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Arotech

Nasdaq:ARTX
Snowflake Description

Reasonable growth potential and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARTX
Nasdaq
$47M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Arotech Corporation provides defense and security products worldwide. The last earnings update was 74 days ago. More info.


Add to Portfolio Compare Print
  • Arotech has significant price volatility in the past 3 months.
ARTX Share Price and Events
7 Day Returns
-2.2%
NasdaqGM:ARTX
-0.8%
US Aerospace & Defense
-1.2%
US Market
1 Year Returns
-54%
NasdaqGM:ARTX
4.6%
US Aerospace & Defense
3.3%
US Market
ARTX Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arotech (ARTX) -2.2% -15.3% -37% -54% -35.6% -50.7%
US Aerospace & Defense -0.8% 1% 3.4% 4.6% 43.9% 72.1%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • ARTX underperformed the Aerospace & Defense industry which returned 4.6% over the past year.
  • ARTX underperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
ARTX
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arotech to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arotech.

NasdaqGM:ARTX Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:ARTX
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.88
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.877 (1 + (1- 21%) (52.24%))
1.16
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.16 * 5.96%)
9.64%

Discounted Cash Flow Calculation for NasdaqGM:ARTX using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arotech is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:ARTX DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.64%)
2020 4.51 Analyst x1 4.11
2021 6.49 Est @ 43.89% 5.40
2022 8.54 Est @ 31.54% 6.48
2023 10.49 Est @ 22.9% 7.26
2024 12.26 Est @ 16.85% 7.74
2025 13.81 Est @ 12.61% 7.95
2026 15.14 Est @ 9.65% 7.95
2027 16.28 Est @ 7.57% 7.80
2028 17.28 Est @ 6.12% 7.55
2029 18.16 Est @ 5.1% 7.23
Present value of next 10 years cash flows $69.46
NasdaqGM:ARTX DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $18.16 × (1 + 2.73%) ÷ (9.64% – 2.73%)
$269.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $269.87 ÷ (1 + 9.64%)10
$107.47
NasdaqGM:ARTX Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $69.46 + $107.47
$176.93
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $176.93 / 26.32
$6.72
NasdaqGM:ARTX Discount to Share Price
Calculation Result
Value per share (USD) From above. $6.72
Current discount Discount to share price of $1.77
= -1 x ($1.77 - $6.72) / $6.72
73.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arotech is available for.
Intrinsic value
>50%
Share price is $1.77 vs Future cash flow value of $6.72
Current Discount Checks
For Arotech to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arotech's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arotech's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:ARTX PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.01
NasdaqGM:ARTX Share Price ** NasdaqGM (2019-07-22) in USD $1.77
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 38 Publicly-Listed Aerospace & Defense Companies 22.84x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arotech.

NasdaqGM:ARTX PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:ARTX Share Price ÷ EPS (both in USD)

= 1.77 ÷ -0.01

-353.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arotech is loss making, we can't compare its value to the US Aerospace & Defense industry average.
  • Arotech is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Arotech's expected growth come at a high price?
Raw Data
NasdaqGM:ARTX PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -353.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
132.3%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 33 Publicly-Listed Aerospace & Defense Companies 2.05x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Arotech, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Arotech's assets?
Raw Data
NasdaqGM:ARTX PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.86
NasdaqGM:ARTX Share Price * NasdaqGM (2019-07-22) in USD $1.77
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 55 Publicly-Listed Aerospace & Defense Companies 2.66x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NasdaqGM:ARTX PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:ARTX Share Price ÷ Book Value per Share (both in USD)

= 1.77 ÷ 2.86

0.62x

* Primary Listing of Arotech.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arotech is good value based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Arotech's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Arotech has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
132.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arotech expected to grow at an attractive rate?
  • Arotech's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Arotech's earnings growth is expected to exceed the United States of America market average.
  • Arotech's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:ARTX Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:ARTX Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 132.3%
NasdaqGM:ARTX Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 13%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:ARTX Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:ARTX Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 113 4 1
2019-12-31 97 1 1
NasdaqGM:ARTX Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 90 -1 0
2018-12-31 97 3 2
2018-09-30 102 4 6
2018-06-30 104 6 6
2018-03-31 104 4 8
2017-12-31 99 2 7
2017-09-30 91 3 -3
2017-06-30 90 0 -2
2017-03-31 90 -1 -2
2016-12-31 93 3 -1
2016-09-30 99 6 1
2016-06-30 98 10 0

