Elbit Systems Stock Price and Research (Nasdaq: ESLT)
Elbit Systems (Nasdaq: ESLT) is a mid cap company that operates within the aerospace and defense industry. Its market cap is $6 billion today and the total one-year return is 17.19% for shareholders.
Elbit Systems stock is underperforming the market. It's beaten down, but it reports earnings soon. So is it a good time to buy? To answer this question we've turned to the Investment U Stock Grader. Our research team built this system to diagnose the financial health of a company.
Our system looks at six key metrics...
✗ Earnings-per-Share (EPS) Growth: Elbit Systems reported a recent EPS growth rate of -2.70%. That's below the aerospace and defense industry average of -1.92%. That's not a good sign. We like to see companies that have higher earnings growth.
✓ Price-to-Earnings (P/E): The average price-to-earnings ratio of the aerospace and defense industry is 63.05. And Elbit Systems’ ratio comes in at 24.87. It's trading at a better value than many of its competitors.
✓ Debt-to-Equity : The debt-to-equity ratio for Elbit Systems stock is 28.51%. That's below the aerospace and defense industry average of 69.08%. That's a good sign. Elbit Systems’ debt levels are not out of control.
✗ Free Cash Flow per Share Growth : Elbit Systems has decreased its FCF per share over the last year relative to its competitiors. That's not good for investors. In general, if a company is growing its FCF, it will be able to pay down debt, buy back stock, pay out more in dividends and/or invest money back into the business to help boost growth.
✗ Profit Margins : The profit margin of Elbit Systems comes in at 7.68% today. And generally, the higher, the better. We also like to see this ratio above competitors. Elbit Systems’ profit margin is below the aerospace and defense average of 9.97%. So that's a negative indicator for investors.
✓ Return on Equity : Return on equity tells us how much profit a company produces with the money shareholders invest. The ROE for Elbit Systems is 14.79% and that's above its industry average ROE of 11.04%.
Elbit Systems stock passes three of our six key metrics today. That's why our Investment U Stock Grader gives it a Hold.
Please note that our fundamental factor checklist is just the first step in performing your own due diligence. There are many other factors you should consider before investing. That's why The Oxford Club offers more than a dozen newsletters and trading advisories all aimed at helping investors grow and maintain their wealth.
Do you like investing in small caps, value stocks and dividend payers? Check out 10 High-Yielding Small Cap Stocks Under $15 and you’ll get a list of ten powerful stocks which are all of the above. Click here to learn more.