NasdaqGM:ARTX

Stock Analysis Report

Executive Summary

Arotech Corporation provides defense and security products worldwide.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.

Risks

  • Arotech has significant price volatility in the past 3 months.
  • Arotech is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Arotech's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

NasdaqGM:ARTX

-0.3%

US Aerospace & Defense

-1.6%

US Market


1 Year Return

-32.7%

NasdaqGM:ARTX

4.0%

US Aerospace & Defense

-3.0%

US Market

ARTX underperformed the Aerospace & Defense industry which returned 7.1% over the past year.

ARTX underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

ARTXIndustryMarket
7 Day2.6%-0.3%-1.6%
30 Day27.2%-1.2%-5.8%
90 Day4.0%5.7%0.2%
1 Year-32.7%-32.7%6.0%4.0%-0.8%-3.0%
3 Year-15.8%-15.8%51.8%43.5%38.0%29.1%
5 Year-34.6%-34.6%89.4%71.7%50.8%34.1%

Price Volatility Vs. Market

How volatile is Arotech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arotech undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Arotech's share price is below the future cash flow value, and at a moderate discount (> 20%).

Arotech's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Arotech is overvalued based on earnings compared to the US Aerospace & Defense industry average.

Arotech is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Arotech is poor value based on expected growth next year.


Price Based on Value of Assets

Arotech is good value based on assets compared to the US Aerospace & Defense industry average.


Next Steps

Future Growth

How is Arotech expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

133.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Arotech's revenue is expected to grow by 13.9% yearly, however this is not considered high growth (20% yearly).

Arotech's earnings are expected to grow significantly at over 20% yearly.

Arotech's revenue growth is expected to exceed the United States of America market average.

Arotech's earnings growth is expected to exceed the United States of America market average.

Arotech's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Arotech will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Arotech performed over the past 5 years?

18.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Arotech's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Arotech's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Arotech's 1-year earnings growth is negative, it can't be compared to the US Aerospace & Defense industry average.


Return on Equity

Arotech has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Arotech used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.


Return on Capital Employed

Arotech has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Arotech's financial position?


Financial Position Analysis

Arotech is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Arotech's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Arotech's level of debt (26%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (51.7% vs 26% today).

Operating cash flow is negative therefore debt is not well covered.

Interest payments on debt are not well covered by earnings (EBIT is 1.7x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

What is Arotech's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Arotech's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Arotech's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Arotech has not reported any payouts.

Unable to verify if Arotech's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Arotech has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Arotech's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Dean Krutty (54yo)

2.6yrs

Tenure

US$639,050

Compensation

Mr. Dean M. Krutty has been President and Chief Executive Officer of Arotech Corporation since March 14, 2018 and served as its Acting Chief Executive Officer since January 3, 2017 until March 14, 2018. Mr ...


CEO Compensation Analysis

Dean's remuneration is about average for companies of similar size in United States of America.

Dean's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

54yo

Average Age

The tenure for the Arotech management team is about average.


Board Age and Tenure

3.3yrs

Average Tenure

64yo

Average Age

The tenure for the Arotech board of directors is about average.


Insider Trading

More shares have been bought than sold by Arotech individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$9,95005 Jun 19
Dean Krutty
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares5,000
Max PriceUS$1.99
BuyUS$14,95018 Mar 19
Kenneth Cappell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$2.99
BuyUS$14,70015 Mar 19
Admiralty Partners, Inc.
EntityCompany
Shares5,000
Max PriceUS$2.94
BuyUS$15,15011 Mar 19
Kenneth Cappell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$3.03
BuyUS$30,02911 Mar 19
Admiralty Partners, Inc.
EntityCompany
Shares9,984
Max PriceUS$3.05
BuyUS$13,07413 Dec 18
Dean Krutty
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares5,000
Max PriceUS$2.61
BuyUS$21,07913 Dec 18
Kenneth Cappell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares8,000
Max PriceUS$2.65
BuyUS$25,88513 Dec 18
Jon Kutler
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$2.59
BuyUS$8,07021 Nov 18
Kenneth Cappell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,000
Max PriceUS$2.69
BuyUS$52,49520 Nov 18
Jon Kutler
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares20,000
Max PriceUS$2.65
BuyUS$27,95614 Nov 18
Kenneth Cappell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$2.84
BuyUS$42,88913 Nov 18
Jon Kutler
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares15,000
Max PriceUS$2.90
BuyUS$32,81413 Sep 18
Kenneth Cappell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$3.33
BuyUS$64,00011 Sep 18
Jon Kutler
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares20,000
Max PriceUS$3.20

Ownership Breakdown


Management Team

  • Yaakov Har-Oz (61yo)

    Senior VP

    • Tenure: 18.8yrs
  • Dean Krutty (54yo)

    President & CEO

    • Tenure: 2.6yrs
    • Compensation: US$639.05k
  • Kelli Kellar (54yo)

    VP of Finance & CFO

    • Tenure: 1.3yrs
    • Compensation: US$485.76k
  • Kurt Flosky (50yo)

    President of Training & Simulation Division

    • Tenure: 4.6yrs
  • David Modeen (51yo)

    President of UEC Electrnoics

    • Tenure: 2.7yrs

Board Members

  • Jon Kutler (62yo)

    Chairman of the Board

    • Tenure: 3.3yrs
    • Compensation: US$67.00k
  • Larry Hagenbuch (52yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$68.00k
  • Ken Cappell (66yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$75.00k
  • JJ Quinn (66yo)

    Director

    • Tenure: 3.3yrs
    • Compensation: US$71.00k

Company Information

Arotech Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arotech Corporation
  • Ticker: ARTX
  • Exchange: NasdaqGM
  • Founded: 1990
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$61.724m
  • Shares outstanding: 26.38m
  • Website: https://www.arotech.com

Number of Employees


Location

  • Arotech Corporation
  • 1229 Oak Valley Drive
  • Ann Arbor
  • Michigan
  • 48108
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARTXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDFeb 1994
EL5ADB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994

Biography

Arotech Corporation provides defense and security products worldwide. The company’s Training and Simulation division develops, manufactures, and markets multimedia and interactive digital solutions for eng ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 23:35
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.