AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
85.44 USD
-0.74 (-0.86%)
85.44 USD
0 (0%)
AIR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 71 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.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
AIR had a positive operating cash flow in the past year.
Each year in the past 5 years AIR has been profitable.
Each year in the past 5 years AIR had a positive operating cash flow.
1.2 Ratios
AIR's Return On Assets of 0.99% is in line compared to the rest of the industry. AIR outperforms 47.89% of its industry peers.
AIR has a Return On Equity (2.31%) which is in line with its industry peers.
AIR's Return On Invested Capital of 8.79% is fine compared to the rest of the industry. AIR outperforms 74.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIR is in line with the industry average of 8.60%.
The 3 year average ROIC (7.36%) for AIR is below the current ROIC(8.79%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
AIR has a Profit Margin of 1.01%. This is comparable to the rest of the industry: AIR outperforms 46.48% of its industry peers.
In the last couple of years the Profit Margin of AIR has grown nicely.
AIR has a Operating Margin (9.31%) which is comparable to the rest of the industry.
AIR's Operating Margin has improved in the last couple of years.
AIR has a worse Gross Margin (19.04%) than 67.61% of its industry peers.
AIR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for AIR has been reduced compared to a year ago.
2.2 Solvency
AIR has an Altman-Z score of 3.38. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.38, AIR is in line with its industry, outperforming 45.07% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that AIR is somewhat dependend on debt financing.
AIR's Debt to Equity ratio of 0.82 is on the low side compared to the rest of the industry. AIR is outperformed by 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.38 |
ROIC/WACC0.89
WACC9.86%
2.3 Liquidity
AIR has a Current Ratio of 2.91. This indicates that AIR is financially healthy and has no problem in meeting its short term obligations.
AIR's Current ratio of 2.91 is in line compared to the rest of the industry. AIR outperforms 57.75% of its industry peers.
A Quick Ratio of 1.31 indicates that AIR should not have too much problems paying its short term obligations.
AIR's Quick ratio of 1.31 is in line compared to the rest of the industry. AIR outperforms 40.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.83% over the past year.
AIR shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.75% yearly.
AIR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.59%.
Measured over the past years, AIR shows a small growth in Revenue. The Revenue has been growing by 6.06% on average per year.
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
Based on estimates for the next years, AIR will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.89% on average per year.
AIR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.07% yearly.
EPS Next Y15.97%
EPS Next 2Y16.76%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue Next Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.69 indicates a rather expensive valuation of AIR.
Based on the Price/Earnings ratio, AIR is valued cheaply inside the industry as 92.96% of the companies are valued more expensively.
AIR is valuated rather cheaply when we compare the Price/Earnings ratio to 26.50, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 16.07, AIR is valued correctly.
Based on the Price/Forward Earnings ratio, AIR is valued cheaper than 94.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.93, AIR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 16.07 |
4.2 Price Multiples
95.77% of the companies in the same industry are more expensive than AIR, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.46 |
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)1.3
PEG (5Y)1.62
EPS Next 2Y16.76%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
No dividends for AIR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
85.44
-0.74 (-0.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change7.13%
Ins Owners2.08%
Ins Owner Change-1.92%
Market Cap3.38B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target90.09 (5.44%)
Short Float %2.92%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1.44%
PT rev (3m)6.32%
EPS NQ rev (1m)-0.75%
EPS NQ rev (3m)-1.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)1.04%
Revenue NQ rev (3m)6.15%
Revenue NY rev (1m)3.29%
Revenue NY rev (3m)7.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.69 | ||
| Fwd PE | 16.07 | ||
| P/S | 1.18 | ||
| P/FCF | N/A | ||
| P/OCF | 344.9 | ||
| P/B | 2.71 | ||
| P/tB | 7.04 | ||
| EV/EBITDA | 13.46 |
EPS(TTM)4.13
EY4.83%
EPS(NY)5.32
Fwd EY6.22%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.29%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.3
PEG (5Y)1.62
Graham Number54.17
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 3.38 |
F-Score6
WACC9.86%
ROIC/WACC0.89
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 2Y16.76%
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 Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year44.66%
EBIT Next 3Y21.14%
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 20.69 and the Price/Book (PB) ratio is 2.71.
What is the financial health of AAR CORP (AIR) stock?
The financial health rating of AAR CORP (AIR) is 4 / 10.