Elbit Systems Ltd. Ordinary Shares (ESLT)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Elbit Systems is a defense and homeland-security supplier with 21,000 employees across aerospace, C4I/cyber, intelligence, land, and U.S. operations. That gives it scale and a diverse set of programs in a sector tied to defense and security spending. In its latest reported quarter—the second quarter of fiscal 2026—revenue was $2.3B and net income $173.6M, a 7.59% net margin. The business earns a FairStock-calculated ROE of 15.24%, carries modest leverage with debt-to-equity of 0.19, and generated $681.5M of trailing free cash flow. Those are respectable, though a FairStock-calculated ROCE of 3.87% and FCF yield of only 1.7% tell me capital intensity and cash conversion deserve scrutiny, and the moat is not obvious. Valuation is where Graham's caution bites. At the 2026-10-13 close of $667.67, FairStock calculates a P/E of 50.24 and P/B of 7.08. Its Graham Number is $167.77, leaving a margin of safety of -297.97%—the price is far above asset-based value. FairStock's EV/EBITDA is 43.18, while the PEG ratio is 0.58, showing the market is paying richly today but expecting fast profit growth. FairStock's Piotroski F-score of 6/9 is decent, and its Altman Z-score of 2.95 is near the safe zone. A Beta of -0.30 is unusual and may reflect defense-contract and geopolitical drivers rather than broad market swings. Elbit is a real business with real profits and low debt, but the price already assumes a lot. I would want multi-year filed results—FairStock cannot assign a Lynch category because only 0 years are available versus the 3 needed—and better free-cash-flow yield before calling it a value opportunity.

In plain English: Elbit Systems makes defense and homeland security products, including aircraft, drones, and electronic systems. In its latest reported quarter, the business earned $2.3 billion in sales and $173.6 million in profit, so it is profitable but operates on modest margins. At the recent price, the shares look expensive compared with the company's earnings and accounting value, and they do not look like a bargain by older value measures.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer