STANDARDAERO INC (SARO) Stock Fundamental Analysis
NYSE:SARO - New York Stock Exchange, Inc. - US85423L1035 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SARO. SARO was compared to 503 industry peers in the Aerospace & Defense industry. SARO may be in some trouble as it scores bad on both profitability and health. SARO is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SARO was profitable.
1.2 Ratios
SARO has a Return On Assets of 1.09%. This is comparable to the rest of the industry: SARO outperforms 41.54% of its industry peers.
SARO has a Return On Equity (2.90%) which is in line with its industry peers.
With a decent Return On Invested Capital value of 6.63%, SARO is doing good in the industry, outperforming 63.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SARO is significantly below the industry average of 13.68%.
The last Return On Invested Capital (6.63%) for SARO is above the 3 year average (5.55%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
1.3 Margins
SARO has a Profit Margin of 1.30%. This is comparable to the rest of the industry: SARO outperforms 43.08% of its industry peers.
SARO has a Operating Margin (7.87%) which is in line with its industry peers.
SARO's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 14.55%, SARO is doing worse than 76.92% of the companies in the same industry.
SARO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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
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.
Compared to 1 year ago, SARO has about the same amount of shares outstanding.
SARO has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.52 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 (2.52) than 60.00% of its industry peers.
A Debt/Equity ratio of 0.95 indicates that SARO is somewhat dependend on debt financing.
SARO's Debt to Equity ratio of 0.95 is on the low side compared to the rest of the industry. SARO is outperformed by 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.95 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.52 |
ROIC/WACC0.62
WACC10.71%
2.3 Liquidity
SARO has a Current Ratio of 2.00. This indicates that SARO is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.00, SARO perfoms like the industry average, outperforming 43.08% of the companies in the same industry.
SARO has a Quick Ratio of 1.37. This is a normal value and indicates that SARO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.37, SARO is in line with its industry, outperforming 47.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 1.37 |
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.
Looking at the last year, SARO shows a quite strong growth in Revenue. The Revenue has grown by 16.92% in the last year.
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 67.39% yearly.
The Revenue is expected to grow by 11.84% on average over the next years. This is quite good.
EPS Next Y164.14%
EPS Next 2Y90.66%
EPS Next 3Y67.39%
EPS Next 5YN/A
Revenue Next Year14.25%
Revenue Next 2Y12.79%
Revenue Next 3Y11.84%
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
A Price/Earnings ratio of 140.36 indicates a quite expensive valuation of SARO.
SARO's Price/Earnings ratio is a bit more expensive when compared to the industry. SARO is more expensive than 60.00% of the companies in the same industry.
SARO's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
SARO is valuated quite expensively with a Price/Forward Earnings ratio of 25.49.
SARO's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SARO is cheaper than 67.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. SARO is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.36 | ||
| Fwd PE | 25.49 |
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 66.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 20.41 |
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.
SARO's earnings are expected to grow with 67.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y90.66%
EPS Next 3Y67.39%
5. Dividend
5.1 Amount
SARO does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
30.88
-0.09 (-0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners50.49%
Inst Owner Change183.16%
Ins Owners0.45%
Ins Owner Change1.46%
Market Cap10.33B
Analysts81.33
Price Target35.32 (14.38%)
Short Float %2.12%
Short Ratio1.64
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)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)4.92%
PT rev (3m)2.51%
EPS NQ rev (1m)3.94%
EPS NQ rev (3m)6.45%
EPS NY rev (1m)0.48%
EPS NY rev (3m)1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)1.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 140.36 | ||
| Fwd PE | 25.49 | ||
| P/S | 1.9 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.41 |
EPS(TTM)0.22
EY0.71%
EPS(NY)1.21
Fwd EY3.92%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS16.26
BVpS7.29
TBVpS-1.53
PEG (NY)0.86
PEG (5Y)N/A
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 2.52 |
F-ScoreN/A
WACC10.71%
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 Y164.14%
EPS Next 2Y90.66%
EPS Next 3Y67.39%
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 2Y12.79%
Revenue Next 3Y11.84%
Revenue Next 5YN/A
EBIT growth 1Y20.97%
EBIT growth 3Y34.55%
EBIT growth 5YN/A
EBIT Next Year85.32%
EBIT Next 3Y34.23%
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