ELBIT SYSTEMS LTD (ESLT) Stock Fundamental Analysis
NASDAQ:ESLT - Nasdaq - IL0010811243 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ESLT. ESLT was compared to 65 industry peers in the Aerospace & Defense industry. ESLT has only an average score on both its financial health and profitability. ESLT is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
ESLT had positive earnings in the past year.
In the past year ESLT had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 2.93%, ESLT is in line with its industry, outperforming 53.85% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.80%, ESLT is in the better half of the industry, outperforming 64.62% of the companies in the same industry.
ESLT's Return On Invested Capital of 7.14% is fine compared to the rest of the industry. ESLT outperforms 63.08% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ESLT is in line with the industry average of 7.89%.
The last Return On Invested Capital (7.14%) for ESLT is above the 3 year average (6.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 9.8% | ||
| ROIC | 7.14% |
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
ESLT's Profit Margin of 4.70% is in line compared to the rest of the industry. ESLT outperforms 52.31% of its industry peers.
In the last couple of years the Profit Margin of ESLT has remained more or less at the same level.
ESLT has a Operating Margin of 7.16%. This is comparable to the rest of the industry: ESLT outperforms 49.23% of its industry peers.
In the last couple of years the Operating Margin of ESLT has remained more or less at the same level.
The Gross Margin of ESLT (24.05%) 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 | 7.16% | ||
| PM (TTM) | 4.7% | ||
| GM | 24.05% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESLT is destroying value.
The number of shares outstanding for ESLT has been increased compared to 1 year ago.
The number of shares outstanding for ESLT has been increased compared to 5 years ago.
Compared to 1 year ago, ESLT has an improved debt to assets ratio.
2.2 Solvency
ESLT has a debt to FCF ratio of 2.60. This is a good value and a sign of high solvency as ESLT would need 2.60 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.60, ESLT belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that ESLT is not too dependend on debt financing.
ESLT has a Debt to Equity ratio of 0.23. This is in the better half of the industry: ESLT outperforms 72.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.6 | ||
| Altman-Z | N/A |
ROIC/WACC0.8
WACC8.94%
2.3 Liquidity
A Current Ratio of 1.20 indicates that ESLT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.20, ESLT is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
ESLT has a Quick Ratio of 1.20. This is a bad value and indicates that ESLT is not financially healthy enough and could expect problems in meeting its short term obligations.
ESLT has a worse Quick ratio (0.67) than 87.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 |
3. Growth
3.1 Past
ESLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.19%, 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.
The Revenue has been growing by 8.66% on average over the past years. This is quite good.
EPS 1Y (TTM)35.19%
EPS 3Y1.86%
EPS 5Y6.67%
EPS Q2Q%70.51%
Revenue 1Y (TTM)14.28%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%18.72%
3.2 Future
Based on estimates for the next years, ESLT will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.78% on average per year.
ESLT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.06% yearly.
EPS Next Y20.16%
EPS Next 2Y20.96%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue Next Year13.41%
Revenue Next 2Y10.93%
Revenue Next 3Y7.06%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 46.14, the valuation of ESLT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of ESLT is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.85, ESLT is valued quite expensively.
The Price/Forward Earnings ratio is 38.40, which means the current valuation is very expensive for ESLT.
ESLT's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ESLT to the average of the S&P500 Index (20.77), we can say ESLT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.14 | ||
| Fwd PE | 38.4 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESLT.
Based on the Price/Free Cash Flow ratio, ESLT is valued a bit cheaper than the industry average as 63.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.44 | ||
| EV/EBITDA | 27.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ESLT does not grow enough to justify the current Price/Earnings ratio.
ESLT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ESLT's earnings are expected to grow with 13.78% in the coming years.
PEG (NY)2.29
PEG (5Y)6.91
EPS Next 2Y20.96%
EPS Next 3Y13.78%
5. Dividend
5.1 Amount
ESLT has a yearly dividend return of 0.56%, which is pretty low.
ESLT's Dividend Yield is a higher than the industry average which is at 1.35.
