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Aran Research & Development (1982) Ltd (ARAN) Fair Value & Analysis

Industrials · Il · Market cap 195M ILA

AR Aran Research & Development (1982) Ltd ARAN · TA
Price41.76 ILA
Fair Value70.25 ILA
Upside+68.2%
Quality84/100
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Healthy Growth
Thin margins · 7.1% net margin
Low debt · generates free cash flow
0.14% dividend yield
Ranks above peers (11/14)
Moderate moat 51/100
Evidence: Medium Range 52.69 ILA – 87.81 ILA Share as image

Fair value as of: Jul 18, 2026

From 13 valuation models · updated 23 days ago

Share price +12.2% over the past month.

A strong business, screening 68% undervalued on our models.

What matters now

  • The rarer combination: high quality (84/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (52.69 ILA). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

41.76 ILA 11.38 ILA Fair Value 70.25 ILA Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range 11.38 ILA – 41.76 ILA · fair‑value band 52.69 ILA – 87.81 ILA · the 41.76 ILA price screens below the 70.25 ILA fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Aran Research & Development (1982) Ltd (ARAN) currently trades at 41.76 ILA, while our model-based Fair Value estimate is 70.25 ILA, implying the stock looks roughly 68.2% undervalued today. The Quality Score stands at 84/100 (high quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Aran Research & Development (1982) Ltd generated revenue of 263M ILA at a net margin of 7.1%. Revenue grew 11.4% year over year. It earns a return on equity of 23.7%. The balance sheet holds a net cash position of 26.6M ILA. Fundamentals as of Jul 18, 2026

Our scenario range runs from 52.69 ILA (bear case) to 87.81 ILA (bull case); at 41.76 ILA, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at 68%, ARAN screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 117.52 ILA 157.10 ILA 204.71 ILA 80
Residual Income 21.23 ILA 26.16 ILA 47.09 ILA 76
Rev-Margin DCF 74.20 ILA 98.22 ILA 127.32 ILA 74
All 13 models by family
DCF Models
Owner Earnings 58.08 ILA 78.88 ILA 105.75 ILA 31
5Y P/E Exit 89.32 ILA 125.33 ILA 162.79 ILA 38
10Y P/E Exit 100.63 ILA 132.57 ILA 171.05 ILA 35
Earnings-Based
Graham-Dodd 28.10 ILA 97.62 ILA 131.17 ILA 54
Lynch FV 22.65 ILA 32.36 ILA 42.06 ILA 50
Dividend Discount
Gordon GGM 21.63 ILA 36.22 ILA 47.01 ILA 70
DDM Multi-Stage 21.63 ILA 34.13 ILA 38.97 ILA 61
Multiples
P/E Multiple 65.08 ILA 86.78 ILA 108.47 ILA 63
P/B Multiple 52.69 ILA 70.25 ILA 87.81 ILA 55
Asset-Based
NCAV (Graham) 10.47 ILA 14.03 ILA 20.94 ILA 50
Growth DCF
Growth DCF 117.52 ILA 157.10 ILA 204.71 ILA 80
Rev-Margin DCF 74.20 ILA 98.22 ILA 127.32 ILA 74
Economic Profit
Residual Income 21.23 ILA 26.16 ILA 47.09 ILA 76

Widest divergence: DCF Models (125.33 ILA) versus Asset-Based (14.03 ILA). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 263M ILA
Revenue growth (YoY) +11.4%
Net margin 7.1%
Return on equity 23.7%
Free cash flow 57.1M ILA FY2025
P/E ratio 10.6
More key figures
Operating margin 4.8%
EPS (TTM) 4.09 ILA
Dividend yield 0.1%
EPS growth (YoY) +189%
Net cash 26.6M ILA FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 84/100

Of which business quality 82 · Market factors (momentum, volatility) 83

Profitability 59
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 92
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 95
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 78
Price trend over the last 3–12 months (market factor)
52W Momentum 99
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Aran Research & Development (1982) Ltd. engages in the product design and development, and equipment manufacturing businesses for plastics industry in Israel. It operates through Investments in Ventures and Start-Up Companies; Sale of Equipment and Raw Materials; and Product Development, Design, and Manufacturing Services segments.

