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Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 39GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
39.3%
Sector: 8.9%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, ELBIT SYSTEMS LTD (ESLT) receives a "Hold" rating with a composite score of 56.6/100, ranked #150 out of 4446 stocks. Key factor scores: Quality 39/100, Value 53/100, Momentum 84/100. This is quantitative analysis only — not investment advice.
ELBIT SYSTEMS LTD (ESLT) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does ELBIT SYSTEMS LTD Do?
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. ELBIT SYSTEMS LTD (ESLT) is classified as a large-cap stock in the Industrials sector, specifically within the Aircraft industry. The company is led by CEO Bezhalel Machlis and employs approximately 17,800 people. With a market capitalization of $41.7B, ESLT is one of the prominent companies in the Industrials sector.
ELBIT SYSTEMS LTD (ESLT) Stock Rating — Hold (April 2026)
As of April 2026, ELBIT SYSTEMS LTD receives a Hold rating with a composite score of 56.6/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ESLT ranks #150 out of 4,446 stocks in our coverage universe. Within the Industrials sector, ELBIT SYSTEMS LTD ranks #25 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ESLT Stock Price and 52-Week Range
ELBIT SYSTEMS LTD (ESLT) currently trades at $926.21. The stock lost $2.26 (0.2%) in the most recent trading session. The 52-week high for ESLT is $1016.06, which means the stock is currently trading -8.8% from its annual peak. The 52-week low is $354.68, putting the stock 161.1% above its annual trough. Recent trading volume was 55K shares, suggesting relatively thin trading activity.
Is ESLT Overvalued or Undervalued? — Valuation Analysis
ELBIT SYSTEMS LTD (ESLT) carries a value factor score of 53/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 128.60x, compared to the Industrials sector average of 28.33x — a premium of 354%. The price-to-book ratio stands at 12.98x, versus the sector average of 2.23x. The price-to-sales ratio is 1.56x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, ESLT trades at 16.54x EV/EBITDA, versus 5.70x for the sector.
Overall, ESLT's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
ELBIT SYSTEMS LTD Profitability — ROE, Margins, and Quality Score
ELBIT SYSTEMS LTD (ESLT) earns a quality factor score of 39/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 39.3%, compared to the Industrials sector average of 8.9%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 11.7% versus the sector average of 3.3%.
On a margin basis, ELBIT SYSTEMS LTD reports gross margins of 24.0%, compared to 35.8% for the sector. The operating margin is 7.2% (sector: 6.2%). Net profit margin stands at 4.7%, versus 3.9% for the average Industrials stock. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
ESLT Debt, Balance Sheet, and Financial Health
ELBIT SYSTEMS LTD has a debt-to-equity ratio of 25.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.20x, suggesting adequate working capital coverage. Total debt on the balance sheet is $831M. Cash and equivalents stand at $265M.
ESLT has a beta of 0.34, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for ELBIT SYSTEMS LTD is 65/100, reflecting average volatility within the normal range for its sector.
ELBIT SYSTEMS LTD Revenue and Earnings History — Quarterly Trend
In TTM 2026, ELBIT SYSTEMS LTD reported revenue of $6.83B and earnings per share (EPS) of $7.22. Net income for the quarter was $322M. Gross margin was 24.0%. Operating income came in at $489M.
In FY 2024, ELBIT SYSTEMS LTD reported revenue of $6.83B and earnings per share (EPS) of $7.22. Net income for the quarter was $322M. Gross margin was 24.0%. Revenue grew 14.3% year-over-year compared to FY 2023. Operating income came in at $489M.
In FY 2023, ELBIT SYSTEMS LTD reported revenue of $5.97B and earnings per share (EPS) of $4.85. Net income for the quarter was $216M. Gross margin was 24.8%. Revenue grew 8.4% year-over-year compared to FY 2022. Operating income came in at $369M.
In FY 2022, ELBIT SYSTEMS LTD reported revenue of $5.51B and earnings per share (EPS) of $6.21. Net income for the quarter was $275M. Gross margin was 24.9%. Revenue grew 4.4% year-over-year compared to FY 2021. Operating income came in at $367M.
