718.99 USD
+10.14 (+1.43%)
718.99 USD
0 (0%)
ESLT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 73 industry peers in the Aerospace & Defense industry. ESLT has an average financial health and profitability rating. ESLT shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year ESLT was profitable.
- In the past year ESLT had a positive cash flow from operations.
- 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
- ESLT's Return On Assets of 3.71% is in line compared to the rest of the industry. ESLT outperforms 58.90% of its industry peers.
- ESLT's Return On Equity of 11.37% is fine compared to the rest of the industry. ESLT outperforms 72.60% of its industry peers.
- ESLT's Return On Invested Capital of 8.13% is fine compared to the rest of the industry. ESLT outperforms 69.86% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for ESLT is below the industry average of 8.56%.
- The 3 year average ROIC (6.54%) for ESLT is below the current ROIC(8.13%), indicating increased profibility in the last year.
| 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.
- Looking at the Operating Margin, with a value of 8.04%, ESLT is in line with its industry, outperforming 53.42% of the companies in the same industry.
- ESLT's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 24.23%, ESLT is in line with its industry, outperforming 50.68% of the companies in the same 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 | 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ESLT is destroying value.
- Compared to 1 year ago, ESLT has more shares outstanding
- Compared to 5 years ago, ESLT has more shares outstanding
- 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 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.
- Looking at the Debt to FCF ratio, with a value of 0.68, ESLT belongs to the top of the industry, outperforming 97.26% of the companies in the same industry.
- A Debt/Equity ratio of 0.10 indicates that ESLT is not too dependend on debt financing.
- 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/WACC0.82
WACC9.9%
2.3 Liquidity
- ESLT has a Current Ratio of 1.32. This is a normal value and indicates that ESLT is financially healthy and should not expect problems in meeting 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 has a Quick ratio of 0.76. This is amonst the worse of the industry: ESLT underperforms 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.
- ESLT shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.67% yearly.
- ESLT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.35%.
- The Revenue has been growing by 8.66% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 20.03% 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 12.56% yearly.
EPS Next Y41.97%
EPS Next 2Y25.7%
EPS Next 3Y20.03%
EPS Next 5YN/A
Revenue Next Year18.16%
Revenue Next 2Y14.49%
Revenue Next 3Y12.56%
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.
- 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 60.88, which means the current valuation is very expensive for ESLT.
- ESLT's Price/Earnings is on the same level as the industry average.
- ESLT's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 51.94, the valuation of ESLT can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as ESLT.
- ESLT's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.88 | ||
| Fwd PE | 51.94 |
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 72.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.27 | ||
| EV/EBITDA | 40.93 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of ESLT may justify a higher PE ratio.
- ESLT's earnings are expected to grow with 20.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.45
PEG (5Y)9.12
EPS Next 2Y25.7%
EPS Next 3Y20.03%
5. Dividend
5.1 Amount
- ESLT has a yearly dividend return of 0.38%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.34, ESLT pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.38, ESLT pays less dividend than the S&P500 average, which is at 1.81.
| 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
- ESLT pays out 21.73% 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.
DP21.73%
EPS Next 2Y25.7%
EPS Next 3Y20.03%
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 41.97% 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%.