Breaking Down Elbit Systems Ltd. (ESLT) Financial Health: Key Insights for Investors

Are you keeping a close watch on the defense industry? Interested in a deep dive into the financial performance of a key player? Let's explore the financial health of Elbit Systems Ltd. (ESLT), a global high-technology defense company, with a focus on their 2024 fiscal year results. Did you know that Elbit Systems reported a record backlog of orders at $22.6 billion and revenues of $6.8 billion? The company's GAAP net income reached $321 million, with a GAAP net EPS of $7.18. Keep reading to unlock key insights into Elbit Systems' financial standing and discover what these figures mean for investors like you.

Elbit Systems Ltd. (ESLT) Revenue Analysis

Elbit Systems Ltd. (ESLT) operates across various sectors, providing a diversified revenue stream. Key areas include:

• Aerospace: This segment involves developing and supplying advanced airborne systems and solutions.
• Land Systems: Focuses on providing a range of land-based defense solutions, including armored vehicle systems and artillery solutions.
• Naval Systems: Specializes in naval combat management systems, maritime surveillance, and other naval solutions.
• C4I: Command, Control, Communications, Computers, and Intelligence systems, delivering comprehensive solutions for defense and security applications.
• Cybersecurity: Offers advanced cybersecurity solutions and services to protect critical infrastructure and assets.

For the fiscal year 2024, Elbit Systems reported total revenues of $5.97 billion, marking a 7.8% increase compared to $5.54 billion in 2023. This growth reflects strong demand across its diverse portfolio and global presence.

A more detailed breakdown of revenue streams reveals the following:

Elbit Systems Ltd. (ESLT) showcases a diverse geographical revenue distribution. In 2024, North America stands out as a significant market, contributing 31% of the total revenue, amounting to approximately $1.85 billion. Israel, the company’s home base, accounts for 24%, translating to about $1.43 billion. Europe represents another key region, making up 28% of the revenue, which is around $1.67 billion. The remaining regions collectively contribute 17%, totaling approximately $1.01 billion. This distribution underscores Elbit Systems' strong global presence and diversified market reach.

Here's a summary of Elbit Systems' revenue by region for 2024:

Notably, there have been shifts in revenue streams due to increased demand for defense solutions amid evolving global security challenges. Specific changes can be attributed to:

• New contracts: Securing significant contracts for advanced defense systems.
• Technological advancements: Introducing innovative solutions that capture market share.
• Geopolitical factors: Responding to heightened security needs in various regions.

For further insights into Elbit Systems Ltd. (ESLT) and its investors, explore: Exploring Elbit Systems Ltd. (ESLT) Investor Profile: Who’s Buying and Why?

Elbit Systems Ltd. (ESLT) Profitability Metrics

Elbit Systems Ltd. (ESLT) is a global high technology company engaged in a wide range of programs, focusing on areas including aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (C4ISR), unmanned aircraft systems (UAS), advanced electro-optics, electro-optic space systems, electronic warfare suites, signal intelligence (SIGINT) systems, data links and communications systems, radios and cyber intelligence.

Analyzing Elbit Systems Ltd.'s profitability involves examining several key metrics to understand its financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, as well as trends in these areas over time. Comparing these ratios with industry averages provides valuable context.

For example, Elbit Systems reported its financial results for the fiscal year 2024. Investors can use this data to evaluate the company’s financial performance and compare it against previous years and industry benchmarks.

Key profitability metrics to consider:

• Gross Profit Margin: Measures the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin indicates greater efficiency in production and cost management.
• Operating Profit Margin: Indicates the percentage of revenue remaining after deducting both COGS and operating expenses. This ratio reflects the company's efficiency in managing its operations.
• Net Profit Margin: Represents the percentage of revenue remaining after all expenses, including interest and taxes, have been deducted. This is a key indicator of overall profitability.

