Tat Techno (TATT) AI Stock Analysis

• Market Cap: $524.77M
• Dividend Yield: N/A
• Average Volume (3M): 138.89K
• Price to Earnings (P/E): 33.2
• Beta (1Y): 0.90
• Revenue Growth: 25.96%
• EPS Growth: 68.93%
• Country: US
• Employees: 634
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.30
• Shares Outstanding: 12,887,289
• 10 Day Avg. Volume: 98,924
• 30 Day Avg. Volume: 138,893
• PEG Ratio: 0.22
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 1.75
• P/FCF Ratio: -24.32
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 8.49
• Enterprise Value/Ebitda: 16.17
• 1Y Price Target: $47.40
• Price Target Upside: 16.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: $47.00 ▲(15.42% Upside)

Tat Techno's strong financial performance and positive earnings call are the most significant factors driving the score. Technical indicators support a stable outlook, though valuation concerns and cash flow challenges slightly temper the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Strategic Partnerships

Strategic partnerships like the Boeing contract expand market presence and strengthen competitive positioning, driving sustained growth.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial resilience and supports potential future investments and growth opportunities.

Negative Factors

Cash Flow Challenges

Negative free cash flow suggests difficulties in generating cash post-capital expenditures, potentially limiting financial flexibility and growth.

MRO Intake Weakness

Weakness in MRO intake could signal challenges in maintaining service demand, impacting revenue stability and operational efficiency.

Exchange Rate Impact

Exchange rate volatility can affect cost structures and profitability, posing risks to financial performance and strategic planning.

Tat Techno Business Overview & Revenue Model

Company Description

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. 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 1969 and is based in Netanya, Israel.

How the Company Makes Money

Tat Techno generates revenue through multiple streams, primarily by offering subscription-based software services and cloud solutions to businesses. This model provides a steady income as companies pay recurring fees for access to TATT's platforms. Additionally, TATT engages in custom software development projects, charging clients for tailored solutions that meet specific operational needs. The company also benefits from partnerships with telecommunications providers, which allows for bundled service offerings and shared revenue from joint ventures. Furthermore, TATT invests in research and development to create proprietary technologies that can be licensed to other firms, further diversifying its income sources.

Tat Techno Financial Statement Overview

Summary

Tat Techno's financial performance shows strong revenue growth and improved profitability metrics, with a significant increase in gross profit margin. However, cash flow challenges persist, indicating potential liquidity issues despite a strong balance sheet.

Income Statement

Tat Techno has demonstrated significant revenue growth, increasing from $75.4M in 2020 to $152.1M in 2024, reflecting a robust expansion strategy. The gross profit margin has improved from 10.8% in 2020 to 21.7% in 2024, highlighting better cost management or pricing strategies. The net profit margin also shows positive growth, moving from a negative 4.4% in 2020 to a positive 7.3% in 2024, indicating enhanced profitability. However, EBIT and EBITDA margins, while improving, suggest some operational challenges that need addressing.

Balance Sheet

The company's debt-to-equity ratio has improved, moving from 0.19 in 2020 to 0.18 in 2024, indicating a conservative approach to debt. The return on equity (ROE) has increased from negative values in early years to 10% in 2024, showing improved efficiency in generating profits from shareholders' investments. However, the equity ratio has decreased slightly from 69.1% in 2020 to 68.5% in 2024, suggesting a slight increase in leverage.

Cash Flow

Tat Techno has faced challenges with free cash flow, with significant negative values over the years, culminating in -$10.9M in 2024. The operating cash flow to net income ratio is negative, suggesting that the company is not efficiently converting its net income into cash. However, the company has shown resilience by reducing negative free cash flow from -$21M in 2022 to -$10.9M in 2024.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	166.75M	152.12M	113.79M	84.56M	77.97M	75.36M
Gross Profit	38.74M	33.01M	22.47M	15.93M	11.27M	8.44M
EBITDA	20.35M	17.48M	11.14M	2.96M	989.00K	248.00K
Net Income	13.70M	11.17M	4.67M	-1.75M	-3.91M	-3.30M
Balance Sheet
Total Assets	213.63M	163.36M	145.58M	126.65M	110.83M	116.12M
Cash, Cash Equivalents and Short-Term Investments	43.18M	7.13M	16.64M	7.72M	12.87M	24.13M
Total Debt	15.92M	19.66M	29.95M	29.82M	15.84M	15.34M
Total Liabilities	47.85M	51.39M	54.89M	51.08M	34.05M	35.84M
Stockholders Equity	165.78M	111.97M	90.68M	75.57M	76.78M	80.28M
Cash Flow
Free Cash Flow	-5.58M	-10.94M	-3.33M	-21.08M	-18.29M	693.00K
Operating Cash Flow	3.74M	-5.82M	2.25M	-4.87M	-1.49M	6.10M
Investing Cash Flow	-9.36M	-3.85M	-3.58M	-16.12M	-15.64M	-5.41M
Financing Cash Flow	40.74M	161.00K	10.24M	15.80M	6.04M	7.65M

Tat Techno Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TATT, the sentiment is Positive. The current price of 40.72 is below the 20-day moving average (MA) of 42.00, above the 50-day MA of 38.98, and above the 200-day MA of 31.46, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 49.48 is Neutral, neither overbought nor oversold. The STOCH value of 19.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TATT.

