SARO Stock Analysis: StandardAero | NYSE
Aerospace & Defense | NYSE, USA | Market Cap: 7.052m USD | 12M Return: -22.5% | US85423L1035 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 79.5M
Qual. Beats: 0
Rev. Trend: 100.0%
Warnings
Tailwinds
No distinct edge detected
Seasonality 2 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.
StandardAero, Inc. (NYSE: SARO) is a U.S.-headquartered provider of aerospace engine aftermarket services for both fixed-wing and rotary-wing aircraft, operating across the United States, Canada, the United Kingdom, Rest of Europe, Asia, and other international markets. The company reports through two segments: Engine Services, which delivers maintenance, repair and overhaul (MRO), on-wing and field service support, asset management, and engineering solutions to commercial aerospace, military and helicopter, and business aviation customers; and Component Repair Services, which provides component and accessory repairs serving commercial aerospace, military and helicopter, land and marine, and oil and gas end markets.
The business is classified within the Industrials sector, specifically the Aerospace & Defense sub-industry, and operates in the aftermarket portion of the value chain, which typically generates recurring revenue tied to scheduled engine maintenance cycles and the global installed base of aircraft engines. StandardAero was founded in 1911, is headquartered in Scottsdale, Arizona, was formerly known as Dynasty Parent Co., Inc. (renamed in September 2024), and completed its IPO in October 2024.
- CFM56 and LEAP MRO volumes drive Engine Services segment growth
- Military and helicopter demand expands amid elevated defense budgets
- Oil and gas end market softness pressures Component Repair margins
| Net Income: 324.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA 4.22 > 1.0 |
| NWC/Revenue: 25.46% < 20% (prev 26.41%; Δ -0.95% < -1%) |
| CFO/TA 0.04 > 3% & CFO 290.6m > Net Income 324.0m |
| Net Debt (2.62b) to EBITDA (788.1m): 3.33 < 3 |
| Current Ratio: 2.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (332.3m) vs 12m ago -0.60% < -2% |
| Gross Margin: 14.66% > 18% (prev 14.99%; Δ -0.32% > 0.5%) |
| Asset Turnover: 94.87% > 50% (prev 86.67%; Δ 8.20% > 0%) |
| Interest Coverage Ratio: 3.60 > 6 (EBIT TTM 598.2m / Interest Expense TTM 166.0m) |
| A: 0.24 (Total Current Assets 3.03b - Total Current Liabilities 1.42b) / Total Assets 6.85b |
| B: -0.16 (Retained Earnings -1.11b / Total Assets 6.85b) |
| C: 0.09 (EBIT TTM 598.2m / Avg Total Assets 6.67b) |
| D: 0.67 (Book Value of Equity 2.75b / Total Liabilities 4.10b) |
| Altman-Z'' = 2.32 = BBB |
| DSRI: 1.03 (Receivables 2.04b/1.77b, Revenue 6.32b/5.62b) |
| GMI: 1.02 (GM 14.99% / 14.66%) |
| AQI: 0.97 (AQ_t 0.44 / AQ_t-1 0.45) |
| SGI: 1.13 (Revenue 6.32b / 5.62b) |
| TATA: 0.00 (NI 324.0m - CFO 290.6m) / TA 6.85b) |
| Beneish M = -2.91 (Cap -4..+1) = A |
As of October 20, 2026, the stock is trading at USD 21.37 with a total of 2,474,153 shares traded. Over the past week, the price has changed by +7.33%, over one month by -6.60%, over three months by -19.81% and over the past year by -22.49%.
Current recommended Stop Loss: 20.30 (which is 5% or 1.4 ATR below the current price).
StandardAero has received a consensus analysts rating of 4.33. Therefore, it is recommended to buy SARO.
- StrongBuy: 9
- Buy: 2
- Hold: 4
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 34 | 59.2% |
P/E Trailing = 21.9691
P/E Forward = 14.1643
P/S = 1.115
P/B = 2.7137
P/EG = 0.5778
Revenue TTM = 6.32b USD
EBIT TTM = 598.2m USD
EBITDA TTM = 788.1m USD
Long Term Debt = 2.30b USD (from longTermDebt, last quarter)
Short Term Debt = 49.2m USD (from shortTermDebt, last quarter)
Debt = 2.80b USD (from shortLongTermDebtTotal, last quarter) + Leases 237.9m
Net Debt = 2.62b USD (calculated: Debt 2.80b - CCE 179.1m)
Enterprise Value = 9.67b USD (7.05b + Debt 2.80b - CCE 179.1m)
Interest Coverage Ratio = 3.60 (Ebit TTM 598.2m / Interest Expense TTM 166.0m)
EV/FCF = 44.30x (Enterprise Value 9.67b / FCF TTM 218.4m)
FCF Yield = 2.26% (FCF TTM 218.4m / Enterprise Value 9.67b)
FCF Margin = 3.45% (FCF TTM 218.4m / Revenue TTM 6.32b)
Net Margin = 5.12% (Net Income TTM 324.0m / Revenue TTM 6.32b)
Gross Margin = 14.66% ((Revenue TTM 6.32b - Cost of Revenue TTM 5.40b) / Revenue TTM)
Gross Margin QoQ = 16.80% (prev 13.22%)
Tobins Q-Ratio = 1.41 (Enterprise Value 9.67b / Total Assets 6.85b)
Interest Expense / Debt = 5.93% (Interest Expense 166.0m / Debt 2.80b)
Taxrate = 25.03% (108.2m / 432.1m)
NOPAT = 448.4m (EBIT 598.2m * (1 - 25.03%))
Current Ratio = 2.13 (Total Current Assets 3.03b / Total Current Liabilities 1.42b)
Debt / Equity = 1.02 (Debt 2.80b / totalStockholderEquity, last quarter 2.75b)
Debt / EBITDA = 3.33 (Net Debt 2.62b / EBITDA 788.1m)
Debt / FCF = 12.01 (Net Debt 2.62b / FCF TTM 218.4m)
Total Stockholder Equity = 2.67b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.86% (Net Income 324.0m / Total Assets 6.85b)
RoE = 12.12% (Net Income TTM 324.0m / Total Stockholder Equity 2.67b)
RoCE = 12.02% (EBIT 598.2m / Capital Employed (Equity 2.67b + L.T.Debt 2.30b))
RoIC = 8.46% (NOPAT 448.4m / Invested Capital 5.30b)
WACC = 7.75% (E(7.05b)/V(9.85b) * Re(9.06%) + D(2.80b)/V(9.85b) * Rd(5.93%) * (1-Tc(0.25)))
Discount Rate = 9.06% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -4.78 | Cagr: -0.29%
[DCF] Terminal Value 75.44% ; FCFF base≈218.4m ; Y1≈219.3m ; Y5≈232.3m
[DCF] Fair Price = 3.00 (EV 3.61b - Net Debt 2.62b = Equity 991.2m / Shares 330.9m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.67 | # QB: 0
Revenue Correlation: 99.98 | Revenue CAGR: 15.26% | SUE: N/A | # QB: 0
EPS current Quarter (2026-09-30): EPS=0.30 | Chg30d=-2.76% | Revisions=-50% | Analysts=10
EPS current Year (2026-12-31): EPS=1.18 | Chg30d=-1.50% | Revisions=-62% | GrowthEPS=+42.1% | GrowthRev=+6.4%
EPS next Year (2027-12-31): EPS=1.47 | Chg30d=-1.28% | Revisions=-25% | GrowthEPS=+24.7% | GrowthRev=+9.4%
[Analyst] Revisions Ratio: -75% (up=0, down=9)