ELBIT SYSTEMS LTD (ESLT) Stock Fundamental Analysis
USA - NASDAQ:ESLT - IL0010811243 - Common Stock
497.85 USD
+4.28 (+0.87%)
497.85 USD
0 (0%)
ESLT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 69 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of ESLT get a neutral evaluation. Nothing too spectacular is happening here. ESLT is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year ESLT was profitable.
ESLT had a positive operating cash flow in the past year.
In the past 5 years ESLT has always been profitable.
In the past 5 years ESLT always reported a positive cash flow from operatings.
1.2 Ratios
ESLT has a Return On Assets (3.12%) which is comparable to the rest of the industry.
ESLT has a better Return On Equity (10.73%) than 68.12% of its industry peers.
With a decent Return On Invested Capital value of 7.64%, ESLT is doing good in the industry, outperforming 71.01% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ESLT is in line with the industry average of 8.29%.
The 3 year average ROIC (6.54%) for ESLT is below the current ROIC(7.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 10.73% | ||
| ROIC | 7.64% |
ROA(3y)2.71%
ROA(5y)2.73%
ROE(3y)9.03%
ROE(5y)9.45%
ROIC(3y)6.54%
ROIC(5y)6.55%
1.3 Margins
With a Profit Margin value of 4.95%, ESLT perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
In the last couple of years the Profit Margin of ESLT has remained more or less at the same level.
Looking at the Operating Margin, with a value of 7.44%, ESLT is in line with its industry, outperforming 52.17% of the companies in the same industry.
ESLT's Operating Margin has been stable in the last couple of years.
ESLT has a Gross Margin (24.02%) which is comparable to the rest of the industry.
ESLT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.44% | ||
| PM (TTM) | 4.95% | ||
| GM | 24.02% |
OM growth 3Y-3.33%
OM growth 5Y0.08%
PM growth 3Y1.23%
PM growth 5Y-1.43%
GM growth 3Y-2.23%
GM growth 5Y-0.94%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ESLT is destroying value.
Compared to 1 year ago, ESLT has more shares outstanding
The number of shares outstanding for ESLT has been increased compared to 5 years ago.
ESLT has a better debt/assets ratio than last year.
2.2 Solvency
ESLT has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.55, ESLT belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
A Debt/Equity ratio of 0.24 indicates that ESLT is not too dependend on debt financing.
ESLT has a better Debt to Equity ratio (0.24) than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.75%
2.3 Liquidity
ESLT has a Current Ratio of 1.21. This is a normal value and indicates that ESLT is financially healthy and should not expect problems in meeting its short term obligations.
ESLT has a Current ratio of 1.21. This is in the lower half of the industry: ESLT underperforms 75.36% of its industry peers.
A Quick Ratio of 0.70 indicates that ESLT may have some problems paying its short term obligations.
ESLT has a Quick ratio of 0.70. This is amonst the worse of the industry: ESLT underperforms 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
ESLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.28%, which is quite impressive.
Measured over the past 5 years, ESLT shows a small growth in Earnings Per Share. The EPS has been growing by 6.67% on average per year.
Looking at the last year, ESLT shows a quite strong growth in Revenue. The Revenue has grown by 14.28% in the last year.
ESLT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.66% yearly.
EPS 1Y (TTM)50.28%
EPS 3Y1.86%
EPS 5Y6.67%
EPS Q2Q%55.29%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%21.31%
3.2 Future
Based on estimates for the next years, ESLT will show a very strong growth in Earnings Per Share. The EPS will grow by 21.09% on average per year.
Based on estimates for the next years, ESLT will show a quite strong growth in Revenue. The Revenue will grow by 11.45% on average per year.
EPS Next Y35.68%
EPS Next 2Y27.56%
EPS Next 3Y21.09%
EPS Next 5YN/A
Revenue Next Year16.62%
Revenue Next 2Y13.58%
Revenue Next 3Y11.45%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.66, the valuation of ESLT can be described as expensive.
ESLT's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ESLT to the average of the S&P500 Index (27.67), we can say ESLT is valued expensively.
ESLT is valuated quite expensively with a Price/Forward Earnings ratio of 34.93.
The rest of the industry has a similar Price/Forward Earnings ratio as ESLT.
The average S&P500 Price/Forward Earnings ratio is at 23.13. ESLT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.66 | ||
| Fwd PE | 34.93 |
4.2 Price Multiples
ESLT's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ESLT is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.71 | ||
| EV/EBITDA | 32.65 |
4.3 Compensation for Growth
ESLT's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ESLT may justify a higher PE ratio.
A more expensive valuation may be justified as ESLT's earnings are expected to grow with 21.09% in the coming years.
