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AEROJET ROCKETDYNE HOLDINGS (AJRD) Stock Fundamental Analysis

NYSE:AJRD - US0078001056 - Common Stock

57.99 USD
+0.81 (+1.42%)
Last: 7/27/2023, 8:04:00 PM
57.99 USD
0 (0%)
After Hours: 7/27/2023, 8:04:00 PM
Fundamental Rating

4

AJRD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 68 industry peers in the Aerospace & Defense industry. While AJRD is still in line with the averages on profitability rating, there are concerns on its financial health. AJRD is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year AJRD was profitable.
In the past year AJRD has reported a negative cash flow from operations.
In the past 5 years AJRD has always been profitable.
AJRD had a positive operating cash flow in 4 of the past 5 years.
AJRD Yearly Net Income VS EBIT VS OCF VS FCFAJRD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M

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.
The Return On Equity of AJRD (13.10%) is better than 79.37% of its industry peers.
With a decent Return On Invested Capital value of 8.78%, AJRD is doing good in the industry, outperforming 79.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AJRD is above the industry average of 8.61%.
Industry RankSector 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%
AJRD Yearly ROA, ROE, ROICAJRD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 20 40

1.3 Margins

AJRD has a Profit Margin (3.21%) which is in line with its industry peers.
AJRD's Profit Margin has declined in the last couple of years.
The Operating Margin of AJRD (8.96%) is better than 68.25% of its industry peers.
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.
AJRD's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
AJRD Yearly Profit, Operating, Gross MarginsAJRD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 5 10 15

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3

2. Health

2.1 Basic Checks

AJRD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AJRD has more shares outstanding than it did 1 year ago.
AJRD has a better debt/assets ratio than last year.
AJRD Yearly Shares OutstandingAJRD Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M
AJRD Yearly Total Debt VS Total AssetsAJRD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B 2B 2.5B

2.2 Solvency

An Altman-Z score of 3.19 indicates that AJRD is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, AJRD is in line with its industry, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that AJRD is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, AJRD is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Altman-Z 3.19
ROIC/WACC1.01
WACC8.67%
AJRD Yearly LT Debt VS Equity VS FCFAJRD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 200M 400M 600M

2.3 Liquidity

AJRD has a Current Ratio of 1.53. This is a normal value and indicates that AJRD is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.53, AJRD is doing worse than 66.67% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that AJRD should not have too much problems paying its short term obligations.
AJRD's Quick ratio of 1.51 is in line compared to the rest of the industry. AJRD outperforms 58.73% of its industry peers.
Industry RankSector Rank
Current Ratio 1.53
Quick Ratio 1.51
AJRD Yearly Current Assets VS Current LiabilitesAJRD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 500M 1B 1.5B

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5

3. Growth

3.1 Past

AJRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.86%.
AJRD shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.91% yearly.
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 Q2Q%-2.27%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y4.13%
Revenue growth 5Y3.57%
Sales Q2Q%10.8%

3.2 Future

The Earnings Per Share is expected to grow by 23.73% on average over the next years. This is a very strong growth
AJRD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.
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.
AJRD Yearly Revenue VS EstimatesAJRD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
AJRD Yearly EPS VS EstimatesAJRD Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 41.72 indicates a quite expensive valuation of AJRD.
AJRD's Price/Earnings is on the same level as the industry average.
AJRD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.24.
Based on the Price/Forward Earnings ratio of 25.57, the valuation of AJRD can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as AJRD.
The average S&P500 Price/Forward Earnings ratio is at 22.81. AJRD is around the same levels.
Industry RankSector Rank
PE 41.72
Fwd PE 25.57
AJRD Price Earnings VS Forward Price EarningsAJRD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as AJRD.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.91
AJRD Per share dataAJRD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20 25

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.
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%

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2

5. Dividend

5.1 Amount

With a yearly dividend of 0.06%, AJRD is not a good candidate for dividend investing.
AJRD's Dividend Yield is a higher than the industry average which is at 1.18.
With a Dividend Yield of 0.06, AJRD pays less dividend than the S&P500 average, which is at 2.34.
Industry RankSector Rank
Dividend Yield 0.06%