Compared to an average S&P500 Dividend Yield of 2.45, ESLT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
The dividend of ESLT has a limited annual growth rate of 2.56%.
ESLT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ESLT pays out 27.70% of its income as dividend. This is a sustainable payout ratio.
ESLT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.7%
EPS Next 2Y20.96%
EPS Next 3Y13.78%
NASDAQ:ESLT (5/1/2025, 8:57:58 PM)
404.19
+6.7 (+1.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners19.98%
Inst Owner Change-0.22%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap18.03B
Analysts44
Price Target0.86 (-99.79%)
Short Float %0.44%
Short Ratio1.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend2
Dividend Growth(5Y)2.56%
DP27.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.11%
Min EPS beat(2)16.49%
Max EPS beat(2)33.74%
EPS beat(4)4
Avg EPS beat(4)24.22%
Min EPS beat(4)15.21%
Max EPS beat(4)33.74%
EPS beat(8)6
Avg EPS beat(8)12.49%
EPS beat(12)6
Avg EPS beat(12)-0.92%
EPS beat(16)9
Avg EPS beat(16)3.64%
Revenue beat(2)2
Avg Revenue beat(2)5.51%
Min Revenue beat(2)4.73%
Max Revenue beat(2)6.29%
Revenue beat(4)4
Avg Revenue beat(4)4.12%
Min Revenue beat(4)1.32%
Max Revenue beat(4)6.29%
Revenue beat(8)7
Avg Revenue beat(8)3.2%
Revenue beat(12)8
Avg Revenue beat(12)2.02%
Revenue beat(16)11
Avg Revenue beat(16)2.55%
PT rev (1m)28.19%
PT rev (3m)14.29%
EPS NQ rev (1m)7.85%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.98%
EPS NY rev (3m)21.41%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.65%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.14 | ||
| Fwd PE | 38.4 | ||
| P/S | 2.64 | ||
| P/FCF | 56.44 | ||
| P/OCF | 33.73 | ||
| P/B | 5.5 | ||
| P/tB | 12.59 | ||
| EV/EBITDA | 27.57 |
EPS(TTM)8.76
EY2.17%
EPS(NY)10.53
Fwd EY2.6%
FCF(TTM)7.16
FCFY1.77%
OCF(TTM)11.98
OCFY2.96%
SpS153.02
BVpS73.45
TBVpS32.1
PEG (NY)2.29
PEG (5Y)6.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.93% | ||
| ROE | 9.8% | ||
| ROCE | 8.64% | ||
| ROIC | 7.14% | ||
| ROICexc | 7.47% | ||
| ROICexgc | 10.91% | ||
| OM | 7.16% | ||
| PM (TTM) | 4.7% | ||
| GM | 24.05% | ||
| FCFM | 4.68% |
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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 2.6 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 135.77% | ||
| Cap/Sales | 3.15% | ||
| Interest Coverage | 6.41 | ||
| Cash Conversion | 82.57% | ||
| Profit Quality | 99.51% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.67 | ||
| Altman-Z | N/A |
F-Score7
WACC8.94%
ROIC/WACC0.8
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)35.19%
EPS 3Y1.86%
EPS 5Y6.67%
EPS Q2Q%70.51%
EPS Next Y20.16%
EPS Next 2Y20.96%
EPS Next 3Y13.78%
EPS Next 5YN/A
Revenue 1Y (TTM)14.28%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%18.72%
Revenue Next Year13.41%
Revenue Next 2Y10.93%
Revenue Next 3Y7.06%
Revenue Next 5YN/A
EBIT growth 1Y32.5%
EBIT growth 3Y5.33%
EBIT growth 5Y8.74%
EBIT Next Year41.15%
EBIT Next 3Y19.62%
EBIT Next 5YN/A
FCF growth 1Y535.79%
FCF growth 3Y11.86%
FCF growth 5YN/A
OCF growth 1Y370.16%
OCF growth 3Y8.64%
OCF growth 5YN/A