities:135,000.00

Stock Based Compensation:512,000.00

C. Cash Flow Analysis

Operating Activities (2)

$1.15M-$4.21M

Investment Activities (1)

Investing Cash Flow:-$86.00K

Financing Activities (3)

Financing Cash Flow:$89.00K

Dividends Paid Ttm:1,276,000.00

Stock Repurchase:0.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$225.00K

Non-Cash Items (1)

Depreciation Amortization Ttm:2,104,000.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (1)

Earnings Per Share Ttm:$0.12

Revenue & Cash Per Share (2)

Sales Per Share Ttm:7.71

Operating Cash Flow Per Share:$0.17

Book Value & Capital (2)

Book Value Per Share:$6.96

Cash Per Share:0.37

Dividend Policy (1)

Dividend Payout Ratio:-999.00x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.78x

Working Capital Turnover Ttm:2.07x

Receivables Management (2)

Receivables Turnover Ttm:3.50x

Days Sales Outstanding Ttm:104.23

Inventory Management (2)

Inventory Turnover Ttm:3.93x

Days Inventory Outstanding Ttm:92.94

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00

Cash Conversion Cycle:1,196.17

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:100.00

Quality Score:90.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:168.3%

Fundamental Growth Rate (g):5.8%

Market-Implied Growth Rate:14.7%

Brina Gap:

-8.9%

☷ Click to view full ELTK Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):5.9%

Net Income Growth Rate (Linear):-5.8%

Operating Income Growth Rate (Linear):81.9%

Other Growth Rates (1)

Gross Profit Growth Rate (Linear):13.8%

C. Company Profile & Context

Corporate Information (6)

Symbol:ELTK

Company Name:ELTEK LTD.

Sector:Technology

Industry:Printed Circuit Boards

Exchange:NASDAQ

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:low

Volume Category:N/A

Share Structure (3)

Shares Outstanding:6.72M

Shares Outstanding Basic:6.72M

Shares Outstanding Diluted:6.78M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-09-01 00:10:20 UTC

Data Timestamp:2026-08-20T04:51:21.631809