AIR:NYE-AAR Corp (USD)

COMMON STOCK | Aerospace & Defense | NYE

Last Closing Price

USD 18.09

Change

+0.10 (+0.56)%

Market Cap

USD 0.63B

Volume

0.49M

Average Target Price

USD 32.67 (+80.58%)
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: 2020-03-30 )

Largest Industry Peers for Aerospace & Defense

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

+0.47 (+0.13%)

USD98.20B 15.87 12.59
BA The Boeing Company

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USD85.92B 49.08 651.18
UTX United Technologies Corporatio..

+1.34 (+1.38%)

USD84.15B 15.16 8.87
NOC Northrop Grumman Corporation

+1.57 (+0.50%)

USD52.33B 23.61 16.44
GD General Dynamics Corporation

+3.53 (+2.71%)

USD37.67B 10.86 8.76
RTN Raytheon Company

-0.81 (-0.57%)

USD37.19B 11.20 7.19
LHX L3Harris Technologies, Inc

-3.04 (-1.64%)

USD32.58B 20.44 11.33
TDG TransDigm Group Incorporated

-20.26 (-5.58%)

USD19.49B 28.28 14.48
HEI-A HEICO Corporation

-4.37 (-6.21%)

USD10.00B 26.07 18.36
HEI HEICO Corporation

-4.82 (-5.90%)

USD9.04B 26.00 17.40

ETFs Containing AIR

Symbol Name Weight Mer Price(Change) Market Cap

N/A

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 -59.89% 14% F 10% F
Dividend Return 0.33% 52% F 16% F
Total Return -59.56% 14% F 10% F
Trailing 12 Months  
Capital Gain -44.36% 24% F 22% F
Dividend Return 1.15% 45% F 26% F
Total Return -43.20% 28% F 21% F
Trailing 5 Years  
Capital Gain -41.07% 18% F 31% F
Dividend Return 5.13% 46% F 18% F
Total Return -35.94% 18% F 26% F
Average Annual (5 Year Horizon)  
Capital Gain 14.67% 46% F 84% B
Dividend Return 0.95% 46% F 22% F
Total Return 15.62% 46% F 81% B-
Risk Return Profile  
Volatility (Standard Deviation) 27.76% 25% F 21% F
Risk Adjusted Return 56.28% 32% F 55% F
Market Capitalization 0.63B 31% F 53% 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 14.40 53% F 52% F
Price/Book Ratio 0.67 90% A- 71% C-
Price / Cash Flow Ratio 9.37 49% F 34% F
EV/EBITDA 6.08 74% C 68% D+
Management Effectiveness  
Return on Equity 7.26% 32% F 43% F
Return on Invested Capital 9.13% 31% F 68% D+
Return on Assets 3.66% 29% F 64% D
Debt to Equity Ratio 15.64% 83% B 85% B
Technical Ratios  
Short Ratio 4.13 20% F 21% F
Short Percent 4.83% 31% F 57% F
Beta 1.34 29% F 24% 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.

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 cash flow

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

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 on cashflow basis

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

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.

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.