729.75 USD
+20.56 (+2.9%)
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.
- ESLT had a positive operating cash flow in the past year.
- In the past 5 years ESLT has always been profitable.
- ESLT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of ESLT (3.71%) is comparable to the rest of the industry.
- With a decent Return On Equity value of 11.37%, ESLT is doing good in the industry, outperforming 72.60% of the companies in the same industry.
- With a decent Return On Invested Capital value of 8.13%, ESLT is doing good in the industry, outperforming 69.86% of the companies in the same industry.
- 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
- Looking at the Profit Margin, with a value of 5.91%, ESLT is in the better half of the industry, outperforming 63.01% 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.
- ESLT has a Operating Margin of 8.04%. This is comparable to the rest of the industry: ESLT outperforms 53.42% of its industry peers.
- In the last couple of years the Operating Margin of ESLT has remained more or less at the same level.
- ESLT's Gross Margin of 24.23% is in line compared to the rest of the industry. ESLT outperforms 50.68% of its industry peers.
- 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
- 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
- Compared to 1 year ago, ESLT has an improved debt to assets ratio.
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.
- With an excellent Debt to FCF ratio value of 0.68, ESLT belongs to the best 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 has a better Debt to Equity ratio (0.10) than 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.
- ESLT has a Current ratio of 1.32. This is in the lower half of the industry: ESLT underperforms 76.71% of its industry peers.
- ESLT has a Quick Ratio of 1.32. 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'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
- ESLT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.18%, which is quite impressive.
- 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 18.35%.
- 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.
- 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 61.79, which means the current valuation is very expensive for ESLT.
- ESLT's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.25. ESLT is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 52.72, ESLT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of ESLT is on the same level as its industry peers.
- ESLT is valuated expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.79 | ||
| Fwd PE | 52.72 |
4.2 Price Multiples
- ESLT's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of ESLT indicates a somewhat cheap valuation: ESLT is cheaper than 72.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.94 | ||
| EV/EBITDA | 40.35 |
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)1.47
PEG (5Y)9.26
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 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
- 21.73% 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.
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%.