Bedrijfsoverzicht
Elbit Systems Ltd. operates as a major developer and supplier of defense and homeland security products and services across global markets including Israel, North America, Europe, the Asia-Pacific, and Latin America. The company functions within the Industrials sector, specifically focusing on the Aerospace & Defense industry, where it delivers critical infrastructure and technological solutions to government and commercial entities. Its operational scale is substantial, evidenced by a market capitalization of $43.26B and an annual revenue of $7.94B over the trailing twelve months. These valuation figures position the entity as a significant player in the global defense market, supported by a workforce of 20537 employees that facilitates its extensive international reach. The revenue volume of nearly $8 billion underscores the company's established footprint, while the market cap exceeding $43 billion reflects high market confidence in its long-term operational stability and ability to generate substantial economic value within the capital-intensive defense manufacturing space.
Financiële gezondheid
Over the trailing twelve months, the company reported a revenue of $7.94B, with a corresponding net income of $534.34M and an EBITDA of $858.61M. The significant gap between the $7.94B in revenue and the $534.34M in net income highlights a cost structure where operating expenses, including cost of goods sold, administrative costs, and taxes, consume approximately 93.3% of total sales before arriving at the bottom line. The business generated free cash flow of $588.99M, indicating a robust ability to convert earnings into actual cash available for reinvestment, debt repayment, or shareholder returns without relying on external financing. Profitability is characterized by a gross margin of 24.4%, an operating margin of 9.7%, and a profit margin of 6.7%, suggesting that while the core manufacturing operations retain nearly a quarter of revenue, significant overhead and operational costs reduce the final profitability to roughly two-thirds of a percentage point per dollar of sales. On the balance sheet, the company holds $815.75M in cash against $964.81M in debt, resulting in a debt-to-equity ratio of 23.36, which indicates a leveraged financial structure where liabilities exceed equity, though the positive cash position provides a buffer. Liquidity is supported by a current ratio of 1.29, meaning the firm possesses sufficient current assets to cover its short-term obligations, though the margin above 1.0 suggests a tight but manageable working capital position. Management effectiveness is quantified by a return on equity of 14.5% and a return on assets of 3.6%, revealing that the company generates strong returns relative to shareholder investment, while asset utilization remains lower, consistent with the capital-heavy nature of the aerospace and defense sector.
Waarderingsbeoordeling
The stock trades at a trailing P/E ratio of 81.30 and a forward P/E of 55.02, implying that the market anticipates a significant acceleration in earnings growth that would justify the high multiple compression from current levels to forward expectations. The price-to-book ratio stands at 10.41, indicating that the market values the company at more than ten times its net asset value, reflecting a substantial premium assigned to its intangible assets, intellectual property, and strategic market position rather than just its tangible book value. Alternative valuation metrics further illustrate this premium, with a price-to-sales ratio of 5.45 and an EV/EBITDA of 50.29, suggesting that investors are willing to pay a high multiple for every dollar of revenue and operating cash flow generated. In terms of price action, the 52-week high is recorded at $1016.06 and the low at $369.00, placing the current trading environment within a wide range that demonstrates significant historical volatility and potential for re-rating based on earnings surprises. The beta value of -0.22 is an anomalous metric for a large-cap defense contractor, suggesting an inverse correlation with the broader market or a specific hedging effect not typical for peers, which complicates standard volatility modeling but indicates the stock moves independently of general market sentiment.
Growth & Income
Revenue growth for the trailing twelve months reached 11.3%, while earnings growth surged to 76.3%, demonstrating that profitability is expanding at a pace far exceeding top-line revenue expansion. This divergence implies significant operating leverage and cost control measures are in place, allowing net income to grow disproportionately faster than sales volume as fixed costs are spread over increasing revenue. Regarding income distribution, the company maintains a dividend yield of 0.4% with a payout ratio of 28.1%, indicating that a small fraction of earnings is returned to shareholders while the majority is retained to fund R&D and capital projects. The relatively low payout ratio combined with the high earnings growth rate suggests a sustainable dividend policy that prioritizes future investment over immediate income maximization, aligning with the capital-intensive requirements of the defense sector. The overall growth and income profile presents a company that is rapidly scaling its profitability while maintaining a modest but stable commitment to returning capital, supported by strong free cash flow generation and a diverse global product portfolio.