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Elbit Systems Ltd (IL:ESLT)
:ESLT
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Elbit Systems
(NASDAQ:ESLT)
Rating:74Outperform
Price Target:
155,792
â–²(8.04%Upside)
Elbit Systems (ESLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
$69.02B
Dividend Yield0.5%
Average Volume (3M)105.92K
Price to Earnings (P/E)51.3
Beta (1Y)0.28
Revenue Growth15.74%
EPS Growth55.12%
CountryIL
Employees19,712
SectorIndustrials
Sector Strength90
IndustryAerospace & Defense
Share Statistics
EPS (TTM)830.59
Shares Outstanding46,303,810
10 Day Avg. Volume94,592
30 Day Avg. Volume105,921
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)2.62
Price to Sales (P/S)0.00
P/FCF Ratio206.23
Enterprise Value/Market Cap0.12
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit5.05
Enterprise Value/Ebitda3.53
Forecast
1Y Price Target
$143,763.07Price Target Upside-0.30% Downside
Rating ConsensusHold
Number of Analyst Covering2
Elbit Systems Business Overview & Revenue Model
Company DescriptionElbit Systems Ltd. is a leading global high technology company engaged in a wide range of defense, homeland security, and commercial programs throughout the world. The company operates primarily in the sectors of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned aircraft systems, electro-optics, and cyber security. Elbit Systems develops and supplies a portfolio of innovative and cutting-edge products and systems for both governmental and commercial customers.
How the Company Makes MoneyElbit Systems makes money through the sale of its advanced defense and security systems to a variety of customers including governments, military organizations, and commercial entities. The company's revenue streams are primarily derived from contracts related to its defense and aerospace solutions, which include integrated systems for reconnaissance and surveillance, electronic warfare, and airborne, land, and naval systems. Additionally, Elbit Systems earns income through service contracts for maintenance, training, and support of its products. The company also engages in strategic partnerships and collaborations to enhance its capabilities and market reach, which contribute significantly to its revenue. Elbit Systems' global presence and diverse product portfolio allow it to capitalize on defense budgets and security needs worldwide.
Elbit Systems Earnings Call Summary
Earnings Call Date:May 20, 2025
(Q1-2025)
| % Change Since: 0.61%|
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 showcases strong financial health with a 14.3% revenue increase, stable gross margins, and improved net profit margins. The balance sheet reflects a moderate debt-to-equity ratio and favorable return on equity. Cash flow has turned positive, indicating efficient cash management.Income Statement
Elbit Systems has demonstrated strong revenue growth with a 14.3% increase in 2024 compared to 2023. The gross profit margin is stable at 24.0%, and the net profit margin has improved to 4.7% in 2024 from 3.6% in 2023, indicating enhanced profitability. The EBIT and EBITDA margins also show healthy levels at 7.2% and 9.3%, respectively, reflecting effective cost management.85
Very Positive
Balance Sheet
The company maintains a moderate debt-to-equity ratio of 0.42, suggesting a balanced approach to leveraging. The return on equity is favorable at 9.8%, showing efficient use of equity to generate profits. The equity ratio stands at 29.9%, indicating a stable capital structure with a reasonable proportion of equity financing.78
Positive
Cash Flow
Elbit Systems has seen a significant improvement in free cash flow, moving from negative in 2023 to positive in 2024. The operating cash flow to net income ratio is robust at 1.67, reflecting strong cash generation relative to net income. The free cash flow to net income ratio is also solid, highlighting efficient cash flow management.80
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 | EBIT |
| 489.05M | 369.11M | 367.48M | 418.51M | 325.69M | EBITDA |
| 632.80M | 488.62M | 505.27M | 559.88M | 484.46M | Net Income Common Stockholders |
| 321.14M | 215.13M | 275.45M | 274.35M | 237.66M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 266.68M | 207.95M | 212.15M | 260.18M | 280.32M | Total Assets |
| 10.97B | 9.74B | 9.22B | 9.32B | 8.06B | Total Debt |
| 1.37B | 1.47B | 1.29B | 1.45B | 1.20B | Net Debt |
| 1.10B | 1.27B | 1.07B | 1.20B | 924.45M | 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
144200.00
Price Trends
142793.18
Positive
129447.40
Positive
106837.01
Positive
Market Momentum
1477.80
Negative
52.39
Neutral
92.57
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 144200 is above the 20-day moving average (MA) of 141295.00, above the 50-day MA of 142793.18, and above the 200-day MA of 106837.01, indicating a bullish trend. The MACD of 1477.80 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 92.57 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 (66)
Financial Indicators
Performance Comparison
IL:ESLT
Elbit Systems
144,200.00
77,771.71
117.08%
IL:ISHI
Israel Shipyard
12,830.00
7,102.16
123.99%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.