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arotech's earnings are expected to grow significantly at over 20% yearly.
  • Arotech's revenue is expected to grow by 13% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:ARTX Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Arotech Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:ARTX Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.14 0.14 0.14 1.00
2019-12-31 0.04 0.04 0.04 1.00
NasdaqGM:ARTX Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.01
2018-12-31 0.07
2018-09-30 0.22
2018-06-30 0.22
2018-03-31 0.32
2017-12-31 0.27
2017-09-30 -0.10
2017-06-30 -0.07
2017-03-31 -0.07
2016-12-31 -0.06
2016-09-30 0.05
2016-06-30 -0.01

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Arotech will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Arotech's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arotech has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Arotech performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arotech's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arotech does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Arotech's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Arotech's 1-year growth to the US Aerospace & Defense industry average as it is not currently profitable.
Earnings and Revenue History
Arotech's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arotech Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:ARTX Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 90.13 -0.13 21.31 3.07
2018-12-31 96.60 1.87 21.09 3.03
2018-09-30 101.96 5.83 20.30 2.77
2018-06-30 104.05 5.88 19.70 3.05
2018-03-31 103.62 8.40 19.59 3.08
2017-12-31 98.72 7.03 19.50 3.04
2017-09-30 91.22 -2.61 19.91 3.15
2017-06-30 89.59 -1.89 20.06 2.87
2017-03-31 89.92 -1.87 20.40 2.88
2016-12-31 92.98 -1.48 21.34 2.72
2016-09-30 98.90 1.26 22.12 2.75
2016-06-30 97.89 -0.28 22.82 2.35
2016-03-31 97.75 -1.95 23.59 2.82
2015-12-31 96.57 -2.05 21.71 3.08
2015-09-30 97.73 -2.44 21.86 3.16
2015-06-30 99.22 -2.04 21.59 3.74
2015-03-31 105.41 1.99 21.47 3.42
2014-12-31 103.56 3.88 22.37 2.93
2014-09-30 95.93 2.62 20.90 3.88
2014-06-30 94.33 3.10 19.81 3.76
2014-03-31 88.90 2.81 17.85 3.42
2013-12-31 88.57 2.27 16.50 2.96
2013-09-30 89.77 2.76 16.00 2.32
2013-06-30 88.02 2.33 15.40 2.12
2013-03-31 86.00 -0.43 14.88 1.99
2012-12-31 80.05 -2.03 15.54 2.04
2012-09-30 75.88 -3.52 15.47 1.77

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Arotech has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • Arotech used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • It is difficult to establish if Arotech improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Arotech's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arotech has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Arotech's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arotech's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Arotech's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arotech Company Filings, last reported 3 months ago.

NasdaqGM:ARTX Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 75.43 17.95 4.52
2018-12-31 76.78 14.07 4.22
2018-09-30 72.88 13.90 4.99
2018-06-30 71.83 15.26 7.48
2018-03-31 71.72 16.48 8.03
2017-12-31 74.29 15.91 5.21
2017-09-30 66.24 14.46 4.34
2017-06-30 65.50 15.79 5.10
2017-03-31 65.34 16.06 8.53
2016-12-31 65.09 13.51 7.13
2016-09-30 67.39 18.24 10.32
2016-06-30 66.27 15.37 9.90
2016-03-31 67.21 15.27 11.41
2015-12-31 64.05 20.28 10.61
2015-09-30 63.38 23.61 11.03
2015-06-30 64.35 25.39 12.08
2015-03-31 65.79 23.65 11.96
2014-12-31 66.36 21.35 11.29
2014-09-30 65.81 25.48 10.80
2014-06-30 55.35 28.88 0.97
2014-03-31 49.07 4.38 6.38
2013-12-31 47.98 1.93 5.82
2013-09-30 47.49 5.67 4.86
2013-06-30 40.74 11.26 0.95
2013-03-31 39.14 13.33 0.38
2012-12-31 38.42 11.67 1.58
2012-09-30 37.64 11.58 0.76
  • Arotech's level of debt (23.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (9.5% vs 23.9% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Arotech is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Arotech's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arotech has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Arotech dividends.
If you bought $2,000 of Arotech shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:ARTX Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:ARTX Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Arotech's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Arotech's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arotech afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arotech has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dean Krutty
COMPENSATION $639,050
AGE 54
TENURE AS CEO 2.5 years
CEO Bio

