Market Cap
US$1.4b
Last Updated
2019/10/17 23:30 UTC
Data Sources
Company Financials +
Executive Summary
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide.
Snowflake
Fundamentals
Flawless balance sheet and undervalued.
Similar Companies
Share Price & News
How has AAR's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
1.1%
AIR
-0.2%
US Aerospace & Defense
1.8%
US Market
1 Year Return
-7.4%
AIR
8.1%
US Aerospace & Defense
7.3%
US Market
Return vs Industry: AIR underperformed the US Aerospace & Defense industry which returned 8.1% over the past year.
Return vs Market: AIR underperformed the US Market which returned 7.3% over the past year.
Shareholder returns
| AIR | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | -0.2% | 1.8% |
| 30 Day | -9.3% | -3.2% | -0.7% |
| 90 Day | -2.1% | 3.7% | 0.06% |
| 1 Year | -6.5%-7.4% | 10.2%8.1% | 9.7%7.3% |
| 3 Year | 33.7%30.6% | 60.7%52.0% | 46.3%36.9% |
| 5 Year | 76.8%68.8% | 95.5%77.1% | 64.5%46.5% |
Price Volatility Vs. Market
How volatile is AAR's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
These 4 Measures Indicate That AAR (NYSE:AIR) Is Using Debt Reasonably Well2 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine AAR Corp. (NYSE:AIR)?4 weeks ago | Simply Wall St
Is AAR Corp. (NYSE:AIR) Trading At A 35% Discount?Valuation
Is AAR undervalued compared to its fair value and its price relative to the market?
42.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: AIR ($41.29) is trading below our estimate of fair value ($71.75)
Significantly Undervalued: AIR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AIR is good value based on its PE Ratio (17.4x) compared to the Aerospace & Defense industry average (22.4x).
PE vs Market: AIR is good value based on its PE Ratio (17.4x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
Low PEG Ratio: AIR is poor value based on its PEG Ratio (1.1x)
Price to Book Ratio
PB vs Industry: AIR is good value based on its PB Ratio (1.6x) compared to the US Aerospace & Defense industry average (2.4x).
Next Steps
Future Growth
How is AAR forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
16.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIR's forecast earnings growth (16.3% per year) is above the savings rate (2.7%).
Earnings vs Market: AIR's earnings (16.3% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: AIR's earnings are forecast to grow, but not significantly.
Revenue vs Market: AIR's revenue (4.3% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: AIR's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: AIR's Return on Equity is forecast to be low in 3 years time (7.4%).
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Past Performance
How has AAR performed over the past 5 years?
33.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: AIR's earnings have grown significantly by 33% per year over the past 5 years.
Accelerating Growth: AIR's earnings growth over the past year (1.1%) is below its 5-year average (33% per year).
Earnings vs Industry: AIR earnings growth over the past year (1.1%) underperformed the Aerospace & Defense industry 12.2%.
Return on Equity
High ROE: AIR's Return on Equity (9%) is considered low.
Return on Assets
ROA vs Industry: AIR's Return on Assets is below or equal to the Aerospace & Defense industry average last year.
Return on Capital Employed
ROCE Improving: AIR has significantly improved its Return on Capital Employed over the past 3 years.
Next Steps
Financial Health
How is AAR's financial position?
Financial Position Analysis
Short Term Liabilities: AIR's short term assets ($1.0B) exceeds its short term liabilities ($396.4M)
Long Term Liabilities: AIR's short term assets (1.0B) exceeds its long term liabilities (377.2M)
Debt to Equity History and Analysis
Debt Level: AIR's debt to equity ratio (22.2%) is considered satisfactory
Reducing Debt: AIR's debt to equity ratio has reduced from 62.7% to 22.2% over the past 5 years.
Debt Coverage: AIR's debt is well covered by operating cash flow (30.7%).
Interest Coverage: AIR's interest payments on its debt are well covered by EBIT (12.5x coverage).
Balance Sheet
Inventory Level: AIR has a high level of physical assets or inventory.
Debt Coverage by Assets: AIR's debt is covered by short term assets (assets are 5.052420x debt).