To effectively assess Elbit Systems Ltd.'s profitability, one should consider the trends in these margins over several years, comparing them to industry peers, and understanding the factors driving these results. Here's how to approach this analysis:

• Gather Financial Data: Collect the company’s financial statements (income statements, balance sheets, and cash flow statements) for the past 5-10 years.
• Calculate Profitability Ratios: Calculate the gross profit margin, operating profit margin, and net profit margin for each year.
• Analyze Trends: Look for patterns and trends in these ratios over time. Are the margins increasing, decreasing, or remaining stable?
• Compare with Industry Averages: Compare Elbit Systems Ltd.'s profitability ratios with the average ratios of its industry peers. This will provide insights into whether the company is performing better or worse than its competitors.
• Operational Efficiency: Assess how well the company manages its costs and operations. A rising gross margin typically indicates better cost control and efficient production processes.

Investors should look at these trends and comparisons to determine if Elbit Systems Ltd. is maintaining or improving its profitability and how it stacks up against others in the industry. For more insights into Elbit Systems Ltd. (ESLT) and its investors, check out this profile: Exploring Elbit Systems Ltd. (ESLT) Investor Profile: Who’s Buying and Why?

Elbit Systems Ltd. (ESLT) Debt vs. Equity Structure

Understanding how Elbit Systems Ltd. (ESLT) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its strategies for balancing debt and equity financing.

Elbit Systems' approach to managing its debt and equity is a key indicator of its financial strategy and risk management. Let's delve into the specifics of their debt structure.

As of the fiscal year 2024, Elbit Systems demonstrates a well-managed debt profile. Here’s a breakdown:

• Long-term Debt: Elbit Systems has a substantial amount of long-term debt, reflecting investments in long-term projects and strategic initiatives.
• Short-term Debt: The company also utilizes short-term debt to manage immediate financial obligations and working capital needs.

To provide a clearer picture, consider the following details about Elbit Systems' debt:

The debt-to-equity ratio is a critical metric for evaluating a company's financial leverage. A lower ratio generally indicates a more financially stable company. For Elbit Systems, the debt-to-equity ratio stands at approximately 0.6. This suggests that the company has a balanced approach to funding, using both debt and equity without being overly reliant on debt. In comparison to industry standards, Elbit Systems' ratio is within a healthy range, reflecting prudent financial management.

Recent activities in debt management further highlight Elbit Systems' financial strategies:

• Recent Debt Issuances: Elbit Systems has strategically issued debt to fund specific projects and acquisitions.
• Credit Ratings: Maintained a stable investment-grade credit rating, reflecting confidence in its financial stability.
• Refinancing Activity: The company has engaged in refinancing activities to optimize its debt structure and reduce interest expenses.

Elbit Systems strategically balances debt financing and equity funding to maintain financial flexibility and support growth. The company's approach includes:

• Utilizing debt for strategic investments and acquisitions.
• Maintaining a healthy debt-to-equity ratio to ensure financial stability.
• Leveraging equity to fund research and development and other long-term initiatives.

Want to learn more about Elbit Systems Ltd. (ESLT)? Check this out: Exploring Elbit Systems Ltd. (ESLT) Investor Profile: Who’s Buying and Why?

Elbit Systems Ltd. (ESLT) Liquidity and Solvency

Liquidity and solvency are crucial indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For Elbit Systems Ltd. (ESLT), assessing these metrics provides insights into its financial stability and risk profile.

Elbit Systems Ltd.'s liquidity can be evaluated through the following key ratios:

• Current Ratio: This ratio measures a company's ability to pay short-term obligations with its current assets.
• Quick Ratio (Acid-Test Ratio): A more conservative measure than the current ratio, the quick ratio excludes inventory from current assets to provide a clearer picture of immediate liquidity.

Analyzing these ratios over time can reveal trends in Elbit Systems Ltd.'s liquidity position. A declining ratio may indicate potential liquidity issues, while an increasing ratio suggests improved short-term financial health.

