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Elbit Systems Ltd (IL:ESLT)
:ESLT
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Elbit Systems
(NASDAQ:ESLT)
Select Model
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Rating:77Outperform
Price Target:
184,472
â–²(10.00% Upside)
Elbit Systems' overall stock score is driven by strong financial performance and positive earnings call sentiment, indicating robust growth and profitability. The technical analysis supports a bullish trend, although the high P/E ratio suggests potential overvaluation. The company's strategic contract wins and increased order backlog further enhance its growth prospects.
Positive Factors
Negative Factors
Elbit Systems (ESLT) vs. iShares MSCI Israel ETF (EIS)
Market Cap
$77.76B
Dividend Yield0.48%
Average Volume (3M)70.32K
Price to Earnings (P/E)52.2
Beta (1Y)0.21
Revenue Growth16.29%
EPS Growth60.51%
CountryIL
Employees19,712
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)892.66
Shares Outstanding46,369,297
10 Day Avg. Volume92,945
30 Day Avg. Volume70,319
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.92
Enterprise Value/Revenue9.48
Enterprise Value/Gross Profit39.48
Enterprise Value/Ebitda98.17
Forecast
1Y Price Target
$177,741.87Price Target Upside5.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Elbit Systems Business Overview & Revenue Model
Company DescriptionElbit 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 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:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Dec 02, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for Elbit Systems, with significant revenue growth, increased order backlog, and successful contract wins. Despite increased G&A expenses and some supply chain challenges, the overall sentiment is positive due to the robust financial performance and future growth prospects.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue for Q2 2025 was $1.973 billion, a significant increase from $1.626 billion in Q2 2024, indicating a strong year-over-year growth across all business segments and geographies.
Increased Order Backlog
The company's order backlog increased by 12% from Q2 2024, reaching $23.8 billion, highlighting strong demand and future revenue potential.
Successful Share Offering
Elbit Systems raised $573 million net from a successful share offering, with demand reaching 3x the initial amount, providing capital for future growth and potential M&A opportunities.
Significant Contract Wins
Elbit Systems secured multiple contracts including a $1.625 billion contract in Europe, a $260 million contract with Airbus for German A400 aircraft, and various other contracts totaling over $1 billion, showcasing strong demand for their defense solutions.
Dividend Increase
The Board of Directors declared a dividend of $0.75 per share, a 50% increase from the previous year, reflecting confidence in the company's financial health.
Improved Free Cash Flow
Free cash flow for Q2 2025 totaled $71 million, with operating cash flow for the first half of 2025 reaching $304 million, a substantial increase from $26 million in the same period of 2024.
Negative Updates
Increased G&A Expenses
General and administrative expenses rose to $93.9 million or 4.8% of revenues, up from $68.7 million or 4.2% of revenues in Q2 2024, primarily due to onetime expenses.
Supply Chain Challenges
Ongoing supply chain issues were noted, particularly in relation to specific high-demand products, although specific impacts were not detailed.
Company Guidance
During Elbit Systems' Second Quarter 2025 Results Conference Call, the company reported robust financial performance with significant year-over-year growth and outlined key metrics. Revenues reached $1.973 billion, up from $1.626 billion in the second quarter of 2024, with Europe contributing 29% of revenues. The company's backlog increased by 12% from the corresponding quarter in 2024, totaling $23.8 billion. Operating income rose to $157.8 million, representing 8% of revenues, while free cash flow was $71 million. The GAAP gross margin remained steady at 24%, and the non-GAAP operating income margin improved to 8.9%. Elbit's diluted GAAP EPS was $2.69, while non-GAAP EPS was $3.23. The company also highlighted a dividend increase to $0.75 per share, a 50% year-over-year rise, and announced a significant $1.625 billion contract in Europe, signaling continued expansion and demand for its defense solutions.Elbit Systems Financial Statement Overview
Summary
Elbit Systems exhibits strong financial health with consistent revenue and profit growth, a stable balance sheet, and improving cash flow metrics. The company is well-positioned in the Aerospace & Defense industry, with effective management of leverage and profitability. Continued focus on cash flow efficiency could further enhance financial performance.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.85
Very Positive
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.78
Positive
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.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.52B | 6.83B | 5.97B | 5.51B | 5.28B | 4.66B |
| Gross Profit | 1.81B | 1.64B | 1.48B | 1.37B | 1.36B | 1.17B |
| EBITDA | 725.95M | 632.80M | 488.62M | 505.27M | 559.88M | 484.46M |
| Net Income | 401.88M | 321.14M | 215.13M | 275.45M | 274.35M | 237.66M |
Balance Sheet | ||||||
| Total Assets | 12.10B | 10.97B | 9.74B | 9.22B | 9.32B | 8.06B |
| Cash, Cash Equivalents and Short-Term Investments | 848.91M | 266.68M | 207.95M | 212.15M | 260.18M | 280.32M |
| Total Debt | 1.24B | 1.37B | 1.47B | 1.29B | 1.45B | 1.20B |
| Total Liabilities | 8.15B | 7.69B | 6.79B | 6.46B | 6.77B | 5.83B |
| Stockholders Equity | 3.94B | 3.28B | 2.95B | 2.76B | 2.53B | 2.22B |
Cash Flow | ||||||
| Free Cash Flow | 640.59M | 319.56M | -73.33M | 34.96M | 228.31M | 146.62M |
| Operating Cash Flow | 812.58M | 534.61M | 113.71M | 240.07M | 416.93M | 278.83M |
| Investing Cash Flow | -876.27M | -178.83M | -210.60M | -151.98M | -587.72M | -22.87M |
| Financing Cash Flow | 52.14M | -287.85M | 83.21M | -135.97M | 150.99M | -198.23M |
Elbit Systems Technical Analysis
Positive
167700.00
Price Trends
158719.00
Positive
152603.89
Positive
135652.57
Positive
Market Momentum
2071.37
Positive
58.63
Neutral
75.21
Neutral
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 167700 is above the 20-day moving average (MA) of 163933.00, above the 50-day MA of 158719.00, and above the 200-day MA of 135652.57, indicating a bullish trend. The MACD of 2071.37 indicates Positive momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 75.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:ESLT.
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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.