ELBIT SYSTEMS LTD (ESLT) Stock Fundamental Analysis
USA - NASDAQ:ESLT - IL0010811243 - Common Stock
468.565 USD
+5.09 (+1.1%)
468.5 USD
-0.06 (-0.01%)
We assign a fundamental rating of 6 out of 10 to ESLT. ESLT was compared to 71 industry peers in the Aerospace & Defense industry. ESLT has only an average score on both its financial health and profitability. ESLT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
ESLT had positive earnings in each of the past 5 years.
Each year in the past 5 years ESLT had a positive operating cash flow.
1.2 Ratios
ESLT has a Return On Assets of 3.32%. This is comparable to the rest of the industry: ESLT outperforms 56.34% of its industry peers.
ESLT has a Return On Equity of 10.20%. This is in the better half of the industry: ESLT outperforms 67.61% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.59%, ESLT is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
ESLT had an Average Return On Invested Capital over the past 3 years of 6.54%. This is in line with the industry average of 8.48%.
The 3 year average ROIC (6.54%) for ESLT is below the current ROIC(7.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 10.2% | ||
| ROIC | 7.59% |
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 5.35%, ESLT perfoms like the industry average, outperforming 57.75% 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.
The Operating Margin of ESLT (7.65%) is comparable to the rest of the industry.
ESLT's Operating Margin has been stable in the last couple of years.
The Gross Margin of ESLT (24.02%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of ESLT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.65% | ||
| PM (TTM) | 5.35% | ||
| 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.
The number of shares outstanding for ESLT has been increased compared to 1 year ago.
Compared to 5 years ago, ESLT has more shares outstanding
Compared to 1 year ago, ESLT has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ESLT is 1.07, which is an excellent value as it means it would take ESLT, only 1.07 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.07, ESLT belongs to the best of the industry, outperforming 97.18% of the companies in the same industry.
ESLT has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of ESLT (0.15) is better than 77.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | N/A |
ROIC/WACC0.85
WACC8.91%
2.3 Liquidity
ESLT has a Current Ratio of 1.29. This is a normal value and indicates that ESLT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ESLT (1.29) is worse than 74.65% of its industry peers.
ESLT has a Quick Ratio of 1.29. This is a bad value and indicates that ESLT is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ESLT (0.77) is worse than 80.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 50.28% over the past year.
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 19.16% 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)19.16%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%21.31%
3.2 Future
ESLT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.09% yearly.
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 Year17.6%
Revenue Next 2Y13.78%
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
The Price/Earnings ratio is 43.91, which means the current valuation is very expensive for ESLT.
Compared to the rest of the industry, the Price/Earnings ratio of ESLT indicates a somewhat cheap valuation: ESLT is cheaper than 60.56% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.83. ESLT is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 32.87 indicates a quite expensive valuation of ESLT.
60.56% of the companies in the same industry are more expensive than ESLT, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.68. ESLT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.91 | ||
| Fwd PE | 32.87 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESLT.
77.46% of the companies in the same industry are more expensive than ESLT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.9 | ||
| EV/EBITDA | 27.31 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
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 21.09% in the coming years.
PEG (NY)1.23
PEG (5Y)6.58
EPS Next 2Y27.56%
EPS Next 3Y21.09%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, ESLT is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.12, ESLT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.51, ESLT pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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.
The dividend of ESLT decreased recently.
Dividend Growth(5Y)2.56%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
ESLT pays out 23.29% of its income as dividend. This is a sustainable payout ratio.
