Elbit Systems, Ltd.: Company Profile and SWOT Analysis by ICDResearch

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									Elbit Systems, Ltd.

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Elbit Systems, Ltd.                                                          Financial Snapshot

                                                                             Operating Performance
Fast Facts
                                        Advanced Technology Center, Haifa,   The company reported revenues of US$2,670.13
Headquarters Address
                                        31053,Israel                         million during 2010, with a CARC of 15.06% during
                                                                             2006–2010. Its revenue declined at an annual rate of
Telephone                               + 97248315315
                                                                             5.73% over the previous fiscal year. In 2010, the
                                                                             company recorded an operating margin of 7.77%, as
Fax                                     + 97248550002                        against 9.27% in 2009.

Website                                 www.elbitsystems.com
                                                                             Revenue and Margins
Ticker Symbol, Stock Exchange           ESLT, Tel Aviv Stock Exchange

Number of Employees                     12,317

Fiscal Year End                         December

Revenue (in US$ million)                2,670.13




SWOT Analysis

Strengths                               Weaknesses                           Return on Equity

Inorganic Growth Strategy               Contracts Subjected to Competition   The company recorded a return on equity (ROE) of
                                                                             18.98% for 2010, as compared to its peers, BAE
Strong Portfolio of Unmanned Aircraft                                        Systems plc (Ticker: BA.), Raytheon Company
                                        Declining Land Systems Revenues      (Ticker: RTN) and AeroVironment, Inc. (Ticker:
Systems
                                                                             AVAV), which recorded ROEs of 19.73%, 18.86% and
Strong Presence in Defense
                                                                             8.87% respectively. The company reported a net
Electronics
                                                                             profit margin of 7.77% in 2010.


                                                                             Return on Equity
Opportunities                           Threats

DoD’s Focus on ISR                      Foreign Currency Fluctuations

Positive Outlook for Global Airline     Overdependence on the US Defense
Industry                                Suppliers
Rising Demand for Unmanned Air
                                        Stringent Regulations
Vehicles

US Quadrennial Defense Review




                                                                             Liquidity Position

                                                                             The company reported a current ratio of 1.28 in 2010,
                                                                             as compared to its peers, BAE Systems plc,
                                                                             Raytheon Company and AeroVironment, Inc., which
                                                                             recorded current ratios of 0.65, 1.48 and 5.57
                                                                             respectively. As of December 2010, the company
                                                                             recorded cash and short-term investments of worth
                                                                             US$214.54 million, against US$43.09 million current
                                                                             debt. The company reported a debt to equity ratio of
                                                                             0.65 in 2010 as compared to its peers, BAE Systems
                                                                             plc, Raytheon Company and AeroVironment, Inc.,
                                                                             which recorded debt to equity ratios of 0.57, 0.37 and
                                                                             0.00 respectively.




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Elbit Systems, Ltd. - SWOT Profile                                                                                   Page 1
Elbit Systems, Ltd.

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1     Company Overview .................................................................................................................................................5
    1.2     Business Description ...............................................................................................................................................5
    1.3     Major Products and Services ...................................................................................................................................7
2     Analysis of Key Performance Indicators ............................................................................................... 8
    2.1     Five Year Snapshot: Overview of Financial and Operational Performance Indicators ...........................................8
    2.2     Key Financial Performance Indicators ...................................................................................................................11
      2.2.1        Revenue and Operating Profit .......................................................................................................................11
      2.2.2        Asset, Liabilities and Capex ..........................................................................................................................12
      2.2.3        Net Debt vs. Gearing Ratio ............................................................................................................................13
      2.2.4        Operational Efficiency ....................................................................................................................................14
      2.2.5        Solvency ........................................................................................................................................................15
      2.2.6        Valuation ........................................................................................................................................................16
    2.3     Competitive Benchmarking ....................................................................................................................................17
      2.3.1        Market Capitalization .....................................................................................................................................17
      2.3.2        Efficiency .......................................................................................................................................................18
      2.3.3        Capital Expenditure .......................................................................................................................................19
      2.3.4        Valuation ........................................................................................................................................................20
      2.3.5        Turnover – Inventory and Asset ....................................................................................................................21
3     Mergers & Acquisitions and Partnerships ........................................................................................... 22
    3.1     M&A and Partnerships Strategy ............................................................................................................................22
4     Recent Developments ........................................................................................................................... 25
5     SWOT Analysis ...................................................................................................................................... 26
    5.1     SWOT Analysis - Overview ...................................................................................................................................26
    5.2     Strengths ..............................................................................................................................................
								
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