One-glance verdict
Overvalued
$11.29 our estimate vs market $37.00
Wall Street consensus: $61.29 (442.8% higher than our fair-value estimate)
228% above our estimate, beyond the bull case
Fundamentals snapshot
TAT Technologies Ltd.
TATT · NGM · Industrials · Aerospace & Defense
Current price
$37.00
52-week range
$30.47 - $64.50
Market cap
$480.93M
Balance sheet
Healthy
18.63x Strong cushion
Net cash $37.30M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 17.0% last year.
- Reward Returns 13.0% on equity, ahead of 60% of its peers.
- Reward Free cash flow was positive in 3/10 years.
What this company does
TAT Technologies Ltd.
TAT Technologies Ltd. makes important parts and fixes them for airplanes and military vehicles, like heat exchangers that keep systems cool and engine parts. Most of their money comes from these services, which are critical for keeping aircraft flying safely and efficiently. This means their business relies on planes needing upkeep, a consistent need in the aviation world.
How the company got here
TAT Technologies Ltd. has a long history, starting in 1969. Originally known as Galagraph Ltd., it changed its name to TAT Technologies in 1992. The company has evolved over decades to become a specialized provider of solutions and services for both the commercial and military aviation sectors, as well as ground defense industries. This journey reflects a strategic focus on adapting to the complex needs of the aerospace and defense markets.
What it actually does
TAT Technologies provides essential components and services that keep aircraft and defense systems running smoothly. Think of them as the mechanics and manufacturers behind critical parts of planes and military equipment. They design, build, and repair specialized equipment that manages heat, cools systems, and ensures various mechanical parts function correctly. Their work is vital for the safety and performance of aircraft in both civilian and military operations.
Original Equipment Manufacturing (OEM) of Heat Transfer Solutions and Aviation Accessories
This part of TAT Technologies focuses on creating brand-new parts for aircraft and defense systems. They design and manufacture heat exchangers, which are like radiators for planes, to manage temperatures in critical systems. They also make other mechanical accessories for aircraft, such as pumps and valves. These are the original parts that go into new planes or are used in new defense equipment, ensuring these systems operate efficiently and reliably.
Maintenance, Repair, and Overhaul (MRO) Services for Heat Transfer Components and OEM of Heat Transfer Solutions
This segment involves fixing and maintaining the heat transfer components that TAT Technologies or others manufacture. When these specialized parts, like heat exchangers, need servicing or repair, this division steps in. They ensure these critical components continue to function correctly, extending their lifespan and maintaining the performance of the aircraft or defense system they are part of. This is crucial for airlines and military operators to keep their fleets operational.
MRO Services for Aviation Components
Beyond just heat transfer parts, this business line offers repair and maintenance for a broader range of aircraft components. This includes services for auxiliary power units (APUs), which are small engines that provide power on aircraft, and landing gear systems. By providing these MRO services, TAT Technologies helps airlines, cargo carriers, and maintenance centers keep their aircraft in top condition, ensuring safety and reducing downtime.
Overhaul and Coating of Jet Engine Components
This specialized segment focuses on the intricate work of overhauling and applying protective coatings to parts of jet engines. Components like turbine vanes, blades, and fan blades are meticulously inspected, repaired, and treated to withstand extreme temperatures and stresses. This process is vital for maintaining the efficiency, durability, and safety of jet engines, which are the heart of any aircraft.
What management is betting on now
Management is focused on leveraging their expertise in specialized aerospace and defense solutions. They are likely prioritizing growth in their MRO services, as airlines and defense forces increasingly rely on maintenance to keep existing fleets operational. Expanding their capabilities in areas like jet engine component services and continuing to innovate in heat transfer solutions are also key. The goal is to solidify their position as a trusted partner for critical aviation and defense systems.
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$-10.94M
FY2025 Q4
$4.02M
Revenue
$178.01M
Net income
$16.82M
Diluted EPS
1.37
Operating cash flow
$14.97M
Free cash flow
$4.02M
Fetching…
Sources
Revenue
$152.12M
Net income
$11.17M
Diluted EPS
1.00
Operating cash flow
$-5.82M
Free cash flow
$-10.94M
Fetching…
Sources
Is it cheap or expensive?
Fair value $11.29 vs current price $37.00
Wall Street consensus is the average analyst price target: $61.29 (442.8% higher than our fair-value estimate).
Our most-likely fair value is $11.29 a share — about 69.5% below today's price of $37.00, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $37.3M - more cash than debt. Interest coverage 18.6x.
Net debt
$-37.30M
Interest coverage
18.63x
TAT Technologies Ltd.'s profit covers its interest bill about 18.6 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
TATT
BASELINE
TAT Technologies Ltd.
Total debt $16.43M Interest coverage 18.63x This is the baseline the peer rows are being compared against.
Total debt $306.86M Interest coverage 5.82x -69% vs TATT Carries about 3.2x less debt cushion than TATT.
Total debt $1.04B Interest coverage 5.78x -69% vs TATT Carries about 3.2x less debt cushion than TATT.
Total debt $352.97M Interest coverage 6.08x -67% vs TATT Carries about 3.1x less debt cushion than TATT.
Total debt $296.00K Interest coverage 8.75x -53% vs TATT Carries about 2.1x less debt cushion than TATT.
What you should know
The case for and against TATT
3 Rewards
0 Risks
Rewards
-
Revenue grew 17.0% last year.
-
Returns 13.0% on equity, ahead of 60% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
20.44x
Forward P/E
18.83x
P/B
2.44x
P/S
2.45x
EV/EBITDA
16.08x
PEG ratio
4.62x
Profitability
How much profit each dollar creates
Gross margin
26.6%
Operating margin
16.3%
Net margin
12.2%
ROE
13.0%
ROA
5.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.08x
Current ratio
4.97x
Quick ratio
2.33x
Total debt
$16.43M
Total cash
$53.73M
Growth
How the business has been compounding
Revenue TTM
$528.48M
Revenue 5Y CAGR
22.9%
EPS TTM
1.81
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$6.54M
Free CF TTM
$4.02M
FCF margin
0.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2017-06-05