TAT Technologies Ltd. Ordinary Shares (TATT)

FairStock Score: 59/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 11.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.10, providing financial flexibility
• Altman Z-Score of 7.1 confirms minimal bankruptcy risk and strong solvency

Concerns

• Trades significantly above Graham Number ($20) with negative 85% margin of safety—limited downside protection

AI Analysis

TAT Technologies Ltd. Ordinary Shares is a micro-cap industrials company valued at $492 million. The business generates $178 million in annual revenue with a 2.7% net margin. From a quality standpoint, TAT shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 7.1 confirms fortress-level solvency. On valuation, the stock is trading at a premium 28.2x earnings, with trades above its Graham Number with a negative 85% margin. Growth dynamics show revenue growing at 13.4% and profit growth of 32.2%. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the industrials space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer