MeritValue

TAT TECHNOLOGIES LTD

TATTdata completeness 100%15 fiscal years on file
The thesis, from the filings

TAT TECHNOLOGIES LTD earns about 4% on invested capital, but has diluted owners by 38% over 5 years — worth asking whether the growth reaches owners. The applicable estimate puts fair value near $3.94 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$78M1$84.6M2$113.8M3$152.1M3$178M3
Net income−$3.56M4−$1.56M5$4.67M6$11.2M6$16.8M6
Operating cash flow−$2.27M7−$4.87M8$2.26M9−$5.82M9$15M9
Capital expenditure$16.2M10$16.2M11$5.1M12$5.13M12$11M12
Free cash flow (derived)−$18.5M7−$21.1M8−$2.85M9−$10.9M9$4.02M9
Total debt$13.3M13$42.6M14$30.2M15$26M16$23.4M16
Cash & equivalents$12.9M17$7.72M18$16M19$7.13M20$51.3M20
Diluted shares8.9M8.9M9.1M11.2M12.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$143.6
your share of equity
Profit it earned you last year
$13.7
Free cash flow it threw off
$3.27
Debt you’d be carrying
$19.07

10 shares is a claim on $143.6 of net worth that earned you $13.7 and generated $3.27 of cash last year, against $19.07 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 -4%FY22 -0%FY23 5%FY24 9%FY25 11%

It earned an average 4% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+38% shares · 5y

Share count is up 38% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 76% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
$3.94
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$4.67M
  • growthAssumed0.0%
Graham Number
$21.04
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001178913-24-000845 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001178913-25-001046 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001178913-26-001363 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001178913-24-000845 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001178913-25-001046 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001178913-26-001363 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001178913-24-000845 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  8. 20-F · period ending 2022-12-31 · accession 0001178913-25-001046 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001178913-26-001363 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001178913-24-000845 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001178913-25-001046 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001178913-26-001363 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001178913-23-001177 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2022-12-31 · accession 0001178913-24-000845 (LongTermDebtNoncurrent)
  15. 20-F · period ending 2023-12-31 · accession 0001178913-25-001046 (LongTermDebtNoncurrent)
  16. 20-F · period ending 2024-12-31 · accession 0001178913-26-001363 (LongTermDebtNoncurrent)
  17. 20-F · period ending 2021-12-31 · accession 0001178913-23-001177 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2022-12-31 · accession 0001178913-24-000845 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F · period ending 2023-12-31 · accession 0001178913-25-001046 (CashAndCashEquivalentsAtCarryingValue)
  20. 20-F · period ending 2024-12-31 · accession 0001178913-26-001363 (CashAndCashEquivalentsAtCarryingValue)