The dividend of ESLT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.29%
EPS Next 2Y27.56%
EPS Next 3Y21.09%
468.565
+5.09 (+1.1%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.03%
Inst Owner Change0.44%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.72B
Revenue(TTM)7.52B
Net Income(TTM)401.88M
Analysts80
Price Target1.3 (-99.72%)
Short Float %0.56%
Short Ratio1.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend2
Dividend Growth(5Y)2.56%
DP23.29%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.62%
Min EPS beat(2)9.55%
Max EPS beat(2)23.7%
EPS beat(4)4
Avg EPS beat(4)20.87%
Min EPS beat(4)9.55%
Max EPS beat(4)33.74%
EPS beat(8)6
Avg EPS beat(8)15%
EPS beat(12)8
Avg EPS beat(12)6.28%
EPS beat(16)9
Avg EPS beat(16)2.85%
Revenue beat(2)2
Avg Revenue beat(2)6.23%
Min Revenue beat(2)2.37%
Max Revenue beat(2)10.09%
Revenue beat(4)4
Avg Revenue beat(4)5.87%
Min Revenue beat(4)2.37%
Max Revenue beat(4)10.09%
Revenue beat(8)8
Avg Revenue beat(8)4.38%
Revenue beat(12)9
Avg Revenue beat(12)2.6%
Revenue beat(16)12
Avg Revenue beat(16)2.77%
PT rev (1m)2.37%
PT rev (3m)36.13%
EPS NQ rev (1m)2.83%
EPS NQ rev (3m)2.05%
EPS NY rev (1m)0%
EPS NY rev (3m)12.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 43.91 | ||
| Fwd PE | 32.87 | ||
| P/S | 2.89 | ||
| P/FCF | 33.9 | ||
| P/OCF | 26.73 | ||
| P/B | 5.51 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 27.31 |
EPS(TTM)10.67
EY2.28%
EPS(NY)14.25
Fwd EY3.04%
FCF(TTM)13.82
FCFY2.95%
OCF(TTM)17.53
OCFY3.74%
SpS162.16
BVpS85.04
TBVpS45.39
PEG (NY)1.23
PEG (5Y)6.58
Graham Number142.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.32% | ||
| ROE | 10.2% | ||
| ROCE | 8.98% | ||
| ROIC | 7.59% | ||
| ROICexc | 8.68% | ||
| ROICexgc | 12.59% | ||
| OM | 7.65% | ||
| PM (TTM) | 5.35% | ||
| GM | 24.02% | ||
| FCFM | 8.52% |
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%
ROICexgc growth 3Y6.01%
ROICexgc 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-Score8
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.07 | ||
| Debt/EBITDA | 0.81 | ||
| Cap/Depr | 103.91% | ||
| Cap/Sales | 2.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.77% | ||
| Profit Quality | 159.4% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | N/A |
F-Score8
WACC8.91%
ROIC/WACC0.85
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)19.16%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%21.31%
Revenue Next Year17.6%
Revenue Next 2Y13.78%
Revenue Next 3Y11.45%
Revenue Next 5YN/A
EBIT growth 1Y45.33%
EBIT growth 3Y5.33%
EBIT growth 5Y8.74%
EBIT Next Year60.89%
EBIT Next 3Y28.02%
EBIT Next 5YN/A
FCF growth 1Y2084.96%
FCF growth 3Y11.86%
FCF growth 5YN/A
OCF growth 1Y399.1%
OCF growth 3Y8.64%
OCF growth 5YN/A
ELBIT SYSTEMS LTD / ESLT FAQ
Can you provide the ChartMill fundamental rating for ELBIT SYSTEMS LTD?
ChartMill assigns a fundamental rating of 6 / 10 to ESLT.
Can you provide the valuation status for ELBIT SYSTEMS LTD?
ChartMill assigns a valuation rating of 4 / 10 to ELBIT SYSTEMS LTD (ESLT). This can be considered as Fairly Valued.
How profitable is ELBIT SYSTEMS LTD (ESLT) stock?
ELBIT SYSTEMS LTD (ESLT) has a profitability rating of 6 / 10.
What is the valuation of ELBIT SYSTEMS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for ELBIT SYSTEMS LTD (ESLT) is 43.91 and the Price/Book (PB) ratio is 5.51.
Can you provide the dividend sustainability for ESLT stock?
The dividend rating of ELBIT SYSTEMS LTD (ESLT) is 5 / 10 and the dividend payout ratio is 23.29%.