ESLT

On the numbers, Elbit is a structurally strong, accelerating business. Revenue reached $7.94B (+16.3% YoY), the top of a steady FY21→FY25 ramp ($5.28B→$7.94B), and the operating line is leveraging hard: operating income +37.3% to $671M, diluted EPS +58.6% to $11.39, and net income +66.4% to $534M. Cash backs the earnings — operating cash flow of $778M (+45.6%) comfortably covers $226M capex and a growing dividend. The balance sheet is pristine: total debt of roughly $101M ($18.0M long-term + $83.5M current) against $635M cash (+139.4%) leaves the company effectively net-cash, with equity up 26% to $4.13B. This is a genuine grower riding the global/European rearmament cycle, funding $600M of R&D from internal cash.

The catch is price. At $788 the stock trades 69.2x trailing EPS and 4.6x sales on a 6.7% net margin and 12.9% ROE — solid returns, but not the kind that obviously underwrite a near-70x multiple. Much of the valuation rests on this year's exceptional +58.6% EPS jump continuing, yet that surge was operating leverage on +16.3% revenue, not a repeatable run-rate; normalize growth toward the mid-teens and the multiple looks rich. Shares outstanding also rose 4.3%, a modest dilution drag on per-share compounding.