ELBIT SYSTEMS LTD (ESLT) Stock Fundamental Analysis
USA - NASDAQ:ESLT - IL0010811243 - Common Stock
507.95 USD
+4.53 (+0.9%)
507.95 USD
0 (0%)
Taking everything into account, ESLT scores 5 out of 10 in our fundamental rating. ESLT was compared to 69 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 is valued quite expensive, but it does show an excellent growth.
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.
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
With a Return On Assets value of 3.12%, ESLT perfoms like the industry average, outperforming 53.62% of the companies in the same industry.
ESLT has a better Return On Equity (10.73%) than 68.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.64%, ESLT is in the better half of the industry, outperforming 71.01% of the companies in the same industry.
ESLT had an Average Return On Invested Capital over the past 3 years of 6.54%. This is in line with the industry average of 8.22%.
The 3 year average ROIC (6.54%) for ESLT is below the current ROIC(7.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 10.73% | ||
| ROIC | 7.64% |
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
With a Profit Margin value of 4.95%, ESLT perfoms like the industry average, outperforming 55.07% of the companies in the same industry.
In the last couple of years the Profit Margin of ESLT has remained more or less at the same level.
With a Operating Margin value of 7.44%, ESLT perfoms like the industry average, outperforming 52.17% 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.
ESLT has a Gross Margin of 24.02%. This is comparable to the rest of the industry: ESLT outperforms 47.83% of its industry peers.
ESLT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.44% | ||
| PM (TTM) | 4.95% | ||
| 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.
ESLT has more shares outstanding than it did 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
ESLT has a debt to FCF ratio of 1.55. This is a very positive value and a sign of high solvency as it would only need 1.55 years to pay back of all of its debts.
ESLT has a Debt to FCF ratio of 1.55. This is amongst the best in the industry. ESLT outperforms 95.65% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that ESLT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.24, ESLT is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.55 | ||
| Altman-Z | N/A |
ROIC/WACC0.87
WACC8.76%
2.3 Liquidity
ESLT has a Current Ratio of 1.21. This is a normal value and indicates that ESLT is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.21, ESLT is not doing good in the industry: 75.36% of the companies in the same industry are doing better.
A Quick Ratio of 0.70 indicates that ESLT may have some problems paying its short term obligations.
ESLT has a Quick ratio of 0.70. This is amonst the worse of the industry: ESLT underperforms 84.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 |
3. Growth
3.1 Past
ESLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.28%, which is quite impressive.
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.
ESLT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.28%.
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)14.28%
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.
The Revenue is expected to grow by 11.45% on average over the next years. This is quite good.
EPS Next Y31.9%
EPS Next 2Y27.72%
EPS Next 3Y21.09%
EPS Next 5YN/A
Revenue Next Year16.62%
Revenue Next 2Y13.58%
Revenue Next 3Y11.45%
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
The Price/Earnings ratio is 47.61, which means the current valuation is very expensive for ESLT.
Compared to the rest of the industry, the Price/Earnings ratio of ESLT is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.20. ESLT is valued rather expensively when compared to this.
ESLT is valuated quite expensively with a Price/Forward Earnings ratio of 35.55.
ESLT's Price/Forward Earnings ratio is in line with the industry average.
ESLT is valuated expensively when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.61 | ||
| Fwd PE | 35.55 |
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 71.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.53 | ||
| EV/EBITDA | 33.02 |
4.3 Compensation for Growth
ESLT's 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.
ESLT's earnings are expected to grow with 21.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)7.13
EPS Next 2Y27.72%
EPS Next 3Y21.09%
5. Dividend
5.1 Amount
ESLT has a yearly dividend return of 0.48%, which is pretty low.
Compared to an average industry Dividend Yield of 1.47, ESLT pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.48, ESLT pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
25.10% 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.
DP25.1%
EPS Next 2Y27.72%
EPS Next 3Y21.09%
507.95
+4.53 (+0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners20%
Inst Owner Change23.3%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap23.54B
Analysts80
Price Target1.27 (-99.75%)
Short Float %0.53%
Short Ratio1.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend2
Dividend Growth(5Y)2.56%
DP25.1%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.64%
Min EPS beat(2)9.55%
Max EPS beat(2)33.74%
EPS beat(4)4
Avg EPS beat(4)18.75%
Min EPS beat(4)9.55%
Max EPS beat(4)33.74%
EPS beat(8)6
Avg EPS beat(8)12.11%
EPS beat(12)7
Avg EPS beat(12)2.77%
EPS beat(16)9
Avg EPS beat(16)2.99%
Revenue beat(2)2
Avg Revenue beat(2)8.19%
Min Revenue beat(2)6.29%
Max Revenue beat(2)10.09%
Revenue beat(4)4
Avg Revenue beat(4)5.61%
Min Revenue beat(4)1.32%
Max Revenue beat(4)10.09%
Revenue beat(8)8
Avg Revenue beat(8)4.49%
Revenue beat(12)8
Avg Revenue beat(12)2.1%
Revenue beat(16)12
Avg Revenue beat(16)3.18%
PT rev (1m)10.7%
PT rev (3m)37.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)9.77%
EPS NY rev (3m)9.77%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.61 | ||
| Fwd PE | 35.55 | ||
| P/S | 3.28 | ||
| P/FCF | 41.53 | ||
| P/OCF | 32.49 | ||
| P/B | 7.12 | ||
| P/tB | 16.08 | ||
| EV/EBITDA | 33.02 |
EPS(TTM)10.67
EY2.1%
EPS(NY)14.29
Fwd EY2.81%
FCF(TTM)12.23
FCFY2.41%
OCF(TTM)15.63
OCFY3.08%
SpS154.69
BVpS71.29
TBVpS31.59
PEG (NY)1.49
PEG (5Y)7.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.12% | ||
| ROE | 10.73% | ||
| ROCE | 9.33% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.25% | ||
| ROICexgc | 12.11% | ||
| OM | 7.44% | ||
| PM (TTM) | 4.95% | ||
| GM | 24.02% | ||
| FCFM | 7.91% |
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-Score7
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.55 | ||
| Debt/EBITDA | 1.16 | ||
| Cap/Depr | 98.37% | ||
| Cap/Sales | 2.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.45% | ||
| Profit Quality | 159.89% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.7 | ||
| Altman-Z | N/A |
F-Score7
WACC8.76%
ROIC/WACC0.87
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 Y31.9%
EPS Next 2Y27.72%
EPS Next 3Y21.09%
EPS Next 5YN/A
Revenue 1Y (TTM)14.28%
Revenue growth 3Y8.96%
Revenue growth 5Y8.66%
Sales Q2Q%21.31%
Revenue Next Year16.62%
Revenue Next 2Y13.58%
Revenue Next 3Y11.45%
Revenue Next 5YN/A
EBIT growth 1Y40.16%
EBIT growth 3Y5.33%
EBIT growth 5Y8.74%
EBIT Next Year56.61%
EBIT Next 3Y26.58%
EBIT Next 5YN/A
FCF growth 1Y967.23%
FCF growth 3Y11.86%
FCF growth 5YN/A
OCF growth 1Y450.7%
OCF growth 3Y8.64%
OCF growth 5YN/A