Full company description

Aran Research & Development (1982) Ltd. engages in the product design and development, and equipment manufacturing businesses for plastics industry in Israel. It operates through Investments in Ventures and Start-Up Companies; Sale of Equipment and Raw Materials; and Product Development, Design, and Manufacturing Services segments. The company develops various medical devices; water devices and fluid management systems, including pressure and flow regulators, electric and hydraulic valves, air release valves, sprinklers, drippers, taps, water meters, filters, check valves, electronic controllers, and testing devices; and measurement and weighing devices, specialty printers, automatic beverage machines, computerized shopping carts and self-checkout kiosks, industrial and communication devices, and batteries. It also provides plastic sheets for agriculture, food and industrial packaging, pipes, and other technical products; technical support, training, analysis, after sales, logistics, and other services; and technological consulting, and software and computing personnel placement services. In addition, the company supplies machines and equipment, such as injection molding machines, robotics and automation, injection molds, hot runner systems, drying dosing and conveying systems, plasticizing screws barrels, ultrasonic welding and cleaning, and raw materials; designs, manufactures, and imports injection molds; and invests in medical start-up companies. It serves government ministries and public bodies; and the defense, medical and biotechnology, printing, water and agricultural, and consumer products industries. The company was formerly known as Aran Consulting and Development (1982) Ltd. and changed its name to Aran Research & Development (1982) Ltd. in May 1994. Aran Research & Development (1982) Ltd. was incorporated in 1982 and is based in Caesarea, Israel.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Aran Research & Development (1982) Ltd reported revenue of 263M ILA in FY2025 versus 206M ILA in FY2021, a compound +6.4%/yr. Reported net income was 18.7M ILA in FY2025, compounding +14.3%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
263M ILS
Latest YoY
+20.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.4%
Avg. growth/yr (18Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.6%
Revenue +6.4%/yr
FY21 206M ILA
FY22 173M ILA
FY23 172M ILA
FY24 218M ILA
FY25 263M ILA
Net income +14.3%/yr
FY21 10.9M ILA
FY22 23.5M ILA
FY23 16.1M ILA
FY24 6.8M ILA
FY25 18.7M ILA
Character of growth · EPS growth decomposed (2014-2025) +18.5 % p.a.
Revenue per share +9.3 pp

of which total revenue +9.3 pp · buybacks/dilution +0.1 pp

EBIT margin +3.5 pp
Tax rate −0.6 pp
Residual (interest, one-offs) +6.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Aran Research & Development (1982) Ltd Fair Value". https://www.fairvalue-calculator.com/stock/ARAN

Peer Group

Conglomerates · 369 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 84 · Top 25%
Fair Value upside +68% · Top 25%
Return on equity (TTM) 24% · Top 25%
Return on assets 5% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 5% · Below median
Revenue growth 11% · Above median
Dividend yield (TTM) 0.1% · Bottom 25%
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 10.6× · Cheaper than median
P/B 0.67× · Cheaper than median
P/S (TTM) 0.24× · Cheaper than median
P/FCF 1.1× · Pricier than median
EV/EBITDA 0.9× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 20
FUTURE 57 · sector 16
PAST 95 · sector 20
HEALTH 96 · sector 88
DIVIDEND 3 · sector 39

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Aran Research & Development (1982) Ltd (ARAN) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 70.25 ILA versus a price of 41.76 ILA, about +68% (undervalued).
What is the fair value of ARAN?
Our model-based fair value for Aran Research & Development (1982) Ltd is 70.25 ILA (as of Jul 18, 2026), built from audited fundamentals. The current price is 41.76 ILA.
What is the quality score of ARAN?
Aran Research & Development (1982) Ltd has a Quality Score of 84/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Aran Research & Development (1982) Ltd (ARAN)?
Aran Research & Development (1982) Ltd reported trailing-twelve-month revenue of about 263M ILS (latest available figure, as of Jul 18, 2026).
What is the net profit margin of ARAN?
The net profit margin of Aran Research & Development (1982) Ltd is about 7.1%, meaning it keeps roughly 7.1% of revenue as net income. Based on the latest reported figures.
Does Aran Research & Development (1982) Ltd pay a dividend?
Aran Research & Development (1982) Ltd currently shows a dividend yield of about 0.13% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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