Tat Techno (TATT) AI Stock Analysis

• Market Cap: $516.26M
• Dividend Yield: N/A
• Average Volume (3M): 128.87K
• Price to Earnings (P/E): 32.7
• 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): 0.37
• Shares Outstanding: 12,887,289
• 10 Day Avg. Volume: 131,965
• 30 Day Avg. Volume: 128,871
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $47.50
• Price Target Upside: 18.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 1.43
• Revenue Forecast (FY): $187.34M

• Rating: 70 Outperform
• Price Target: $44.00 ▲(9.84% Upside)

Tat Techno's overall score is driven by strong financial performance and positive earnings call insights, highlighting revenue growth and operational efficiency. However, technical indicators suggest short-term bearish momentum, and the high P/E ratio raises valuation concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion.

Operational Efficiency

Improved operational efficiency and margins suggest effective cost management, enhancing profitability and competitive positioning.

Strong Balance Sheet

A robust balance sheet with low leverage provides financial flexibility for strategic investments and growth opportunities.

Negative Factors

Negative Free Cash Flow

Negative free cash flow can limit the company's ability to invest in growth and may strain financial resources over time.

APU Market Challenges

Challenges in penetrating the APU market could hinder growth in this segment, affecting overall market expansion efforts.

Volatility in MRO Activities

Fluctuations in MRO activities can lead to unpredictable revenue streams, impacting financial stability and 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 shows strong revenue growth and profitability with efficient cost management. The balance sheet is robust with low leverage, but cash flow management is a concern due to negative free cash flow, impacting financial flexibility.

Income Statement

Tat Techno has demonstrated strong revenue growth with a TTM increase of 4.1% and consistently improving margins. The gross profit margin has increased to 23.2% in the TTM, indicating efficient cost management. The net profit margin has also improved to 8.2%, reflecting enhanced profitability. The EBIT and EBITDA margins have shown positive trends, reaching 9.1% and 12.2% respectively, highlighting operational efficiency.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.096, indicating prudent financial leverage. The return on equity has improved to 10.9%, showcasing effective use of shareholder funds. The equity ratio stands at a healthy level, suggesting a strong capital structure. However, the company should continue to monitor its debt levels to maintain financial stability.

Cash Flow

While operating cash flow has turned positive, the free cash flow remains negative, indicating challenges in generating cash after capital expenditures. The free cash flow growth rate is concerning at -61% in the TTM. The operating cash flow to net income ratio is low at 0.11, suggesting limited cash conversion efficiency. Improvement in free cash flow generation is needed to enhance financial flexibility.

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: 40.06
• 50DMA: Negative
• 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 Positive. The current price of 40.06 is below the 20-day moving average (MA) of 40.77, below the 50-day MA of 40.56, and above the 200-day MA of 32.56, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 50.02 is Neutral, 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	70 Outperform	$516.26M	32.66	10.47%	―	25.96%	68.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AIRO	51 Neutral	$451.23M	―	―	―	―	―
SKYH	47 Neutral	$747.84M	―	-23.63%	―	94.39%	24.44%
EVEX	43 Neutral	$1.58B	―	-115.63%	―	―	-33.69%
RDW	43 Neutral	$985.95M	―	-50.08%	―	-0.63%	-163.11%
EVTL	25 Underperform	$423.67M	―	―	―	―	―

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.

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.

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.

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.

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.