AIR Stock Analysis: AAR | NYSE
Aerospace & Defense | NYSE, USA | Market Cap: 5.571m USD | 12M Return: 86.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 60.7M
EPS Trend: 98.0%
Qual. Beats: 2
Rev. Trend: 99.8%
Qual. Beats: 4
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
AAR Corp. is a U.S.-based provider of aftermarket products and services to the commercial aviation, government, and defense markets, operating across North America, Europe, Africa, and Asia. The company runs four segments: Parts Supply, Repair & Engineering, Integrated Solutions, and Expeditionary Services, offering aircraft component leasing and sales, airframe and component maintenance, repair, and overhaul (MRO) services, engineering and certification work, and proprietary software such as the Trax cloud-based electronic enterprise resource platform. It also manages customer-owned aircraft fleets, provides supply chain logistics and parts procurement services, and manufactures tactical containers, pallets, and shelters for military and humanitarian deployment. AAR was founded in 1951 and is headquartered in Wood Dale, Illinois. The company sits within the global aerospace and defense aftermarket, a sector that supports operators through component MRO, parts distribution, and integrated logistics solutions tied to aircraft utilization.
- Parts Supply segment margins expand as commercial aviation activity rises
- Defense and government demand drives Expeditionary Services revenue growth
- Trax software recurring revenue lifts Integrated Solutions profitability
| Net Income: 171.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA 1.31 > 1.0 |
| NWC/Revenue: 35.43% < 20% (prev 36.89%; Δ -1.46% < -1%) |
| CFO/TA 0.03 > 3% & CFO 94.8m > Net Income 171.0m |
| Net Debt (992.6m) to EBITDA (375.4m): 2.64 < 3 |
| Current Ratio: 2.70 > 1.5 & < 3 |
| Outstanding Shares: last quarter (38.0m) vs 12m ago 7.34% < -2% |
| Gross Margin: 19.00% > 18% (prev 18.82%; Δ 0.18% > 0.5%) |
| Asset Turnover: 101.3% > 50% (prev 93.82%; Δ 7.43% > 0%) |
| Interest Coverage Ratio: 4.17 > 6 (EBIT TTM 309.2m / Interest Expense TTM 74.2m) |
| A: 0.33 (Total Current Assets 1.76b - Total Current Liabilities 653.0m) / Total Assets 3.33b |
| B: 0.33 (Retained Earnings 1.11b / Total Assets 3.33b) |
| C: 0.10 (EBIT TTM 309.2m / Avg Total Assets 3.10b) |
| D: 0.97 (Book Value of Equity 1.64b / Total Liabilities 1.69b) |
| Altman-Z'' = 4.96 = AAA |
| DSRI: 1.04 (Receivables 568.5m/465.8m, Revenue 3.13b/2.68b) |
| GMI: 0.99 (GM 18.82% / 19.00%) |
| AQI: 0.81 (AQ_t 0.31 / AQ_t-1 0.38) |
| SGI: 1.17 (Revenue 3.13b / 2.68b) |
| TATA: 0.02 (NI 171.0m - CFO 94.8m) / TA 3.33b) |
| Beneish M = -2.99 (Cap -4..+1) = A |
As of July 10, 2026, the stock is trading at USD 136.57 with a total of 275,819 shares traded. Over the past week, the price has changed by -4.34%, over one month by +13.69%, over three months by +11.00% and over the past year by +86.42%.
Current recommended Stop Loss: 129.90 (which is 4.9% or 1.2 ATR below the current price).
AAR has received a consensus analysts rating of 4.83. Therefore, it is recommended to buy AIR.
- StrongBuy: 5
- Buy: 1
- Hold: 0
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 131.6 | -3.6% |
P/E Trailing = 30.7934
P/E Forward = 26.3158
P/S = 1.7774
P/B = 3.4543
P/EG = 2.4021
Revenue TTM = 3.13b USD
EBIT TTM = 309.2m USD
EBITDA TTM = 375.4m USD
Long Term Debt = 888.3m USD (from longTermDebt, last quarter)
Short Term Debt = 12.3m USD (from shortTermDebt, last fiscal year)
Debt = 1.07b USD (from shortLongTermDebtTotal, last quarter) + Leases 91.4m
Net Debt = 992.6m USD (calculated: Debt 1.07b - CCE 78.5m)
Enterprise Value = 6.56b USD (5.57b + Debt 1.07b - CCE 78.5m)
Interest Coverage Ratio = 4.17 (Ebit TTM 309.2m / Interest Expense TTM 74.2m)
EV/FCF = 183.9x (Enterprise Value 6.56b / FCF TTM 35.7m)
FCF Yield = 0.54% (FCF TTM 35.7m / Enterprise Value 6.56b)
FCF Margin = 1.14% (FCF TTM 35.7m / Revenue TTM 3.13b)
Net Margin = 5.46% (Net Income TTM 171.0m / Revenue TTM 3.13b)
Gross Margin = 19.00% ((Revenue TTM 3.13b - Cost of Revenue TTM 2.54b) / Revenue TTM)
Gross Margin QoQ = 18.31% (prev 19.73%)
Tobins Q-Ratio = 1.97 (Enterprise Value 6.56b / Total Assets 3.33b)
Interest Expense / Debt = 6.93% (Interest Expense 74.2m / Debt 1.07b)
Taxrate = 27.48% (64.8m / 235.8m)
NOPAT = 224.2m (EBIT 309.2m * (1 - 27.48%))
Current Ratio = 2.70 (Total Current Assets 1.76b / Total Current Liabilities 653.0m)
Debt / Equity = 0.65 (Debt 1.07b / totalStockholderEquity, last quarter 1.64b)
Debt / EBITDA = 2.64 (Net Debt 992.6m / EBITDA 375.4m)
Debt / FCF = 27.80 (Net Debt 992.6m / FCF TTM 35.7m)
Total Stockholder Equity = 1.42b (last 4 quarters mean from totalStockholderEquity)
RoA = 5.52% (Net Income 171.0m / Total Assets 3.33b)
RoE = 12.07% (Net Income TTM 171.0m / Total Stockholder Equity 1.42b)
RoCE = 13.42% (EBIT 309.2m / Capital Employed (Equity 1.42b + L.T.Debt 888.3m))
RoIC = 8.62% (NOPAT 224.2m / Invested Capital 2.60b)
WACC = 9.45% (E(5.57b)/V(6.64b) * Re(10.30%) + D(1.07b)/V(6.64b) * Rd(6.93%) * (1-Tc(0.27)))
Discount Rate = 10.30% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.79 | Cagr: 6.11%
[DCF] Terminal Value 71.67% ; FCFF base≈35.7m ; Y1≈35.8m ; Y5≈38.0m
[DCF] Fair Price = N/A (negative equity: EV 497.6m - Net Debt 992.6m = -495.0m; debt exceeds intrinsic value)
EPS Correlation: 97.97 | EPS CAGR: 17.70% | SUE: 1.71 | # QB: 2
Revenue Correlation: 99.80 | Revenue CAGR: 17.77% | SUE: 1.13 | # QB: 4
EPS current Quarter (2026-08-31): EPS=1.28 | Chg30d=-0.52% | Revisions=-25% | Analysts=3
EPS current Year (2026-05-31): EPS=4.90 | Chg30d=+0.12% | Revisions=+0% | GrowthEPS=+25.4% | GrowthRev=+17.7%
EPS next Year (2027-05-31): EPS=5.65 | Chg30d=-0.23% | Revisions=+0% | GrowthEPS=+15.2% | GrowthRev=+10.8%
[Analyst] Revisions Ratio: -12% (up=2, down=3)