RADA Electronic Industries Is Starting To Enjoy The Fruits Of Its Investments
RADA has seen great revenue growth, which is set to continue for the foreseeable future, especially as the APS market is set to take off from 2023 onwards.
It has even greater operational leverage, which is also likely to continue.
RADA has a strong balance sheet and a stock price that has lingered with valuations becoming attractive.
There are some minor concerns, but we think none of these is too serious.
RADA experienced limited headwinds from the pandemic last year and defense spending isn’t very susceptible to the business cycle.