NasdaqGM:TATT

Stock Analysis Report

Executive Summary

TAT Technologies Ltd., together with its subsidiaries, provides solutions and services to the commercial and military aerospace, and ground defense industries in the United States, Israel, and internationally.


Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TATT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.8%

TATT

-5.7%

US Aerospace & Defense

2.4%

US Market


1 Year Return

-41.4%

TATT

-16.9%

US Aerospace & Defense

-10.0%

US Market

Return vs Industry: TATT underperformed the US Aerospace & Defense industry which returned -16.9% over the past year.

Return vs Market: TATT underperformed the US Market which returned -10% over the past year.


Shareholder returns

TATTIndustryMarket
7 Day7.8%-5.7%2.4%
30 Day-10.7%-22.7%-11.0%
90 Day-26.9%-32.4%-19.4%
1 Year-41.4%-41.4%-5.8%-16.9%-8.1%-10.0%
3 Year-60.0%-61.1%12.2%-4.5%17.3%9.6%
5 Year-40.2%-44.0%48.0%17.8%36.1%21.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TAT Technologies undervalued compared to its fair value and its price relative to the market?

41.29x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TATT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TATT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TATT is poor value based on its PE Ratio (40.2x) compared to the Aerospace & Defense industry average (13.4x).

PE vs Market: TATT is poor value based on its PE Ratio (40.2x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TATT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TATT is good value based on its PB Ratio (0.4x) compared to the US Aerospace & Defense industry average (1.7x).


Next Steps

Future Growth

How is TAT Technologies forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.3%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as TAT Technologies has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has TAT Technologies performed over the past 5 years?

-49.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TATT has high quality earnings.

Growing Profit Margin: TATT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TATT's earnings have declined by -49.8% per year over the past 5 years.

Accelerating Growth: TATT has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TATT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (3%).


Return on Equity

High ROE: TATT's Return on Equity (0.9%) is considered low.


Next Steps

Financial Health

How is TAT Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: TATT's short term assets ($83.6M) exceed its short term liabilities ($20.7M).

Long Term Liabilities: TATT's short term assets ($83.6M) exceed its long term liabilities ($8.6M).


Debt to Equity History and Analysis

Debt Level: TATT is debt free.

Reducing Debt: TATT had no debt 5 years ago.

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

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: TATT is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TATT'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?

1.9yrs

Average management tenure


CEO

Igal Zamir (53yo)

4s

Tenure

US$499,000

Compensation

Mr. Igal Zamir has been the Chief Executive Officer and President of TAT Technologies, Ltd. since April 30, 2016. Mr. Zamir served as Executive Vice President of Delek US Holdings Inc. since November 2011. ...


CEO Compensation Analysis

Compensation vs Market: Igal's total compensation ($USD499.00K) is about average for companies of similar size in the US market ($USD615.59K).

Compensation vs Earnings: Igal's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Igal Zamir
CEO & President4yrsUS$499.00kno data
Ehud Ben-Yair
Chief Financial Officer1.92yrsUS$321.00kno data
Yair Raz
President of Limco Airepair Inc.7.42yrsUS$229.00kno data
Michael Chen
President of Turbochrome Ltd.2.25yrsUS$259.00kno data
Ohad Milo
President of Gedera1.5yrsUS$279.00kno data
Liron Reshef
Executive Vice President of Human Resources1.5yrsno datano data
Eitan Shabtay
EVP Engineering and Technologies0.58yrno datano data

1.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TATT's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dafna Gruber
Independent Director6.42yrsno datano data
Amos Malka
Chairman3.83yrsno datano data
Amiram Boehm
Director3.83yrsno datano data
Avraham Shani
External Director11.67yrsno datano data
Aviram Halevi
External Director6.42yrsno datano data
Ron Ben-Haim
Director6.67yrsno datano data

6.4yrs

Average Tenure

57.5yo

Average Age

Experienced Board: TATT's board of directors are considered experienced (6.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TAT Technologies Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TAT Technologies Ltd.
  • Ticker: TATT
  • Exchange: NasdaqGM
  • Founded: 1985
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$33.280m
  • Shares outstanding: 8.87m
  • Website: https://tat-technologies.com

Number of Employees


Location

  • TAT Technologies Ltd.
  • Re’em Industrial Park
  • Neta Boulevard
  • Gedera
  • 70750002
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TATTNasdaqGM (Nasdaq Global Market)YesOrdinary SharesUSUSDMar 1987
TATTTASE (The Tel-Aviv Stock Exchange)YesOrdinary SharesILILSMar 1987

Biography

TAT Technologies Ltd., together with its subsidiaries, provides solutions and services to the commercial and military aerospace, and ground defense industries in the United States, Israel, and internationally. The company operates through four segments: Original Equipment Manufacturing (OEM) of Heat Transfer Solutions and Aviation Accessories; Maintenance, Repair, and Overhaul (MRO) Services for Heat Transfer Components and OEM of Heat Transfer Solutions; MRO Services for Aviation Components; and Overhaul and Coating of Jet Engine Components. It designs, develops, and manufactures a range of heat transfer solutions, such as pre-cooler and oil/fuel hydraulic heat exchangers used in mechanical and electronic systems in commercial, military, and business aircraft; environmental control and power electronics cooling systems for use in aircraft and ground applications; and a range of other mechanical aircraft accessories and systems, such as pumps, valves, and turbine power units. The company also provides MRO services for heat transfer components, as well as for manufacturing heat transfer solutions; and aviation components, such as power plants, landing gears, and other aircraft components. In addition, it engages in the operation of a repair station, which provides heat transfer MRO services for airlines, air cargo carriers, maintenance service centers, and the military; and the overhaul and coating of jet engine components, including turbine vanes and blades, fan blades, variable inlet guide vanes, and afterburner flaps. The company was formerly known as Galagraph Ltd. and changed its name to TAT Technologies Ltd. in May 1992. TAT Technologies Ltd. was founded in 1985 and is headquartered in Gedera, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 23:47
End of Day Share Price2020/04/08 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.