TAT Technologies Ltd. Ordinary Shares (TATT)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital, carry little debt, and sell at a sensible price. TAT has the balance-sheet part: D/E is only 0.09, Altman Z is 6.42, and Piotroski is 6/9, so financial risk looks low. It operates in aerospace and defense MRO/OEM, providing maintenance, repair, and overhaul plus original equipment. But its returns are not exceptional: ROE is 11.86% and ROCE only 5.00%. That ROCE tells me the business has not yet proved it can earn high returns on the capital it employs. Growth is also muted: the provided filed figures show revenue growth of -2.36% and profit growth of -10.83%. Still, the latest reported quarter, fiscal Q2 2026, had revenue of $52.9M and net income of $8.1M, a 15.25% margin. Cash generation is thin: TTM FCF is $7.1M, a 1.4% FCF yield at the 2026-10-13 close of $31.82 and $491.6M market cap. At that close, FairStock's P/E is 19.89, P/B 2.19, and EV/EBITDA 15.96. The Graham Number is $22.88, so the price carries a -39.07% margin of safety, meaning it sells well above Graham's conservative value estimate. The 52-week range is $30.98 to $64.50, so the stock is near its low, but cheapness must be measured by value, not price alone. FairStock's Lynch category is 'none' because only 0 years of filed results are available and 3 are needed. Overall, a sound balance sheet and a decent quarter are not enough if ROCE and cash flow stay low. I would want evidence of durable growth and better capital returns before calling this a bargain.

In plain English: TAT Technologies makes and repairs parts for commercial and military aircraft and ground defense customers. The business is profitable, with $8.1 million of net income on $52.9 million of revenue in the latest reported quarter, and it carries very little debt. At the 2026-10-13 closing price of $31.82, the shares look more expensive than cheap when compared with the company's recent profits, cash flow, and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer