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RADA ELECTRONIC INDS LTD (RADA) Stock Fundamental Analysis

NASDAQ:RADA - Nasdaq - IL0010826506 - Common Stock - Currency: USD

9.87  -0.04 (-0.4%)

After market: 10 +0.13 (+1.32%)

Fundamental Rating

4

RADA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 65 industry peers in the Aerospace & Defense industry. The financial health of RADA is average, but there are quite some concerns on its profitability. RADA is valued quite expensive, but it does show an excellent growth.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

RADA had positive earnings in the past year.
RADA Yearly Net Income VS EBIT VS OCF VS FCFRADA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 10M -10M 20M

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
RADA Yearly ROA, ROE, ROICRADA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 -20 -40 -60

1.3 Margins

In the last couple of years the Profit Margin of RADA has grown nicely.
In the last couple of years the Operating Margin of RADA has grown nicely.
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
RADA Yearly Profit, Operating, Gross MarginsRADA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 -20 40 -40

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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.
RADA Yearly Shares OutstandingRADA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 10M 20M 30M 40M
RADA Yearly Total Debt VS Total AssetsRADA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M

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.
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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 7.78
ROIC/WACC0.46
WACC8.73%
RADA Yearly LT Debt VS Equity VS FCFRADA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 50M 100M 150M

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.
RADA has a Quick Ratio of 2.88. This indicates that RADA is financially healthy and has no problem in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 5
Quick Ratio 2.88
RADA Yearly Current Assets VS Current LiabilitesRADA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M

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7

3. Growth

3.1 Past

The earnings per share for RADA have decreased strongly by -69.23% in the last year.
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.
RADA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.58%.
RADA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.68% yearly.
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

Based on estimates for the next years, RADA will show a very strong growth in Earnings Per Share. The EPS will grow by 59.64% on average per year.
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

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.
RADA Yearly Revenue VS EstimatesRADA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
RADA Yearly EPS VS EstimatesRADA Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 1 2 3 4 5

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 82.25, which means the current valuation is very expensive for RADA.
Compared to an average S&P500 Price/Earnings ratio of 27.30, RADA is valued quite expensively.
RADA is valuated correctly with a Price/Forward Earnings ratio of 14.30.
The average S&P500 Price/Forward Earnings ratio is at 21.76. RADA is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 82.25
Fwd PE 14.3
RADA Price Earnings VS Forward Price EarningsRADA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA 35.99
RADA Per share dataRADA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

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%

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0

5. Dividend

5.1 Amount

No dividends for RADA!.
Industry RankSector Rank
Dividend Yield N/A

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RADA ELECTRONIC INDS LTD

NASDAQ:RADA (11/25/2022, 8:24:24 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)08-17 2022-08-17/bmo
Earnings (Next)12-13 2022-12-13/bmo
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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