721.78 USD
-9.05 (-1.24%)
712.01 USD
-9.77 (-1.35%)
Overall ESLT gets a fundamental rating of 5 out of 10. We evaluated ESLT against 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 expensively, but it does show have an excellent growth rating.
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.
- Each year in the past 5 years ESLT has been profitable.
- ESLT had a positive operating cash flow in each of the past 5 years.
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 71.23% 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's Profit Margin of 5.91% is fine compared to the rest of the industry. ESLT outperforms 63.01% of its industry peers.
- ESLT's Profit Margin has been stable in the last couple of years.
- The Operating Margin of ESLT (8.04%) 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.
- ESLT has a Gross Margin (24.23%) which 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 | 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.
- ESLT has more shares outstanding than it did 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
- 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.
- The Debt to FCF ratio of ESLT (0.68) is better than 97.26% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that ESLT is not too dependend on debt financing.
- ESLT has a Debt to Equity ratio of 0.10. This is in the better half 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
- A Current Ratio of 1.32 indicates that ESLT should not have too much problems paying its short term obligations.
- ESLT has a worse Current ratio (1.32) 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.
- 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.
- Looking at the last year, ESLT shows a quite strong growth in Revenue. The Revenue has grown by 18.35% in the last year.
- 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
- 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
- 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 61.12, ESLT can be considered very expensive at the moment.
- ESLT's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.39. ESLT is valued rather expensively when compared to this.
- ESLT is valuated quite expensively with a Price/Forward Earnings ratio of 52.14.
- ESLT's Price/Forward Earnings is on the same level as the industry average.
- ESLT is valuated expensively when we compare the Price/Forward Earnings ratio to 25.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.12 | ||
| Fwd PE | 52.14 |
4.2 Price Multiples
- ESLT's Enterprise Value to EBITDA ratio is in line with the industry average.
- ESLT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ESLT is cheaper than 69.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.44 | ||
| EV/EBITDA | 41.62 |
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.
- A more expensive valuation may be justified as ESLT's earnings are expected to grow with 20.03% in the coming years.
PEG (NY)1.46
PEG (5Y)9.16
EPS Next 2Y25.7%
EPS Next 3Y20.03%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.38%, ESLT is not a good candidate for dividend investing.
- 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 been paying a dividend for at least 10 years, so it has a reliable track record.
- ESLT has decreased its dividend 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%.