We assign a fundamental rating of 3 out of 10 to AJRD. AJRD was compared to 73 industry peers in the Aerospace & Defense industry. AJRD may be in some trouble as it scores bad on both profitability and health. AJRD is valied quite expensively at the moment, while it does show a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year AJRD was profitable.
AJRD had a negative operating cash flow in the past year.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.19%, AJRD is in line with its industry, outperforming 57.14% of the companies in the same industry.
Looking at the Return On Equity, with a value of 13.10%, AJRD is in the better half of the industry, outperforming 79.37% of the companies in the same industry.
AJRD has a better Return On Invested Capital (8.78%) than 79.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AJRD is above the industry average of 8.56%.

		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.
AJRD's Profit Margin has declined in the last couple of years.
AJRD has a better Operating Margin (8.96%) than 68.25% of its industry peers.
AJRD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 14.13%, AJRD is doing worse than 68.25% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AJRD is creating some value.
The number of shares outstanding for AJRD has been increased compared to 1 year ago.
AJRD has a better debt/assets ratio than last year.

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.
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.
Looking at the Debt to Equity ratio, with a value of 0.51, AJRD is doing worse than 61.90% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.51
Debt/FCF	N/A
Altman-Z	3.19

ROIC/WACC1.01

WACC8.67%

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.
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.
A Quick Ratio of 1.51 indicates that AJRD should not have too much problems paying 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

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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%.
The Earnings Per Share has been growing by 13.91% on average over the past years. This is quite good.
AJRD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.08%.
AJRD shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.57% yearly.

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

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 accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

AJRD is valuated quite expensively with a Price/Earnings ratio of 41.72.
Compared to the rest of the industry, the Price/Earnings ratio of AJRD is on the same level as its industry peers.
AJRD is valuated expensively when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 25.57, the valuation of AJRD can be described as expensive.
AJRD's Price/Forward Earnings ratio is in line with the industry average.
AJRD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.32.

		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.
AJRD's earnings are expected to grow with 23.73% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.93

PEG (5Y)3

EPS Next 2Y27.27%

EPS Next 3Y23.73%

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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 0.34.
With a Dividend Yield of 0.06, AJRD pays less dividend than the S&P500 average, which is at 1.82.

		Industry Rank	Sector 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

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%

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AEROJET ROCKETDYNE HOLDINGS / AJRD FAQ

What is the fundamental rating for AJRD stock?

ChartMill assigns a fundamental rating of 4 / 10 to AJRD.

What is the valuation status of AEROJET ROCKETDYNE HOLDINGS (AJRD) stock?

ChartMill assigns a valuation rating of 2 / 10 to AEROJET ROCKETDYNE HOLDINGS (AJRD). This can be considered as Overvalued.

Can you provide the profitability details for AEROJET ROCKETDYNE HOLDINGS?

AEROJET ROCKETDYNE HOLDINGS (AJRD) has a profitability rating of 4 / 10.

What is the earnings growth outlook for AEROJET ROCKETDYNE HOLDINGS?

The Earnings per Share (EPS) of AEROJET ROCKETDYNE HOLDINGS (AJRD) is expected to grow by 44.74% in the next year.

How sustainable is the dividend of AEROJET ROCKETDYNE HOLDINGS (AJRD) stock?

The dividend rating of AEROJET ROCKETDYNE HOLDINGS (AJRD) is 3 / 10 and the dividend payout ratio is 2.71%.