TAT TECHNOLOGIES LTD (TATT) Stock Fundamental Analysis
NASDAQ:TATT - Nasdaq - IL0010827264 - Common Stock - Currency: USD
Taking everything into account, TATT scores 6 out of 10 in our fundamental rating. TATT was compared to 65 industry peers in the Aerospace & Defense industry. TATT has only an average score on both its financial health and profitability. TATT is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make TATT a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year TATT was profitable.
TATT had a negative operating cash flow in the past year.
In multiple years TATT reported negative net income over the last 5 years.
In multiple years TATT reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of TATT (7.53%) is better than 81.54% of its industry peers.
Looking at the Return On Equity, with a value of 11.04%, TATT is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.17%, TATT is doing good in the industry, outperforming 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 11.04% | ||
| ROIC | 8.17% |
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
TATT has a Profit Margin of 8.04%. This is in the better half of the industry: TATT outperforms 72.31% of its industry peers.
TATT's Profit Margin has improved in the last couple of years.
TATT has a Operating Margin of 9.03%. This is in the better half of the industry: TATT outperforms 61.54% of its industry peers.
TATT's Operating Margin has improved in the last couple of years.
The Gross Margin of TATT (22.41%) is comparable to the rest of the industry.
TATT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | 8.04% | ||
| GM | 22.41% |
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
TATT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TATT has more shares outstanding
TATT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for TATT has been reduced compared to a year ago.
2.2 Solvency
TATT has an Altman-Z score of 5.65. This indicates that TATT is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.65, TATT is in the better half of the industry, outperforming 67.69% of the companies in the same industry.
TATT has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
TATT has a better Debt to Equity ratio (0.18) than 75.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.65 |
ROIC/WACC0.91
WACC8.95%
2.3 Liquidity
TATT has a Current Ratio of 2.87. This indicates that TATT is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.87, TATT is doing good in the industry, outperforming 64.62% of the companies in the same industry.
TATT has a Quick Ratio of 1.12. This is a normal value and indicates that TATT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.12, TATT is doing worse than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
TATT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.98%, which is quite impressive.
TATT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.58% yearly.
Looking at the last year, TATT shows a very strong growth in Revenue. The Revenue has grown by 30.58%.
The Revenue has been growing by 9.30% on average over the past years. This is quite good.
EPS 1Y (TTM)80.98%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%70.14%
Revenue 1Y (TTM)30.58%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%23.63%
3.2 Future
The Earnings Per Share is expected to grow by 24.57% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 18.72% on average over the next years. This is quite good.
EPS Next Y25.96%
EPS Next 2Y22.47%
EPS Next 3Y30.29%
EPS Next 5Y24.57%
Revenue Next Year18.65%
Revenue Next 2Y14.57%
Revenue Next 3Y18.72%
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
Based on the Price/Earnings ratio of 25.71, the valuation of TATT can be described as expensive.
Based on the Price/Earnings ratio, TATT is valued a bit cheaper than 76.92% of the companies in the same industry.
TATT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
TATT is valuated rather expensively with a Price/Forward Earnings ratio of 18.74.
Based on the Price/Forward Earnings ratio, TATT is valued cheaply inside the industry as 83.08% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.76. TATT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
69.23% 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 | 17.02 |
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 30.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)0.39
EPS Next 2Y22.47%
EPS Next 3Y30.29%
5. Dividend
5.1 Amount
TATT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.82
-0.39 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners25.76%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap326.23M
Analysts82.22
Price Target36.72 (23.14%)
Short Float %1.24%
Short Ratio0.42
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)7.96%
Min EPS beat(2)4.8%
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)1
Avg Revenue beat(2)2.49%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)5.89%
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)2.86%
PT rev (3m)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)8.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 18.74 | ||
| P/S | 2.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.8 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 17.02 |
EPS(TTM)1.16
EY3.89%
EPS(NY)1.59
Fwd EY5.34%
FCF(TTM)-1.31
FCFYN/A
OCF(TTM)-0.67
OCFYN/A
SpS14.64
BVpS10.65
TBVpS10.5
PEG (NY)0.99
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 11.04% | ||
| ROCE | 11.2% | ||
| ROIC | 8.17% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 8.58% | ||
| OM | 9.03% | ||
| PM (TTM) | 8.04% | ||
| GM | 22.41% | ||
| 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 Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 129.95% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 5.65 |
F-Score6
WACC8.95%
ROIC/WACC0.91
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)80.98%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%70.14%
EPS Next Y25.96%
EPS Next 2Y22.47%
EPS Next 3Y30.29%
EPS Next 5Y24.57%
Revenue 1Y (TTM)30.58%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%23.63%
Revenue Next Year18.65%
Revenue Next 2Y14.57%
Revenue Next 3Y18.72%
Revenue Next 5YN/A
EBIT growth 1Y97.19%
EBIT growth 3YN/A
EBIT growth 5Y36.9%
EBIT Next Year96.61%
EBIT Next 3Y48.39%
EBIT Next 5YN/A
FCF growth 1Y-10.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1259.68%
OCF growth 3YN/A
OCF growth 5YN/A