RADA ELECTRONIC INDS LTD (RADA) Stock Fundamental Analysis
NASDAQ:RADA - Nasdaq - IL0010826506 - Common Stock - Currency: USD
RADA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. While RADA seems to be doing ok healthwise, there are quite some concerns on its profitability. RADA shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
RADA had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 3.78% | ||
| ROIC | 4.01% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RADA's Profit Margin has improved in the last couple of years.
In the last couple of years the Operating Margin of RADA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.71% | ||
| PM (TTM) | 5.29% | ||
| GM | N/A |
OM growth 3Y212.2%
OM growth 5YN/A
PM growth 3Y234.62%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RADA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for RADA has been increased compared to 1 year ago.
There is no outstanding debt for RADA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 7.78 indicates that RADA is not in any danger for bankruptcy at the moment.
There is no outstanding debt for RADA. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.78 |
ROIC/WACC0.46
WACC8.73%
2.3 Liquidity
RADA has a Current Ratio of 5.00. This indicates that RADA is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.88 indicates that RADA has no problem at all paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
The earnings per share for RADA have decreased strongly by -69.23% in the last year.
The Earnings Per Share has been growing by 372.55% on average over the past years. This is a very strong growth
The Revenue has grown by 12.58% in the past year. This is quite good.
Measured over the past years, RADA shows a very strong growth in Revenue. The Revenue has been growing by 55.68% on average per year.
EPS 1Y (TTM)-69.23%
EPS 3Y372.55%
EPS 5YN/A
EPS Q2Q%-145%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y61.12%
Revenue growth 5Y55.68%
Sales Q2Q%-18.38%
3.2 Future
The Earnings Per Share is expected to grow by 59.64% on average over the next years. This is a very strong growth
Based on estimates for the next years, RADA will show a quite strong growth in Revenue. The Revenue will grow by 19.12% on average per year.
EPS Next Y-60.22%
EPS Next 2Y17.49%
EPS Next 3Y22.45%
EPS Next 5Y59.64%
Revenue Next Year-2.12%
Revenue Next 2Y18.73%
Revenue Next 3Y20.18%
Revenue Next 5Y19.12%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
RADA is valuated quite expensively with a Price/Earnings ratio of 82.25.
When comparing the Price/Earnings ratio of RADA to the average of the S&P500 Index (29.62), we can say RADA is valued expensively.
Based on the Price/Forward Earnings ratio of 14.30, the valuation of RADA can be described as correct.
The average S&P500 Price/Forward Earnings ratio is at 22.70. RADA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.25 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 35.99 |
4.3 Compensation for Growth
A more expensive valuation may be justified as RADA's earnings are expected to grow with 22.45% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.49%
EPS Next 3Y22.45%
5. Dividend
5.1 Amount
RADA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
9.87
-0.04 (-0.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change-99.62%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap490.80M
Analysts85
Price Target14.28 (44.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-174.76%
Min EPS beat(2)-241.18%
Max EPS beat(2)-108.34%
EPS beat(4)1
Avg EPS beat(4)-89.36%
Min EPS beat(4)-241.18%
Max EPS beat(4)12.04%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-25.36%
Min Revenue beat(2)-28.33%
Max Revenue beat(2)-22.38%
Revenue beat(4)0
Avg Revenue beat(4)-13.98%
Min Revenue beat(4)-28.33%
Max Revenue beat(4)-1.47%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-7.89%
PT rev (3m)N/A
EPS NQ rev (1m)-42.31%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)5.12%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.25 | ||
| Fwd PE | 14.3 | ||
| P/S | 4.49 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 3.21 | ||
| P/tB | 3.21 | ||
| EV/EBITDA | 35.99 |
EPS(TTM)0.12
EY1.22%
EPS(NY)0.69
Fwd EY6.99%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS2.2
BVpS3.07
TBVpS3.07
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.94% | ||
| ROE | 3.78% | ||
| ROCE | N/A | ||
| ROIC | 4.01% | ||
| ROICexc | 6.04% | ||
| ROICexgc | 6.04% | ||
| OM | 7.71% | ||
| PM (TTM) | 5.29% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y216.41%
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y212.2%
OM growth 5YN/A
PM growth 3Y234.62%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 5 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z | 7.78 |
F-Score4
WACC8.73%
ROIC/WACC0.46
Cap/Depr(3y)252.56%
Cap/Depr(5y)237.41%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-69.23%
EPS 3Y372.55%
EPS 5YN/A
EPS Q2Q%-145%
EPS Next Y-60.22%
EPS Next 2Y17.49%
EPS Next 3Y22.45%
EPS Next 5Y59.64%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y61.12%
Revenue growth 5Y55.68%
Sales Q2Q%-18.38%
Revenue Next Year-2.12%
Revenue Next 2Y18.73%
Revenue Next 3Y20.18%
Revenue Next 5Y19.12%
EBIT growth 1Y-34.52%
EBIT growth 3Y403.01%
EBIT growth 5YN/A
EBIT Next Year-6.8%
EBIT Next 3Y39.06%
EBIT Next 5Y39.77%
FCF growth 1Y-685.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-220.8%
OCF growth 3YN/A
OCF growth 5YN/A