TAT TECHNOLOGIES LTD (TATT) Stock Fundamental Analysis
NASDAQ:TATT - Nasdaq - IL0010827264 - Common Stock - Currency: USD
Overall TATT gets a fundamental rating of 6 out of 10. We evaluated TATT against 65 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes TATT very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year TATT was profitable.
In the past year TATT has reported a negative cash flow from operations.
The reported net income has been mixed in the past 5 years: TATT reported negative net income in multiple years.
In multiple years TATT reported negative operating cash flow during the last 5 years.
1.2 Ratios
TATT has a better Return On Assets (7.53%) than 81.54% of its industry peers.
TATT has a Return On Equity of 11.04%. This is in the better half of the industry: TATT outperforms 69.23% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.17%, TATT is in the better half of the industry, outperforming 70.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 11.04% | ||
| ROIC | 8.17% |
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's Profit Margin of 8.04% is fine compared to the rest of the industry. TATT outperforms 72.31% of its industry peers.
TATT's Profit Margin has improved in the last couple of years.
TATT's Operating Margin of 9.03% is fine compared to the rest of the industry. TATT outperforms 61.54% of its industry peers.
In the last couple of years the Operating Margin of TATT has grown nicely.
Looking at the Gross Margin, with a value of 22.41%, TATT is in line with its industry, outperforming 41.54% of the companies in the same industry.
In the last couple of years the Gross Margin of TATT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.03% | ||
| PM (TTM) | 8.04% | ||
| GM | 22.41% |
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
TATT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, TATT has more shares outstanding
TATT has more shares outstanding than it did 5 years ago.
TATT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.65 indicates that TATT is not in any danger for bankruptcy at the moment.
TATT has a Altman-Z score of 5.65. This is in the better half of the industry: TATT outperforms 67.69% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that TATT is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, TATT is doing good in the industry, outperforming 75.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 5.65 |
ROIC/WACC0.91
WACC8.95%
2.3 Liquidity
TATT has a Current Ratio of 2.87. This indicates that TATT is financially healthy and has no problem in meeting its short term obligations.
TATT has a Current ratio of 2.87. This is in the better half of the industry: TATT outperforms 64.62% of its industry peers.
A Quick Ratio of 1.12 indicates that TATT should not have too much problems paying its short term obligations.
The Quick ratio of TATT (1.12) is worse than 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 80.98% over the past year.
TATT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 65.58% yearly.
Looking at the last year, TATT shows a very strong growth in Revenue. The Revenue has grown by 30.58%.
Measured over the past years, TATT shows a quite strong growth in Revenue. The Revenue has been growing by 9.30% on average per year.
EPS 1Y (TTM)80.98%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%70.14%
Revenue 1Y (TTM)30.58%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%23.63%
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.
TATT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.72% yearly.
EPS Next Y25.96%
EPS Next 2Y22.47%
EPS Next 3Y30.29%
EPS Next 5Y24.57%
Revenue Next Year18.65%
Revenue Next 2Y14.57%
Revenue Next 3Y18.72%
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.
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
The Price/Earnings ratio is 25.71, which means the current valuation is very expensive for TATT.
Compared to the rest of the industry, the Price/Earnings ratio of TATT indicates a somewhat cheap valuation: TATT is cheaper than 76.92% of the companies listed in the same industry.
TATT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.74, TATT is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of TATT indicates a rather cheap valuation: TATT is cheaper than 83.08% of the companies listed in the same industry.
TATT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
TATT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TATT is cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.02 |
4.3 Compensation for Growth
TATT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
TATT has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as TATT's earnings are expected to grow with 30.29% in the coming years.
PEG (NY)0.99
PEG (5Y)0.39
EPS Next 2Y22.47%
EPS Next 3Y30.29%
5. Dividend
5.1 Amount
TATT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
29.82
-0.39 (-1.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners25.76%
Inst Owner Change0%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap381.99M
Analysts82.22
Price Target36.72 (23.14%)
Short Float %1.24%
Short Ratio0.42
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)7.96%
Min EPS beat(2)4.8%
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)1
Avg Revenue beat(2)2.49%
Min Revenue beat(2)-0.92%
Max Revenue beat(2)5.89%
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)2.86%
PT rev (3m)20%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)8.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.71 | ||
| Fwd PE | 18.74 | ||
| P/S | 2.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.8 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 17.02 |
EPS(TTM)1.16
EY3.89%
EPS(NY)1.59
Fwd EY5.34%
FCF(TTM)-1.31
FCFYN/A
OCF(TTM)-0.67
OCFYN/A
SpS14.64
BVpS10.65
TBVpS10.5
PEG (NY)0.99
PEG (5Y)0.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.53% | ||
| ROE | 11.04% | ||
| ROCE | 11.2% | ||
| ROIC | 8.17% | ||
| ROICexc | 8.47% | ||
| ROICexgc | 8.58% | ||
| OM | 9.03% | ||
| PM (TTM) | 8.04% | ||
| GM | 22.41% | ||
| 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 Turnover0.94
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.06 | ||
| Cap/Depr | 129.95% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.87 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 5.65 |
F-Score6
WACC8.95%
ROIC/WACC0.91
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)80.98%
EPS 3YN/A
EPS 5Y65.58%
EPS Q2Q%70.14%
EPS Next Y25.96%
EPS Next 2Y22.47%
EPS Next 3Y30.29%
EPS Next 5Y24.57%
Revenue 1Y (TTM)30.58%
Revenue growth 3Y24.94%
Revenue growth 5Y9.3%
Sales Q2Q%23.63%
Revenue Next Year18.65%
Revenue Next 2Y14.57%
Revenue Next 3Y18.72%
Revenue Next 5YN/A
EBIT growth 1Y97.19%
EBIT growth 3YN/A
EBIT growth 5Y36.9%
EBIT Next Year96.61%
EBIT Next 3Y48.39%
EBIT Next 5YN/A
FCF growth 1Y-10.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-1259.68%
OCF growth 3YN/A
OCF growth 5YN/A