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Elbit Systems (IL:ESLT)
:ESLT
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Elbit Systems
(NASDAQ:ESLT)
Rating:79Outperform
Price Target:
179,092
â–²(17.52%Upside)
Elbit Systems (ESLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
69.98B
Dividend Yield<0.01%
Average Volume (3M)69.13K
Price to Earnings (P/E)52.0
Beta (1Y)0.25
Revenue Growth15.74%
EPS Growth55.12%
CountryIL
Employees19,712
SectorIndustrials
Sector Strength95
IndustryAerospace & Defense
Share Statistics
EPS (TTM)788.14
Shares Outstanding46,337,530
10 Day Avg. Volume70,732
30 Day Avg. Volume69,126
Financial Highlights & Ratios
PEG Ratio5.52
Price to Book (P/B)6.07
Price to Sales (P/S)0.00
P/FCF Ratio36.76
Enterprise Value/Market Cap0.32
Enterprise Value/Revenue1.78
Enterprise Value/Gross Profit25.41
Enterprise Value/Ebitda14.42
Forecast
1Y Price Target
149,740.58Price Target Upside-1.74% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Elbit Systems Business Overview & Revenue Model
Company DescriptionElbit Systems Ltd. (ESLT) is an international high technology company engaged in a wide range of defense, homeland security, and commercial programs throughout the world. The company operates in various sectors, including aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned aircraft systems (UAS), electro-optics, and cyber-based systems. Elbit Systems is known for its innovative solutions and products that address diverse tactical and strategic needs of its customers, including armed forces and security agencies.
How the Company Makes MoneyElbit Systems makes money primarily through the sale of its defense and security products and services to governments and commercial entities globally. Its revenue streams include contracts for aerospace systems, land vehicle systems, maritime systems, and command and control solutions. Additionally, Elbit Systems earns revenue through long-term service agreements, maintenance, and upgrades for its products. The company also benefits from strategic partnerships and collaborations with other defense contractors and commercial enterprises, enhancing its market reach and technological capabilities. Government contracts, especially from the United States and Israel, are significant contributors to its earnings, reflecting its role as a key player in the defense industry.
Elbit Systems Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: 6.47%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue growth, record backlog, and strong free cash flow, indicating robust performance across different segments and geographies. Despite some minor increases in financial expenses and slight decreases in gross margins, the overall sentiment is positive due to the strong operational and financial performance.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
First quarter revenues were $1.896 billion, up from $1.554 billion in the first quarter of 2024, marking the fourth consecutive quarter of double-digit growth.
Record Order Backlog
The order backlog reached $23.1 billion, which is $2.7 billion higher than the backlog at the end of the first quarter of 2024, with 66% attributable to orders outside Israel.
Free Cash Flow and Operating Cash Flow
Strong free cash flow of $161 million and net cash provided by operating activities at $184 million compared to $6 million cash used in the first quarter of 2024.
Segment Revenue Increases
Aerospace revenue increased by 20%, C4I and Cyber by 12%, ISTAR and EW by 4%, and Land by 48%. Elbit Systems of America revenues increased by 18%.
Positive EPS Growth
GAAP diluted EPS was $2.35, and non-GAAP diluted EPS was $2.57, both showing significant improvement from $1.65 and $1.81, respectively, in the first quarter of 2024.
Major Contracts and Technological Advances
Several major contracts were won, including a $200 million Iron Beam contract and a $100 million digital command center contract. The Iron Beam high-power laser is expected to be operational by the end of 2025.
Negative Updates
Increased Financial Expenses
Financial expenses increased to $39 million from $31.2 million in the first quarter of 2024, primarily due to hedging transactions and changes in exchange rates.
Slight Decrease in Gross Margins
GAAP gross margin decreased slightly to 24% from 24.1% in Q1 2024, and non-GAAP gross margin declined to 24.3% from 24.7%.
