ELBIT SYSTEMS LTD (ESLT) Stock Fundamental Analysis
USA - NASDAQ:ESLT - IL0010811243 - Common Stock
490.65 USD
+10.65 (+2.22%)
490.65 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ESLT. ESLT was compared to 70 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 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.
ESLT had a positive operating cash flow in the past year.
Each year in the past 5 years ESLT has been profitable.
In the past 5 years ESLT always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 3.32%, ESLT perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
The Return On Equity of ESLT (10.20%) is better than 68.57% of its industry peers.
The Return On Invested Capital of ESLT (7.59%) is better than 71.43% 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 8.41%.
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 58.57% of the companies in the same industry.
ESLT's Profit Margin has been stable in the last couple of years.
ESLT has a Operating Margin (7.65%) which is in line with its industry peers.
ESLT's Operating Margin has been stable in the last couple of years.
ESLT has a Gross Margin of 24.02%. This is comparable to the rest of the industry: ESLT outperforms 48.57% of its industry peers.
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
ESLT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ESLT has more shares outstanding
ESLT has more shares outstanding than it did 5 years ago.
ESLT has a better debt/assets ratio than last year.
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.
ESLT has a Debt to FCF ratio of 1.07. This is amongst the best in the industry. ESLT outperforms 97.14% of its industry peers.
ESLT has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.15, ESLT is doing good in the industry, outperforming 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC8.81%
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 74.29% of its industry peers.
A Quick Ratio of 0.77 indicates that ESLT may have some problems paying its short term obligations.
The Quick ratio of ESLT (0.77) is worse than 78.57% 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.
ESLT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.67% yearly.
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
A Price/Earnings ratio of 45.98 indicates a quite expensive valuation of ESLT.
The rest of the industry has a similar Price/Earnings ratio as ESLT.
When comparing the Price/Earnings ratio of ESLT to the average of the S&P500 Index (27.69), we can say ESLT is valued expensively.
A Price/Forward Earnings ratio of 34.42 indicates a quite expensive valuation of ESLT.
The rest of the industry has a similar Price/Forward Earnings ratio as ESLT.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.18, ESLT is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.98 | ||
| Fwd PE | 34.42 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESLT.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESLT indicates a somewhat cheap valuation: ESLT is cheaper than 78.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.5 | ||
| EV/EBITDA | 28.35 |
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)1.29
PEG (5Y)6.89
EPS Next 2Y27.56%
EPS Next 3Y21.09%
5. Dividend
5.1 Amount
ESLT has a yearly dividend return of 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 1.16, ESLT pays a better dividend. On top of this ESLT pays more dividend than 81.43% of the companies listed in the same industry.
With a Dividend Yield of 0.49, ESLT pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
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.
ESLT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.29%
EPS Next 2Y27.56%
EPS Next 3Y21.09%
490.65
+10.65 (+2.22%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners23.03%
Inst Owner Change0.14%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap22.74B
Analysts80
Price Target1.28 (-99.74%)
Short Float %0.49%
Short Ratio1.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)0.47%
PT rev (3m)33.61%
EPS NQ rev (1m)2.83%
EPS NQ rev (3m)0.94%
EPS NY rev (1m)2.87%
EPS NY rev (3m)12.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)3.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.98 | ||
| Fwd PE | 34.42 | ||
| P/S | 3.03 | ||
| P/FCF | 35.5 | ||
| P/OCF | 27.99 | ||
| P/B | 5.77 | ||
| P/tB | 10.81 | ||
| EV/EBITDA | 28.35 |
EPS(TTM)10.67
EY2.17%
EPS(NY)14.25
Fwd EY2.91%
FCF(TTM)13.82
FCFY2.82%
OCF(TTM)17.53
OCFY3.57%
SpS162.16
BVpS85.04
TBVpS45.39
PEG (NY)1.29
PEG (5Y)6.89
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%
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-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
WACC8.81%
ROIC/WACC0.86
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