TAT Technologies Ltd.
TAT Technologies Ltd. Fundamental Analysis
TAT Technologies Ltd. (TATT) shows moderate financial fundamentals with a PE ratio of 44.04, profit margin of 9.08%, and ROE of 11.10%. The company generates $0.2B in annual revenue with strong year-over-year growth of 33.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TATT's fundamental strength across five key dimensions:
Efficiency Score
WeakTATT struggles to generate sufficient returns from assets.
Valuation Score
WeakTATT trades at a premium to fair value.
Growth Score
ModerateTATT shows steady but slowing expansion.
Financial Health Score
ExcellentTATT maintains a strong and stable balance sheet.
Profitability Score
WeakTATT struggles to sustain strong margins.
Key Financial Metrics
Is TATT Expensive or Cheap?
P/E Ratio
TATT trades at 44.04 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TATT's PEG of 5.00 indicates potential overvaluation.
Price to Book
The market values TAT Technologies Ltd. at 4.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 32.12 times EBITDA. This signals the market has high growth expectations.
How Well Does TATT Make Money?
Net Profit Margin
For every $100 in sales, TAT Technologies Ltd. keeps $9.08 as profit after all expenses.
Operating Margin
Core operations generate 10.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.10 in profit for every $100 of shareholder equity.
ROA
TAT Technologies Ltd. generates $6.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TAT Technologies Ltd. generates limited operating cash flow of $8.47M, signaling weaker underlying cash strength.
Free Cash Flow
TAT Technologies Ltd. generates weak or negative free cash flow of $-2.01M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.15 in free cash annually.
FCF Yield
TATT converts -0.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
4.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.10
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How TATT Stacks Against Its Sector Peers
| Metric | TATT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.04 | 26.49 | Worse (Expensive) |
| ROE | 11.10% | 1307.00% | Weak |
| Net Margin | 9.08% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.10 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 4.44 | 10.48 | Strong Liquidity |
| ROA | 6.99% | -1549793.00% (disorted) | Weak |
TATT outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews TAT Technologies Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.66%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
1086.39%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-245.59%
Industry Style: Cyclical, Value, Infrastructure
Declining