TAT TECHNOLOGIES LTD (TATT) Stock Fundamental Analysis
NASDAQ:TATT - IL0010827264 - Common Stock
33.82 USD
-0.81 (-2.34%)
33.82 USD
0 (0%)
Taking everything into account, TATT scores 6 out of 10 in our fundamental rating. TATT was compared to 69 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of TATT get a neutral evaluation. Nothing too spectacular is happening here. TATT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes TATT very considerable for growth investing!
1. Profitability
1.1 Basic Checks
TATT had positive earnings in the past year.
TATT had a positive 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 has a better Return On Assets (6.41%) than 76.81% of its industry peers.
Looking at the Return On Equity, with a value of 8.26%, TATT is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.11%, TATT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 8.26% | ||
| ROIC | 7.11% |
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 better Profit Margin (8.21%) than 73.91% of its industry peers.
TATT's Profit Margin has improved in the last couple of years.
The Operating Margin of TATT (9.69%) is better than 62.32% of its industry peers.
In the last couple of years the Operating Margin of TATT has grown nicely.
TATT has a Gross Margin of 23.23%. This is comparable to the rest of the industry: TATT outperforms 43.48% of its industry peers.
In the last couple of years the Gross Margin of TATT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 8.21% | ||
| GM | 23.23% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TATT is destroying value.
The number of shares outstanding for TATT has been increased compared to 1 year ago.
The number of shares outstanding for TATT has been increased compared to 5 years ago.
The debt/assets ratio for TATT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.54 indicates that TATT is not in any danger for bankruptcy at the moment.
TATT's Altman-Z score of 7.54 is fine compared to the rest of the industry. TATT outperforms 78.26% of its industry peers.
TATT has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, TATT is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.54 |
ROIC/WACC0.82
WACC8.63%
2.3 Liquidity
A Current Ratio of 4.67 indicates that TATT has no problem at all paying its short term obligations.
The Current ratio of TATT (4.67) is better than 92.75% of its industry peers.
TATT has a Quick Ratio of 2.42. This indicates that TATT is financially healthy and has no problem in meeting its short term obligations.
TATT has a better Quick ratio (2.42) than 75.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.67 | ||
| Quick Ratio | 2.42 |
3. Growth
3.1 Past
TATT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.63%, which is quite impressive.
Measured over the past years, TATT shows a very strong growth in Earnings Per Share. The EPS has been growing by 65.58% on average per year.
The Revenue has grown by 25.95% in the past year. This is a very strong growth!
TATT shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.30% yearly.
EPS 1Y (TTM)65.63%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%19.05%
Revenue 1Y (TTM)25.95%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%18.01%
3.2 Future
TATT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.57% yearly.
Based on estimates for the next years, TATT will show a quite strong growth in Revenue. The Revenue will grow by 18.80% on average per year.
EPS Next Y34.62%
EPS Next 2Y39.37%
EPS Next 3Y24.36%
EPS Next 5Y24.57%
Revenue Next Year19.29%
Revenue Next 2Y21.43%
Revenue Next 3Y18.8%
Revenue Next 5YN/A
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 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
The Price/Earnings ratio is 27.50, which means the current valuation is very expensive for TATT.
75.36% 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 27.06. TATT is around the same levels.
Based on the Price/Forward Earnings ratio of 16.41, the valuation of TATT can be described as correct.
Based on the Price/Forward Earnings ratio, TATT is valued cheaper than 88.41% of the companies in the same industry.
TATT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
TATT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TATT is cheaper than 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.5 |
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.
The decent profitability rating of TATT may justify a higher PE ratio.
A more expensive valuation may be justified as TATT's earnings are expected to grow with 24.36% in the coming years.
PEG (NY)0.79
PEG (5Y)0.42
EPS Next 2Y39.37%
EPS Next 3Y24.36%
5. Dividend
5.1 Amount
No dividends for TATT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
33.82
-0.81 (-2.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners33.41%
Inst Owner Change118.37%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap436.28M
Analysts82
Price Target38.51 (13.87%)
Short Float %1.43%
Short Ratio0.97
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)10.6%
Min EPS beat(2)10.08%
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)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-3.62%
Max Revenue beat(2)-0.92%
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)6.34%
PT rev (3m)7.86%
EPS NQ rev (1m)15.76%
EPS NQ rev (3m)N/A
EPS NY rev (1m)7.9%
EPS NY rev (3m)6.87%
Revenue NQ rev (1m)-1.57%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-2.58%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.5 | ||
| Fwd PE | 16.41 | ||
| P/S | 2.62 | ||
| P/FCF | N/A | ||
| P/OCF | 116.56 | ||
| P/B | 2.63 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 19.5 |
EPS(TTM)1.23
EY3.64%
EPS(NY)2.06
Fwd EY6.09%
FCF(TTM)-0.43
FCFYN/A
OCF(TTM)0.29
OCFY0.86%
SpS12.93
BVpS12.85
TBVpS12.73
PEG (NY)0.79
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | 8.26% | ||
| ROCE | 8.99% | ||
| ROIC | 7.11% | ||
| ROICexc | 9.35% | ||
| ROICexgc | 9.46% | ||
| OM | 9.69% | ||
| PM (TTM) | 8.21% | ||
| GM | 23.23% | ||
| 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 Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 180.63% | ||
| Cap/Sales | 5.59% | ||
| Interest Coverage | 15.19 | ||
| Cash Conversion | 17.55% | ||
| Profit Quality | N/A | ||
| Current Ratio | 4.67 | ||
| Quick Ratio | 2.42 | ||
| Altman-Z | 7.54 |
F-Score6
WACC8.63%
ROIC/WACC0.82
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)65.63%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%19.05%
EPS Next Y34.62%
EPS Next 2Y39.37%
EPS Next 3Y24.36%
EPS Next 5Y24.57%
Revenue 1Y (TTM)25.95%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%18.01%
Revenue Next Year19.29%
Revenue Next 2Y21.43%
Revenue Next 3Y18.8%
Revenue Next 5YN/A
EBIT growth 1Y89.31%
EBIT growth 3YN/A
EBIT growth 5Y36.9%
EBIT Next Year109.25%
EBIT Next 3Y48.18%
EBIT Next 5YN/A
FCF growth 1Y-4.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-34.56%
OCF growth 3YN/A
OCF growth 5YN/A