ELBIT SYSTEMS LTD (ESLT) Stock Fundamental Analysis
NASDAQ:ESLT - Nasdaq - IL0010811243 - Common Stock - Currency: USD
Overall ESLT gets a fundamental rating of 4 out of 10. We evaluated ESLT against 65 industry peers in the Aerospace & Defense industry. While ESLT is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
Of the past 5 years ESLT 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ESLT (2.41%) is comparable to the rest of the industry.
ESLT has a Return On Equity of 8.51%. This is in the better half of the industry: ESLT outperforms 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.30%, ESLT is in the better half of the industry, outperforming 62.50% 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 7.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 8.51% | ||
| ROIC | 6.3% |
ROA(3y)2.59%
ROA(5y)2.76%
ROE(3y)8.92%
ROE(5y)9.62%
ROIC(3y)6.62%
ROIC(5y)6.55%
1.3 Margins
ESLT's Profit Margin of 4.00% is in line compared to the rest of the industry. ESLT outperforms 48.44% of its industry peers.
ESLT's Profit Margin has declined in the last couple of years.
ESLT has a Operating Margin (6.37%) which is in line with its industry peers.
ESLT's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 23.89%, ESLT is in line with its industry, outperforming 46.88% of the companies in the same industry.
ESLT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.37% | ||
| PM (TTM) | 4% | ||
| GM | 23.89% |
OM growth 3Y-4.01%
OM growth 5Y-4.92%
PM growth 3Y-10.94%
PM growth 5Y-8.49%
GM growth 3Y-0.22%
GM growth 5Y-1.3%
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 worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of ESLT is 5.34, which is a neutral value as it means it would take ESLT, 5.34 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.34, ESLT is in the better half of the industry, outperforming 73.44% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that ESLT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, ESLT is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.71
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.15 indicates that ESLT should not have too much problems paying its short term obligations.
ESLT has a Current ratio of 1.15. This is in the lower half of the industry: ESLT underperforms 73.44% of its industry peers.
A Quick Ratio of 0.64 indicates that ESLT may have some problems paying its short term obligations.
The Quick ratio of ESLT (0.64) is worse than 84.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.06% over the past year.
ESLT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.08% yearly.
The Revenue has grown by 11.41% in the past year. This is quite good.
The Revenue has been growing by 10.16% on average over the past years. This is quite good.
EPS 1Y (TTM)16.06%
EPS 3Y-3.6%
EPS 5Y-0.08%
EPS Q2Q%33.94%
Revenue 1Y (TTM)11.41%
Revenue growth 3Y8.62%
Revenue growth 5Y10.16%
Sales Q2Q%14.38%
3.2 Future
The Earnings Per Share is expected to grow by 23.67% on average over the next years. This is a very strong growth
ESLT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.40% yearly.
EPS Next Y29.07%
EPS Next 2Y24.49%
EPS Next 3Y23.67%
EPS Next 5YN/A
Revenue Next Year14.27%
Revenue Next 2Y12.91%
Revenue Next 3Y11.4%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 38.64 indicates a quite expensive valuation of ESLT.
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 (29.63), we can say ESLT is valued slightly more expensively.
With a Price/Forward Earnings ratio of 29.48, ESLT can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ESLT indicates a somewhat cheap valuation: ESLT is cheaper than 62.50% of the companies listed in the same industry.
ESLT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.64 | ||
| Fwd PE | 29.48 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ESLT.
60.94% 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 | 65.94 | ||
| EV/EBITDA | 23.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ESLT's earnings are expected to grow with 23.67% in the coming years.
PEG (NY)1.33
PEG (5Y)N/A
EPS Next 2Y24.49%
EPS Next 3Y23.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, ESLT is not a good candidate for dividend investing.
ESLT's Dividend Yield is rather good when compared to the industry average which is at 1.45. ESLT pays more dividend than 81.25% of the companies in the same industry.
With a Dividend Yield of 0.67, ESLT pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of ESLT has a limited annual growth rate of 4.65%.
ESLT has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)4.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
34.05% 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.