Tat Techno Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATT	75 Outperform	$524.77M	33.20	10.47%	―	25.96%	68.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AIRO	53 Neutral	$553.37M	―	―	―	―	―
SKYH	48 Neutral	$769.86M	―	-23.63%	―	94.39%	24.44%
EVEX	43 Neutral	$1.31B	―	-320.52%	―	―	-30.78%
RDW	40 Underperform	$1.36B	―	-45.35%	―	-10.50%	-230.68%
EVTL	25 Underperform	$474.90M	―	―	―	―	―

Tat Techno Corporate Events

Tat Technologies Reinstates Shareholder Approval Requirement for Incentive Plan

Tat Technologies Ltd. announced on October 20, 2025, that it has decided to reinstate a provision in its 2012 Incentive Plan, which requires shareholder approval for grants of Incentive Stock Options (ISOs) within 12 months of the board’s resolution. This move emphasizes the company’s commitment to shareholder involvement in key decisions. The reinstatement will be discussed at the Special General Meeting of Shareholders on November 4, 2025, in Tel Aviv, Israel. The decision to revert to the original provision highlights the company’s focus on maintaining transparency and shareholder engagement in its incentive strategies.

TAT Technologies Announces Shareholder Meeting and Key Agenda Items

TAT Technologies Ltd. has announced its upcoming annual and special general meeting of shareholders, scheduled for November 4, 2025, in Tel-Aviv, Israel. The meeting will address several key agenda items, including the re-appointment of Kesselman & Kesselman PwC Israel as independent auditors, the re-election and election of directors, approval of new compensation terms, and amendments to the company’s stock option plans and authorized share capital. These decisions are expected to impact the company’s governance and financial strategies, potentially influencing its market positioning and stakeholder relations.

TAT Technologies Secures $12 Million Boeing 777 MRO Contract

On August 18, 2025, TAT Technologies Ltd. announced a significant three-year contract with an international airline to provide MRO services for the GTCP331-500 Auxiliary Power Unit used on the Boeing 777 platform. The contract, valued at approximately $12 million, underscores TAT’s expanding presence in the APU market and highlights the company’s strategic growth and synergy between its leasing and MRO businesses. This agreement further solidifies TAT’s market position and enhances its long-term customer relationships, leveraging strategic partnerships such as those with Honeywell to capture tangible revenue opportunities.

TAT Technologies Announces Securities Offering to Boost Market Position

On August 11, 2025, TAT Technologies Ltd. announced the filing of a registration statement with the U.S. Securities and Exchange Commission for a proposed securities offering. The company highlighted its strategic focus on expanding market share in the aerospace sector, leveraging its partnerships and contracts. This move is expected to enhance TAT’s market positioning and provide growth opportunities, although it involves certain risks and uncertainties.

TAT Technologies Reports Strong Q2 2025 Financial Growth

On August 11, 2025, TAT Technologies Ltd. reported its second quarter 2025 financial results, showcasing significant growth and profitability. The company achieved an 18% increase in revenue to $43.1 million and a 35.6% rise in gross profit compared to the same period in 2024. Operating income and net income also saw substantial increases, reflecting the company’s strategic diversification across trading and MRO/OEM segments. The company completed a $45 million capital raise, strengthening its balance sheet and positioning it for future growth. TAT Technologies continues to outperform the industry, with a growing backlog and new contract wins, including for the 777APU, and is exploring strategic opportunities to enhance growth prospects.

TAT Technologies Reports Strong Asset Growth in Mid-2025 Financials

On August 11, 2025, TAT Technologies Ltd. released its unaudited condensed consolidated financial statements for the period ended June 30, 2025. The report highlights a significant increase in total assets from $163.4 million in December 2024 to $213.6 million in June 2025, indicating a positive financial trajectory. This growth in assets, coupled with a reduction in current liabilities, suggests an improved financial position, which could enhance the company’s competitiveness in the aviation industry and provide reassurance to stakeholders about its financial health.

TAT Technologies Secures $10 Million Defense Contract

On July 28, 2025, TAT Technologies Ltd. announced a new $10 million contract with an Israeli defense integrator, increasing its cumulative expected revenues from defense sector contracts to $22 million year-to-date. This contract underscores TAT’s strategic role as a trusted supplier to the Israeli Air Force and defense integrators, positioning the company to meet growing demand amid recent geopolitical developments and increased defense budgets in Israel.

TAT Technologies Strengthens Board with New Appointments

On July 18, 2025, TAT Technologies Ltd. announced the appointment of Igal Zamir and Amir Harel to its Board of Directors, filling vacancies in accordance with Israel’s Companies Law. These appointments are effective immediately and will last until the next Annual General Meeting. Mr. Zamir, the current CEO and President of TAT Technologies, brings extensive leadership experience, while Mr. Harel, recognized as an independent director, has a strong financial background. This strategic move is expected to strengthen the company’s governance and enhance its market positioning.