TAT Technologies Ltd. Fundamental Analysis
TAT Technologies Ltd. (TATT) shows weak financial fundamentals with a PE ratio of 34.88, profit margin of 9.27%, and ROE of 9.47%. The company generates $0.2B in annual revenue with strong year-over-year growth of 17.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 64.0/100 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
ExcellentTATT delivers strong and consistent growth momentum.
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 34.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, TATT's PEG of 4.19 indicates potential overvaluation.
Price to Book
The market values TAT Technologies Ltd. at 3.17 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 27.41 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 $9.27 as profit after all expenses.
Operating Margin
Core operations generate 9.73 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.47 in profit for every $100 of shareholder equity.
ROA
TAT Technologies Ltd. generates $7.05 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
TAT Technologies Ltd. produces operating cash flow of $22.44M, showing steady but balanced cash generation.
Free Cash Flow
TAT Technologies Ltd. produces free cash flow of $12.67M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.98 in free cash annually.
FCF Yield
TATT converts 2.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.23
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How TATT Stacks Against Its Sector Peers
| Metric | TATT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.88 | 25.99 | Worse (Expensive) |
| ROE | 9.47% | 1259.00% | Weak |
| Net Margin | 9.27% | -34891.00% (disorted) | Weak |
| Debt/Equity | 0.09 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 4.69 | 9.71 | Strong Liquidity |
| ROA | 7.05% | -1482943.00% (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
73.61%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
474.75%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
38.51%
Industry Style: Cyclical, Value, Infrastructure
High Growth