ESLTElbit Systems Ltd.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.3×).
Operating profit is fully backed by cash.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
A balanced mix of margins, efficiency, and leverage. ROE 13% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is ESLT?
Elbit Systems Ltd. earns 14% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 5.5 points above what the capital costs: growth creates value
- Operating margin
- 8.5%
Operating margin · Aerospace & Defense median 9.6% · fiscal year to FY2025
- Cash conversion
- 1.29×
Cash conversion · 1.23× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +4.9%
Share count, year on year · shareholders own a smaller slice than a year ago
| Year | Operating margin |
|---|---|
| FY2020 | 7.0% |
| FY2021 | 7.9% |
| FY2022 | 6.7% |
| FY2023 | 6.2% |
| FY2024 | 7.2% |
| FY2025 | 8.5% |
Details›
- Gross marginfiscal year to FY2025
- 24%
- Operating marginfiscal year to FY2025
- 8.5%
- Net marginfiscal year to FY2025
- 6.7%
- Free cash flow margin
- 7.0%
- R&D as % of revenue
- 7.5%
- Revenue, trailing twelve months
- $7.94B
- Free cash flow, trailing twelve months
- $553M
- Net income, trailing twelve months
- $534M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 14%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Aerospace & Defense
Ranks #17 of 36 by RyuScore