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STANDARDAERO INC (SARO) Stock Fundamental Analysis

NYSE:SARO - New York Stock Exchange, Inc. - US85423L1035 - Common Stock - Currency: USD

26.98  -1.18 (-4.19%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to SARO. SARO was compared to 67 industry peers in the Aerospace & Defense industry. SARO has a bad profitability rating. Also its financial health evaluation is rather negative. SARO has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year SARO was profitable.
SARO Yearly Net Income VS EBIT VS OCF VS FCFSARO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 2024 0 100M 200M 300M 400M

1.2 Ratios

With a Return On Assets value of 1.09%, SARO perfoms like the industry average, outperforming 43.28% of the companies in the same industry.
SARO's Return On Equity of 2.90% is in line compared to the rest of the industry. SARO outperforms 44.78% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.63%, SARO is in line with its industry, outperforming 59.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SARO is below the industry average of 8.58%.
The 3 year average ROIC (5.55%) for SARO is below the current ROIC(6.63%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.09%
ROE 2.9%
ROIC 6.63%
ROA(3y)-0.27%
ROA(5y)N/A
ROE(3y)-1.45%
ROE(5y)N/A
ROIC(3y)5.55%
ROIC(5y)N/A
SARO Yearly ROA, ROE, ROICSARO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2024 0 2 -2 4 6

1.3 Margins

SARO has a Profit Margin of 1.30%. This is comparable to the rest of the industry: SARO outperforms 43.28% of its industry peers.
With a Operating Margin value of 7.87%, SARO perfoms like the industry average, outperforming 55.22% of the companies in the same industry.
SARO's Operating Margin has improved in the last couple of years.
SARO has a Gross Margin of 14.55%. This is in the lower half of the industry: SARO underperforms 74.63% of its industry peers.
In the last couple of years the Gross Margin of SARO has grown nicely.
Industry RankSector Rank
OM 7.87%
PM (TTM) 1.3%
GM 14.55%
OM growth 3Y17.41%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.43%
GM growth 5YN/A
SARO Yearly Profit, Operating, Gross MarginsSARO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 2024 0 5 10

3

2. Health

2.1 Basic Checks

SARO has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SARO has about the same amout of shares outstanding than it did 1 year ago.
Compared to 1 year ago, SARO has an improved debt to assets ratio.
SARO Yearly Shares OutstandingSARO Yearly Shares OutstandingYearly Shares Outstanding 2022 2023 2024 100M 200M 300M
SARO Yearly Total Debt VS Total AssetsSARO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2022 2023 2024 2B 4B 6B

2.2 Solvency

An Altman-Z score of 2.38 indicates that SARO is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.38, SARO is doing worse than 62.69% of the companies in the same industry.
A Debt/Equity ratio of 0.95 indicates that SARO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.95, SARO is doing worse than 73.13% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Altman-Z 2.38
ROIC/WACC0.62
WACC10.75%
SARO Yearly LT Debt VS Equity VS FCFSARO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 2.00 indicates that SARO has no problem at all paying its short term obligations.
SARO's Current ratio of 2.00 is in line compared to the rest of the industry. SARO outperforms 44.78% of its industry peers.
A Quick Ratio of 1.37 indicates that SARO should not have too much problems paying its short term obligations.
SARO has a Quick ratio of 1.37. This is comparable to the rest of the industry: SARO outperforms 47.76% of its industry peers.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 1.37
SARO Yearly Current Assets VS Current LiabilitesSARO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2022 2023 2024 500M 1B 1.5B 2B

6

3. Growth

3.1 Past

SARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 546.20%, which is quite impressive.
SARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.92%.
Measured over the past years, SARO shows a quite strong growth in Revenue. The Revenue has been growing by 14.60% on average per year.
EPS 1Y (TTM)546.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1784%
Revenue 1Y (TTM)16.92%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%16.18%

3.2 Future

SARO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.10% yearly.
SARO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.84% yearly.
EPS Next Y160.2%
EPS Next 2Y89.48%
EPS Next 3Y65.1%
EPS Next 5YN/A
Revenue Next Year14.25%
Revenue Next 2Y12.8%
Revenue Next 3Y11.84%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
SARO Yearly Revenue VS EstimatesSARO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
SARO Yearly EPS VS EstimatesSARO Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0.5 1

4

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 122.64, the valuation of SARO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SARO is on the same level as its industry peers.
SARO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.11.
The Price/Forward Earnings ratio is 22.55, which indicates a rather expensive current valuation of SARO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SARO indicates a somewhat cheap valuation: SARO is cheaper than 70.15% of the companies listed in the same industry.
SARO is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.78, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 122.64
Fwd PE 22.55
SARO Price Earnings VS Forward Price EarningsSARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

SARO's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SARO is cheaper than 70.15% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 18.88
SARO Per share dataSARO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

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 65.10% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y89.48%
EPS Next 3Y65.1%

0

5. Dividend

5.1 Amount

No dividends for SARO!.
Industry RankSector Rank
Dividend Yield N/A

STANDARDAERO INC

NYSE:SARO (8/14/2025, 3:21:57 PM)

26.98

-1.18 (-4.19%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)08-13 2025-08-13/amc
Earnings (Next)N/A N/A
Inst Owners52.81%
Inst Owner Change9.99%
Ins Owners0.45%
Ins Owner Change1.46%
Market Cap9.02B
Analysts81.33
Price Target36.21 (34.21%)
Short Float %2.53%
Short Ratio1.71
Dividend
Industry RankSector 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)19.72%
Min EPS beat(2)8.71%
Max EPS beat(2)30.72%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)3%
Min Revenue beat(2)0.98%
Max Revenue beat(2)5.02%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)2.53%
PT rev (3m)7.58%
EPS NQ rev (1m)7.48%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)-0.85%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.77%
Valuation
Industry RankSector Rank
PE 122.64
Fwd PE 22.55
P/S 1.66
P/FCF N/A
P/OCF N/A
P/B 3.7
P/tB N/A
EV/EBITDA 18.88
EPS(TTM)0.22
EY0.82%
EPS(NY)1.2
Fwd EY4.43%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS16.26
BVpS7.29
TBVpS-1.53
PEG (NY)0.77
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.09%
ROE 2.9%
ROCE 8.39%
ROIC 6.63%
ROICexc 6.82%
ROICexgc 16.82%
OM 7.87%
PM (TTM) 1.3%
GM 14.55%
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-ScoreN/A
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.95
Debt/FCF N/A
Debt/EBITDA 3.76
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2
Quick Ratio 1.37
Altman-Z 2.38
F-ScoreN/A
WACC10.75%
ROIC/WACC0.62
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)546.2%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1784%
EPS Next Y160.2%
EPS Next 2Y89.48%
EPS Next 3Y65.1%
EPS Next 5YN/A
Revenue 1Y (TTM)16.92%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%16.18%
Revenue Next Year14.25%
Revenue Next 2Y12.8%
Revenue Next 3Y11.84%
Revenue Next 5YN/A
EBIT growth 1Y20.97%
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