PEG (NY)1.31
PEG (5Y)6.99
EPS Next 2Y27.56%
EPS Next 3Y21.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, ESLT is not a good candidate for dividend investing.
ESLT's Dividend Yield is a higher than the industry average which is at 1.45.
Compared to an average S&P500 Dividend Yield of 2.41, ESLT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of ESLT has a limited annual growth rate of 2.56%.
ESLT has been paying a dividend for at least 10 years, so it has a reliable track record.
ESLT has decreased its dividend recently.
Dividend Growth(5Y)2.56%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
25.10% of the earnings are spent on dividend by ESLT. This is a low number and sustainable payout ratio.
The dividend of ESLT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.1%
EPS Next 2Y27.56%
EPS Next 3Y21.09%
497.85
+4.28 (+0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.03%
Inst Owner Change23.3%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap23.08B
Analysts80
Price Target1.27 (-99.74%)
Short Float %0.53%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend2
Dividend Growth(5Y)2.56%
DP25.1%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.64%
Min EPS beat(2)9.55%
Max EPS beat(2)33.74%
EPS beat(4)4
Avg EPS beat(4)18.75%
Min EPS beat(4)9.55%
Max EPS beat(4)33.74%
EPS beat(8)6
Avg EPS beat(8)12.11%
EPS beat(12)7
Avg EPS beat(12)2.77%
EPS beat(16)9
Avg EPS beat(16)2.99%
Revenue beat(2)2
Avg Revenue beat(2)8.19%
Min Revenue beat(2)6.29%
Max Revenue beat(2)10.09%
Revenue beat(4)4
Avg Revenue beat(4)5.61%
Min Revenue beat(4)1.32%
Max Revenue beat(4)10.09%
Revenue beat(8)8
Avg Revenue beat(8)4.49%
Revenue beat(12)8
Avg Revenue beat(12)2.1%
Revenue beat(16)12
Avg Revenue beat(16)3.18%
PT rev (1m)4.97%
PT rev (3m)38.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)2.87%
EPS NY rev (3m)12.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.66 | ||
| Fwd PE | 34.93 | ||
| P/S | 3.22 | ||
| P/FCF | 40.71 | ||
| P/OCF | 31.85 | ||
| P/B | 6.98 | ||
| P/tB | 15.76 | ||
| EV/EBITDA | 32.65 |
EPS(TTM)10.67
EY2.14%
EPS(NY)14.25
Fwd EY2.86%
FCF(TTM)12.23
FCFY2.46%
OCF(TTM)15.63
OCFY3.14%
SpS154.69
BVpS71.29
TBVpS31.59
PEG (NY)1.31
PEG (5Y)6.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 10.73% | ||
| ROCE | 9.33% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 12.11% | ||
| OM | 7.44% | ||
| PM (TTM) | 4.95% | ||
| GM | 24.02% | ||
| FCFM | 7.91% |
ROA(3y)2.71%
ROA(5y)2.73%
ROE(3y)9.03%
ROE(5y)9.45%
ROIC(3y)6.54%
ROIC(5y)6.55%
ROICexc(3y)6.82%
ROICexc(5y)6.87%
ROICexgc(3y)10.63%
ROICexgc(5y)9.77%
ROCE(3y)7.86%
ROCE(5y)7.77%
ROICexcg growth 3Y6.01%
ROICexcg growth 5Y-0.92%
ROICexc growth 3Y0.39%
ROICexc growth 5Y1.53%
OM growth 3Y-3.33%
OM growth 5Y0.08%
PM growth 3Y1.23%
PM growth 5Y-1.43%
GM growth 3Y-2.23%
GM growth 5Y-0.94%
F-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 98.37% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.45% | ||
| Profit Quality | 159.89% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | N/A |
F-Score7
WACC8.75%
ROIC/WACC0.87
Cap/Depr(3y)125.48%
Cap/Depr(5y)118.24%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)50.28%
EPS 3Y1.86%
EPS 5Y6.67%
EPS Q2Q%55.29%
EPS Next Y35.68%
EPS Next 2Y27.56%
EPS Next 3Y21.09%
EPS Next 5YN/A
Revenue 1Y (TTM)14.28%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%21.31%
Revenue Next Year16.62%
Revenue Next 2Y13.58%
Revenue Next 3Y11.45%
Revenue Next 5YN/A
EBIT growth 1Y40.16%
EBIT growth 3Y5.33%
EBIT growth 5Y8.74%
EBIT Next Year60.89%
EBIT Next 3Y28.02%
EBIT Next 5YN/A
FCF growth 1Y967.23%
FCF growth 3Y11.86%
FCF growth 5YN/A
OCF growth 1Y450.7%
OCF growth 3Y8.64%
OCF growth 5YN/A