TAT TECHNOLOGIES LTD (TATT) Stock Fundamental Analysis
USA - NASDAQ:TATT - IL0010827264 - Common Stock
40.41 USD
-1.79 (-4.24%)
40 USD
-0.41 (-1.01%)
We assign a fundamental rating of 6 out of 10 to TATT. TATT was compared to 69 industry peers in the Aerospace & Defense industry. TATT has an average financial health and profitability rating. TATT is growing strongly while it is still valued neutral. This is a good combination! These ratings would make TATT suitable for growth investing!
1. Profitability
1.1 Basic Checks
TATT had positive earnings in the past year.
TATT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: TATT reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: TATT reported negative operating cash flow in multiple years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.41%, TATT is in the better half of the industry, outperforming 76.81% of the companies in the same industry.
With a decent Return On Equity value of 8.26%, TATT is doing good in the industry, outperforming 60.87% of the companies in the same industry.
TATT has a Return On Invested Capital of 7.11%. This is in the better half of the industry: TATT outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 8.26% | ||
| ROIC | 7.11% |
ROA(3y)2.93%
ROA(5y)0.19%
ROE(3y)4.34%
ROE(5y)0.34%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.21%, TATT is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
TATT's Profit Margin has improved in the last couple of years.
TATT has a better Operating Margin (9.69%) than 60.87% of its industry peers.
TATT's Operating Margin has improved in the last couple of years.
TATT has a Gross Margin (23.23%) which is in line with its industry peers.
TATT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 8.21% | ||
| GM | 23.23% |
OM growth 3YN/A
OM growth 5Y25.25%
PM growth 3YN/A
PM growth 5Y55%
GM growth 3Y14.42%
GM growth 5Y6.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TATT is destroying value.
TATT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for TATT has been increased compared to 5 years ago.
Compared to 1 year ago, TATT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.79 indicates that TATT is not in any danger for bankruptcy at the moment.
TATT's Altman-Z score of 8.79 is fine compared to the rest of the industry. TATT outperforms 76.81% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that TATT is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.06, TATT belongs to the best of the industry, outperforming 81.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 8.79 |
ROIC/WACC0.82
WACC8.65%
2.3 Liquidity
TATT has a Current Ratio of 4.67. This indicates that TATT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.67, TATT belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
TATT has a Quick Ratio of 2.42. This indicates that TATT is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of TATT (2.42) is better than 78.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.67 | ||
| Quick Ratio | 2.42 |
3. Growth
3.1 Past
TATT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.63%, which is quite impressive.
Measured over the past years, TATT shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.58% on average per year.
Looking at the last year, TATT shows a very strong growth in Revenue. The Revenue has grown by 25.95%.
Measured over the past years, TATT shows a quite strong growth in Revenue. The Revenue has been growing by 9.30% on average per year.
EPS 1Y (TTM)65.63%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%19.05%
Revenue 1Y (TTM)25.95%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%18.01%
3.2 Future
TATT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.57% yearly.
TATT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.21% yearly.
EPS Next Y36.54%
EPS Next 2Y36.6%
EPS Next 3Y25.28%
EPS Next 5Y24.57%
Revenue Next Year19.9%
Revenue Next 2Y20.57%
Revenue Next 3Y18.21%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
TATT is valuated quite expensively with a Price/Earnings ratio of 32.85.
69.57% of the companies in the same industry are more expensive than TATT, based on the Price/Earnings ratio.
TATT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.31.
With a Price/Forward Earnings ratio of 20.42, TATT is valued on the expensive side.
Based on the Price/Forward Earnings ratio, TATT is valued a bit cheaper than 78.26% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.85, TATT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 20.42 |
4.2 Price Multiples
62.32% of the companies in the same industry are more expensive than TATT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.18 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TATT has a very decent profitability rating, which may justify a higher PE ratio.
TATT's earnings are expected to grow with 25.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.9
PEG (5Y)0.5
EPS Next 2Y36.6%
EPS Next 3Y25.28%
5. Dividend
5.1 Amount
No dividends for TATT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
40.41
-1.79 (-4.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners57.97%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap523.31M
Analysts84
Price Target40.55 (0.35%)
Short Float %2.71%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.6%
Min EPS beat(2)10.08%
Max EPS beat(2)11.11%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-2.27%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-0.92%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)5.3%
PT rev (3m)10.42%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)10.96%
EPS NY rev (1m)1.43%
EPS NY rev (3m)8.4%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.85 | ||
| Fwd PE | 20.42 | ||
| P/S | 3.14 | ||
| P/FCF | N/A | ||
| P/OCF | 139.81 | ||
| P/B | 3.16 | ||
| P/tB | 3.19 | ||
| EV/EBITDA | 24.18 |
EPS(TTM)1.23
EY3.04%
EPS(NY)1.98
Fwd EY4.9%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)0.29
OCFY0.72%
SpS12.88
BVpS12.8
TBVpS12.68
PEG (NY)0.9
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 8.26% | ||
| ROCE | 8.99% | ||
| ROIC | 7.11% | ||
| ROICexc | 9.35% | ||
| ROICexgc | 9.46% | ||
| OM | 9.69% | ||
| PM (TTM) | 8.21% | ||
| GM | 23.23% | ||
| FCFM | N/A |
ROA(3y)2.93%
ROA(5y)0.19%
ROE(3y)4.34%
ROE(5y)0.34%
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 3YN/A
ROICexcg growth 5Y25.15%
ROICexc growth 3YN/A
ROICexc growth 5Y25.09%
OM growth 3YN/A
OM growth 5Y25.25%
PM growth 3YN/A
PM growth 5Y55%
GM growth 3Y14.42%
GM growth 5Y6.7%
F-Score6
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 180.63% | ||
| Cap/Sales | 5.59% | ||
| Interest Coverage | 15.19 | ||
| Cash Conversion | 17.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.67 | ||
| Quick Ratio | 2.42 | ||
| Altman-Z | 8.79 |
F-Score6
WACC8.65%
ROIC/WACC0.82
Cap/Depr(3y)216.46%
Cap/Depr(5y)225.32%
Cap/Sales(3y)9.15%
Cap/Sales(5y)11.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)65.63%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%19.05%
EPS Next Y36.54%
EPS Next 2Y36.6%
EPS Next 3Y25.28%
EPS Next 5Y24.57%
Revenue 1Y (TTM)25.95%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%18.01%
Revenue Next Year19.9%
Revenue Next 2Y20.57%
Revenue Next 3Y18.21%
Revenue Next 5YN/A
EBIT growth 1Y89.31%
EBIT growth 3YN/A
EBIT growth 5Y36.9%
EBIT Next Year116.14%
EBIT Next 3Y48.43%
EBIT Next 5YN/A
FCF growth 1Y-4.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.56%
OCF growth 3YN/A
OCF growth 5YN/A