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. Krutty served as Executive Vice President of North America Operations at Arotech Corporation since May 17, 2016. Mr. Krutty served as a Senior Vice President of Operations - North America at Arotech Corporation since January 2015 until May 17, 2016 and served as its President of Simulation Division since January 2005 until January 2015. He served as President of FAAC, Incorporated. Mr. Krutty spent thirteen years as a member of the FAAC management team, beginning as an electrical engineer in the part task trainer division and also serving as FAAC's Director of Military Operations and five years before that working in other positions in the simulation industry. He received a B.S. in Electrical engineering from the Michigan State University.

CEO Compensation
  • Dean's compensation has increased whilst company is loss making.
  • Dean's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Arotech management team in years:

2.6
Average Tenure
54
Average Age
  • The tenure for the Arotech management team is about average.
Management Team

Dean Krutty

TITLE
President & CEO
COMPENSATION
$639K
AGE
54
TENURE
2.5 yrs

Kelli Kellar

TITLE
VP of Finance & CFO
COMPENSATION
$486K
AGE
54
TENURE
1.3 yrs

Yaakov Har-Oz

TITLE
Senior VP
AGE
61
TENURE
18.8 yrs

Kurt Flosky

TITLE
President of Training & Simulation Division
AGE
50
TENURE
4.5 yrs

David Modeen

TITLE
President of UEC Electrnoics
AGE
51
TENURE
2.6 yrs
Board of Directors Tenure

Average tenure and age of the Arotech board of directors in years:

3.3
Average Tenure
64
Average Age
  • The tenure for the Arotech board of directors is about average.
Board of Directors

Jon Kutler

TITLE
Chairman of the Board
COMPENSATION
$67K
AGE
62
TENURE
3.2 yrs

Ken Cappell

TITLE
Director
COMPENSATION
$75K
AGE
66
TENURE
4.2 yrs

JJ Quinn

TITLE
Director
COMPENSATION
$71K
AGE
66
TENURE
3.2 yrs

Larry Hagenbuch

TITLE
Director
COMPENSATION
$68K
AGE
52
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Arotech individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
05. Jun 19 Buy Dean Krutty Individual 04. Jun 19 04. Jun 19 5,000 $1.99 $9,950
18. Mar 19 Buy Kenneth Cappell Individual 15. Mar 19 15. Mar 19 5,000 $2.99 $14,950
15. Mar 19 Buy Admiralty Partners, Inc. Company 14. Mar 19 14. Mar 19 5,000 $2.94 $14,700
11. Mar 19 Buy Admiralty Partners, Inc. Company 07. Mar 19 08. Mar 19 9,984 $3.05 $30,029
11. Mar 19 Buy Kenneth Cappell Individual 08. Mar 19 08. Mar 19 5,000 $3.03 $15,150
13. Dec 18 Buy Jon Kutler Individual 11. Dec 18 11. Dec 18 10,000 $2.59 $25,885
13. Dec 18 Buy Dean Krutty Individual 12. Dec 18 12. Dec 18 5,000 $2.61 $13,074
13. Dec 18 Buy Kenneth Cappell Individual 12. Dec 18 12. Dec 18 8,000 $2.65 $21,079
21. Nov 18 Buy Kenneth Cappell Individual 20. Nov 18 20. Nov 18 3,000 $2.69 $8,070
20. Nov 18 Buy Jon Kutler Individual 19. Nov 18 19. Nov 18 20,000 $2.65 $52,495
14. Nov 18 Buy Kenneth Cappell Individual 12. Nov 18 12. Nov 18 10,000 $2.84 $27,956
13. Nov 18 Buy Jon Kutler Individual 08. Nov 18 09. Nov 18 15,000 $2.90 $42,889
13. Sep 18 Buy Kenneth Cappell Individual 12. Sep 18 13. Sep 18 10,000 $3.33 $32,814
11. Sep 18 Buy Jon Kutler Individual 07. Sep 18 10. Sep 18 20,000 $3.20 $64,000
16. Aug 18 Buy Jon Kutler Individual 15. Aug 18 15. Aug 18 2,843 $3.25 $9,240
X
Management checks
We assess Arotech's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arotech has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Kind Of Shareholder Appears On The Arotech Corporation's (NASDAQ:ARTX) Shareholder Register?

