Has something materially changed in their operations?  He is not aware of any changes that could be resulting in the stock declining in value and it trades near all-time highs.  Business continues to look good and military defence spending will continue to grow.   The founding shareholder holds a lot of the stock.  Israeli defence spending continues at a high percentage of GDP.  One third of their revenues are in cyber-security.  

Israel’s largest publicly traded defence contractor, and primarily involved in electronics. About a 3^rd of sales is traditional military electronics, things like radars and software defined radios. About 1/3 sales are cyber, including cyber defence and offensive cyber weapons. Another 3^rd are in unmanned systems, primarily unmanned aerial systems, where they are the world’s largest producer with the broadest product line. The average age of the drone is 7-10 years old. If you include only the drones that are used by the militaries outside of the US, the average age is a bit older, so expects there will be an upgrade cycle. On the electronics side, electronics has grown at twice the rate of the defence budget growth. This company is well positioned in terms of the segments it serves.

Israel’s largest publicly traded defence contractor. It is divided into 3 segments. One third is being the largest drone producer globally with the broadest product line. The average drone is military and about 7 years old, and thinks they are going to get replaced. A second third is traditional defence electronics such as fire control systems. The final third is their cyber division which includes both offensive and defensive cyber which national security agents may need to deal with terrorist threats. Dividend yield of 1.3%. (Analysts’ price target is ILS 337.00.)