AIR:NYE-AAR Corp (USD)

COMMON STOCK | Aerospace & Defense | NYE

Last Closing Price

USD 20.80

Change

0.00 (0.00)%

Market Cap

USD 0.67B

Volume

0.34M

Average Target Price

USD 40.50 (+94.71%)
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 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. It serves commercial, defense, and governmental aircraft fleet operators; original equipment manufacturers; and independent service providers, as well as various other domestic and foreign military customers. The company primarily markets and sells products and services through its employees and foreign sales representatives. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-07-03 )

Largest Industry Peers for Aerospace & Defense

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
LMT Lockheed Martin Corporation

N/A

USD100.91B 17.06 12.67
BA The Boeing Company

N/A

USD99.71B 49.08 129.41
NOC Northrop Grumman Corporation

N/A

USD50.33B 23.88 16.38
GD General Dynamics Corporation

N/A

USD42.50B 13.42 10.99
LHX L3Harris Technologies, Inc

N/A

USD36.32B 23.83 21.00
RTN Raytheon Company

N/A

USD32.57B 9.81 7.07
TDG TransDigm Group Incorporated

N/A

USD23.46B 36.23 16.65
HEI HEICO Corporation

N/A

USD11.91B 41.83 24.95
HEI-A HEICO Corporation

N/A

USD11.53B 33.82 24.95
TXT Textron Inc

N/A

USD7.38B 11.52 7.54

ETFs Containing AIR

Symbol Name Weight Mer Price(Change) Market Cap
EESM:F BNP Paribas Easy MSCI Eur.. 8.33 % 0.00 %

-1.10 (-0.50%)

USD0.02B
EXS3:F iShares MDAX UCITS ETF (D.. 6.87 % 0.51 %

-0.20 (-0.09%)

USD1.31B
C007:XETRA ComStage - MDAX® UCITS E.. 6.87 % 0.30 %

+0.04 (+0.14%)

USD0.17B
E907:XETRA Lyxor 1 MDAX UCITS ETF 6.87 % 0.30 %

+0.06 (+0.04%)

USD0.11B
EXS3:XETRA iShares MDAX UCITS ETF (D.. 6.87 % 0.51 %

-0.25 (-0.11%)

USD1.31B
ELF1:XETRA Deka MDAX UCITS ETF 6.87 % 0.00 %

+0.05 (+0.02%)

USD0.52B
E907:F Lyxor 1 MDAX UCITS ETF 6.87 % 0.30 %

N/A

USD0.11B
ELF1:F Deka MDAX UCITS ETF 6.87 % 0.00 %

+0.10 (+0.04%)

USD0.52B
C007:F ComStage MDAX UCITS ETF 6.87 % 0.30 %

+0.01 (+0.02%)

USD0.17B
MVAU:PA Lyxor FTSE USA Minimum Va.. 5.98 % 0.20 %

-1.19 (-0.97%)

USD0.09B
C069:F ComStage STOXX Europe 600.. 3.76 % 0.25 %

-0.09 (-0.10%)

USD8.07M
C069:XETRA ComStage STOXX Europe 600.. 3.76 % 0.25 %

-0.37 (-0.39%)

USD8.07M
EXH4:XETRA iShares STOXX Europe 600 .. 3.74 % 0.46 %

-0.25 (-0.48%)

USD0.27B
EXH4:F iShares STOXX Europe 600 .. 3.74 % 0.46 %

-0.07 (-0.13%)

USD0.27B
EGRW:LSE WisdomTree Eurozone Quali.. 3.59 % 0.29 %

-0.10 (-0.63%)

USD0.02B
EGRA:LSE WisdomTree Eurozone Quali.. 3.59 % 0.29 %

-0.10 (-0.58%)

USD0.02B
SPYQ:F SPDR MSCI Europe Industri.. 3.23 % 0.30 %

-0.48 (-0.28%)

USD0.27B
SPYQ:XETRA SPDR MSCI Europe Industri.. 3.23 % 0.30 %

-0.84 (-0.48%)

USD0.27B
NDUS:LSE SPDR MSCI Europe Industri.. 3.23 % 0.30 %

-1.14 (-0.66%)

USD0.27B
STQ:PA SPDR MSCI Europe Industri.. 3.23 % 0.30 %

-0.98 (-0.56%)

USD0.27B
GWT:PA Lyxor Index Fund - Lyxor .. 2.00 % 0.40 %

-0.62 (-0.45%)

USD0.05B

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 -53.88% 13% F 7% F
Dividend Return 0.33% 50% F 13% F
Total Return -53.55% 13% F 7% F
Trailing 12 Months  
Capital Gain -44.41% 29% F 14% F
Dividend Return 0.80% 45% F 18% F
Total Return -43.61% 26% F 13% F
Trailing 5 Years  
Capital Gain -33.59% 19% F 29% F
Dividend Return 4.79% 43% F 18% F
Total Return -28.80% 15% F 24% F
Average Annual (5 Year Horizon)  
Capital Gain 13.45% 46% F 84% B
Dividend Return 0.95% 46% F 22% F
Total Return 14.40% 46% F 81% B-
Risk Return Profile  
Volatility (Standard Deviation) 29.79% 25% F 21% F
Risk Adjusted Return 48.33% 32% F 55% F
Market Capitalization 0.67B 31% F 52% 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 11.01 86% B 68% D+
Price/Book Ratio 0.79 90% A- 75% C
Price / Cash Flow Ratio N/A N/A N/A N/A N/A
EV/EBITDA 7.60 77% C+ 69% D+
Management Effectiveness  
Return on Equity 7.26% 34% F 50% F
Return on Invested Capital 7.99% 34% F 63% D
Return on Assets 3.66% 28% F 67% D+
Debt to Equity Ratio 15.64% 78% C+ 85% B
Technical Ratios  
Short Ratio 3.32 16% F 26% F
Short Percent 5.68% 27% F 50% F
Beta 1.68 13% F 19% 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 earnings

The stock is trading low compared to its peers on a price to earning 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.

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.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive free cash flow

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

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow 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.

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.

Poor return on equity

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

Poor capital utilization

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

Poor return on assets

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