Elbit Systems Ltd. Fundamental Analysis
Elbit Systems Ltd. (ESLT) shows moderate financial fundamentals with a PE ratio of 64.68, profit margin of 7.14%, and ROE of 14.40%. The company generates $8.3B in annual revenue with strong year-over-year growth of 25.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 79.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ESLT's fundamental strength across five key dimensions:
Efficiency Score
WeakESLT struggles to generate sufficient returns from assets.
Valuation Score
ModerateESLT shows balanced valuation metrics.
Growth Score
ExcellentESLT delivers strong and consistent growth momentum.
Financial Health Score
ExcellentESLT maintains a strong and stable balance sheet.
Profitability Score
WeakESLT struggles to sustain strong margins.
Key Financial Metrics
Is ESLT Expensive or Cheap?
P/E Ratio
ESLT trades at 64.68 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ESLT's PEG of 1.05 indicates fair valuation.
Price to Book
The market values Elbit Systems Ltd. at 8.93 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 43.64 times EBITDA. This signals the market has high growth expectations.
How Well Does ESLT Make Money?
Net Profit Margin
For every $100 in sales, Elbit Systems Ltd. keeps $7.14 as profit after all expenses.
Operating Margin
Core operations generate 9.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.40 in profit for every $100 of shareholder equity.
ROA
Elbit Systems Ltd. generates $4.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Elbit Systems Ltd. produces operating cash flow of $899.16M, showing steady but balanced cash generation.
Free Cash Flow
Elbit Systems Ltd. produces free cash flow of $617.65M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $13.19 in free cash annually.
FCF Yield
ESLT converts 1.59% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
64.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How ESLT Stacks Against Its Sector Peers
| Metric | ESLT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 64.68 | 25.99 | Worse (Expensive) |
| ROE | 14.40% | 1259.00% | Weak |
| Net Margin | 7.14% | -34891.00% (disorted) | Weak |
| Debt/Equity | 0.21 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 1.41 | 9.71 | Neutral |
| ROA | 4.44% | -1482943.00% (disorted) | Weak |
ESLT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Elbit Systems Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
78.21%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
135.33%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
192.18%
Industry Style: Cyclical, Value, Infrastructure
High Growth