Tat Techno (TATT) AI Stock Analysis

• Market Cap: $672.01M
• Dividend Yield: N/A
• Average Volume (3M): 149.90K
• Price to Earnings (P/E): 38.2
• Beta (1Y): 0.89
• Revenue Growth: 20.72%
• EPS Growth: 76.17%
• Country: US
• Employees: 634
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.37
• Shares Outstanding: 12,950,637
• 10 Day Avg. Volume: 108,370
• 30 Day Avg. Volume: 149,900
• 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: 0.94
• Enterprise Value/Revenue: 3.65
• Enterprise Value/Gross Profit: 15.03
• Enterprise Value/Ebitda: 27.98
• 1Y Price Target: $53.50
• Price Target Upside: 5.19% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.85
• Revenue Forecast (FY): $210.39M

• Rating: 70 Outperform
• Price Target: $58.00 ▲(14.04% Upside)

The score is driven mainly by solid fundamentals (improving margins and a strong, low-leverage balance sheet) and a strong earnings call with record profitability and healthy backlog, partly offset by weak free cash flow conversion, overbought technical readings, and a high P/E valuation.

Positive Factors

Margin Expansion

Sustained margin expansion reflects meaningful improvements in cost structure and operational efficiency. Higher gross and EBITDA margins provide durable earnings power, improving resilience to pricing pressure and supporting reinvestment or debt reduction over the next several quarters.

Low Leverage & Liquidity

Very low leverage and a strong cash balance give the company financial flexibility to fund organic growth, pursue targeted M&A, or withstand cyclical softness. A healthy equity ratio also reduces refinancing risk and underpins long-term capital allocation optionality.

Robust Backlog and Revenue Momentum

A sizable, growing backlog provides medium-term revenue visibility and supports capacity planning and margin leverage. Double-digit revenue growth indicates market traction and repeatable demand, helping crystallize longer-term revenue streams and operational scaling benefits.

Negative Factors

Weak Free Cash Flow Conversion

Negative free cash flow despite positive operating cash flow signals capital intensity or working capital absorption that erodes liquidity over time. This limits ability to self-fund growth, increases reliance on cash reserves or financing, and can constrain durable capital allocation.

APU Market Penetration Challenges

Failure to secure meaningful APU contracts points to a material learning curve or competitive disadvantage in a key TAM expansion. Continued difficulty winning RFPs could delay diversification, concentrate revenue in fewer segments, and slow sustainable long-term growth.

Backlog & MRO Volatility

Lumpy backlog driven by RFP timing and volatile MRO demand creates forecasting and operational risks. Revenue and margin phasing may swing quarter-to-quarter, complicating capacity utilization and investment planning and increasing the chance of missed targets over the medium term.

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 including the sale of tattoo equipment and supplies, which includes high-tech tattoo machines and specialized inks. Additionally, TATT offers subscription-based access to its mobile application, which provides users with design tools, a portfolio platform for tattoo artists, and a marketplace for booking appointments. The company also partners with tattoo studios and artists, providing them with exclusive access to their products and technology, thus earning commission fees on sales made through these partnerships. Furthermore, TATT invests in research and development to create new products, which allows them to maintain a competitive edge and command premium pricing in the market.

Tat Techno Financial Statement Overview

Summary

Profitability trends are improving (higher gross and net margins) and leverage is low (debt-to-equity 0.096), but cash flow quality is weaker with negative free cash flow despite positive operating cash flow.

Income Statement

Tat Techno has shown consistent revenue growth, with a TTM growth rate of 3.46%. The gross profit margin has improved to 23.23% from 21.70% in the previous year, indicating better cost management. Net profit margin has also increased to 8.21%, reflecting improved profitability. EBIT and EBITDA margins have shown positive trends, suggesting operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.096, indicating low leverage. Return on equity has improved to 10.90%, showcasing effective use of equity to generate profits. The equity ratio stands at a healthy level, reflecting a stable financial position.

