730.83 USD
+0.95 (+0.13%)
730.83 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. Both the profitability and the financial health of ESLT get a neutral evaluation. Nothing too spectacular is happening here. ESLT shows excellent growth, but is valued quite expensive already.
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.
- ESLT had positive earnings in each of the past 5 years.
- Each year in the past 5 years ESLT had a positive operating cash flow.
1.2 Ratios
- ESLT has a Return On Assets (3.71%) which is in line with its industry peers.
- The Return On Equity of ESLT (11.37%) is better than 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.
- ESLT had an Average Return On Invested Capital over the past 3 years of 6.54%. This 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.
- In the last couple of years the Profit Margin of ESLT has remained more or less at the same level.
- ESLT has a Operating Margin (8.04%) which is comparable to the rest of the industry.
- In the last couple of years the Operating Margin of ESLT has remained more or less at the same level.
- 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.
- ESLT's Gross Margin has been stable in the last couple of years.
| 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.
- 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
- The debt/assets ratio for ESLT has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of ESLT is 0.68, which is an excellent value as it means it would take ESLT, only 0.68 years of fcf income to pay off all of its debts.
- ESLT has a better Debt to FCF ratio (0.68) than 97.26% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that ESLT is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.10, ESLT is in the better half of the industry, outperforming 79.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.68 | ||
| Altman-Z | N/A |
ROIC/WACC0.82
WACC9.9%
2.3 Liquidity
- A Current Ratio of 1.32 indicates that ESLT should not have too much problems paying its short term obligations.
- The Current ratio of ESLT (1.32) is worse than 76.71% of its industry peers.
- A Quick Ratio of 0.76 indicates that ESLT may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.76, ESLT is doing worse than 82.19% of the companies in the same industry.
| 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.
- The Earnings Per Share has been growing slightly by 6.67% on average over the past years.
- The Revenue has grown by 18.35% in the past year. This is quite good.
- 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
- The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
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
- 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
- ESLT is valuated quite expensively with a Price/Earnings ratio of 61.88.
- ESLT's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 28.60. ESLT is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 52.80, ESLT can be considered very expensive at the moment.
- ESLT's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of ESLT to the average of the S&P500 Index (25.83), we can say ESLT is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.88 | ||
| Fwd PE | 52.8 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ESLT is on the same level as its industry peers.
- ESLT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ESLT is cheaper than 72.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.01 | ||
| EV/EBITDA | 41.57 |
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)1.47
PEG (5Y)9.27
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 1.82.
| 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 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 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%.