STANDARDAERO INC (SARO) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SARO - US85423L1035 - Common Stock
29.64 USD
+0.96 (+3.35%)
29.5 USD
-0.14 (-0.47%)
Taking everything into account, SARO scores 4 out of 10 in our fundamental rating. SARO was compared to 71 industry peers in the Aerospace & Defense industry. SARO has a medium profitability rating, but doesn't score so well on its financial health evaluation. SARO has a correct valuation and a medium 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
With a Return On Assets value of 2.78%, SARO perfoms like the industry average, outperforming 54.93% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.15%, SARO is in line with its industry, outperforming 57.75% of the companies in the same industry.
The Return On Invested Capital of SARO (7.41%) is better than 63.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SARO is below the industry average of 8.63%.
The 3 year average ROIC (5.55%) for SARO is below the current ROIC(7.41%), indicating increased profibility in the last year.
| 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 in line with its industry peers.
SARO's Operating Margin of 8.45% is in line compared to the rest of the industry. SARO outperforms 54.93% of its industry peers.
SARO's Operating Margin has improved in the last couple of years.
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.
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.
2.2 Solvency
SARO has an Altman-Z score of 2.59. 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.
The Altman-Z score of SARO (2.59) is worse than 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.
The Debt to Equity ratio of SARO (0.89) is worse than 71.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.59 |
ROIC/WACC0.69
WACC10.79%
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.
Looking at the Current ratio, with a value of 2.18, SARO is in line with its industry, outperforming 46.48% of the companies in the same industry.
A Quick Ratio of 1.48 indicates that SARO should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.48, SARO perfoms like the industry average, outperforming 50.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 586.75% over the past year.
The Revenue has grown by 17.79% in the past year. This is quite good.
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)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
Based on estimates for the next years, SARO will show a very strong growth in Earnings Per Share. The EPS will grow by 36.54% on average per year.
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
With a Price/Earnings ratio of 35.29, SARO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SARO indicates a somewhat cheap valuation: SARO is cheaper than 70.42% of the companies listed in the same industry.
SARO's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.60.
Based on the Price/Forward Earnings ratio of 24.17, the valuation of SARO can be described as rather expensive.
SARO's Price/Forward Earnings ratio is rather cheap when compared to the industry. SARO is cheaper than 85.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SARO to the average of the S&P500 Index (23.23), we can say SARO is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.29 | ||
| Fwd PE | 24.17 |
4.2 Price Multiples
80.28% 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 | 17.63 |
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 65.25% in the coming years.
PEG (NY)0.22
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% |
29.64
+0.96 (+3.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners58.59%
Inst Owner Change0%
Ins Owners0.42%
Ins Owner Change-28.73%
Market Cap9.91B
Revenue(TTM)5.87B
Net Income(TTM)184.72M
Analysts81.18
Price Target36.62 (23.55%)
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)0.34%
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%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.29 | ||
| Fwd PE | 24.17 | ||
| P/S | 1.69 | ||
| P/FCF | N/A | ||
| P/OCF | 97.15 | ||
| P/B | 3.84 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.63 |
EPS(TTM)0.84
EY2.83%
EPS(NY)1.23
Fwd EY4.14%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.31
OCFY1.03%
SpS17.56
BVpS7.73
TBVpS-0.89
PEG (NY)0.22
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 | 2.59 |
F-Score7
WACC10.79%
ROIC/WACC0.69
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.