Over the past 8 quarters, ELBIT SYSTEMS LTD has demonstrated a growth trajectory, with revenue expanding from $3.68B to $6.83B. Investors analyzing ESLT stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ESLT Dividend Yield and Income Analysis
ELBIT SYSTEMS LTD (ESLT) does not currently pay a dividend. This is common among growth-oriented companies in the Aircraft industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Industrials dividend stocks may want to explore other Industrials stocks or use the stock screener to filter by dividend yield.
ESLT Momentum and Technical Analysis Profile
ELBIT SYSTEMS LTD (ESLT) has a momentum factor score of 84/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 47/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
ESLT vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing ESLT against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ESLT vs S&P 500 (SPY) comparison to assess how ELBIT SYSTEMS LTD stacks up against the broader market across all factor dimensions.
ESLT Next Earnings Date
No upcoming earnings date has been announced for ELBIT SYSTEMS LTD (ESLT) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ESLT? — Investment Thesis Summary
ELBIT SYSTEMS LTD presents a balanced picture with arguments on both sides. The quality score of 39/100 flags below-average profitability. Price momentum is positive at 84/100, suggesting the trend favors buyers. Low volatility (stability score 65/100) reduces downside risk.
In summary, ELBIT SYSTEMS LTD (ESLT) earns a Hold rating with a composite score of 56.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ESLT stock.
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Institutional Research Dossier
ELBIT SYSTEMS LTD (ESLT) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Elbit Systems Ltd. (ESLT) is a leading global defense and homeland security company based in Israel. Our 4-star Buy rating is driven by the company's strong competitive positioning, impressive financial performance, and attractive valuation relative to its growth prospects. The key takeaway is that ESLT is well-positioned to capitalize on growing defense spending globally, with a wide economic moat and a compelling long-term investment opportunity.
Business Strategy & Overview
Elbit Systems is a diversified defense and aerospace company that develops and supplies a broad portfolio of airborne, land, and naval systems and products. The company operates across several key defense and security domains, including military aircraft and helicopter systems, unmanned aerial vehicles, electro-optic and night vision systems, naval systems, land vehicle systems, and command and control solutions. Elbit Systems' products and services are used by militaries, homeland security agencies, and commercial aviation customers around the world.
The company's strategy is centered on technological innovation, geographic expansion, and strategic acquisitions. Elbit consistently invests in R&D to develop new and enhanced capabilities across its product lines, enabling it to stay ahead of the curve in rapidly evolving defense and security markets. It has also been actively expanding its global footprint, with a growing international customer base that now accounts for over 70% of revenues.
In recent years, Elbit has further strengthened its market position through targeted acquisitions, such as the 2019 purchase of IMI Systems, a leading Israeli developer of precision-guided munitions. These acquisitions have broadened Elbit's technological capabilities and customer access, positioning the company to capture a larger share of global defense spending.
Execution Benchmarks audit
Gross Margin
Core pricing power
24.0%
Sector: 35.8%
-33% VS SCTR
Economic Moat Analysis
Elbit Systems benefits from a wide economic moat, underpinned by several key competitive advantages. First, the company's strong technological capabilities and track record of innovation provide significant barriers to entry. Elbit consistently invests around 10% of revenues into R&D, allowing it to develop cutting-edge defense and security solutions that are difficult for competitors to replicate. Its reputation for quality and reliability has also made it a preferred supplier for many of the world's most sophisticated militaries.
Second, Elbit's diversified product portfolio and customer base reduce its exposure to any single program or market. The company's exposure is spread across air, land, and naval systems, as well as both defense and commercial customers. This diversification enhances the stability and resilience of Elbit's cash flows.
Third, Elbit benefits from high switching costs for its defense customers. Once its systems are integrated into a customer's platforms and operations, they become mission-critical and costly to replace. This creates a captive customer base and sticky revenue streams for the company.
Finally, Elbit's long-standing relationships with government agencies and prime contractors, as well as its deep understanding of complex defense procurement processes, provide significant advantages over newer entrants to the market.
