AAR CORP (AIR) Fundamental Analysis & Valuation

NYSE:AIR • US0003611052

Current stock price

111.5 USD
-5.04 (-4.32%)
At close:
111.73 USD
+0.23 (+0.21%)
After Hours:

This AIR fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. AIR Profitability Analysis

1.1 Basic Checks

  • In the past year AIR was profitable.
  • AIR had a positive operating cash flow in the past year.
  • In the past 5 years AIR has always been profitable.
  • In the past 5 years AIR always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100M 200M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.13%, AIR is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 10.41%, AIR is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
  • AIR has a Return On Invested Capital of 7.74%. This is in the better half of the industry: AIR outperforms 67.50% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AIR is in line with the industry average of 9.30%.
  • The last Return On Invested Capital (7.74%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.13%
ROE 10.41%
ROIC 7.74%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

1.3 Margins

  • The Profit Margin of AIR (5.46%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of AIR has grown nicely.
  • AIR has a Operating Margin (8.38%) which is comparable to the rest of the industry.
  • AIR's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 19.00%, AIR is doing worse than 63.75% of the companies in the same industry.
  • AIR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 8.38%
PM (TTM) 5.46%
GM 19%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. AIR Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIR is destroying value.
  • AIR has more shares outstanding than it did 1 year ago.
  • AIR has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, AIR has an improved debt to assets ratio.
AIR Yearly Shares OutstandingAIR Yearly Shares OutstandingYearly Shares Outstanding 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 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 3.71. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
  • AIR's Altman-Z score of 3.71 is in line compared to the rest of the industry. AIR outperforms 50.00% of its industry peers.
  • AIR has a debt to FCF ratio of 14.76. This is a negative value and a sign of low solvency as AIR would need 14.76 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 14.76, AIR is in line with its industry, outperforming 55.00% of the companies in the same industry.
  • AIR has a Debt/Equity ratio of 0.54. This is a neutral value indicating AIR is somewhat dependend on debt financing.
  • The Debt to Equity ratio of AIR (0.54) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 14.76
Altman-Z 3.71
ROIC/WACC0.73
WACC10.55%
AIR Yearly LT Debt VS Equity VS FCFAIR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 200M 400M 600M 800M 1B

2.3 Liquidity

  • AIR has a Current Ratio of 2.70. This indicates that AIR is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 2.70, AIR is in line with its industry, outperforming 48.75% of the companies in the same industry.
  • AIR has a Quick Ratio of 1.23. This is a normal value and indicates that AIR is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.23, AIR is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 2.7
Quick Ratio 1.23
AIR Yearly Current Assets VS Current LiabilitesAIR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. AIR Growth Analysis

3.1 Past

  • AIR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.01%, 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.
  • Looking at the last year, AIR shows a quite strong growth in Revenue. The Revenue has grown by 16.85% in the last year.
  • The Revenue has been growing slightly by 6.06% on average over the past years.
EPS 1Y (TTM)29.01%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%26.26%
Revenue 1Y (TTM)16.85%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%24.61%

3.2 Future

  • The Earnings Per Share is expected to grow by 15.83% on average over the next years. This is quite good.
  • Based on estimates for the next years, AIR will show a quite strong growth in Revenue. The Revenue will grow by 9.49% on average per year.
EPS Next Y26.72%
EPS Next 2Y21.09%
EPS Next 3Y19.58%
EPS Next 5Y15.83%
Revenue Next Year20.28%
Revenue Next 2Y15.51%
Revenue Next 3Y12.35%
Revenue Next 5Y9.49%

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 accelerating.
AIR Yearly Revenue VS EstimatesAIR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B 4B
AIR Yearly EPS VS EstimatesAIR Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

More info and screens

Find the best growth stocksShow best growing peers

5

4. AIR Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 23.88, the valuation of AIR can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 81.25% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.79, AIR is valued at the same level.
  • AIR is valuated rather expensively with a Price/Forward Earnings ratio of 19.50.
  • Based on the Price/Forward Earnings ratio, AIR is valued cheaply inside the industry as 86.25% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 38.88. AIR is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 23.88
Fwd PE 19.5
AIR Price Earnings VS Forward Price EarningsAIR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a somewhat cheap valuation: AIR is cheaper than 80.00% of the companies listed in the same industry.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIR is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 73.64
EV/EBITDA 16.63
AIR Per share dataAIR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • AIR has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as AIR's earnings are expected to grow with 19.58% in the coming years.
PEG (NY)0.89
PEG (5Y)1.87
EPS Next 2Y21.09%
EPS Next 3Y19.58%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AIR Dividend Analysis

