(AIR) AAR - Ratings and Ratios
Parts, Maintenance, Logistics, Software, Shelters
AIR EPS (Earnings per Share)
AIR Revenue
Description: AIR AAR
AAR Corp (NYSE:AIR) is a global provider of products and services to the aviation, government, and defense sectors, operating across four business segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services. The companys diverse offerings include leasing and selling aircraft components, airframe maintenance, component repair, and engineering services.
AAR Corps business model is characterized by a strong focus on aftermarket support, with services such as fleet management, supply chain logistics, and flight hour component inventory and repair. The company also provides integrated software solutions, including Trax, a cloud-based enterprise resource platform, and a suite of paperless mobility apps. Additionally, AAR Corp designs, manufactures, and repairs specialized equipment for military and humanitarian deployment activities.
From a financial perspective, AAR Corp has a market capitalization of $2.75 billion, indicating a relatively modest size compared to industry peers. The companys price-to-earnings ratio is high at 219.43, suggesting that investors have high expectations for future growth. However, the forward P/E ratio is significantly lower at 17.33, indicating potential for earnings growth. The return on equity (RoE) is relatively low at 1.04, which may indicate room for improvement in terms of profitability.
To further evaluate AAR Corps performance, key performance indicators (KPIs) such as revenue growth, operating margins, and cash flow generation can be examined. The companys revenue growth has been steady, driven by its diversified business segments and global presence. Operating margins have also been stable, reflecting the companys ability to manage costs and maintain profitability. Additionally, AAR Corps cash flow generation is an important metric, as it indicates the companys ability to invest in growth initiatives and return capital to shareholders.
Other relevant KPIs for AAR Corp include its debt-to-equity ratio, which can indicate the companys level of financial leverage, and its return on assets (RoA), which can provide insight into the companys asset utilization and efficiency. By analyzing these KPIs, investors can gain a more comprehensive understanding of AAR Corps financial health and growth prospects.
AIR Stock Overview
| Market Cap in USD | 2,806m |
| Sub-Industry | Aerospace & Defense |
| IPO / Inception | 1988-01-01 |
AIR Stock Ratings
| Growth Rating | 73.0 |
| Fundamental | 51.7% |
| Dividend Rating | 13.7 |
| Rel. Strength | -17.4 |
| Analysts | 4.83 of 5 |
| Fair Price Momentum | 83.84 USD |
| Fair Price DCF | 1.69 USD |
AIR Dividends
Currently no dividends paidAIR Growth Ratios
| Growth Correlation 3m | 89.3% |
| Growth Correlation 12m | 26% |
| Growth Correlation 5y | 91.2% |
| CAGR 5y | 31.20% |
| CAGR/Max DD 5y | 0.87 |
| Sharpe Ratio 12m | 0.90 |
| Alpha | -2.86 |
| Beta | 1.304 |
| Volatility | 31.58% |
| Current Volume | 375.4k |
| Average Volume 20d | 382.6k |
| Stop Loss | 72.6 (-3.7%) |
| Signal | -1.36 |
Piotroski VR‑10 (Strict, 0-10) 2.5
| Net Income (12.5m TTM) > 0 and > 6% of Revenue (6% = 166.8m TTM) |
| FCFTA 0.01 (>2.0%) and ΔFCFTA 0.47pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 34.38% (prev 39.79%; Δ -5.41pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.01 (>3.0%) and CFO 36.1m > Net Income 12.5m (YES >=105%, WARN >=100%) |
| Net Debt (951.1m) to EBITDA (169.7m) ratio: 5.60 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.72 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (35.6m) change vs 12m ago 0.56% (target <= -2.0% for YES) |
| Gross Margin 18.98% (prev 19.07%; Δ -0.10pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 99.05% (prev 83.71%; Δ 15.33pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 1.52 (EBITDA TTM 169.7m / Interest Expense TTM 75.0m) >= 6 (WARN >= 3) |
Altman Z'' 4.24
| (A) 0.34 = (Total Current Assets 1.51b - Total Current Liabilities 554.7m) / Total Assets 2.84b |
| (B) 0.34 = Retained Earnings (Balance) 969.4m / Total Assets 2.84b |
| (C) 0.04 = EBIT TTM 113.9m / Avg Total Assets 2.81b |
| (D) 0.62 = Book Value of Equity 1.01b / Total Liabilities 1.63b |
| Total Rating: 4.24 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 51.70
| 1. Piotroski 2.50pt = -2.50 |
| 2. FCF Yield 0.75% = 0.38 |
| 3. FCF Margin 0.99% = 0.25 |
| 4. Debt/Equity 0.80 = 2.19 |
| 5. Debt/Ebitda 5.70 = -2.50 |
| 6. ROIC - WACC -6.53% = -8.16 |
| 7. RoE 1.04% = 0.09 |
| 8. Rev. Trend 97.18% = 4.86 |
| 9. Rev. CAGR 19.13% = 2.39 |
| 10. EPS Trend 92.88% = 2.32 |
| 11. EPS CAGR 23.89% = 2.39 |
What is the price of AIR shares?