DP34.05%
EPS Next 2Y24.49%
EPS Next 3Y23.67%
296.02
-4.28 (-1.43%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners19.4%
Inst Owner Change1.88%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap13.19B
Analysts80
Price Target0.74 (-99.75%)
Short Float %0.69%
Short Ratio4.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend2.01
Dividend Growth(5Y)4.65%
DP34.05%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.85%
Min EPS beat(2)15.21%
Max EPS beat(2)16.49%
EPS beat(4)3
Avg EPS beat(4)14.39%
Min EPS beat(4)-5.59%
Max EPS beat(4)31.45%
EPS beat(8)5
Avg EPS beat(8)4.61%
EPS beat(12)5
Avg EPS beat(12)-3.85%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.02%
Min Revenue beat(2)1.32%
Max Revenue beat(2)4.73%
Revenue beat(4)4
Avg Revenue beat(4)3.69%
Min Revenue beat(4)1.32%
Max Revenue beat(4)4.73%
Revenue beat(8)6
Avg Revenue beat(8)2.1%
Revenue beat(12)8
Avg Revenue beat(12)1.61%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.25%
PT rev (3m)10.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.5%
EPS NY rev (1m)5.13%
EPS NY rev (3m)5.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.64 | ||
| Fwd PE | 29.48 | ||
| P/S | 2.02 | ||
| P/FCF | 65.94 | ||
| P/OCF | 33.29 | ||
| P/B | 4.3 | ||
| P/tB | 10.89 | ||
| EV/EBITDA | 23.76 |
EPS(TTM)7.66
EY2.59%
EPS(NY)10.04
Fwd EY3.39%
FCF(TTM)4.49
FCFY1.52%
OCF(TTM)8.89
OCFY3%
SpS146.4
BVpS68.89
TBVpS27.18
PEG (NY)1.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 8.51% | ||
| ROCE | 7.84% | ||
| ROIC | 6.3% | ||
| ROICexc | 6.43% | ||
| ROICexgc | 9.41% | ||
| OM | 6.37% | ||
| PM (TTM) | 4% | ||
| GM | 23.89% | ||
| FCFM | 3.07% |
ROA(3y)2.59%
ROA(5y)2.76%
ROE(3y)8.92%
ROE(5y)9.62%
ROIC(3y)6.62%
ROIC(5y)6.55%
ROICexc(3y)6.92%
ROICexc(5y)6.88%
ROICexgc(3y)10.23%
ROICexgc(5y)10.05%
ROCE(3y)7.62%
ROCE(5y)7.59%
ROICexcg growth 3Y7.56%
ROICexcg growth 5Y-3.43%
ROICexc growth 3Y-1.41%
ROICexc growth 5Y-3.41%
OM growth 3Y-4.01%
OM growth 5Y-4.92%
PM growth 3Y-10.94%
PM growth 5Y-8.49%
GM growth 3Y-0.22%
GM growth 5Y-1.3%
F-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 5.34 | ||
| Debt/EBITDA | 1.73 | ||
| Cap/Depr | 123.84% | ||
| Cap/Sales | 3.01% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 69.07% | ||
| Profit Quality | 76.59% | ||
| Current Ratio | 1.15 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z | N/A |
F-Score5
WACC8.92%
ROIC/WACC0.71
Cap/Depr(3y)121.29%
Cap/Depr(5y)111.15%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.26%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.06%
EPS 3Y-3.6%
EPS 5Y-0.08%
EPS Q2Q%33.94%
EPS Next Y29.07%
EPS Next 2Y24.49%
EPS Next 3Y23.67%
EPS Next 5YN/A
Revenue 1Y (TTM)11.41%
Revenue growth 3Y8.62%
Revenue growth 5Y10.16%
Sales Q2Q%14.38%
Revenue Next Year14.27%
Revenue Next 2Y12.91%
Revenue Next 3Y11.4%
Revenue Next 5YN/A
EBIT growth 1Y-1.57%
EBIT growth 3Y4.26%
EBIT growth 5Y4.74%
EBIT Next Year42.01%
EBIT Next 3Y18.63%
EBIT Next 5YN/A
FCF growth 1Y360.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.1%
OCF growth 3Y-25.84%
OCF growth 5Y-9.91%