Operating Margin

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Price: 730.84 USD Market Closed

Market Cap: 32.5B USD

2.5%

Improving

by 0.6%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.5%

Operating Income

$620.4m

Revenue

$7.7B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.5%

Operating Income

$620.4m

Revenue

$7.7B

Peer Comparison

Country	Company	Market Cap	Operating Margin
IL	Elbit Systems Ltd TASE:ESLT	100.3B ILS	Loading...
US	Raytheon Technologies Corp NYSE:RTX	270.7B USD	Loading...
US	RTX Corp LSE:0R2N	271.4B USD	Loading...
NL	Airbus SE PAR:AIR	166.1B EUR	Loading...
US	Boeing Co NYSE:BA	188.2B USD	Loading...
FR	Safran SA PAR:SAF	133B EUR	Loading...
UK	Rolls-Royce Holdings PLC LSE:RR	107.1B GBP	Loading...
US	Lockheed Martin Corp NYSE:LMT	134B USD	Loading...
DE	Rheinmetall AG XETRA:RHM	88.1B EUR	Loading...
US	General Dynamics Corp NYSE:GD	99.3B USD	Loading...
US	Northrop Grumman Corp NYSE:NOC	95.2B USD	Loading...

Market Distribution

Min	-84 760%
30th Percentile	-5.8%
Median	4%
70th Percentile	10.9%
Max	23 869.1%

Other Profitability Ratios

Elbit Systems Ltd
Glance View

Economic Moat

None

Market Cap

32.5B USD

Industry

Aerospace & Defense

Elbit Systems Ltd., an Israeli juggernaut in the defense technology arena, has grown into a formidable player on the global stage by leveraging cutting-edge innovation and strategic diversification. Emerging from its roots in electronics, Elbit has deftly expanded its portfolio across various defense and technology sectors. This includes aerospace, land, and naval systems, as well as command and control technologies and cybersecurity solutions. The company harnesses its engineering prowess to deliver hi-tech instruments such as unmanned aerial vehicles (drones), advanced communication systems, and electronic warfare equipment. By aligning its offerings with the complex needs of modern militaries, Elbit has secured a robust stream of government contracts and partnerships worldwide, thereby carving out a vigorous revenue stream that fuels its growth and research endeavors. The business acumen of Elbit Systems extends beyond just selling products; it thrives on understanding and anticipating the shifting dynamics of defense and security requirements. The company has strategically positioned itself to serve both governmental and commercial clients, addressing multifaceted security demands. For instance, through its acquisition of other firms and relentless R&D investments, Elbit modernizes existing military platforms and integrates new state-of-the-art technologies into their designs. By maintaining this proactive stance, Elbit has cultivated lasting relationships with countries looking to bolster their defense capabilities. This knack for innovation and adaptation not only fortifies its bottom line but also ensures its status as an indispensable partner in defense strategies across numerous regions.

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What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Elbit Systems Ltd
NASDAQ:ESLT

Peer Comparison

Market Distribution

Other Profitability Ratios

Elbit Systems Ltd
Glance View

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Elbit Systems Ltd NASDAQ:ESLT