Israel-based Rafael Advanced Defense Systems Ltd. (Rafael) is a 100% state-owned company that develops and produces weapons systems. Approximately 50% of Rafael's revenues are attributed to the Israeli Ministry of Defense, and the remainder from exports to defense forces globally. Rafael favors high-tech development capabilities, with some of its defense systems being strategically critical to the State of Israel and some of its products technologically superior to those of peers. However, Rafael's access to global markets is somewhat constrained by limitations on business relations with certain countries, preference for local manufacturers, and Israeli security concerns. The financial risk profile is supported by very low leverage, solid cash flow generation, and strong liquidity. Due to good visibility of cash flows deriving
