RADA ELECTRONIC INDS LTD (RADA)

IL0010826506 - Common Stock

9.87  -0.04 (-0.4%)

After market: 10 +0.13 (+1.32%)

Fundamental Rating

4

Overall RADA gets a fundamental rating of 4 out of 10. We evaluated RADA against 65 industry peers in the Aerospace & Defense industry. RADA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RADA is valued quite expensively, but it does show have an excellent growth rating.



2

1. Profitability

1.1 Basic Checks

In the past year RADA was profitable.
RADA had positive earnings in 4 of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: RADA reported negative operating cash flow in multiple years.

1.2 Ratios

Industry RankSector 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

In the last couple of years the Profit Margin of RADA has grown nicely.
RADA's Operating Margin has improved in the last couple of years.
Industry RankSector 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

6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RADA is destroying value.
RADA has more shares outstanding than it did 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

RADA has an Altman-Z score of 7.78. This indicates that RADA is financially healthy and has little risk of bankruptcy at the moment.
RADA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector 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 RankSector Rank
Current Ratio 5
Quick Ratio 2.88

7

3. Growth

3.1 Past

RADA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -69.23%.
Measured over the past years, RADA shows a very strong growth in Earnings Per Share. The EPS has been growing by 372.55% on average per year.
Looking at the last year, RADA shows a quite strong growth in Revenue. The Revenue has grown by 12.58% in the last year.
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 growth Q2Q-145%
Revenue 1Y (TTM)12.58%
Revenue growth 3Y61.12%
Revenue growth 5Y55.68%
Revenue growth 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
The Revenue is expected to grow by 19.12% on average over the next years. This is quite good.
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

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

1

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 82.25, the valuation of RADA can be described as expensive.
The average S&P500 Price/Earnings ratio is at 26.48. RADA is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 14.30, RADA is valued correctly.
When comparing the Price/Forward Earnings ratio of RADA to the average of the S&P500 Index (22.79), we can say RADA is valued slightly cheaper.
Industry RankSector Rank
PE 82.25
Fwd PE 14.3

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 35.99

4.3 Compensation for Growth

RADA's earnings are expected to grow with 22.45% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.49%
EPS Next 3Y22.45%

0

5. Dividend

5.1 Amount

RADA does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

RADA ELECTRONIC INDS LTD

NASDAQ:RADA (11/25/2022, 7:24:24 PM)

After market: 10 +0.13 (+1.32%)

9.87

-0.04 (-0.4%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap490.80M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 82.25
Fwd PE 14.3
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.94%
ROE 3.78%
ROCE
ROIC
ROICexc
ROICexgc
OM 7.71%
PM (TTM) 5.29%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.56
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 5
Quick Ratio 2.88
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-69.23%
EPS 3Y372.55%
EPS 5Y
EPS growth Q2Q
EPS Next Y-60.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.58%
Revenue growth 3Y61.12%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y