Elbit Systems (ESLT) AI Stock Analysis

• Market Cap: $73.77B
• Dividend Yield: 0.56%
• Average Volume (3M): 65.70K
• Price to Earnings (P/E): 49.5
• Beta (1Y): 0.29
• Revenue Growth: 16.29%
• EPS Growth: 60.51%
• Country: IL
• Employees: 19,712
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 883.65
• Shares Outstanding: 46,372,780
• 10 Day Avg. Volume: 61,282
• 30 Day Avg. Volume: 65,697
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 9.48
• Enterprise Value/Gross Profit: 39.48
• Enterprise Value/Ebitda: 98.17
• 1Y Price Target: $171,188.91
• Price Target Upside: 7.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: 184,472 ▲(15.95% 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 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 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 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.

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	7.52B	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

• Technical Analysis Sentiment: Neutral
• Last Price: 159090.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:ESLT, the sentiment is Neutral. The current price of 159090 is below the 20-day moving average (MA) of 164704.93, below the 50-day MA of 161729.75, and above the 200-day MA of 139388.38, indicating a neutral trend. The MACD of -234.30 indicates Positive momentum. The RSI at 43.16 is Neutral, neither overbought nor oversold. The STOCH value of 17.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IL:ESLT.

Elbit Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESLT	77 Outperform	$73.77B	49.53	11.54%	0.56%	16.29%	60.51%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISHI	55 Neutral	3.00B	62.33	―	0.67%	10.92%	-24.52%