AAR CORP (AIR) Fundamental Analysis & Valuation

NYSE:AIR • US0003611052

Current stock price

107.09 USD
-1.76 (-1.62%)
Last:

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

6

1. AIR Profitability Analysis

1.1 Basic Checks

  • In the past year AIR was profitable.
  • In the past year AIR had a positive cash flow from operations.
  • AIR had positive earnings in each of the past 5 years.
  • Each year in the past 5 years AIR had a positive operating cash flow.
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 2.90%, AIR is in line with its industry, outperforming 52.56% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 6.03%, AIR is in line with its industry, outperforming 52.56% of the companies in the same industry.
  • The Return On Invested Capital of AIR (8.32%) is better than 70.51% 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 (8.32%) for AIR is above the 3 year average (7.36%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.9%
ROE 6.03%
ROIC 8.32%
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

  • AIR has a Profit Margin of 3.17%. This is comparable to the rest of the industry: AIR outperforms 51.28% of its industry peers.
  • In the last couple of years the Profit Margin of AIR has grown nicely.
  • AIR has a Operating Margin (9.40%) which is in line with its industry peers.
  • AIR's Operating Margin has improved in the last couple of years.
  • AIR's Gross Margin of 19.29% is on the low side compared to the rest of the industry. AIR is outperformed by 61.54% of its industry peers.
  • AIR's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 9.4%
PM (TTM) 3.17%
GM 19.29%
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

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3

2. AIR Health Analysis

2.1 Basic Checks

  • AIR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
  • The debt/assets ratio for AIR has been reduced compared to a year ago.
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 3.59. 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 3.59, AIR is in line with its industry, outperforming 52.56% of the companies in the same industry.
  • A Debt/Equity ratio of 0.61 indicates that AIR is somewhat dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.61, AIR is doing worse than 61.54% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Altman-Z 3.59
ROIC/WACC0.85
WACC9.83%
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 2.84. This indicates that AIR is financially healthy and has no problem in meeting its short term obligations.
  • AIR has a Current ratio of 2.84. This is comparable to the rest of the industry: AIR outperforms 51.28% 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.
  • Looking at the Quick ratio, with a value of 1.31, AIR is doing worse than 61.54% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.84
Quick Ratio 1.31
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

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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 26.72%, which is quite impressive.
  • The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
  • AIR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.40%.
  • AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%

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 15.83% on average per year.
  • 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 Y21.85%
EPS Next 2Y19.38%
EPS Next 3Y18.26%
EPS Next 5Y15.83%
Revenue Next Year18.09%
Revenue Next 2Y14.24%
Revenue Next 3Y11.42%
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

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4

4. AIR Valuation Analysis

4.1 Price/Earnings Ratio

  • AIR is valuated rather expensively with a Price/Earnings ratio of 24.28.
  • Compared to the rest of the industry, the Price/Earnings ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 84.62% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 25.79, AIR is valued at the same level.
  • AIR is valuated rather expensively with a Price/Forward Earnings ratio of 19.27.
  • AIR's Price/Forward Earnings ratio is rather cheap when compared to the industry. AIR is cheaper than 89.74% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of AIR to the average of the S&P500 Index (23.80), we can say AIR is valued inline with the index average.
Industry RankSector Rank
PE 24.28
Fwd PE 19.27
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

  • Based on the Enterprise Value to EBITDA ratio, AIR is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 15.42
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.
  • AIR's earnings are expected to grow with 18.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)1.9
EPS Next 2Y19.38%
EPS Next 3Y18.26%

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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%

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AIR Fundamentals: All Metrics, Ratios and Statistics

AAR CORP

NYSE:AIR (3/19/2026, 1:54:05 PM)

107.09

-1.76 (-1.62%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)01-06
Earnings (Next)03-24
Inst Owners98.73%
Inst Owner Change1.77%
Ins Owners1.85%
Ins Owner Change-3.78%
Market Cap4.24B
Revenue(TTM)2.97B
Net Income(TTM)94.10M
Analysts81.67
Price Target111.74 (4.34%)
Short Float %3.02%
Short Ratio2.33
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)10.81%
Min EPS beat(2)8.56%
Max EPS beat(2)13.06%
EPS beat(4)4
Avg EPS beat(4)9.37%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)6.16%
EPS beat(12)12
Avg EPS beat(12)5.88%
EPS beat(16)16
Avg EPS beat(16)5.63%
Revenue beat(2)2
Avg Revenue beat(2)4.72%
Min Revenue beat(2)3.12%
Max Revenue beat(2)6.33%
Revenue beat(4)3
Avg Revenue beat(4)3.22%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)5
Avg Revenue beat(8)1.93%
Revenue beat(12)8
Avg Revenue beat(12)2.36%
Revenue beat(16)11
Avg Revenue beat(16)2.07%
PT rev (1m)3.63%
PT rev (3m)24.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.43%
EPS NY rev (1m)0%
EPS NY rev (3m)5.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.41%
Valuation
Industry RankSector Rank
PE 24.28
Fwd PE 19.27
P/S 1.43
P/FCF N/A
P/OCF 3026.83
P/B 2.71
P/tB 5.94
EV/EBITDA 15.42
EPS(TTM)4.41
EY4.12%
EPS(NY)5.56
Fwd EY5.19%
FCF(TTM)-0.84
FCFYN/A
OCF(TTM)0.04
OCFY0.03%
SpS75
BVpS39.45
TBVpS18.03
PEG (NY)1.11
PEG (5Y)1.9
Graham Number62.57
Profitability
Industry RankSector Rank
ROA 2.9%
ROE 6.03%
ROCE 10.53%
ROIC 8.32%
ROICexc 8.56%
ROICexgc 12.77%
OM 9.4%
PM (TTM) 3.17%
GM 19.29%
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-Score7
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 0.61
Debt/FCF N/A
Debt/EBITDA 2.83
Cap/Depr 60.38%
Cap/Sales 1.17%
Interest Coverage 3.73
Cash Conversion 0.42%
Profit Quality N/A
Current Ratio 2.84
Quick Ratio 1.31
Altman-Z 3.59
F-Score7
WACC9.83%
ROIC/WACC0.85
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)26.72%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%31.11%
EPS Next Y21.85%
EPS Next 2Y19.38%
EPS Next 3Y18.26%
EPS Next 5Y15.83%
Revenue 1Y (TTM)15.4%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%15.92%
Revenue Next Year18.09%
Revenue Next 2Y14.24%
Revenue Next 3Y11.42%
Revenue Next 5Y9.49%
EBIT growth 1Y65.62%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year50.59%
EBIT Next 3Y23.64%
EBIT Next 5Y18.95%
FCF growth 1Y-217.73%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y-97.72%
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 4 / 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.


How financially healthy is AAR CORP?

The financial health rating of AAR CORP (AIR) is 3 / 10.


What is the expected EPS growth for AAR CORP (AIR) stock?

The Earnings per Share (EPS) of AAR CORP (AIR) is expected to grow by 21.85% in the next year.