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RADA Electronic Industries Ltd. (RADA)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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14.13+1.07 (+8.19%)
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Neutralpattern detected
Previous Close13.06
Bid14.15 x 800
Ask14.22 x 1200
Day's Range13.46 - 14.23
52 Week Range3.81 - 14.80
Avg. Volume775,516
Market Cap692.865M
Beta (5Y Monthly)0.99
PE Ratio (TTM)108.69
EPS (TTM)0.13
Earnings DateFeb 10, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est17.00
  • RADA Announces a Total of $24 Million in New Orders in the First Quarter of 2021 after Receiving $9 Million of New Orders in March 2021

    RADA Announces a Total of $24 Million in New Orders in the First Quarter of 2021 after Receiving $9 Million of New Orders in March 2021

    Year-over-year growth of 50% compared to the first quarter of 2020NETANYA, Israel, April 08, 2021 (GLOBE NEWSWIRE) -- RADA Electronic Industries Ltd. (NASDAQ: RADA, TASE: RADA) announced the receipt of $24 million of new orders in the first quarter of 2021, including $9 million in new orders during March 2021. This figure represents a growth of 50% in new orders during the first quarter when compared to the first quarter of 2020. The majority of these new orders will be delivered during 2021. Of these new orders, approximately 90% were orders for RADA’s software-defined tactical radars for counter UAV, short-range air defense (SHORAD) and counter fires (C-RAM), with 40% of the orders coming from the US market and 50% from the rest of the world. The remaining 10% were for RADA’s legacy avionics systems production. Dov Sella, RADA’s CEO, commented, “The 50% growth in new orders in the first quarter, when compared to last year, increases our confidence in our revenue guidance of over $120 million for 2021. We are particularly pleased with the flow of new orders coming from non-US markets. At the same time, we are satisfied with the continued stability in our legacy avionics business demonstrating an annual revenue rate of approximately $10 million.” About RADA RADA is a global defense technology company focused on proprietary radar solutions and legacy avionics systems. The Company is a leader in mini-tactical radars, serving attractive, high-growth markets, including critical infrastructure protection, border surveillance, active military protection and counter-drone applications. Safe Harbor Statement Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions, including the risks and uncertainties associated with market conditions, as well as risks and uncertainties inherent in RADA’s business, including, but not limited to, changes in general economic conditions, risks in product and technology developments, market acceptance of new products and continuing product demand, level of competition and other factors described in RADA’s Annual Report on Form 20-F for the year ended December 31, 2020, and other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise any forward-looking statements for any reason. Company Contact:Avi Israel (CFO)Tel: +972-76-5386200 mrkt@rada.comwww.rada.comInvestor Relations Contact:GK Investor RelationsEhud HelftTel: 1 646 201 9246rada@gkir.com

  • Rada Electronics: Strong Revenue Growth Backed By A Growing Order Book

    Rada Electronics: Strong Revenue Growth Backed By A Growing Order Book

    The defense sector has underperformed over the last year. Lockheed Martin (LMT) gained around 12% during this period while Northrop Grumman (NOC) is up around 4.6%. However, there is an exception. Rada Electronic Industries (RADA), a small-cap defense technology company, is a dark horse and has surged 327% over the past year. Rada provides tactical radar solutions, advanced airborne avionics systems, and surveillance infrastructure to companies that include Lockheed Martin, Boeing (BA) and Rafael. Strong Revenue Growth Visibility Over the last few years, Rada has been on a strong growth trajectory. In FY2019, the company reported revenue growth of 58%. Last year, top-line growth accelerated to 72%, with the company reporting revenue of $76.2 million. Rada has guided for more than 70% revenue growth in the current year, so given this performance, it’s not surprising that RADA stock has surged. An important point to note is that the company’s order backlog has continued to accelerate. For FY2020, Rada received $102 million in new orders compared to $60 million for FY2019. Furthermore, the company’s order intake was $15 million in the first two months of this year, 150% higher compared to the same period last year. Even if the company’s order intake for the full-year is only 100% higher on a year-over-year basis, Rada is positioned to report $200 million worth of new orders in FY2021. Rada’s software-defined tactical radars have contributed significantly to the inflow of orders and the company believes that the tactical radar market is worth $5 billion. Assuming Rada can capture 10% of the market share, the company is positioned to increase its top-line to at least $500 million in the coming years. As the total addressable market keeps growing, so too will its potential revenue. The company’s top-line growth has also translated to a strong improvement in EBITDA. For FY2019, Rada reported EBITDA of $0.4 million, which swelled to $9.7 million in FY2020. Strong growth in EBITDA is likely for the current year coupled with an increase in operating cash flows. Another important point from a financial perspective is that Rada completed a common share offering in March 2021, which resulted in net proceeds of $59.5 million. The timing of the public offering suggests that Rada is gearing up for its next phase of expansion. Global Growth Opportunity Rada Electronics already has a U.S. subsidiary that produces and delivers to the company’s biggest market. However, another key trigger for growth is a global expansion. In its latest annual report, Rada indicated that “two major European air defense integrators have purchased radars for integration and testing.” The company already provides digital recorders and debriefing solutions to the Chilean Air Force as well as to the Indian Air Force in collaboration with Hindustan Aeronautics. It’s important to mention that most of the NATO allies are still short of their defense spending targets. With the likelihood that defense budgets will increase over the next few years, Rada seems well positioned to benefit. Wall Street Opinions Analysts on Wall Street are bullish on RADA stock, giving it a Strong Buy consensus rating based on 4 unanimous Buy recommendations. The average analyst price target of $17 per share implies that the stock has upside potential of around 30% from current levels over the next 12 months. (See Rada Electronics stock analysis on TipRanks) Concluding Views Rada also seems keen on expanding its business segments with the company and recently signed a letter of intent (LOI) to invest $3 million for a 12% stake in RADSee Technologies. RADSee develops advanced radar technology and is targeting the commercial vehicle market. In February 2021, the company announced its first 4D imaging radar for autonomous vehicles. The investment seems attractive and could create long-term value. Overall, Rada Electronics is a growing player in the defense industry and the company is winning some big clients. If order backlog growth remains robust, RADA could potentially continue its upward trend. Disclosure: On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in the securities mentioned in this article. Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.