Revenue 2025
NIS 4,244M
-4.5% Y/Y
Normalised Net Income
NIS 178M
+2.9%
Gross Margin
34.2%
+2.5pp improvement
Net Debt
NIS 1,119M
-34.2% Y/Y
Market Cap
~NIS 3.0B
TASE / NYSE
1 Company Profile
Cellcom Israel (CEL) is one of the three leading telecommunications companies in Israel, traded on TASE and NYSE. The company provides mobile, home internet, television (Cellcom TV), and business communication services. Cellcom is regarded as a well-managed Israeli telecommunications company that has undergone a material efficiency programme — net debt fell 34% in 2025, and gross margin rose to 34.2%. 2025 revenue: NIS 4.24B. Key observation: material improvement in FCF (+22.8%) and in debt — a sign of operational efficiency gains.
| Segment | Description |
|---|
| Mobile | 4G/5G cellular service |
| Home Internet | fiber + ADSL |
| Cellcom TV | Streaming + linear |
| Business | B2B telecom services |
Source: Annual Report 2025
2 Key Financial Observations
This summary is not a recommendation. It is a factual list of key financial metrics.
Key Metrics 2025
| Metric | Value |
|---|
| Revenue | NIS 4,244M |
| Normalised Net Income | NIS 178M |
| FCF | NIS 350M |
| Gross Margin | 34.2% |
| Net Debt | NIS 1,119M |
Additional Metrics
| Metric | Value |
|---|
| Segment Breakdown | Requires full report |
| EBITDA | Requires verification |
| Capex | Requires full report |
| Dividend Yield | Requires verification |
Missing data: Revenue segment breakdown, exact EBITDA, Annual Capex, dividend yield.
Free Cash Flow (FCF, NIS M)
3 Industry & Competitive Context
Israeli telecom. Utility — stable demand. Competitive in mobile and internet. Heavy regulation.
| Competitor | Ticker | Distinction |
|---|
| Bezeq | BEZQ | Largest competitor in fixed-line infrastructure |
| Partner Communications | PTNR | Direct competitor in mobile and internet |
| HOT | — | Competitor in cable and television |
4 Risk Factors
| Risk | Context |
|---|
| Regulation | Ministry of Communications — price controls |
| Mobile competition | Partner, Golan, We4G, HOT mobile |
| Capex for fiber rollout | Requires continuous investment |
| Revenue decline | -4.5% in 2025 — trend continuation? |
5 Analytical Lens — The Questions We Ask
In professional company analysis, the question is not "is this good?" but rather "through which lenses must this company be examined so that we do not miss what matters most?" At Bakshi Finance, every analysis passes through six lenses.
This framework is intended to structure analysis, not to produce an investment conclusion.
Growth
Revenue falling 4.5% — is this a transformation or secular decline?
Profitability
Gross margin rose to 34.2% — what is the ceiling?
Leverage
Net debt down 34% — what is the ultimate target?
Competitive Position
Against Bezeq and Partner — how is market share preserved?
Management Quality
Efficiency gains — sustainable?
Business Complexity
Multiple segments — how is efficiency measured in each?
6 Scenario Framework
Scenarios are descriptive, not predictive. They outline possible conditions, not expected outcomes.
These scenarios carry no probability assessment, no preferred direction, and no expectation regarding which, if any, will materialise.
Constructive Scenario — if the following conditions hold:
Revenue stabilises, margin improvement continues, FCF rises, dividend grows.
Base Scenario — if current trends continue:
Revenue stable 0-2%, margins 33-35%, FCF steady.
Adverse Scenario — if the following risks materialise:
Intensifying competition, revenue decline continues, FCF erodes.
Scenarios describe conditions, not forecasts. There is no preferred direction and no probability assessment expressed in this framework.
7 How to Think About This Company
Cellcom is an Israeli telecom company that has undergone aggressive cost restructuring. The idea behind analysing Cellcom is not "will it grow" (revenue falling 4.5%), but rather "is the 2025 efficiency result — gross-margin improvement of 2.5pp and a 34% decline in debt — a sustainable base for the coming years?"
The critical variables: (a) whether the 34.2% gross margin holds without continued one-off efficiency gains; (b) the pace of revenue decline — is it stabilising? (c) fibre-deployment CAPEX versus positive FCF.
Where the analysis may go wrong: First error — treating FCF improvement as steady-state (it may be one-off). Second error — ignoring persistent price competition. Third error — valuing as a utility while forgetting it is telecom with intense competition.
Professional analysis addresses three things: (a) distinguishing one-off improvement from structural improvement; (b) sensitivity to regulatory tariffs; (c) market cap versus FCF — the true cash yield.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
The difference between surface-level analysis and professional thinking often lies in the variables that are not immediately visible.
8 Sources & Data
| # | Source | Date | Type |
|---|
| 1 | Cellcom — Annual Report 2025 | March 2026 | Official — TASE |
| 2 | SEC EDGAR (NYSE listing) | Quarterly | Official — SEC |
| 3 | maya.tase.co.il | April 2026 | Official — Stock Exchange |
Missing: Revenue segment breakdown, exact EBITDA, Annual Capex, dividend yield.