5.1 Amount

  • AIR does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

AIR Fundamentals: All Metrics, Ratios and Statistics

AAR CORP

NYSE:AIR (4/22/2026, 5:38:58 PM)

After market: 111.73 +0.23 (+0.21%)

111.5

-5.04 (-4.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)03-24
Earnings (Next)07-14
Inst Owners98.67%
Inst Owner Change0.16%
Ins Owners1.85%
Ins Owner Change-3.45%
Market Cap4.43B
Revenue(TTM)3.13B
Net Income(TTM)171.00M
Analysts81.67
Price Target126.36 (13.33%)
Short Float %3.28%
Short Ratio2.67
Dividend
Industry RankSector 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)10.21%
Min EPS beat(2)7.35%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)10.79%
Min EPS beat(4)7.35%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)7%
EPS beat(12)12
Avg EPS beat(12)6.03%
EPS beat(16)16
Avg EPS beat(16)5.66%
Revenue beat(2)2
Avg Revenue beat(2)3.05%
Min Revenue beat(2)2.98%
Max Revenue beat(2)3.12%
Revenue beat(4)4
Avg Revenue beat(4)4.95%
Min Revenue beat(4)2.98%
Max Revenue beat(4)7.38%
Revenue beat(8)6
Avg Revenue beat(8)2.48%
Revenue beat(12)8
Avg Revenue beat(12)2.12%
Revenue beat(16)11
Avg Revenue beat(16)2.04%
PT rev (1m)13.08%
PT rev (3m)24.56%
EPS NQ rev (1m)7.49%
EPS NQ rev (3m)7.11%
EPS NY rev (1m)4%
EPS NY rev (3m)9.59%
Revenue NQ rev (1m)2.83%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)1.85%
Revenue NY rev (3m)2.1%
Valuation
Industry RankSector Rank
PE 23.88
Fwd PE 19.5
P/S 1.41
P/FCF 73.64
P/OCF 46.76
P/B 2.7
P/tB 5.52
EV/EBITDA 16.63
EPS(TTM)4.67
EY4.19%
EPS(NY)5.72
Fwd EY5.13%
FCF(TTM)1.51
FCFY1.36%
OCF(TTM)2.38
OCFY2.14%
SpS78.84
BVpS41.33
TBVpS20.18
PEG (NY)0.89
PEG (5Y)1.87
Graham Number65.9019 (-40.9%)
Profitability
Industry RankSector Rank
ROA 5.13%
ROE 10.41%
ROCE 9.8%
ROIC 7.74%
ROICexc 7.98%
ROICexgc 11.79%
OM 8.38%
PM (TTM) 5.46%
GM 19%
FCFM 1.92%
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 Turnover0.94
Health
Industry RankSector Rank
Debt/Equity 0.54
Debt/FCF 14.76
Debt/EBITDA 2.71
Cap/Depr 53.4%
Cap/Sales 1.1%
Interest Coverage 3.7
Cash Conversion 28.96%
Profit Quality 35.2%
Current Ratio 2.7
Quick Ratio 1.23
Altman-Z 3.71
F-Score6
WACC10.55%
ROIC/WACC0.73
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)29.01%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%26.26%
EPS Next Y26.72%
EPS Next 2Y21.09%
EPS Next 3Y19.58%
EPS Next 5Y15.83%
Revenue 1Y (TTM)16.85%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%24.61%
Revenue Next Year20.28%
Revenue Next 2Y15.51%
Revenue Next 3Y12.35%
Revenue Next 5Y9.49%
EBIT growth 1Y21.63%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year54.97%
EBIT Next 3Y25.48%
EBIT Next 5Y18.95%
FCF growth 1Y71.51%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y47.43%
OCF growth 3Y-21.7%
OCF growth 5YN/A

AAR CORP / AIR Fundamental Analysis FAQ

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

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


What is the valuation status of AAR CORP (AIR) stock?

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


What is the profitability of AIR stock?

AAR CORP (AIR) has a profitability rating of 7 / 10.


Can you provide the PE and PB ratios for AIR stock?

The Price/Earnings (PE) ratio for AAR CORP (AIR) is 23.88 and the Price/Book (PB) ratio is 2.7.


Can you provide the expected EPS growth for AIR stock?

The Earnings per Share (EPS) of AAR CORP (AIR) is expected to grow by 26.72% in the next year.