STANDARDAERO INC (SARO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SARO - US85423L1035 - Common Stock
28.68 USD
-0.11 (-0.38%)
28.68 USD
0 (0%)
Overall SARO gets a fundamental rating of 4 out of 10. We evaluated SARO against 71 industry peers in the Aerospace & Defense industry. While SARO is still in line with the averages on profitability rating, there are concerns on its financial health. SARO has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
SARO had positive earnings in the past year.
In the past year SARO had a positive cash flow from operations.
1.2 Ratios
SARO has a Return On Assets (2.78%) which is in line with its industry peers.
SARO has a Return On Equity (7.15%) which is comparable to the rest of the industry.
The Return On Invested Capital of SARO (7.41%) is better than 63.38% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SARO is below the industry average of 8.60%.
The last Return On Invested Capital (7.41%) for SARO is above the 3 year average (5.55%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 7.15% | ||
| ROIC | 7.41% |
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
SARO has a Profit Margin (3.15%) which is comparable to the rest of the industry.
SARO has a Operating Margin of 8.45%. This is comparable to the rest of the industry: SARO outperforms 54.93% of its industry peers.
In the last couple of years the Operating Margin of SARO has grown nicely.
SARO has a worse Gross Margin (14.82%) than 74.65% of its industry peers.
In the last couple of years the Gross Margin of SARO has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.45% | ||
| PM (TTM) | 3.15% | ||
| GM | 14.82% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SARO is destroying value.
The number of shares outstanding for SARO remains at a similar level compared to 1 year ago.
Compared to 1 year ago, SARO has an improved debt to assets ratio.
2.2 Solvency
SARO has an Altman-Z score of 2.55. This is not the best score and indicates that SARO is in the grey zone with still only limited risk for bankruptcy at the moment.
SARO's Altman-Z score of 2.55 is on the low side compared to the rest of the industry. SARO is outperformed by 64.79% of its industry peers.
SARO has a Debt/Equity ratio of 0.89. This is a neutral value indicating SARO is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.89, SARO is doing worse than 71.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.55 |
ROIC/WACC0.71
WACC10.46%
2.3 Liquidity
SARO has a Current Ratio of 2.18. This indicates that SARO is financially healthy and has no problem in meeting its short term obligations.
SARO has a Current ratio of 2.18. This is comparable to the rest of the industry: SARO outperforms 46.48% of its industry peers.
A Quick Ratio of 1.48 indicates that SARO should not have too much problems paying its short term obligations.
SARO has a Quick ratio (1.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
SARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 586.75%, which is quite impressive.
SARO shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.79%.
The Revenue has been growing by 14.60% on average over the past years. This is quite good.
EPS 1Y (TTM)586.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%72.73%
Revenue 1Y (TTM)17.79%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%20.35%
3.2 Future
The Earnings Per Share is expected to grow by 36.54% on average over the next years. This is a very strong growth
Based on estimates for the next years, SARO will show a small growth in Revenue. The Revenue will grow by 7.85% on average per year.
EPS Next Y159.18%
EPS Next 2Y91.86%
EPS Next 3Y65.25%
EPS Next 5Y36.54%
Revenue Next Year15.75%
Revenue Next 2Y10.63%
Revenue Next 3Y10.37%
Revenue Next 5Y7.85%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.14, the valuation of SARO can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SARO indicates a somewhat cheap valuation: SARO is cheaper than 71.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SARO to the average of the S&P500 Index (26.51), we can say SARO is valued slightly more expensively.
With a Price/Forward Earnings ratio of 23.38, SARO is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SARO is valued cheaply inside the industry as 85.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.13. SARO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.14 | ||
| Fwd PE | 23.38 |
4.2 Price Multiples
81.69% of the companies in the same industry are more expensive than SARO, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.16 |
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.
SARO's earnings are expected to grow with 65.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)N/A
EPS Next 2Y91.86%
EPS Next 3Y65.25%
5. Dividend
5.1 Amount
SARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
28.68
-0.11 (-0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners59.57%
Inst Owner Change-1.74%
Ins Owners0.45%
Ins Owner Change-28.73%
Market Cap9.59B
Revenue(TTM)5.87B
Net Income(TTM)184.72M
Analysts81.18
Price Target36.62 (27.68%)
Short Float %4.23%
Short Ratio4.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)1
Avg EPS beat(2)0.74%
Min EPS beat(2)-5.08%
Max EPS beat(2)6.56%
EPS beat(4)3
Avg EPS beat(4)10.23%
Min EPS beat(4)-5.08%
Max EPS beat(4)30.72%
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)1.75%
Min Revenue beat(2)0.26%
Max Revenue beat(2)3.24%
Revenue beat(4)4
Avg Revenue beat(4)2.37%
Min Revenue beat(4)0.26%
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)0%
PT rev (3m)0.97%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)7.39%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)-6.45%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0.84%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.14 | ||
| Fwd PE | 23.38 | ||
| P/S | 1.63 | ||
| P/FCF | N/A | ||
| P/OCF | 94 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.16 |
EPS(TTM)0.84
EY2.93%
EPS(NY)1.23
Fwd EY4.28%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.31
OCFY1.06%
SpS17.56
BVpS7.73
TBVpS-0.89
PEG (NY)0.21
PEG (5Y)N/A
Graham Number12.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.78% | ||
| ROE | 7.15% | ||
| ROCE | 9.38% | ||
| ROIC | 7.41% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 16.97% | ||
| OM | 8.45% | ||
| PM (TTM) | 3.15% | ||
| GM | 14.82% | ||
| 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
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.35 | ||
| Cap/Depr | 77.59% | ||
| Cap/Sales | 2.54% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 14.81% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 2.55 |
F-Score7
WACC10.46%
ROIC/WACC0.71
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)586.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%72.73%
EPS Next Y159.18%
EPS Next 2Y91.86%
EPS Next 3Y65.25%
EPS Next 5Y36.54%
Revenue 1Y (TTM)17.79%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%20.35%
Revenue Next Year15.75%
Revenue Next 2Y10.63%
Revenue Next 3Y10.37%
Revenue Next 5Y7.85%
EBIT growth 1Y27.36%
EBIT growth 3Y34.55%
EBIT growth 5YN/A
EBIT Next Year89%
EBIT Next 3Y33.63%
EBIT Next 5Y20.48%
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
STANDARDAERO INC / SARO FAQ
What is the ChartMill fundamental rating of STANDARDAERO INC (SARO) stock?
ChartMill assigns a fundamental rating of 4 / 10 to SARO.
What is the valuation status for SARO stock?
ChartMill assigns a valuation rating of 4 / 10 to STANDARDAERO INC (SARO). This can be considered as Fairly Valued.
How profitable is STANDARDAERO INC (SARO) stock?
STANDARDAERO INC (SARO) has a profitability rating of 4 / 10.
Can you provide the financial health for SARO stock?
The financial health rating of STANDARDAERO INC (SARO) is 3 / 10.
What is the earnings growth outlook for STANDARDAERO INC?
The Earnings per Share (EPS) of STANDARDAERO INC (SARO) is expected to grow by 159.18% in the next year.