5.2 History

The dividend of AJRD decreases each year by -10.86%.
AJRD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)-10.86%
Div Incr Years0
Div Non Decr Years0
AJRD Yearly Dividends per shareAJRD Yearly Dividends per shareYearly Dividends per share 2021 1 2 3 4

5.3 Sustainability

AJRD pays out 2.71% of its income as dividend. This is a sustainable payout ratio.
DP2.71%
EPS Next 2Y27.27%
EPS Next 3Y23.73%
AJRD Yearly Income VS Free CF VS DividendAJRD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 100M 200M 300M 400M
AJRD Dividend Payout.AJRD Dividend Payout, showing the Payout Ratio.AJRD Dividend Payout.PayoutRetained Earnings

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AEROJET ROCKETDYNE HOLDINGS

NYSE:AJRD (7/27/2023, 8:04:00 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)07-24 2023-07-24/amc
Earnings (Next)10-30 2023-10-30/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners1.45%
Ins Owner Change0%
Market Cap4.68B
Analysts43.33
Price Target57.12 (-1.5%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.06%
Yearly Dividend0.03
Dividend Growth(5Y)-10.86%
DP2.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.97%
Min EPS beat(2)-48.49%
Max EPS beat(2)-3.46%
EPS beat(4)0
Avg EPS beat(4)-27.9%
Min EPS beat(4)-59.15%
Max EPS beat(4)-0.49%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.98%
Min Revenue beat(2)2.75%
Max Revenue beat(2)3.21%
Revenue beat(4)2
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-8.89%
Max Revenue beat(4)3.21%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.75%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)3.08%
Revenue NY rev (3m)3.08%
Valuation
Industry RankSector Rank
PE 41.72
Fwd PE 25.57
P/S 2.04
P/FCF N/A
P/OCF N/A
P/B 8.32
P/tB 12.5
EV/EBITDA 17.91
EPS(TTM)1.39
EY2.4%
EPS(NY)2.27
Fwd EY3.91%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS28.39
BVpS6.97
TBVpS4.64
PEG (NY)0.93
PEG (5Y)3
Profitability
Industry RankSector Rank
ROA 3.19%
ROE 13.1%
ROCE N/A
ROIC 8.78%
ROICexc 10.58%
ROICexgc 12.25%
OM 8.96%
PM (TTM) 3.21%
GM 14.13%
FCFM N/A
ROA(3y)4.56%
ROA(5y)4.84%
ROE(3y)33.06%
ROE(5y)31.01%
ROIC(3y)11.45%
ROIC(5y)11.1%
ROICexc(3y)32.24%
ROICexc(5y)27.47%
ROICexgc(3y)87.08%
ROICexgc(5y)63.17%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-17.33%
ROICexcg growth 5Y-1.91%
ROICexc growth 3Y-13.99%
ROICexc growth 5Y-0.07%
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%
F-Score4
Asset Turnover0.99
Health
Industry RankSector Rank
Debt/Equity 0.51
Debt/FCF N/A
Debt/EBITDA 1.15
Cap/Depr 71.35%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.53
Quick Ratio 1.51
Altman-Z 3.19
F-Score4
WACC8.67%
ROIC/WACC1.01
Cap/Depr(3y)71.8%
Cap/Depr(5y)66.55%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.86%
EPS 3Y-6.27%
EPS 5Y13.91%
EPS Q2Q%-2.27%
EPS Next Y44.74%
EPS Next 2Y27.27%
EPS Next 3Y23.73%
EPS Next 5YN/A
Revenue 1Y (TTM)4.08%
Revenue growth 3Y4.13%
Revenue growth 5Y3.57%
Sales Q2Q%10.8%
Revenue Next Year8.54%
Revenue Next 2Y6.77%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y-27.62%
EBIT growth 3Y-3.16%
EBIT growth 5Y3.04%
EBIT Next Year59.1%
EBIT Next 3Y21.59%
EBIT Next 5YN/A
FCF growth 1Y-118.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-102.09%
OCF growth 3YN/A
OCF growth 5YN/A