About ELBIT SYSTEMS LTD
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.
ESLT operates in the Manufacturing | Aircraft | approximately 17,800 employees | led by CEO Bezhalel Machlis.
$11.4 billion 35.6x P/E 3.5x P/B 18.2x EV/EBITDA 10.3% ROE 14.3% rev. growth 0.8% yield
ELBIT SYSTEMS LTD earns a Buy rating from our quantitative model with a composite score of 75/100, ranking #8 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is stability at 87/100, which places ESLT in the top 13 percent of all stocks on this measure. value at 87/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Manufacturing sector, ESLT ranks 4th out of 50 peers, placing it in the 92nd percentile. At $11.4 billion, the company is a well-established large cap.
Quality Analysis
ELBIT SYSTEMS LTD's quality score of 81/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 10.3% exceeds the sector median of -2.0%. Gross margins of 24.1% suggest a commodity-like business with thin pricing power. Operating margins of 7.2% sit above the 3.0% sector average.
Net margins of 4.7% are positive but thin, leaving limited margin for error.
Valuation Assessment
A value score of 87/100 puts ESLT in the top 13 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 35.6x, an EV/EBITDA of 18.2x, a price-to-book of 3.5x, a price-to-sales of 1.7x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
ELBIT SYSTEMS LTD's momentum score of 84/100 places it among the strongest trending stocks in the market. The stock has been outperforming roughly 84 percent of all other companies over the relevant measurement window. The academic literature, starting with Jegadeesh and Titman's seminal 1993 research, demonstrates that stocks with this kind of relative strength tend to continue outperforming for three to twelve months.
Revenue growth of 14.3% provides a moderate fundamental underpinning. A beta of 0.13 means ELBIT SYSTEMS LTD moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Favorable, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support ELBIT SYSTEMS LTD's rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
ELBIT SYSTEMS LTD earns a Buy rating with a composite score of 75/100 and 4 out of 5 stars, ranking #8 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position ESLT above the majority of the market.
Explore the full ESLT analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