Cash Flow

While operating cash flow has turned positive, free cash flow remains negative, indicating potential liquidity challenges. The free cash flow to net income ratio is negative, suggesting that the company is not converting its net income into free cash flow effectively. However, the operating cash flow to net income ratio is positive, indicating some level of cash generation from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	172.53M	152.12M	113.79M	84.56M	77.97M	75.36M
Gross Profit	41.86M	33.01M	22.47M	15.93M	11.27M	8.44M
EBITDA	22.48M	17.48M	11.14M	2.96M	556.00K	248.00K
Net Income	15.67M	11.17M	4.67M	-1.56M	-3.56M	-3.30M
Balance Sheet
Total Assets	224.13M	163.36M	145.58M	126.65M	110.83M	116.12M
Cash, Cash Equivalents and Short-Term Investments	47.09M	7.13M	16.64M	7.72M	12.87M	24.13M
Total Debt	17.46M	19.66M	29.95M	29.82M	15.84M	15.34M
Total Liabilities	53.45M	51.39M	54.89M	51.08M	34.05M	35.84M
Stockholders Equity	170.69M	111.97M	90.68M	75.57M	76.78M	80.28M
Cash Flow
Free Cash Flow	-2.00M	-10.94M	-3.33M	-21.08M	-17.74M	4.05M
Operating Cash Flow	8.45M	-5.82M	2.25M	-4.87M	-1.49M	7.95M
Investing Cash Flow	-10.48M	-3.85M	-3.58M	-16.12M	-15.64M	-7.25M
Financing Cash Flow	40.55M	161.00K	10.24M	15.80M	6.04M	7.65M

Tat Techno Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 50.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TATT, the sentiment is Neutral. The current price of 50.86 is below the 20-day moving average (MA) of 51.36, above the 50-day MA of 44.62, and above the 200-day MA of 37.06, indicating a neutral trend. The MACD of 2.16 indicates Positive momentum. The RSI at 56.25 is Neutral, neither overbought nor oversold. The STOCH value of 41.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TATT.

Tat Techno Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TATT	70 Outperform	$672.01M	38.18	11.23%	―	20.72%	76.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RDW	58 Neutral	$2.19B	-4.03	-50.08%	―	-0.63%	-163.11%
AIRO	56 Neutral	$355.30M	-129.08	―	―	―	―
EVEX	49 Neutral	$1.42B	-6.18	-115.63%	―	―	-33.69%
SKYH	47 Neutral	$691.17M	-17.02	-5.40%	―	95.23%	89.44%
EVTL	45 Neutral	$501.51M	-0.54	―	―	―	―

Tat Techno Corporate Events

TAT Technologies Files for New Offering to Boost Market Share

On November 12, 2025, TAT Technologies Ltd. filed a registration statement with the U.S. Securities and Exchange Commission for a proposed offering, which is yet to become effective. The company aims to expand its market share in the engines and platforms sector over the next two to three years, contingent on securing new contracts. This strategic move is expected to bolster TAT’s industry positioning and potentially enhance its financial performance, although it involves substantial risks and uncertainties.

The most recent analyst rating on (TATT) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Tat Techno stock, see the TATT Stock Forecast page.

TAT Technologies Reports Robust Q3 2025 Financial Growth

On November 12, 2025, TAT Technologies Ltd. reported its financial results for the third quarter of 2025, showcasing significant growth across various metrics. The company’s revenues increased by 14.3% to $46.2 million, and gross profit rose by 36.8% to $11.6 million compared to the same period in 2024. Operating income and net income also saw substantial increases, with operating income up by 52.6% and net income by 69%. The company’s CEO, Igal Zamir, highlighted the broad-based growth and the company’s strong market positioning, emphasizing their agility and ability to capitalize on incremental growth opportunities. TAT Technologies is exploring opportunities to expand its capabilities and scale, supported by a strong cash position and working capital.

The most recent analyst rating on (TATT) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Tat Techno stock, see the TATT Stock Forecast page.

TAT Technologies Reports Strong Financial Growth as of September 2025

TAT Technologies Ltd. released its unaudited financial statements for the period ending September 30, 2025, showing a significant increase in total assets from $163.4 million in December 2024 to $224.1 million. This growth reflects improved financial health and operational efficiency, positioning the company strongly within the aerospace sector. The increase in cash and cash equivalents and inventory levels indicates robust operational activities and potential for future growth.

The most recent analyst rating on (TATT) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Tat Techno stock, see the TATT Stock Forecast page.

TAT Technologies Approves Proposals at Annual Shareholders Meeting

On November 4, 2025, TAT Technologies Ltd. held its Annual and Special General Meeting of Shareholders in Tel Aviv, Israel. During the meeting, all proposals outlined in the company’s proxy statement were approved by the required majority, in accordance with Israeli Companies Law. This approval signifies a strong alignment with shareholder interests and may impact the company’s strategic direction positively, reinforcing its position in the aerospace and defense sectors.

The most recent analyst rating on (TATT) stock is a Buy with a $56.00 price target. To see the full list of analyst forecasts on Tat Techno stock, see the TATT Stock Forecast page.

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.

The most recent analyst rating on (TATT) stock is a Buy with a $47.00 price target. To see the full list of analyst forecasts on Tat Techno stock, see the TATT Stock Forecast page.