NasdaqGM:ARTX

Stock Analysis Report

Executive Summary

Arotech Corporation provides defense and security products worldwide.

Snowflake

Fundamentals

Reasonable growth potential with adequate balance sheet.


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

0%

ARTX

-0.2%

US Aerospace & Defense

1.8%

US Market


1 Year Return

0%

ARTX

8.1%

US Aerospace & Defense

7.3%

US Market

Return vs Industry: ARTX underperformed the US Aerospace & Defense industry which returned 8.1% over the past year.

Return vs Market: ARTX underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

ARTXIndustryMarket
7 Day0%-0.2%1.8%
30 Day32.1%-3.2%-0.7%
90 Day70.1%3.7%0.06%
1 Year0%0%10.2%8.1%9.7%7.3%
3 Year-2.3%-2.3%60.7%52.0%46.3%36.9%
5 Year1.0%1.0%95.5%77.1%64.5%46.5%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ARTX ($2.96) is trading below our estimate of fair value ($10.63)

Significantly Undervalued: ARTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ARTX is poor value based on its PE Ratio (445.4x) compared to the Aerospace & Defense industry average (22.4x).

PE vs Market: ARTX is poor value based on its PE Ratio (445.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: ARTX is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: ARTX is good value based on its PB Ratio (1x) compared to the US Aerospace & Defense industry average (2.4x).


Next Steps

Future Growth

How is Arotech forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARTX's forecast earnings growth (133.6% per year) is above the savings rate (2.7%).

Earnings vs Market: ARTX's earnings (133.6% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARTX's revenue (13.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ARTX's revenue (13.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if ARTX's Return on Equity is forecast to be high in 3 years time


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

Earnings Trend: ARTX's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: ARTX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARTX had negative earnings growth (-98.1%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (12.2%).


Return on Equity

High ROE: ARTX's Return on Equity (0.2%) is considered low.


Return on Assets

ROA vs Industry: ARTX's Return on Assets is below or equal to the Aerospace & Defense industry average last year.


Return on Capital Employed

ROCE Improving: ARTX has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Arotech's financial position?


Financial Position Analysis

Short Term Liabilities: ARTX's short term assets ($57.8M) exceeds its short term liabilities ($33.9M)

Long Term Liabilities: ARTX's short term assets (57.8M) exceeds its long term liabilities (18.5M)


Debt to Equity History and Analysis

Debt Level: ARTX's debt to equity ratio (26%) is considered satisfactory

Reducing Debt: ARTX's debt to equity ratio has reduced from 52% to 26% over the past 5 years.

Debt Coverage: ARTX's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: ARTX's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet

Inventory Level: ARTX has a low level of unsold assets or inventory.

Debt Coverage by Assets: ARTX's debt is covered by short term assets (assets are 2.928910x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate ARTX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ARTX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if ARTX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARTX's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Dean Krutty (54yo)

2.8yrs

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

Compensation vs. Market: Dean's total compensation ($USD639.05K) is about average for companies of similar size in the US market ($USD491.38K).

Compensation vs Earnings: 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

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: ARTX's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

64yo

Average Age

Experienced Board: ARTX's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

Ownership Breakdown


Management Team

  • Yaakov Har-Oz (61yo)

    Senior VP

    • Tenure: 19yrs
  • Dean Krutty (54yo)

    President & CEO

    • Tenure: 2.8yrs
    • Compensation: US$639.05k
  • Kelli Kellar (54yo)

    VP of Finance & CFO

    • Tenure: 1.5yrs
    • Compensation: US$485.76k
  • Kurt Flosky (50yo)

    President of Training & Simulation Division

    • Tenure: 4.8yrs
  • David Modeen (51yo)

    President of UEC Electrnoics

    • Tenure: 2.8yrs

Board Members

  • Jon Kutler (62yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$67.00k
  • Larry Hagenbuch (52yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$68.00k
  • Ken Cappell (66yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$75.00k
  • JJ Quinn (66yo)

    Director

    • Tenure: 3.4yrs
    • 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$78.078m
  • 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 Analysis2019/10/17 23:34
End of Day Share Price2019/10/17 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.