...Key Strengths Key Risks + Advanced technological capabilities with systems that have a clear technological advantage over competitors. + High importance to the Israeli Ministry of Defense in light of the geopolitical instability in the area. + Low leverage as reflected in adjusted debt to EBITDA below 2x and FFO to debt above 45%. + Potential government support due to the importance of Rafael's systems to the Israeli state + Limited size and global access compared with its international peers due to limitations on business relations with certain countries. + Profit margins are lower compared to peers due to lower operating margins in contracts with the Israeli Ministry of Defense, which accounts for about 50% of backlog. + Gradual reduction in the U.S. aid budget designated for defense acquisitions in Israel in local currency in the next 10 years, which will force Rafael to develop activities in the U.S. through M&A and moving production activities to U.S. land....
