Tadiran Group (TDRN) AI Stock Analysis

• Market Cap: ₪1.33B
• Dividend Yield: 0.76%
• Average Volume (3M): 39.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: 1.87%
• EPS Growth: -227.03%
• Country: IL
• Employees: 635
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 248.00
• Shares Outstanding: 8,586,001
• 10 Day Avg. Volume: 26,411
• 30 Day Avg. Volume: 39,445
• PEG Ratio: -1.50
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 1.12
• P/FCF Ratio: 22.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: 16,390.00 ▲(23.42% Upside)

Tadiran Group's overall stock score is primarily impacted by financial performance challenges, including negative net income and declining cash flow growth. Technical analysis further indicates bearish momentum, with the stock trading below key moving averages. Valuation metrics, such as a negative P/E ratio, highlight profitability concerns, contributing to a lower overall score.

Positive Factors

Diversified business model

Tadiran's presence across energy, telecommunications and defense creates multiple durable revenue streams and reduces dependence on any single cyclical market. Cross‑subsidiary tech and government contract exposure support long‑term backlog visibility and resilience over 2–6 months.

Stable gross and EBITDA margins

Consistent gross and positive EBITDA margins indicate underlying operational efficiency and pricing power across product lines. Margin stability provides a buffer against short‑term revenue volatility, sustaining ability to fund R&D and maintain competitiveness over the medium term.

Resilient free cash flow relative to income

A high free cash flow-to-net-income ratio shows the company converts a large portion of reported earnings into cash, supporting internal funding for capex, working capital and debt servicing. This cash conversion strength gives financial flexibility over coming quarters despite growth headwinds.

Negative Factors

High leverage & negative ROE

Leverage above 1x combined with negative return on equity signals capital strain: elevated interest and principal obligations reduce financial flexibility and raise refinancing risk. Negative ROE suggests capital is destroying value, pressuring medium‑term ability to invest or expand.

Declining revenue and negative margins

Falling top‑line and a negative net profit margin indicate weakening demand or margin compression. Sustained revenue decline limits scale benefits and erodes retained earnings, reducing capacity to fund strategic initiatives and risking market share loss if structural issues are not addressed.

Weak operating cash conversion and FCF decline

Very low operating cash-to-income conversion and a steep free cash flow decline reduce liquidity and raise short‑term funding pressures. Poor cash generation constrains debt reduction, capex and dividend policy, increasing vulnerability to shocks and limiting strategic optionality.

Tadiran Group Business Overview & Revenue Model

Company Description

Tadiran Group Ltd, through its subsidiaries, engages in the development, manufacturing, import, marketing, and distribution of air conditioning systems in Israel. The company offers overhead air conditioners, mini central air conditioners, multi systems inverters, VRF boxes, and multi inverters for the residential, commercial, and industrial markets under the Tadiran, Amcor, and Toshiba brands. It also imports, markets, and distributes various home appliances under the Amcor and Crystal brands; and provides warranty and maintenance services, as well as energy efficiency services. The company was formerly known as Tadiran Holdings Ltd and changed its name to Tadiran Group Ltd in May 2021. Tadiran Group Ltd was founded in 1989 and is based in Petah Tikva, Israel.

How the Company Makes Money

Tadiran Group generates revenue through multiple streams, primarily by providing energy solutions, including renewable energy systems and smart grid technologies, to both private and public sector clients. Additionally, the company earns income from its telecommunications division by offering advanced communication systems and services to various industries. Defense contracts also form a significant portion of its revenue, with the company supplying technologies and systems to military and governmental organizations. Strategic partnerships with other technology firms and government agencies enhance Tadiran's market presence and contribute to its earnings by enabling collaborative projects and access to larger contracts.

Tadiran Group Financial Statement Overview

Summary

Tadiran Group's financial statements reflect challenges in revenue growth and profitability, with a high leverage position. Despite stable gross and EBITDA margins indicating operational efficiency, the negative net income and declining cash flow growth are concerning.

Income Statement

Tadiran Group's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth by 3.8%, and a negative net profit margin of -2.37%, reflecting recent challenges in profitability. However, the company has maintained a stable gross profit margin around 18.6% and a positive EBITDA margin of 9.78%, suggesting operational efficiency. The EBIT margin has decreased significantly to 0.6%, indicating pressure on core earnings.

Balance Sheet

The balance sheet reveals a moderate financial position with a debt-to-equity ratio of 1.10, indicating a relatively high leverage. The return on equity has turned negative in the TTM period at -9.72%, highlighting recent profitability issues. However, the equity ratio remains stable at around 26.4%, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a concerning trend with a significant decline in free cash flow growth by 38.16% in the TTM period. The operating cash flow to net income ratio is 0.18, indicating challenges in converting income to cash. However, the free cash flow to net income ratio remains relatively strong at 77.77%, suggesting some resilience in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.91B	1.93B	1.95B	2.28B	1.45B	989.54M
Gross Profit	350.46M	364.09M	320.58M	415.41M	354.65M	281.78M
EBITDA	185.89M	204.97M	211.69M	201.17M	219.41M	154.14M
Net Income	-57.38M	17.09M	96.17M	87.23M	141.47M	100.57M
Balance Sheet
Total Assets	1.64B	1.65B	1.52B	1.64B	977.81M	808.79M
Cash, Cash Equivalents and Short-Term Investments	79.63M	51.69M	39.13M	120.84M	129.47M	329.54M
Total Debt	553.34M	446.74M	362.66M	409.04M	161.31M	169.31M
Total Liabilities	1.18B	1.14B	1.01B	1.23B	516.02M	410.33M
Stockholders Equity	433.13M	480.66M	510.17M	412.63M	449.07M	398.46M
Cash Flow
Free Cash Flow	63.22M	94.07M	52.47M	60.85M	18.62M	192.26M
Operating Cash Flow	95.06M	115.42M	109.16M	86.52M	27.66M	202.00M
Investing Cash Flow	-88.60M	-86.91M	2.59M	-150.36M	-78.76M	-11.81M
Financing Cash Flow	-22.27M	-14.13M	-198.54M	48.37M	-148.97M	48.81M

Tadiran Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13280.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:TDRN, the sentiment is Positive. The current price of 13280 is below the 20-day moving average (MA) of 15859.50, below the 50-day MA of 14529.00, and below the 200-day MA of 16853.70, indicating a neutral trend. The MACD of 321.04 indicates Positive momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:TDRN.

Tadiran Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLSN	74 Outperform	₪1.63B	10.65	―	4.41%	9.02%	23.68%
ECP	66 Neutral	₪2.33B	27.73	―	3.01%	3.83%	―
PLRM	66 Neutral	₪1.42B	7.29	―	9.08%	-2.62%	-18.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TDRN	47 Neutral	₪1.33B	-23.98	―	0.76%	1.87%	-227.03%