TAT TECHNOLOGIES LTD (TATT) Stock Fundamental Analysis
NASDAQ:TATT - Nasdaq - IL0010827264 - Common Stock - Currency: USD
Overall TATT gets a fundamental rating of 4 out of 10. We evaluated TATT against 65 industry peers in the Aerospace & Defense industry. The financial health of TATT is average, but there are quite some concerns on its profitability. TATT is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
TATT had positive earnings in the past year.
TATT had a negative 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
TATT's Return On Assets of 5.06% is in line compared to the rest of the industry. TATT outperforms 58.73% of its industry peers.
TATT's Return On Equity of 7.36% is in line compared to the rest of the industry. TATT outperforms 53.97% of its industry peers.
TATT has a better Return On Invested Capital (7.19%) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 7.36% | ||
| ROIC | 7.19% |
ROA(3y)-0.43%
ROA(5y)-1.03%
ROE(3y)-0.55%
ROE(5y)-1.46%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of TATT (5.58%) is comparable to the rest of the industry.
TATT has a Operating Margin (7.15%) which is in line with its industry peers.
TATT's Gross Margin of 21.34% is in line compared to the rest of the industry. TATT outperforms 42.86% of its industry peers.
TATT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.15% | ||
| PM (TTM) | 5.58% | ||
| GM | 21.34% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y21.02%
GM growth 5Y16.99%
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.
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.
TATT has a better debt/assets ratio than last year.
2.2 Solvency
TATT has an Altman-Z score of 5.33. This indicates that TATT is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.33, TATT is doing good in the industry, outperforming 73.02% of the companies in the same industry.
TATT has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
TATT has a Debt to Equity ratio of 0.13. This is amongst the best in the industry. TATT outperforms 82.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.33 |
ROIC/WACC0.82
WACC8.73%
2.3 Liquidity
A Current Ratio of 3.04 indicates that TATT has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.04, TATT is doing good in the industry, outperforming 69.84% of the companies in the same industry.
TATT has a Quick Ratio of 1.29. This is a normal value and indicates that TATT is financially healthy and should not expect problems in meeting its short term obligations.
TATT has a Quick ratio of 1.29. This is comparable to the rest of the industry: TATT outperforms 52.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.67% over the past year.
The Revenue has grown by 36.35% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 5.35% on average over the past years.
EPS 1Y (TTM)44.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%8.33%
Revenue 1Y (TTM)36.35%
Revenue growth 3Y14.71%
Revenue growth 5Y5.35%
Sales Q2Q%35.14%
3.2 Future
Based on estimates for the next years, TATT will show a very strong growth in Earnings Per Share. The EPS will grow by 54.91% on average per year.
Based on estimates for the next years, TATT will show a very strong growth in Revenue. The Revenue will grow by 23.44% on average per year.
EPS Next Y106.26%
EPS Next 2Y54.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year33.56%
Revenue Next 2Y23.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.76, the valuation of TATT can be described as expensive.
63.49% of the companies in the same industry are more expensive than TATT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.62. TATT is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 21.73, TATT is valued on the expensive side.
76.19% of the companies in the same industry are more expensive than TATT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, TATT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.76 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TATT indicates a somewhat cheap valuation: TATT is cheaper than 65.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.87 |
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's earnings are expected to grow with 54.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)N/A
EPS Next 2Y54.91%
EPS Next 3YN/A
5. Dividend
5.1 Amount
TATT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:TATT (2/24/2025, 3:04:55 PM)
26.82
+0.79 (+3.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners25.85%
Inst Owner Change-99.99%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap293.41M
Analysts0
Price TargetN/A
Short Float %0.29%
Short Ratio0.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.76 | ||
| Fwd PE | 21.73 | ||
| P/S | 2.05 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.7 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 17.87 |
EPS(TTM)0.75
EY2.8%
EPS(NY)1.23
Fwd EY4.6%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)-0.28
OCFYN/A
SpS13.06
BVpS9.92
TBVpS9.77
PEG (NY)0.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.06% | ||
| ROE | 7.36% | ||
| ROCE | 8.36% | ||
| ROIC | 7.19% | ||
| ROICexc | 7.72% | ||
| ROICexgc | 7.83% | ||
| OM | 7.15% | ||
| PM (TTM) | 5.58% | ||
| GM | 21.34% | ||
| FCFM | N/A |
ROA(3y)-0.43%
ROA(5y)-1.03%
ROE(3y)-0.55%
ROE(5y)-1.46%
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 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y21.02%
GM growth 5Y16.99%
F-Score6
Asset Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.86 | ||
| Cap/Depr | 102.67% | ||
| Cap/Sales | 4.3% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.04 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 5.33 |
F-Score6
WACC8.73%
ROIC/WACC0.82
Cap/Depr(3y)299.89%
Cap/Depr(5y)221.77%
Cap/Sales(3y)15.2%
Cap/Sales(5y)11.23%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%8.33%
EPS Next Y106.26%
EPS Next 2Y54.91%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)36.35%
Revenue growth 3Y14.71%
Revenue growth 5Y5.35%
Sales Q2Q%35.14%
Revenue Next Year33.56%
Revenue Next 2Y23.44%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y88.31%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year203.9%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y59.59%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.54%
OCF growth 3Y-28.23%
OCF growth 5Y1.63%