AEROJET ROCKETDYNE HOLDINGS (AJRD)
US0078001056 - Common Stock
AJRD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 63 industry peers in the Aerospace & Defense industry. AJRD has a medium profitability rating, but doesn't score so well on its financial health evaluation. AJRD is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AJRD had positive earnings in the past year.
AJRD had a negative operating cash flow in the past year.
AJRD had positive earnings in each of the past 5 years.
AJRD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AJRD's Return On Assets of 3.19% is in line compared to the rest of the industry. AJRD outperforms 57.14% of its industry peers.
AJRD has a better Return On Equity (13.10%) than 79.37% of its industry peers.
The Return On Invested Capital of AJRD (8.78%) is better than 79.37% of its industry peers.
AJRD had an Average Return On Invested Capital over the past 3 years of 11.45%. This is above the industry average of 7.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 13.1% | ||
| ROIC | 8.78% |
ROA(3y)4.56%
ROA(5y)4.84%
ROE(3y)33.06%
ROE(5y)31.01%
ROIC(3y)11.45%
ROIC(5y)11.1%
1.3 Margins
AJRD's Profit Margin of 3.21% is in line compared to the rest of the industry. AJRD outperforms 50.79% of its industry peers.
In the last couple of years the Profit Margin of AJRD has declined.
With a decent Operating Margin value of 8.96%, AJRD is doing good in the industry, outperforming 68.25% of the companies in the same industry.
AJRD's Operating Margin has been stable in the last couple of years.
The Gross Margin of AJRD (14.13%) is worse than 68.25% of its industry peers.
In the last couple of years the Gross Margin of AJRD has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.96% | ||
| PM (TTM) | 3.21% | ||
| GM | 14.13% |
OM growth 3Y-7%
OM growth 5Y-0.52%
PM growth 3Y-22.13%
PM growth 5YN/A
GM growth 3Y-7.26%
GM growth 5Y-2.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AJRD is still creating some value.
The number of shares outstanding for AJRD has been increased compared to 1 year ago.
Compared to 5 years ago, AJRD has more shares outstanding
The debt/assets ratio for AJRD has been reduced compared to a year ago.
2.2 Solvency
AJRD has an Altman-Z score of 3.19. This indicates that AJRD is financially healthy and has little risk of bankruptcy at the moment.
AJRD's Altman-Z score of 3.19 is in line compared to the rest of the industry. AJRD outperforms 57.14% of its industry peers.
AJRD has a Debt/Equity ratio of 0.51. This is a neutral value indicating AJRD is somewhat dependend on debt financing.
AJRD has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: AJRD underperforms 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.19 |
ROIC/WACC1.01
WACC8.67%
2.3 Liquidity
A Current Ratio of 1.53 indicates that AJRD should not have too much problems paying its short term obligations.
AJRD's Current ratio of 1.53 is on the low side compared to the rest of the industry. AJRD is outperformed by 66.67% of its industry peers.
AJRD has a Quick Ratio of 1.51. This is a normal value and indicates that AJRD is financially healthy and should not expect problems in meeting its short term obligations.
AJRD has a Quick ratio (1.51) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
The earnings per share for AJRD have decreased strongly by -31.86% in the last year.
The Earnings Per Share has been growing by 13.91% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.08% in the past year.
The Revenue has been growing slightly by 3.57% on average over the past years.
EPS 1Y (TTM)-31.86%
EPS 3Y-6.27%
EPS 5Y13.91%
EPS growth Q2Q-2.27%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y4.13%
Revenue growth 5Y3.57%
Revenue growth Q2Q10.8%
3.2 Future
AJRD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.73% yearly.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y44.74%
EPS Next 2Y27.27%
EPS Next 3Y23.73%
EPS Next 5YN/A
Revenue Next Year8.54%
Revenue Next 2Y6.77%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.72 indicates a quite expensive valuation of AJRD.
Compared to the rest of the industry, the Price/Earnings ratio of AJRD is on the same level as its industry peers.
AJRD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.97.
With a Price/Forward Earnings ratio of 25.57, AJRD can be considered very expensive at the moment.
AJRD's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.05. AJRD is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.72 | ||
| Fwd PE | 25.57 |
4.2 Price Multiples
AJRD's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.91 |
4.3 Compensation for Growth
AJRD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AJRD's earnings are expected to grow with 23.73% in the coming years.
PEG (NY)0.93
PEG (5Y)3
EPS Next 2Y27.27%
EPS Next 3Y23.73%
5. Dividend
5.1 Amount
AJRD has a yearly dividend return of 0.06%, which is pretty low.
AJRD's Dividend Yield is a higher than the industry average which is at 1.52.
With a Dividend Yield of 0.06, AJRD pays less dividend than the S&P500 average, which is at 2.56.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
5.2 History
The dividend of AJRD decreases each year by -10.86%.
AJRD has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-10.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
2.71% of the earnings are spent on dividend by AJRD. This is a low number and sustainable payout ratio.
DP2.71%
EPS Next 2Y27.27%
EPS Next 3Y23.73%
AEROJET ROCKETDYNE HOLDINGS
NYSE:AJRD (7/27/2023, 7:04:00 PM)
After market: 57.99 0 (0%)57.99
+0.81 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.72 | ||
| Fwd PE | 25.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.93
PEG (5Y)3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 13.1% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.96% | ||
| PM (TTM) | 3.21% | ||
| GM | 14.13% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-31.86%
EPS 3Y-6.27%
EPS 5Y
EPS growth Q2Q
EPS Next Y44.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.08%
Revenue growth 3Y4.13%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y