Elbit Systems (ESLT) AI Stock Analysis

• Market Cap: 97.41B
• Dividend Yield: 0.49%
• Average Volume (3M): 68.87K
• Price to Earnings (P/E): 60.0
• Beta (1Y): 0.33
• Revenue Growth: 13.02%
• EPS Growth: 63.70%
• Country: IL
• Employees: 19,712
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 881.45
• Shares Outstanding: 46,442,482
• 10 Day Avg. Volume: 68,715
• 30 Day Avg. Volume: 68,873
• PEG Ratio: 0.73
• Price to Book (P/B): 3.55
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 36.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 174,297.52
• Price Target Upside: -16.90% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: 226,000 ▲(7.75% Upside)

The score is driven primarily by strong financial performance and a constructive earnings outlook (growth, margin expansion, and record backlog). Technicals support the trend but show overbought conditions that raise near-term risk. Valuation is the main constraint due to a high P/E and low dividend yield.

Positive Factors

Record order backlog and international demand

A $25.2B backlog provides multi-year revenue visibility and production scheduling advantages, supporting steady top-line conversion. High international share (69%) diversifies customer concentration risk and underpins sustained demand across multiple markets and programs.

Strong free cash flow generation

15% TTM free cash flow growth and a high free cash flow to net income ratio support durable financial flexibility. Consistent cash generation funds R&D, contract delivery, dividends and strategic investments while buffering against defense budget timing and working-capital swings.

Improved leverage and solid ROE

Low leverage (D/E ~0.31) and rising ROE (~11.8%) indicate a resilient financial structure with capacity for capital deployment and lower refinancing risk. This strengthens long-term operational resilience and optionality for M&A or increased shareholder distributions.

Negative Factors

Aerospace segment revenue decline

A 3% aerospace revenue decline signals potential product-cycle or regional demand weakness in a higher-margin area. Persistent softness in precision munitions or regional exposure could weigh on segment profitability and slow margin expansion over the medium term.

Elbit Systems of America revenue weakness

A decline in the U.S. subsidiary's revenues points to execution or product-mix challenges in a key market. Continued underperformance in Elbit Systems of America could limit consolidated growth and complicate efforts to capitalize on U.S. defense spending trends.

Operational disruptions from regional conflicts

Operational interruptions tied to regional conflicts create durable execution risks: supply-chain delays, workforce constraints, and delivery timing variability. Recurring geopolitical exposure can increase program costs and erode margins over multiple reporting periods.

Elbit Systems Business Overview & Revenue Model

Company Description

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. It also manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions; laser systems and products; guided rocket systems; and armored vehicle and other platforms survivability and protection systems, as well as provides various training and support services. The company markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in the United States, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.

How the Company Makes Money

Elbit Systems generates revenue primarily through the sale of defense electronic systems and services to military and governmental customers worldwide. The company's revenue model includes long-term contracts for the supply of equipment, systems integration, and support services. Key revenue streams come from the sale of advanced avionics, land systems, naval systems, and cyber solutions. Additionally, Elbit Systems benefits from various partnerships with governments and defense agencies, which facilitate joint development programs and technology sharing, further enhancing its market position and revenue potential. The company also capitalizes on defense budgets and needs from different countries, responding to global security challenges which can lead to increased orders and sales.

Elbit Systems Financial Statement Overview

Summary

Elbit Systems shows strong financial health with consistent revenue and profit growth, a stable balance sheet, and improving cash flow metrics. The company effectively manages leverage and profitability, although there is room for improvement in cash conversion efficiency.

Income Statement

Elbit Systems demonstrates strong revenue growth with a TTM increase of 4.83%, supported by consistent gross profit margins around 24%. The net profit margin has improved to 4.95% in the TTM, indicating enhanced profitability. EBIT and EBITDA margins are stable, reflecting efficient operations. Overall, the income statement shows a positive growth trajectory and solid profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.42 in the TTM, indicating a manageable leverage level. Return on equity has increased to 11.19%, showcasing effective use of equity to generate profits. The equity ratio remains stable, reflecting a strong capital structure. The balance sheet is robust, with a focus on maintaining financial stability.

Cash Flow

Operating cash flow has significantly increased in the TTM, with a strong free cash flow growth rate of 13%. The free cash flow to net income ratio is healthy at 0.78, indicating efficient cash generation relative to net income. However, the operating cash flow to net income ratio is relatively low, suggesting room for improvement in cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.75B	6.83B	5.97B	5.51B	5.28B	4.66B
Gross Profit	1.88B	1.64B	1.48B	1.37B	1.36B	1.17B
EBITDA	773.62M	632.80M	488.62M	492.78M	559.88M	430.18M
Net Income	458.11M	321.14M	215.13M	275.45M	274.35M	237.66M
Balance Sheet
Total Assets	12.24B	10.97B	9.74B	9.22B	9.32B	8.06B
Cash, Cash Equivalents and Short-Term Investments	733.32M	266.68M	207.95M	212.15M	260.18M	280.32M
Total Debt	1.07B	1.37B	1.47B	1.29B	1.45B	1.20B
Total Liabilities	8.23B	7.69B	6.79B	6.46B	6.77B	5.83B
Stockholders Equity	4.00B	3.28B	2.95B	2.76B	2.53B	2.22B
Cash Flow
Free Cash Flow	736.68M	319.56M	-73.33M	34.96M	228.31M	146.62M
Operating Cash Flow	913.12M	534.61M	113.71M	240.07M	416.93M	278.83M
Investing Cash Flow	-763.84M	-178.83M	-210.60M	-151.98M	-587.72M	-22.87M
Financing Cash Flow	-125.89M	-287.85M	83.21M	-135.97M	150.99M	-198.23M

Elbit Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 209750.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 209750 is above the 20-day moving average (MA) of 185632.04, above the 50-day MA of 168002.02, and above the 200-day MA of 155365.26, indicating a bullish trend. The MACD of 11610.98 indicates Negative momentum. The RSI at 76.10 is Negative, neither overbought nor oversold. The STOCH value of 83.44 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLT	76 Outperform	97.41B	60.02	12.88%	0.49%	13.02%	63.70%
BSEN	65 Neutral	7.43B	52.23	―	―	14.00%	20.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISHI	58 Neutral	4.58B	95.37	―	0.57%	10.92%	-24.52%