MeritValue

ELTEK LTD

ELTKdata completeness 88%17 fiscal years on file
The thesis, from the filings

ELTEK LTD earns about 14% on invested capital, but has diluted owners by 16% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $6.45 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$33.8M1$39.7M2$46.7M3$46.5M3$51.8M3
Net income$5.04M4$3.19M5$6.35M6$4.22M6$826,0006
Operating cash flow$3.88M7$3.83M8$8.86M9$4.54M9$1.15M9
Capital expenditure$1.54M10$3.03M11$2.43M12$9.51M12$5.35M12
Free cash flow (derived)$2.34M7$802,0008$6.43M9−$4.97M9−$4.21M9
Total debt$9.29M13$6.94M14$014——
Cash & equivalents$9.28M15$7.37M16$9.28M17$7.58M18$2.48M18
Diluted shares5.9M5.8M6.0M6.7M6.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$68.85
your share of equity
Profit it earned you last year
$1.22
Free cash flow it threw off
−$6.19
Debt you’d be carrying
—

10 shares is a claim on $68.85 of net worth that earned you $1.22 and generated −$6.19 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
14% avg · 5y
FY21 9%FY22 12%FY23 34%FY24 11%FY25 4%

It earned an average 14% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+16% shares · 5y

Share count is up 16% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$6.45
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$4.22M
  • growthAssumed0.0%
Graham Number
$4.31
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001178913-24-001087 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001178913-25-001230 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001178913-26-001768 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001178913-24-001087 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001178913-25-001230 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001178913-26-001768 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001178913-24-001087 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001178913-25-001230 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001178913-26-001768 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001178913-24-001087 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001178913-25-001230 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001178913-26-001768 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F/A · period ending 2021-12-31 · accession 0001178913-23-001181 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2022-12-31 · accession 0001178913-24-001087 (LongTermDebtNoncurrent)
  15. 20-F/A · period ending 2021-12-31 · accession 0001178913-23-001181 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2022-12-31 · accession 0001178913-24-001087 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2023-12-31 · accession 0001178913-25-001230 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2024-12-31 · accession 0001178913-26-001768 (CashAndCashEquivalentsAtCarryingValue)