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Elbit Systems

ESLT.TA
67
Aerospace & Defense · Industrials
Price
212360.00 ILA
+490.00 (+0.23%)
Market Cap
99.49B ILA
Exchange
Tel Aviv Stock Exchange
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Sep 4, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Exceptional
Cash Flow
Strong
Stability
Strong
Valuation
Mixed
Dividends
Good

Share count rising — dilution

+6.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 44.3M (2021) → 46.9M (2025)

Winston Score History

The full picture

Elbit Systems is an Israeli defense and technology company that builds military electronics, drones, surveillance systems, and other equipment for armed forces around the world. Its products include helmets with built-in displays for fighter pilots, unmanned aerial vehicles, cyber intelligence tools, and land vehicle upgrades. It is one of Israel's largest defense contractors and a major international supplier of advanced military technology.

Elbit makes money primarily through long-term government defense contracts, selling both hardware and integrated systems. It operates in Israel, the United States, Europe, Latin America, and the Asia-Pacific region, with annual revenues placing it among the world's mid-sized defense firms. Its deep expertise in electronic warfare and unmanned systems gives it a strong niche position against larger global competitors. Growing defense budgets worldwide are a key growth driver, though the company faces risks from geopolitical shifts and dependence on government spending cycles.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+15.9% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+34.4% YoY

YoY Growth Rate

Strong earnings growth

R&D Spend

$560M/ year

Rising (+20% vs prior year)

7.1% of revenue

1.8x the sector average (4%)

R&D investment increasing — building for the future

Insider Activity

41.9%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$1.2B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Elbit Systems is a rare growth stock that's already generating positive cash flow while growing at 16%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
25.3%
Modest — 25.3% gross margin
Profit after running costs
Operating Margin
9.6%
Modest — 9.6% operating margin
Return on the money invested
ROCE
17.0%
Strong — 17.0% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+14.7%
Fast-growing sales (+14.7% YoY)
Profit growth
EPS YoY
+53.9%
Earnings growing fast (+53.9% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash
Cash Conversion
157%
Turns 157% of profit into real cash
Spare cash per sale
FCF Margin
8.0%
Modest free cash flow (8.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.06
Conservative — low debt load (0.06)
Covers its interest
Interest Cover
7.80x
Adequate interest coverage (7.8x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
51.1x
Expensive — P/E 51.1

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year
P/E vs Forward
+4.9
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (51.1 → 46.2)

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Dividends

Dividend
Dividend Yield
0.57%
Small dividend — 0.57% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+52.2%
Dividend growing fast (52.2% YoY)

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