AIR:NYE-AAR Corp (USD)

COMMON STOCK | Aerospace & Defense | NYE

Last Closing Price

USD 36.86

Change

-0.30 (-0.81)%

Market Cap

USD 1.31B

Volume

0.17M

Average Target Price

USD 39.75 (+7.84%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The company operates in two segments, Aviation Services and Expeditionary Services. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services. This segment also sells and leases new, overhauled, and repaired engine and airframe parts, and components; and provides inventory and repair programs, warranty claim management, and outsourcing programs for engine and airframe parts and components, as well as performance-based supply chain logistics programs in support of the U.S. department of defense and foreign governments. In addition, it offers airframe inspection, maintenance, repair and overhaul, painting, line maintenance, airframe modification, structural repair, avionic and installation, exterior and interior refurbishment, and engineering and support services; and repairs and overhauls components, landing gears, wheels, and brakes. The Expeditionary Services segment provides products and services supporting the movement of equipment and personnel by the U.S. and foreign governments, and non-governmental organizations. This segment also designs, manufactures, and repairs transportation pallets, and various containers and shelters, as well as composite materials for commercial, business, and military aircraft; and provides engineering, design, and system integration services for command and control systems. The company serves commercial, government, and defense aircraft fleet operators; original equipment manufacturers; and independent service providers, as well as various other domestic and foreign military customers. It primarily markets and sells products and services through its employees and foreign sales representatives. The company was founded in 1951 and is headquartered in Wood Dale, Illinois. Address: One AAR Place, Wood Dale, IL, United States, 60191

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-01-25 )

Largest Industry Peers for Aerospace & Defense

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
BA The Boeing Company

-2.48 (-1.20%)

USD116.20B 49.08 129.41
LMT Lockheed Martin Corporation

+3.63 (+1.07%)

USD95.09B 14.64 10.60
NOC Northrop Grumman Corporation

+1.19 (+0.40%)

USD49.71B 20.45 14.00
GD General Dynamics Corporation

+0.39 (+0.26%)

USD43.83B 13.56 11.22
LHX L3Harris Technologies, Inc

+1.43 (+0.78%)

USD38.62B 25.00 20.14
RTN Raytheon Company

N/A

USD32.57B 9.81 7.07
TDG TransDigm Group Incorporated

-16.29 (-2.83%)

USD31.38B 64.26 22.74
HEI-A HEICO Corporation

-0.31 (-0.27%)

USD16.18B 49.63 38.30
HEI HEICO Corporation

-2.36 (-1.83%)

USD16.18B 56.20 38.30
TXT Textron Inc

+0.23 (+0.46%)

USD11.38B 42.07 15.98

ETFs Containing AIR

Symbol Name Weight Mer Price(Change) Market Cap
CACX:LSE Lyxor CAC 40 (DR) UCITS E.. 0.00 % 0.25 %

-85.25 (-1.75%)

USD3.81B
IS3U:F iShares MSCI France UCITS.. 0.00 % 0.25 %

-0.67 (-1.74%)

USD0.04B
MJMT:XETRA Amundi Index Solutions - .. 0.00 % 0.00 %

-0.20 (-0.25%)

USD0.36B
EXS3:XETRA iShares MDAX UCITS ETF (D.. 0.00 % 0.51 %

-1.95 (-0.73%)

USD1.70B
EXH4:XETRA iShares STOXX Europe 600 .. 0.00 % 0.46 %

-1.19 (-1.82%)

USD0.53B
ELF1:XETRA Deka MDAX UCITS ETF 0.00 % 0.00 %

-2.50 (-0.83%)

USD0.67B
DX2G:XETRA Xtrackers CAC 40 UCITS ET.. 0.00 % 0.20 %

-0.84 (-1.46%)

USD0.13B
E907:XETRA Lyxor 1 MDAX UCITS ETF 0.00 % 0.30 %

-1.24 (-0.74%)

USD0.12B
C069:XETRA ComStage - STOXX® Europe.. 0.00 % 0.25 %

N/A

USD0.01B
C007:XETRA Lyxor MDAX (DR) UCITS ETF 0.00 % 0.30 %

-0.26 (-0.90%)

USD0.22B
XESP:F Xtrackers Spain UCITS ETF.. 0.00 % 0.30 %

-0.43 (-1.99%)