Over the past week, the price has changed by +0.79%, over one month by +2.71%, over three months by +21.27% and over the past year by +19.06%.
Is AAR a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AIR is around 83.84 USD . This means that AIR is currently undervalued and has a potential upside of +11.22% (Margin of Safety).
Is AIR a buy, sell or hold?
- Strong Buy: 5
- Buy: 1
- Hold: 0
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the AIR price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 84.6 | 12.2% |
| Analysts Target Price | 80.2 | 6.4% |
| ValueRay Target Price | 93.2 | 23.7% |
Last update: 2025-08-14 04:30
AIR Fundamental Data Overview
CCE Cash And Equivalents = 96.5m USD (last quarter)
P/E Trailing = 222.8857
P/E Forward = 17.6056
P/S = 1.009
P/B = 2.3156
P/EG = 2.4061
Beta = 1.53
Revenue TTM = 2.78b USD
EBIT TTM = 113.9m USD
EBITDA TTM = 169.7m USD
Long Term Debt = 968.0m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (0.0)
Debt = 968.0m USD (Calculated: Short Term 0.0 + Long Term 968.0m)
Net Debt = 951.1m USD (from netDebt column, last quarter)
Enterprise Value = 3.68b USD (2.81b + Debt 968.0m - CCE 96.5m)
Interest Coverage Ratio = 1.52 (Ebit TTM 113.9m / Interest Expense TTM 75.0m)
FCF Yield = 0.75% (FCF TTM 27.6m / Enterprise Value 3.68b)
FCF Margin = 0.99% (FCF TTM 27.6m / Revenue TTM 2.78b)
Net Margin = 0.45% (Net Income TTM 12.5m / Revenue TTM 2.78b)
Gross Margin = 18.98% ((Revenue TTM 2.78b - Cost of Revenue TTM 2.25b) / Revenue TTM)
Tobins Q-Ratio = 3.62 (Enterprise Value 3.68b / Book Value Of Equity 1.01b)
Interest Expense / Debt = 1.90% (Interest Expense 18.4m / Debt 968.0m)
Taxrate = 67.87% (from yearly Income Tax Expense: 26.4m / 38.9m)
NOPAT = 36.6m (EBIT 113.9m * (1 - 67.87%))
Current Ratio = 2.72 (Total Current Assets 1.51b / Total Current Liabilities 554.7m)
Debt / Equity = 0.80 (Debt 968.0m / last Quarter total Stockholder Equity 1.21b)
Debt / EBITDA = 5.70 (Net Debt 951.1m / EBITDA 169.7m)
Debt / FCF = 35.07 (Debt 968.0m / FCF TTM 27.6m)
Total Stockholder Equity = 1.20b (last 4 quarters mean)
RoA = 0.44% (Net Income 12.5m, Total Assets 2.84b )
RoE = 1.04% (Net Income TTM 12.5m / Total Stockholder Equity 1.20b)
RoCE = 5.26% (Ebit 113.9m / (Equity 1.20b + L.T.Debt 968.0m))
RoIC = 1.67% (NOPAT 36.6m / Invested Capital 2.19b)
WACC = 8.20% (E(2.81b)/V(3.77b) * Re(10.82%)) + (D(968.0m)/V(3.77b) * Rd(1.90%) * (1-Tc(0.68)))
Shares Correlation 5-Years: 10.30 | Cagr: 0.0%
Discount Rate = 10.82% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 54.69% ; FCFE base≈22.1m ; Y1≈12.5m ; Y5≈4.21m
Fair Price DCF = 1.69 (DCF Value 60.7m / Shares Outstanding 36.0m; 5y FCF grow -50.0% → 3.0% )
Revenue Correlation: 97.18 | Revenue CAGR: 19.13%
Revenue Growth Correlation: 6.76%
EPS Correlation: 92.88 | EPS CAGR: 23.89%
EPS Growth Correlation: 6.24%
Additional Sources for AIR Stock
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