Company Guidance
During Elbit Systems' first quarter 2025 earnings call, the company reported strong financial performance, with a fourth consecutive quarter of double-digit growth across several key metrics. Revenues increased to $1.896 billion from $1.554 billion in the same quarter of 2024, marking a 22% rise. The company's backlog reached a record $23.1 billion, up $2.7 billion year-over-year. Operating income rose significantly, with GAAP figures showing $149.7 million (7.9% of revenues) compared to $105.4 million (6.8% of revenues) in the prior year. Non-GAAP operating income was $165.1 million, representing 8.7% of revenues, up from $121.6 million or 7.8% of revenues in the first quarter of 2024. Free cash flow for the quarter was $161 million, supported by $184 million net cash from operating activities. GAAP diluted EPS increased to $2.35 from $1.65, while non-GAAP diluted EPS rose to $2.57 from $1.81 a year earlier. The company highlighted strong growth in its land division, which saw a 48% increase in revenues, and aerospace revenue growth of 20%, driven by heightened demand for precision-guided munitions. Elbit Systems also declared a $0.60 per share dividend, underscoring its robust financial performance and strategic positioning in the defense sector.Elbit Systems Financial Statement Overview
Summary
Elbit Systems shows strong financial performance with consistent revenue growth, robust profitability, and a solid balance sheet. The company maintains healthy cash flow, supporting operational needs and strategic initiatives. While there is moderate leverage, the overall financial stability is strong.Income Statement
Elbit Systems demonstrates strong financial performance with a consistent increase in total revenue and profitability. The TTM gross profit margin stands at 24.0%, indicating efficient cost management. Net profit margin improved to 4.9%, reflecting enhanced profitability. Revenue has grown by 6.4% from the previous year, showing solid growth trajectory. EBIT and EBITDA margins are 7.4% and 9.5% respectively, indicating robust operational efficiency.85
Very Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.42, suggesting moderate leverage. Return on equity is at 10.7%, showing effective use of equity to generate profits. The equity ratio is 29.1%, indicating a balanced approach between equity and liabilities. The company's financial health is solid, though there is room to improve equity position.78
Positive
Cash Flow
Cash flow analysis reveals strong operating cash flow to net income ratio of 2.0, indicating effective cash conversion. Free cash flow grew significantly by 77.3% year-over-year, showing enhanced liquidity. The free cash flow to net income ratio is 1.6, highlighting the company's ability to generate cash relative to its net income. The cash flow position is strong, supporting future investments and debt obligations.72
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.83B | 5.97B | 5.51B | 5.28B | 4.66B |
| Gross Profit | 1.64B | 1.48B | 1.37B | 1.36B | 1.17B |
| EBITDA | 632.80M | 488.62M | 505.27M | 559.88M | 484.46M |
| Net Income | 321.14M | 215.13M | 275.45M | 274.35M | 237.66M |
Balance Sheet | |||||
| Total Assets | 10.97B | 9.74B | 9.22B | 9.32B | 8.06B |
| Cash, Cash Equivalents and Short-Term Investments | 266.68M | 207.95M | 212.15M | 260.18M | 280.32M |
| Total Debt | 1.37B | 1.47B | 1.29B | 1.45B | 1.20B |
| Total Liabilities | 7.69B | 6.79B | 6.46B | 6.77B | 5.83B |
| Stockholders Equity | 3.28B | 2.95B | 2.76B | 2.53B | 2.22B |
Cash Flow | |||||
| Free Cash Flow | 319.56M | -73.33M | 34.96M | 228.31M | 146.62M |
| Operating Cash Flow | 534.61M | 113.71M | 240.07M | 416.93M | 278.83M |
| Investing Cash Flow | -178.83M | -210.60M | -151.98M | -587.72M | -22.87M |
| Financing Cash Flow | -287.85M | 83.21M | -135.97M | 150.99M | -198.23M |
Elbit Systems Technical Analysis
Positive
152390.00
Price Trends
147306.89
Positive
143732.41
Positive
119697.42
Positive
Market Momentum
373.51
Negative
57.64
Neutral
86.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ESLT, the sentiment is Positive. The current price of 152390 is above the 20-day moving average (MA) of 148640.50, above the 50-day MA of 147306.89, and above the 200-day MA of 119697.42, indicating a bullish trend. The MACD of 373.51 indicates Negative momentum. The RSI at 57.64 is Neutral, neither overbought nor oversold. The STOCH value of 86.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ESLT.
Elbit Systems Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Performance Comparison
IL:ESLT
Elbit Systems
152,390.00
85,412.41
127.52%
IL:ISHI
Israel Shipyard
14,250.00
8,157.65
133.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.