RADA

RADA Electronic IndustriesNasdaqCM:RADA Stock Report

Market Cap

US$517.2m

7D

-2.7%

1Y

68.8%

Updated

18 Sep, 2021

Data

Company Financials +
RADA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health6/6
Dividends0/6

RADA Overview

RADA Electronic Industries Ltd., a defense technology company, develops, manufactures, markets, and sells defense electronics to various air forces and companies worldwide.

RADA Electronic Industries Competitors

Price History & Performance

Summary of all time highs, changes and price drops for RADA Electronic Industries
Historical stock prices
Current Share PriceUS$10.50
52 Week HighUS$5.75
52 Week LowUS$14.80
Beta1
1 Month Change-4.81%
3 Month Change-18.03%
1 Year Change68.81%
3 Year Change239.81%
5 Year Change805.17%
Change since IPO-86.67%

Recent News & Updates

Sep 11
RADA Electronic Industries' (NASDAQ:RADA) Promising Earnings May Rest On Soft Foundations

RADA Electronic Industries' (NASDAQ:RADA) Promising Earnings May Rest On Soft Foundations

Despite posting some strong earnings, the market for RADA Electronic Industries Ltd.'s ( NASDAQ:RADA ) stock hasn't...

Jun 21

RADA teams up with BeyondMinds on advanced AI solutions for tactical radars

RADA Electronic Industries (RADA) and BeyondMinds, a global provider of artificial intelligence solutions, have executed a Letter of Intent to build strategic teaming to improve and productize forward AI and deep learning solutions for RADA’s tactical radars.The contract is effective by the end of July 2021.The new solution will focus on increased accuracy, advanced target classification, and dynamic adaptation of radar performance to the ever-changing operational environment.Shares +1% premarket.Press Release

Shareholder Returns

RADAUS Aerospace & DefenseUS Market
7D-2.7%-1.4%-0.6%
1Y68.8%16.7%33.8%

Return vs Industry: RADA exceeded the US Aerospace & Defense industry which returned 16.7% over the past year.

Return vs Market: RADA exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is RADA's price volatile compared to industry and market?
RADA volatility
RADA Beta1
Industry Beta1.06
Market Beta1

Stable Share Price: RADA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: RADA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1970244Dubi Sellahttps://www.rada.com

RADA Electronic Industries Ltd., a defense technology company, develops, manufactures, markets, and sells defense electronics to various air forces and companies worldwide. It offers military avionic systems, including flight data recorders for fighter aircraft; digital video/audio/data recorders; high definition digital video/audio/data recording for fighter and trainer aircrafts; a range of head-up-displays color video cameras for fighter aircraft; and various ground debriefing solutions. The company also provides avionics solutions, such as mission data recorders and debriefing solutions and HUD video cameras; avionics for unmanned aircraft vehicles (UAVs) comprising interface control processors, engine control computers, payload management computers, and others; and inertial navigation systems for air and land applications.

Valuation

Is RADA Electronic Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RADA ($10.5) is trading below our estimate of fair value ($21.12)

Significantly Below Fair Value: RADA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RADA is poor value based on its PE Ratio (27.3x) compared to the US Aerospace & Defense industry average (21.1x).

PE vs Market: RADA is poor value based on its PE Ratio (27.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: RADA is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: RADA is overvalued based on its PB Ratio (3.6x) compared to the US Aerospace & Defense industry average (3.1x).


Future Growth

How is RADA Electronic Industries forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RADA's forecast earnings growth (20.5% per year) is above the savings rate (2%).

Earnings vs Market: RADA's earnings (20.5% per year) are forecast to grow faster than the US market (14.9% per year).

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

Revenue vs Market: RADA's revenue (19.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: RADA's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has RADA Electronic Industries performed over the past 5 years?

74.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RADA has high quality earnings.

Growing Profit Margin: RADA's current net profit margins (19.5%) are higher than last year (0.02%).


Past Earnings Growth Analysis

Earnings Trend: RADA has become profitable over the past 5 years, growing earnings by 74.9% per year.

Accelerating Growth: RADA's earnings growth over the past year (172427.3%) exceeds its 5-year average (74.9% per year).

Earnings vs Industry: RADA earnings growth over the past year (172427.3%) exceeded the Aerospace & Defense industry 2.5%.


Return on Equity

High ROE: RADA's Return on Equity (13.2%) is considered low.


Financial Health

How is RADA Electronic Industries's financial position?


Financial Position Analysis

Short Term Liabilities: RADA's short term assets ($149.4M) exceed its short term liabilities ($33.2M).

Long Term Liabilities: RADA's short term assets ($149.4M) exceed its long term liabilities ($10.4M).


Debt to Equity History and Analysis

Debt Level: RADA is debt free.

Reducing Debt: RADA has no debt compared to 5 years ago when its debt to equity ratio was 49%.

Debt Coverage: RADA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RADA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is RADA Electronic Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if RADA'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 RADA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Dubi Sella (66 yo)

4.83yrs

Tenure

US$1,329,783

Compensation

Mr. Dov Sella, also known as Dubi, has been the Chief Executive Officer of Rada Electronic Industries Ltd. since November 10, 2016. Mr. Sella served as Chief Business Development Officer of RADA Electronic...


CEO Compensation Analysis

Compensation vs Market: Dubi's total compensation ($USD1.33M) is about average for companies of similar size in the US market ($USD1.67M).

Compensation vs Earnings: Dubi's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RADA's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: RADA's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.3%.


Top Shareholders

Company Information

RADA Electronic Industries Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: RADA Electronic Industries Ltd.
  • Ticker: RADA
  • Exchange: NasdaqCM
  • Founded: 1970
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$517.186m
  • Shares outstanding: 49.26m
  • Website: https://www.rada.com

Number of Employees


Location

  • RADA Electronic Industries Ltd.
  • 7 Giborei Israel Boulevard
  • PO Box 8606
  • Netanya
  • 4250407
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:04
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.