Working capital, the difference between a company's current assets and current liabilities, is another vital aspect of liquidity management. Monitoring trends in working capital can highlight whether Elbit Systems Ltd. is efficiently managing its short-term resources.

The cash flow statement offers a comprehensive view of Elbit Systems Ltd.'s cash inflows and outflows, categorized into operating, investing, and financing activities:

• Operating Cash Flow: Cash generated from the company's core business activities.
• Investing Cash Flow: Cash used for investments in assets, such as property, plant, and equipment.
• Financing Cash Flow: Cash flow related to debt, equity, and dividends.

Examining these cash flow trends can reveal whether Elbit Systems Ltd. is generating sufficient cash from its operations to cover its investments and financing obligations. Consistent positive operating cash flow is generally a sign of financial strength.

While specific figures for the 2024 fiscal year are needed to provide a detailed analysis, monitoring these liquidity and solvency indicators is essential for assessing Elbit Systems Ltd.'s financial health. Investors and stakeholders should pay close attention to these metrics to identify any potential risks or opportunities.

Understanding a company's mission and vision can also provide context for its financial strategies. Learn more about Elbit Systems Ltd.'s strategic direction: Mission Statement, Vision, & Core Values of Elbit Systems Ltd. (ESLT).

Elbit Systems Ltd. (ESLT) Valuation Analysis

Assessing whether Elbit Systems Ltd. (ESLT) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield, payout ratios, and analyst consensus.

As of late 2024 and early 2025, here's a snapshot of these indicators:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, a fundamental valuation metric, reflects the amount investors are willing to pay for each dollar of Elbit Systems' earnings. As of February 2025, Elbit Systems' P/E ratio stood at 26.9x.
• Price-to-Book (P/B) Ratio: As of December 31, 2024, Elbit Systems' P/B ratio was 2.24.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: As of late 2024, Elbit Systems' EV/EBITDA ratio was approximately 16.48x.

Analyzing these ratios in isolation is not enough; it’s crucial to compare them against industry averages and Elbit Systems’ historical data to provide context.

Stock Price Trends: Over the past year, Elbit Systems (ESLT) has shown significant stock price appreciation. As of April 2025, the stock has risen approximately 47.78% over the last 12 months, closing at $284.44. This growth indicates strong investor confidence and positive market sentiment.

Dividend Yield and Payout Ratios: As of December 2024, Elbit Systems declared a dividend of $0.50 per share. The dividend is payable on May 24, 2024, to shareholders of record as of May 7, 2024. The annual dividend payout ratio provides insight into the sustainability of dividend payments, reflecting the portion of earnings distributed as dividends.

Analyst Consensus: Analyst ratings provide a summarized view of professional opinions on the stock's potential. The consensus leans towards a positive outlook, with ratings ranging from 'Buy' to 'Hold,' indicating confidence in the company's future performance.

Here's a summary table of key valuation metrics:

For further insights into Elbit Systems Ltd. (ESLT) financial health, you can explore: Breaking Down Elbit Systems Ltd. (ESLT) Financial Health: Key Insights for Investors

Elbit Systems Ltd. (ESLT) Risk Factors

Understanding the risks facing Elbit Systems Ltd. (ESLT) is crucial for investors assessing the company's financial health and future prospects. These risks span both internal and external factors, including industry competition, regulatory changes, market conditions, and specific operational and strategic challenges highlighted in the company's reports.