Financial Health & Profitability
Elbit Systems has demonstrated consistent financial performance and strong cash flow generation over the past decade. Revenues have grown at a compound annual rate of over 8% since 2015, reflecting the company's ability to capture a growing share of global defense spending. Profitability metrics, such as gross and operating margins, have remained relatively stable, averaging 25-30% and 7-10%, respectively, during this period.
The company's return on equity (ROE) has been consistently high, averaging around 39% over the past five years, well above the industry average of 9.2%. This is indicative of Elbit's efficient capital allocation and ability to generate strong returns on its invested capital.
Elbit maintains a solid balance sheet, with a relatively low debt-to-equity ratio of 25% compared to the industry average of 70%. The company's free cash flow generation has also been robust, averaging over $300 million per year in the last five years. This financial flexibility provides Elbit with the resources to invest in R&D, pursue strategic acquisitions, and return capital to shareholders through dividends and share repurchases.
Valuation Assessment
Elbit Systems' valuation appears attractive relative to its growth potential and industry peers. The company's P/E ratio of 127.5x is significantly higher than the sector average of 27.7x, reflecting the market's recognition of Elbit's strong competitive positioning and growth prospects.
However, the company's EV/EBITDA ratio of 16.7x is only modestly above the sector average of 5.7x, suggesting that the valuation is not overly stretched. Additionally, Elbit's free cash flow yield of over 8% (based on the trailing twelve-month FCF of $345 million) compares favorably to the industry average, indicating that the stock is undervalued relative to its cash-generating capabilities.
Looking ahead, Elbit is expected to continue delivering robust revenue and earnings growth, driven by increasing global defense spending, new product introductions, and strategic acquisitions. Given the company's strong competitive advantages, stable financial performance, and attractive valuation, we believe the stock offers a compelling long-term investment opportunity.
Risk & Uncertainty
While Elbit Systems' fundamentals and growth prospects are attractive, the company faces several risks and uncertainties that investors should consider. One key risk is the concentration of the company's revenues in the defense sector, which is highly dependent on government spending and geopolitical factors. Changes in defense budgets, procurement priorities, or international tensions could have a significant impact on Elbit's business.
Additionally, Elbit operates in a highly competitive industry, with ongoing threats from both established players and emerging competitors. The company's ability to maintain its technological edge and win new contracts is crucial to its continued success. Any failure to innovate or execute on key programs could erode Elbit's competitive position.
Finally, Elbit's reliance on complex, long-term defense contracts exposes the company to risks related to program delays, cost overruns, and customer satisfaction. Failure to deliver on these contracts could result in reputational damage, financial penalties, and lost future business opportunities.
Bulls Say / Bears Say
The Bull Case
BULL VIEWElbit Systems is a global leader in the rapidly growing defense and security industry, with a proven track record of technological innovation and strong financial performance.
BULL VIEWThe company's diversified product portfolio, global customer base, and high barriers to entry provide a wide economic moat that will enable Elbit to continue capturing a larger share of global defense spending.
BULL VIEWElbit's attractive valuation, robust cash flow generation, and sound balance sheet make it a compelling long-term investment opportunity with significant upside potential.
The Bear Case
BEAR VIEWElbit Systems' heavy reliance on the defense industry exposes the company to significant risk from changes in government spending priorities and geopolitical factors, which could negatively impact its growth and profitability.
BEAR VIEWThe defense industry is highly competitive, and Elbit may struggle to maintain its technological edge and win new contracts against both established players and emerging competitors, putting pressure on its market share and margins.
BEAR VIEWElbit's high valuation multiples suggest that the market has already priced in significant future growth, leaving little room for further upside and increasing the risk of a potential correction.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ESLT and 4,400+ other equities.
ELBIT SYSTEMS LTD exhibits a 310% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
11.7%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
24.0%
Sector: 35.8%
Operating Margin
Core business profitability
7.2%
Sector: 6.2%
Net Margin
Bottom-line profitability
4.7%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
