ELBIT SYSTEMS LTD (ESLT) Stock Fundamental Analysis
USA - NASDAQ:ESLT - IL0010811243 - Common Stock
480 USD
-11.65 (-2.37%)
480 USD
0 (0%)
ESLT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 70 industry peers in the Aerospace & Defense industry. ESLT has an average financial health and profitability rating. ESLT is not priced too expensively while it is growing strongly. 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.
In the past 5 years ESLT has always been profitable.
Each year in the past 5 years ESLT had a positive operating cash flow.
1.2 Ratios
ESLT has a Return On Assets (3.32%) which is in line with its industry peers.
ESLT has a Return On Equity of 10.20%. This is in the better half of the industry: ESLT outperforms 68.57% 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 71.43% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ESLT is in line with the industry average of 8.41%.
The last Return On Invested Capital (7.59%) for ESLT is above the 3 year average (6.54%), which is a sign of increasing profitability.
| 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
ESLT has a Profit Margin (5.35%) which is comparable to the rest of the industry.
ESLT's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 7.65%, ESLT is in line with its industry, outperforming 51.43% of the companies in the same industry.
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 (24.02%) 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 | 7.65% | ||
| 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.
The number of shares outstanding for ESLT has been increased compared to 1 year ago.
ESLT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ESLT has been reduced compared to a year ago.
2.2 Solvency
ESLT has a debt to FCF ratio of 1.07. This is a very positive value and a sign of high solvency as it would only need 1.07 years to pay back of all of its debts.
ESLT has a better Debt to FCF ratio (1.07) than 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.
ESLT's Debt to Equity ratio of 0.15 is fine compared to the rest of the industry. ESLT outperforms 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 1.07 | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.29 indicates that ESLT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.29, ESLT is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
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.
ESLT has a Quick ratio of 0.77. This is in the lower half of the industry: ESLT underperforms 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.
The Earnings Per Share has been growing slightly by 6.67% on average over the past years.
ESLT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.16%.
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
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.
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 44.99, ESLT can be considered very expensive at the moment.
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 (27.42), we can say ESLT is valued expensively.
The Price/Forward Earnings ratio is 33.67, which means the current valuation is very expensive for ESLT.
ESLT's Price/Forward Earnings ratio is in line with the industry average.
ESLT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.99 | ||
| Fwd PE | 33.67 |
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 78.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.73 | ||
| 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)1.26
PEG (5Y)6.74
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.
Compared to an average S&P500 Dividend Yield of 2.36, ESLT's dividend is way lower than the S&P500 average.
| 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 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
23.29% of the earnings are spent on dividend by ESLT. This is a low number and 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%
480
-11.65 (-2.37%)
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 Cap22.25B
Analysts80
Price Target1.28 (-99.73%)
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 | 44.99 | ||
| Fwd PE | 33.67 | ||
| P/S | 2.96 | ||
| P/FCF | 34.73 | ||
| P/OCF | 27.38 | ||
| P/B | 5.64 | ||
| P/tB | 10.57 | ||
| EV/EBITDA | 28.35 |
EPS(TTM)10.67
EY2.22%
EPS(NY)14.25
Fwd EY2.97%
FCF(TTM)13.82
FCFY2.88%
OCF(TTM)17.53
OCFY3.65%
SpS162.16
BVpS85.04
TBVpS45.39
PEG (NY)1.26
PEG (5Y)6.74
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