View our latest analysis for Arotech NasdaqGM:ARTX Ownership Summary, July 3rd 2019 What Does The Institutional Ownership Tell Us About Arotech? … We can see that Arotech does have institutional investors; and they hold 29% of the stock. … Insider Ownership Of Arotech The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

A Holistic Look At Arotech Corporation (NASDAQ:ARTX)

Help shape the future of investing tools and you could win a $250 gift card! … I've been keeping an eye on Arotech Corporation (NASDAQ:ARTX) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe ARTX has a lot to offer.

Simply Wall St -

Did You Manage To Avoid Arotech's (NASDAQ:ARTX) 31% Share Price Drop?

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, Arotech moved from a loss to profitability. … Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining.

Simply Wall St -

Have Insiders Been Buying Arotech Corporation (NASDAQ:ARTX) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … That means that an insider was happy to buy shares at above the current price. … In total, Arotech insiders bought more than they sold over the last year

Simply Wall St -

How Financially Strong Is Arotech Corporation (NASDAQ:ARTX)?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Understanding the company's financial health becomes. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

Read This Before Judging Arotech Corporation's (NASDAQ:ARTX) ROE

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every $1 worth of equity in the company, it was able to earn $0.080. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Arotech Corporation (NASDAQ:ARTX) Potentially Undervalued?

As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Is there still an opportunity here to buy. … Let’s examine Arotech’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

How Do Arotech Corporation’s (NASDAQ:ARTX) Returns Compare To Its Industry?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:

Simply Wall St -

What Kind Of Investor Owns Most Of Arotech Corporation (NASDAQ:ARTX)?

Every investor in Arotech Corporation (NASDAQ:ARTX) should be aware of the most powerful shareholder groups. … Generally speaking, as a company grows, institutions will increase their ownership. … Taking a look at the our data on the ownership groups (below), it's seems that.

Simply Wall St -

Does Arotech Corporation (NASDAQ:ARTX) Have A High Beta?

In finance, Beta is a measure of volatility. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).

Simply Wall St -

Company Info

Description

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 engineering, use-of-force training, and operator training of military, law enforcement, security, emergency services, and other personnel. This division offers simulators, systems engineering support, and software products for training vehicle operators to the United States military, government, municipalities, and private industry; weapon simulations used to train military pilots, weapon employment information used in air launched weapons, and part-task simulators to train aircrew; specialized use-of-force training simulators and systems for police, security personnel, and the military under the MILO Range trade name; and consulting and development support services under the Realtime Technologies trade name. Its Power Systems division provides electronics engineering and design, system integration, rapid prototyping, and vertically production services for military, aerospace, and industrial customers, including hybrid power generation systems, smart power subsystems for military vehicles and dismounted applications, and aircraft and missile systems support for weapons and communications technologies. This division also develops and sells rechargeable and primary batteries, and smart chargers to the military and medical markets, and to private defense industry under the Epsilor name. In addition, it develops, manufactures, and markets primary batteries, rechargeable batteries, and battery chargers for the military; and produces water-activated lifejacket lights for commercial aviation and marine applications under the Electric Fuel name. The company was formerly known as Electric Fuel Corporation and changed its name to Arotech Corporation in September 2003. The company was incorporated in 1990 and is based in Ann Arbor, Michigan.

Details
Name: Arotech Corporation
ARTX
Exchange: NasdaqGM
Founded: 1990
$46,579,346
26,316,015
Website: http://www.arotech.com
Address: Arotech Corporation
1229 Oak Valley Drive,
Ann Arbor,
Michigan, 48108,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM ARTX Common Stock Nasdaq Global Market US USD 24. Feb 1994
DB EL5A Common Stock Deutsche Boerse AG DE EUR 24. Feb 1994
Number of employees
Current staff
Staff numbers
472
Arotech employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 23:34
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/05/10
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.