708.85 USD
-4.28 (-0.6%)
706 USD
-2.85 (-0.4%)
We assign a fundamental rating of 5 out of 10 to ESLT. ESLT was compared to 73 industry peers in the Aerospace & Defense industry. ESLT has only an average score on both its financial health and profitability. ESLT is valued quite expensive, but it does show an excellent growth.
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.
- ESLT had positive earnings in each of the past 5 years.
- In the past 5 years ESLT always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 3.71%, ESLT perfoms like the industry average, outperforming 58.90% of the companies in the same industry.
- The Return On Equity of ESLT (11.37%) is better than 72.60% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.13%, ESLT is in the better half of the industry, outperforming 69.86% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for ESLT is below the industry average of 8.56%.
- The last Return On Invested Capital (8.13%) for ESLT is above the 3 year average (6.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 11.37% | ||
| ROIC | 8.13% |
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 has a better Profit Margin (5.91%) than 63.01% of its industry peers.
- ESLT's Profit Margin has been stable in the last couple of years.
- ESLT has a Operating Margin of 8.04%. This is comparable to the rest of the industry: ESLT outperforms 53.42% of its industry peers.
- In the last couple of years the Operating Margin of ESLT has remained more or less at the same level.
- ESLT has a Gross Margin of 24.23%. This is comparable to the rest of the industry: ESLT outperforms 50.68% 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 | 8.04% | ||
| PM (TTM) | 5.91% | ||
| GM | 24.23% |
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
- ESLT has a debt to FCF ratio of 0.68. This is a very positive value and a sign of high solvency as it would only need 0.68 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 0.68, ESLT belongs to the best of the industry, outperforming 97.26% of the companies in the same industry.
- ESLT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- ESLT's Debt to Equity ratio of 0.10 is fine compared to the rest of the industry. ESLT outperforms 79.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | N/A |
ROIC/WACC0.83
WACC9.78%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that ESLT should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.32, ESLT is doing worse than 76.71% of the companies in the same industry.
- A Quick Ratio of 0.76 indicates that ESLT may have some problems paying its short term obligations.
- ESLT's Quick ratio of 0.76 is on the low side compared to the rest of the industry. ESLT is outperformed by 82.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.32 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 54.18% 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.
- ESLT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.35%.
- 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)54.18%
EPS 3Y1.86%
EPS 5Y6.67%
EPS Q2Q%51.58%
Revenue 1Y (TTM)18.35%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%11.88%
3.2 Future
- ESLT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.73% yearly.
- Based on estimates for the next years, ESLT will show a quite strong growth in Revenue. The Revenue will grow by 12.56% on average per year.
EPS Next Y33.34%
EPS Next 2Y27.24%
EPS Next 3Y22.73%
EPS Next 5YN/A
Revenue Next Year18.16%
Revenue Next 2Y14.49%
Revenue Next 3Y12.56%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 60.02, ESLT can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as ESLT.
- ESLT is valuated expensively when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 49.98, ESLT can be considered very expensive at the moment.
- ESLT's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. ESLT is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.02 | ||
| Fwd PE | 49.98 |
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 73.97% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.63 | ||
| EV/EBITDA | 40.58 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of ESLT may justify a higher PE ratio.
- ESLT's earnings are expected to grow with 22.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.8
PEG (5Y)8.99
EPS Next 2Y27.24%
EPS Next 3Y22.73%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.38%, ESLT is not a good candidate for dividend investing.
- ESLT's Dividend Yield is a higher than the industry average which is at 0.34.
- Compared to an average S&P500 Dividend Yield of 1.83, ESLT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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
- 21.73% of the earnings are spent on dividend by ESLT. This is a low number and sustainable payout ratio.
- ESLT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.73%
EPS Next 2Y27.24%
EPS Next 3Y22.73%
ELBIT SYSTEMS LTD / ESLT FAQ
Can you provide the ChartMill fundamental rating for ELBIT SYSTEMS LTD?
ChartMill assigns a fundamental rating of 5 / 10 to ESLT.
What is the valuation status for ESLT stock?
ChartMill assigns a valuation rating of 3 / 10 to ELBIT SYSTEMS LTD (ESLT). This can be considered as Overvalued.
How profitable is ELBIT SYSTEMS LTD (ESLT) stock?
ELBIT SYSTEMS LTD (ESLT) has a profitability rating of 6 / 10.
What is the expected EPS growth for ELBIT SYSTEMS LTD (ESLT) stock?
The Earnings per Share (EPS) of ELBIT SYSTEMS LTD (ESLT) is expected to grow by 33.34% in the next year.
How sustainable is the dividend of ELBIT SYSTEMS LTD (ESLT) stock?
The dividend rating of ELBIT SYSTEMS LTD (ESLT) is 5 / 10 and the dividend payout ratio is 21.73%.