9.87 USD
-0.04 (-0.4%)
At close: Nov 25, 2022
10 USD
+0.13 (+1.32%)
After Hours: 11/25/2022, 8:24:24 PM
RADA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 72 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.
1. Profitability
1.1 Basic Checks
- RADA had positive earnings in the past year.
1.2 Ratios
| Industry Rank | Sector 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.
- In the last couple of years the Operating Margin of RADA has grown nicely.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RADA is destroying value.
- Compared to 1 year ago, RADA has more shares outstanding
- 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.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.78 |
ROIC/WACC0.46
WACC8.73%
2.3 Liquidity
- A Current Ratio of 5.00 indicates that RADA has no problem at all paying its short term obligations.
- A Quick Ratio of 2.88 indicates that RADA has no problem at all paying its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5 | ||
| Quick Ratio | 2.88 |
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.
- Looking at the last year, RADA shows a quite strong growth in Revenue. The Revenue has grown by 12.58% in the last year.
- 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.
- RADA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.12% yearly.
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
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
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 28.32, RADA is valued quite expensively.
- The Price/Forward Earnings ratio is 14.30, which indicates a correct valuation of RADA.
- RADA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 82.25 | ||
| Fwd PE | 14.3 |
4.2 Price Multiples
| Industry Rank | Sector 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%
5. Dividend
5.1 Amount
- RADA does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
RADA ELECTRONIC INDS LTD / RADA FAQ
What is the ChartMill fundamental rating of RADA ELECTRONIC INDS LTD (RADA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RADA.
What is the valuation status for RADA stock?
ChartMill assigns a valuation rating of 1 / 10 to RADA ELECTRONIC INDS LTD (RADA). This can be considered as Overvalued.
What is the profitability of RADA stock?
RADA ELECTRONIC INDS LTD (RADA) has a profitability rating of 4 / 10.
How financially healthy is RADA ELECTRONIC INDS LTD?
The financial health rating of RADA ELECTRONIC INDS LTD (RADA) is 9 / 10.
Can you provide the expected EPS growth for RADA stock?
The Earnings per Share (EPS) of RADA ELECTRONIC INDS LTD (RADA) is expected to decline by -60.22% in the next year.