Here's an overview of key risks that could impact Elbit Systems Ltd. (ESLT):

• Industry Competition: The defense industry is highly competitive. Elbit Systems Ltd. (ESLT) faces competition from both domestic and international players. Intense competition can lead to pressure on pricing, reduced profit margins, and the potential loss of market share.
• Regulatory Changes: Changes in government regulations and defense spending policies can significantly impact Elbit Systems Ltd. (ESLT). This includes shifts in export control laws, procurement policies, and international trade agreements. Compliance with these regulations adds complexity and cost to operations.
• Market Conditions: Global economic conditions and geopolitical instability can affect demand for Elbit Systems Ltd. (ESLT)'s products and services. Economic downturns may lead to reduced defense budgets, while geopolitical tensions can create both opportunities and risks.
• Operational Risks: These include risks related to project execution, supply chain disruptions, and technological failures. Delays in project completion, cost overruns, and quality issues can negatively impact financial results and reputation.
• Financial Risks: Financial risks involve currency fluctuations, interest rate changes, and credit risks. Elbit Systems Ltd. (ESLT)'s international operations expose it to currency risks, while changes in interest rates can affect borrowing costs. Credit risks relate to the ability of customers to pay for products and services.
• Strategic Risks: Strategic risks include challenges related to mergers and acquisitions, joint ventures, and international expansion. Integrating acquired businesses, managing partnerships, and navigating foreign markets can present significant hurdles.

Mitigation strategies are essential for managing these risks. Elbit Systems Ltd. (ESLT) may implement various plans to address these challenges, such as diversifying its product offerings, expanding into new markets, strengthening its supply chain, and investing in research and development to maintain a competitive edge. Investors should monitor how effectively the company manages these risks to safeguard their investments.

For more insights into Elbit Systems Ltd. (ESLT)'s values and mission, explore: Mission Statement, Vision, & Core Values of Elbit Systems Ltd. (ESLT).

Elbit Systems Ltd. (ESLT) Growth Opportunities

Elbit Systems Ltd. (ESLT) demonstrates promising future growth prospects driven by several key factors, including continuous product innovation, strategic market expansions, acquisitions, and key partnerships.

A critical growth driver for Elbit Systems Ltd. (ESLT) is its commitment to product innovation. The company consistently invests in research and development to create cutting-edge solutions in areas such as:

• Autonomous Systems: Developing advanced unmanned aerial vehicles (UAVs) and autonomous ground systems.
• Cybersecurity: Providing comprehensive cybersecurity solutions for defense and commercial applications.
• Electronic Warfare: Creating advanced electronic warfare systems to maintain a strategic advantage.

These innovations enable Elbit Systems Ltd. (ESLT) to stay ahead of the competition and secure lucrative contracts globally. Elbit Systems is also focused on expanding its global footprint through strategic market expansions. Key regions of interest include:

• Asia-Pacific: Tapping into the growing defense budgets of countries like India and Australia.
• Europe: Strengthening its presence in European markets through local partnerships and direct sales.
• North America: Expanding its footprint in the U.S. and Canadian defense markets.

Elbit Systems Ltd. (ESLT) actively pursues acquisitions to broaden its product portfolio and technological capabilities. These acquisitions often provide access to new markets and enhance the company's competitive positioning. Strategic initiatives and partnerships further bolster Elbit Systems Ltd. (ESLT)'s growth prospects. These include:

• Joint Ventures: Collaborating with local companies to meet specific regional requirements and gain market access.
• Technology Partnerships: Partnering with technology firms to integrate advanced technologies into its solutions.
• Government Contracts: Securing long-term contracts with defense ministries worldwide, providing a stable revenue stream.

Elbit Systems Ltd. (ESLT) possesses several competitive advantages that position it for sustained growth:

• Technological Expertise: A strong focus on R&D and innovation provides a technological edge.
• Diversified Product Portfolio: A broad range of defense and security solutions reduces reliance on any single product or market.
• Global Presence: Operations in multiple countries provide access to diverse markets and reduce geopolitical risk.

While specific revenue growth projections and earnings estimates depend on various market conditions and contract wins, analysts generally expect Elbit Systems Ltd. (ESLT) to maintain a steady growth trajectory, driven by continued demand for its advanced defense and security solutions. Investors can find more information on Elbit Systems Ltd. (ESLT)'s financial health at: Breaking Down Elbit Systems Ltd. (ESLT) Financial Health: Key Insights for Investors