USD0.04B
XESD:F Xtrackers Spain UCITS ETF.. 0.00 % 0.30 %

-0.31 (-1.69%)

USD0.04B
SPYQ:F SPDR MSCI Europe Industri.. 0.00 % 0.30 %

-2.70 (-1.27%)

USD0.42B
MJMT:F Amundi Index Solutions - .. 0.00 % 0.00 %

-0.30 (-0.37%)

USD0.36B
EXS3:F iShares MDAX UCITS ETF (D.. 0.00 % 0.51 %

-2.10 (-0.79%)

USD1.50B
EGRA:LSE WisdomTree Eurozone Quali.. 0.00 % 0.29 %

-0.15 (-0.71%)

USD0.02B
EXH4:F iShares STOXX Europe 600 .. 0.00 % 0.46 %

-1.19 (-1.82%)

USD0.42B
ELF1:F Deka MDAX UCITS ETF 0.00 % 0.00 %

-2.35 (-0.78%)

USD0.56B
EESM:F BNP Paribas Easy MSCI Eur.. 0.00 % 0.00 %

-4.50 (-1.64%)

USD0.09B
E907:F Lyxor 1 MDAX UCITS ETF 0.00 % 0.30 %

-1.38 (-0.82%)

USD0.11B
C069:F ComStage - STOXX® Europe.. 0.00 % 0.25 %

N/A

USD0.01B
C007:F ComStage MDAX UCITS ETF 0.00 % 0.30 %

-0.23 (-0.81%)

USD0.19B
STQ:PA SPDR MSCI Europe Industri.. 0.00 % 0.30 %

-3.30 (-1.56%)

USD0.42B
MVAU:PA Lyxor FTSE USA Minimum Va.. 0.00 % 0.20 %

+0.95 (+0.71%)

USD0.03B
GWT:PA Lyxor Index Fund - Lyxor .. 0.00 % 0.40 %

-0.70 (-0.46%)

USD0.05B
CAC:PA Lyxor CAC 40 (DR) UCITS E.. 0.00 % 0.25 %

-0.87 (-1.59%)

USD3.81B
NDUS:LSE SPDR MSCI Europe Industri.. 0.00 % 0.30 %

-2.73 (-1.29%)

USD0.42B
ISFR:LSE iShares MSCI France UCITS.. 0.00 % 0.25 %

-63.75 (-1.87%)

USD0.06B
EGRW:LSE WisdomTree Eurozone Quali.. 0.00 % 0.29 %

-0.12 (-0.67%)

USD0.02B
SPYQ:XETRA SPDR MSCI Europe Industri.. 0.00 % 0.30 %

-3.30 (-1.56%)

USD0.42B

Market Performance

  Market Performance vs.
Industry/Classification (Aerospace & Defense)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 1.77% 59% F 44% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 1.77% 59% F 43% F
Trailing 12 Months  
Capital Gain -17.02% 34% F 17% F
Dividend Return 0.17% 18% F 2% F
Total Return -16.85% 34% F 16% F
Trailing 5 Years  
Capital Gain 78.41% 69% D+ 69% D+
Dividend Return 6.17% 40% F 14% F
Total Return 84.58% 62% D- 65% D
Average Annual (5 Year Horizon)  
Capital Gain 3.50% 41% F 63% D
Dividend Return 0.83% 46% F 21% F
Total Return 4.33% 28% F 55% F
Risk Return Profile  
Volatility (Standard Deviation) 34.03% 25% F 18% F
Risk Adjusted Return 12.73% 25% F 37% F
Market Capitalization 1.31B 38% F 55% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Aerospace & Defense)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 25.11 48% F 33% F
Price/Book Ratio 1.46 90% A- 56% F
Price / Cash Flow Ratio -36.33 78% C+ 95% A
EV/EBITDA 43.76 13% F 11% F
Management Effectiveness  
Return on Equity -1.31% 26% F 32% F
Return on Invested Capital -159.55% 3% F 1% F
Return on Assets 0.58% 25% F 29% F
Debt to Equity Ratio 66.47% 41% F 52% F
Technical Ratios  
Short Ratio 3.36 38% F 29% F
Short Percent 5.38% 33% F 45% F
Beta 1.85 16% F 16% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.