STANDARDAERO INC (SARO) Stock Fundamental Analysis
NYSE:SARO - US85423L1035 - Common Stock
26.55 USD
-0.93 (-3.38%)
26.55 USD
0 (0%)
Taking everything into account, SARO scores 4 out of 10 in our fundamental rating. SARO was compared to 69 industry peers in the Aerospace & Defense industry. There are concerns on the financial health of SARO while its profitability can be described as average. SARO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SARO had positive earnings in the past year.
SARO had a positive operating cash flow in the past year.
1.2 Ratios
SARO has a Return On Assets (2.05%) which is comparable to the rest of the industry.
With a Return On Equity value of 5.29%, SARO perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
SARO has a Return On Invested Capital of 6.97%. This is in the better half of the industry: SARO outperforms 62.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SARO is below the industry average of 8.22%.
The 3 year average ROIC (5.55%) for SARO is below the current ROIC(6.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 5.29% | ||
| ROIC | 6.97% |
ROA(3y)-0.27%
ROA(5y)N/A
ROE(3y)-1.45%
ROE(5y)N/A
ROIC(3y)5.55%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 2.37%, SARO perfoms like the industry average, outperforming 49.28% of the companies in the same industry.
With a Operating Margin value of 8.16%, SARO perfoms like the industry average, outperforming 53.62% of the companies in the same industry.
In the last couple of years the Operating Margin of SARO has grown nicely.
SARO's Gross Margin of 14.90% is on the low side compared to the rest of the industry. SARO is outperformed by 75.36% of its industry peers.
In the last couple of years the Gross Margin of SARO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.16% | ||
| PM (TTM) | 2.37% | ||
| GM | 14.9% |
OM growth 3Y17.41%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.43%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SARO is destroying value.
The number of shares outstanding for SARO remains at a similar level compared to 1 year ago.
The debt/assets ratio for SARO has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.45 indicates that SARO is not a great score, but indicates only limited risk for bankruptcy at the moment.
SARO has a worse Altman-Z score (2.45) than 60.87% of its industry peers.
SARO has a Debt/Equity ratio of 0.91. This is a neutral value indicating SARO is somewhat dependend on debt financing.
SARO has a worse Debt to Equity ratio (0.91) than 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.45 |
ROIC/WACC0.67
WACC10.4%
2.3 Liquidity
SARO has a Current Ratio of 2.15. This indicates that SARO is financially healthy and has no problem in meeting its short term obligations.
SARO has a Current ratio (2.15) which is comparable to the rest of the industry.
A Quick Ratio of 1.49 indicates that SARO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.49, SARO perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 1452.33% over the past year.
Looking at the last year, SARO shows a quite strong growth in Revenue. The Revenue has grown by 16.09% in the last year.
SARO shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.60% yearly.
EPS 1Y (TTM)1452.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%913%
Revenue 1Y (TTM)16.09%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%13.49%
3.2 Future
Based on estimates for the next years, SARO will show a very strong growth in Earnings Per Share. The EPS will grow by 64.53% on average per year.
SARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.13% yearly.
EPS Next Y176.53%
EPS Next 2Y89.79%
EPS Next 3Y64.53%
EPS Next 5YN/A
Revenue Next Year15.13%
Revenue Next 2Y13.15%
Revenue Next 3Y12.13%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 34.93, SARO can be considered very expensive at the moment.
Based on the Price/Earnings ratio, SARO is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
SARO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.06.
SARO is valuated rather expensively with a Price/Forward Earnings ratio of 22.12.
71.01% of the companies in the same industry are more expensive than SARO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, SARO is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SARO indicates a somewhat cheap valuation: SARO is cheaper than 72.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.57 |
4.3 Compensation for Growth
SARO'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 SARO's earnings are expected to grow with 64.53% in the coming years.
PEG (NY)0.2
PEG (5Y)N/A
EPS Next 2Y89.79%
EPS Next 3Y64.53%
5. Dividend
5.1 Amount
SARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.55
-0.93 (-3.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners52.81%
Inst Owner Change18.57%
Ins Owners0.45%
Ins Owner Change1.19%
Market Cap8.88B
Analysts81.33
Price Target36.72 (38.31%)
Short Float %3.23%
Short Ratio2.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.64%
Min EPS beat(2)6.56%
Max EPS beat(2)30.72%
EPS beat(4)4
Avg EPS beat(4)33.39%
Min EPS beat(4)6.56%
Max EPS beat(4)87.55%
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)2.64%
Min Revenue beat(2)0.26%
Max Revenue beat(2)5.02%
Revenue beat(4)3
Avg Revenue beat(4)1.46%
Min Revenue beat(4)-0.43%
Max Revenue beat(4)5.02%
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)2.86%
PT rev (3m)9.09%
EPS NQ rev (1m)2.33%
EPS NQ rev (3m)4.76%
EPS NY rev (1m)6.27%
EPS NY rev (3m)5.19%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-0.75%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.93 | ||
| Fwd PE | 22.12 | ||
| P/S | 1.58 | ||
| P/FCF | N/A | ||
| P/OCF | 121.01 | ||
| P/B | 3.53 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.57 |
EPS(TTM)0.76
EY2.86%
EPS(NY)1.2
Fwd EY4.52%
FCF(TTM)-0.24
FCFYN/A
OCF(TTM)0.22
OCFY0.83%
SpS16.8
BVpS7.51
TBVpS-1.2
PEG (NY)0.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.05% | ||
| ROE | 5.29% | ||
| ROCE | 8.82% | ||
| ROIC | 6.97% | ||
| ROICexc | 7.09% | ||
| ROICexgc | 16.54% | ||
| OM | 8.16% | ||
| PM (TTM) | 2.37% | ||
| GM | 14.9% | ||
| FCFM | N/A |
ROA(3y)-0.27%
ROA(5y)N/A
ROE(3y)-1.45%
ROE(5y)N/A
ROIC(3y)5.55%
ROIC(5y)N/A
ROICexc(3y)5.66%
ROICexc(5y)N/A
ROICexgc(3y)15.32%
ROICexgc(5y)N/A
ROCE(3y)7.03%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y17.41%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.43%
GM growth 5YN/A
F-Score6
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.53 | ||
| Cap/Depr | 81.04% | ||
| Cap/Sales | 2.76% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 11.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 2.45 |
F-Score6
WACC10.4%
ROIC/WACC0.67
Cap/Depr(3y)43.93%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.76%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1452.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%913%
EPS Next Y176.53%
EPS Next 2Y89.79%
EPS Next 3Y64.53%
EPS Next 5YN/A
Revenue 1Y (TTM)16.09%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%13.49%
Revenue Next Year15.13%
Revenue Next 2Y13.15%
Revenue Next 3Y12.13%
Revenue Next 5YN/A
EBIT growth 1Y25.53%
EBIT growth 3Y34.55%
EBIT growth 5YN/A
EBIT Next Year85.48%
EBIT Next 3Y33.89%
EBIT Next 5YN/A
FCF growth 1Y-169.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.43%
OCF growth 3Y-16.42%
OCF growth 5YN/A