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AAR CORP (AIR) Stock Fundamental Analysis

USA - NYSE:AIR - US0003611052 - Common Stock

84.59 USD
-1.89 (-2.19%)
Last: 10/27/2025, 6:40:00 PM
84.59 USD
0 (0%)
After Hours: 10/27/2025, 6:40:00 PM
Fundamental Rating

5

Overall AIR gets a fundamental rating of 5 out of 10. We evaluated AIR against 70 industry peers in the Aerospace & Defense industry. AIR has only an average score on both its financial health and profitability. AIR is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

AIR had positive earnings in the past year.
In the past year AIR had a positive cash flow from operations.
AIR had positive earnings in each of the past 5 years.
AIR had a positive operating cash flow in each of the past 5 years.
AIR Yearly Net Income VS EBIT VS OCF VS FCFAIR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

The Return On Assets of AIR (0.99%) is comparable to the rest of the industry.
AIR has a Return On Equity of 2.31%. This is comparable to the rest of the industry: AIR outperforms 48.57% of its industry peers.
The Return On Invested Capital of AIR (8.79%) is better than 77.14% of its industry peers.
AIR had an Average Return On Invested Capital over the past 3 years of 7.36%. This is in line with the industry average of 8.41%.
The last Return On Invested Capital (8.79%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 0.99%
ROE 2.31%
ROIC 8.79%
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
AIR Yearly ROA, ROE, ROICAIR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4 6 8

1.3 Margins

AIR has a Profit Margin (1.01%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AIR has grown nicely.
Looking at the Operating Margin, with a value of 9.31%, AIR is in line with its industry, outperforming 58.57% of the companies in the same industry.
AIR's Operating Margin has improved in the last couple of years.
AIR has a worse Gross Margin (19.04%) than 67.14% of its industry peers.
AIR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.31%
PM (TTM) 1.01%
GM 19.04%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
AIR Yearly Profit, Operating, Gross MarginsAIR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5 10 15

4

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
Compared to 1 year ago, AIR has more shares outstanding
The number of shares outstanding for AIR has been increased compared to 5 years ago.
AIR has a better debt/assets ratio than last year.
AIR Yearly Shares OutstandingAIR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10M 20M 30M
AIR Yearly Total Debt VS Total AssetsAIR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

AIR has an Altman-Z score of 3.40. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
AIR has a Altman-Z score (3.40) which is comparable to the rest of the industry.
AIR has a Debt/Equity ratio of 0.82. This is a neutral value indicating AIR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.82, AIR is doing worse than 70.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF N/A
Altman-Z 3.4
ROIC/WACC0.91
WACC9.68%
AIR Yearly LT Debt VS Equity VS FCFAIR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

A Current Ratio of 2.91 indicates that AIR has no problem at all paying its short term obligations.
AIR has a better Current ratio (2.91) than 61.43% of its industry peers.
AIR has a Quick Ratio of 1.31. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
AIR's Quick ratio of 1.31 is in line compared to the rest of the industry. AIR outperforms 42.86% of its industry peers.
Industry RankSector Rank
Current Ratio 2.91
Quick Ratio 1.31
AIR Yearly Current Assets VS Current LiabilitesAIR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

5

3. Growth

3.1 Past

AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.83%, which is quite impressive.
Measured over the past years, AIR shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.75% on average per year.
The Revenue has grown by 17.59% in the past year. This is quite good.
AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%

3.2 Future

AIR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.89% yearly.
The Revenue is expected to grow by 1.07% on average over the next years.
EPS Next Y15.97%
EPS Next 2Y16.54%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue Next Year10.56%
Revenue Next 2Y8.87%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
AIR Yearly Revenue VS EstimatesAIR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
AIR Yearly EPS VS EstimatesAIR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 20.48, which indicates a rather expensive current valuation of AIR.
Based on the Price/Earnings ratio, AIR is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
AIR's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.08.
AIR is valuated correctly with a Price/Forward Earnings ratio of 15.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 91.43% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AIR to the average of the S&P500 Index (23.09), we can say AIR is valued slightly cheaper.
Industry RankSector Rank
PE 20.48
Fwd PE 15.97
AIR Price Earnings VS Forward Price EarningsAIR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 94.29% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.59
AIR Per share dataAIR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AIR may justify a higher PE ratio.
A more expensive valuation may be justified as AIR's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)1.28
PEG (5Y)1.61
EPS Next 2Y16.54%
EPS Next 3Y15.89%

0

5. Dividend

5.1 Amount

No dividends for AIR!.
Industry RankSector Rank
Dividend Yield N/A

AAR CORP

NYSE:AIR (10/27/2025, 6:40:00 PM)

After market: 84.59 0 (0%)

84.59

-1.89 (-2.19%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)09-23 2025-09-23/amc
Earnings (Next)01-05 2026-01-05
Inst Owners98.03%
Inst Owner Change-0.24%
Ins Owners2.4%
Ins Owner Change0.98%
Market Cap3.35B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target88.82 (5%)
Short Float %2.93%
Short Ratio2.23
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)4.81%
PT rev (3m)9.19%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)1.31%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)3.74%
Revenue NQ rev (3m)3.66%
Revenue NY rev (1m)4.04%
Revenue NY rev (3m)5.2%
Valuation
Industry RankSector Rank
PE 20.48
Fwd PE 15.97
P/S 1.17
P/FCF N/A
P/OCF 341.47
P/B 2.68
P/tB 6.97
EV/EBITDA 13.59
EPS(TTM)4.13
EY4.88%
EPS(NY)5.3
Fwd EY6.26%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.29%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.28
PEG (5Y)1.61
Graham Number54.17
Profitability
Industry RankSector Rank
ROA 0.99%
ROE 2.31%
ROCE 11.13%
ROIC 8.79%
ROICexc 9.1%
ROICexgc 13.64%
OM 9.31%
PM (TTM) 1.01%
GM 19.04%
FCFM N/A
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
Industry RankSector Rank
Debt/Equity 0.82
Debt/FCF N/A
Debt/EBITDA 3.18
Cap/Depr 64.78%
Cap/Sales 1.24%
Interest Coverage 3.6
Cash Conversion 3.05%
Profit Quality N/A
Current Ratio 2.91
Quick Ratio 1.31
Altman-Z 3.4
F-Score6
WACC9.68%
ROIC/WACC0.91
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.97%
EPS Next 2Y16.54%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year10.56%
Revenue Next 2Y8.87%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year36.67%
EBIT Next 3Y17.93%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A

AAR CORP / AIR FAQ

What is the ChartMill fundamental rating of AAR CORP (AIR) stock?

ChartMill assigns a fundamental rating of 5 / 10 to AIR.


Can you provide the valuation status for AAR CORP?

ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.


Can you provide the profitability details for AAR CORP?

AAR CORP (AIR) has a profitability rating of 6 / 10.


What are the PE and PB ratios of AAR CORP (AIR) stock?

The Price/Earnings (PE) ratio for AAR CORP (AIR) is 20.48 and the Price/Book (PB) ratio is 2.68.


What is the financial health of AAR CORP (AIR) stock?

The financial health rating of AAR CORP (AIR) is 4 / 10.