AAR CORP (AIR) Stock Fundamental Analysis
USA - NYSE:AIR - US0003611052 - Common Stock
84.59 USD
-1.89 (-2.19%)
84.59 USD
0 (0%)
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.
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.
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 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 (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 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.4 |
ROIC/WACC0.91
WACC9.68%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.48 | ||
| Fwd PE | 15.97 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.59 |
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%
5. Dividend
5.1 Amount
No dividends for AIR!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.59
-1.89 (-2.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
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 Rank | Sector 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 Rank | Sector 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 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 | 3.4 |
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.