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Dividend
What is AAR's current dividend yield, its reliability and sustainability?
0.73%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: AIR's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AIR's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.72%).
Stable Dividend: AIR is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: AIR is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: AIR is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AIR's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of AAR's salary, the management and board of directors tenure and is there insider trading?
3.3yrs
Average management tenure
CEO
John Holmes (42yo)
1.3yrs
Tenure
US$3,345,147
Compensation
Mr. John McClain Holmes III, has been the President at AAR Corp. since June 1, 2017 and its Chief Executive Officer since June 1, 2018. Mr. Holmes served as Chief Operating Officer of Aviation Services at ...
CEO Compensation Analysis
Compensation vs. Market: John has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.3yrs
Average Tenure
44yo
Average Age
Experienced Management: AIR's management team is considered experienced (3.3 years average tenure).
Board Age and Tenure
13.3yrs
Average Tenure
66.5yo
Average Age
Experienced Board: AIR's board of directors are seasoned and experienced ( 13.3 years average tenure).
Insider Trading
Insider Buying: AIR insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Accounting Officer VP, Controller & Chief Accounting Officer |
| Shares | 1,000 |
| Max Price | US$42.04 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 0.64 |
| Max Price | US$32.59 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 3,615 |
| Max Price | US$33.23 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 30,000 |
| Max Price | US$38.72 |
Ownership Breakdown
Management Team
Terry Stinson (77yo)
Executive Vice President
- Tenure: 0yrs
- Compensation: US$1.08m
Bob Regan (61yo)
VP, General Counsel & Secretary
- Tenure: 11.3yrs
- Compensation: US$1.74m
John Holmes (42yo)
CEO, President & Director
- Tenure: 1.3yrs
- Compensation: US$3.35m
Chris Jessup (41yo)
Chief Commercial Officer & VP
- Tenure: 2.3yrs
Nick Gross
Senior VP of Government Programs
- Tenure: 0yrs
Jason Secore
VP & Treasurer
- Tenure: 3.5yrs
Deepak Sharma
President of International Supply Chain
- Tenure: 3.5yrs
Brian Sartain
SVP of Repair and Engineering Services
- Tenure: 0yrs
Eric Pachapa (46yo)
VP, Controller & Chief Accounting Officer
- Tenure: 3.3yrs
- Compensation: US$889.55k
Mike Gillen (33yo)
VP & CFO
- Tenure: 0.8yrs
- Compensation: US$987.45k
Board Members
Marc Walfish (67yo)
Independent Director
- Tenure: 16.8yrs
- Compensation: US$216.22k
David Storch (66yo)
Chairman of the Board
- Tenure: 14yrs
- Compensation: US$397.48k
James Goodwin (75yo)
Lead Director
- Tenure: 0yrs
- Compensation: US$246.22k
Ronald Woodard (76yo)
Independent Director
- Tenure: 15.3yrs
- Compensation: US$217.80k
Jennifer Vogel (57yo)
Independent Director
- Tenure: 3.8yrs
- Compensation: US$202.47k
Michael Boyce (71yo)
Independent Director
- Tenure: 14.2yrs
- Compensation: US$206.78k
Peter Pace (73yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: US$206.22k
John Holmes (42yo)
CEO, President & Director
- Tenure: 1.3yrs
- Compensation: US$3.35m
Patrick Kelly (64yo)
Independent Director
- Tenure: 13.3yrs
- Compensation: US$204.97k
Tony Anderson (63yo)
Independent Director
- Tenure: 7yrs
- Compensation: US$197.76k
Company Information
AAR Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: AAR Corp.
- Ticker: AIR
- Exchange: NYSE
- Founded: 1951
- Industry: Aerospace and Defense
- Sector: Capital Goods
- Market Cap: US$1.422b
- Shares outstanding: 34.44m
- Website: https://www.aarcorp.com
Number of Employees
Location
- AAR Corp.
- One AAR Place
- 1100 North Wood Dale Road
- Wood Dale
- Illinois
- 60191
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AIR | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 1972 |
| ARZ | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1972 |
Biography
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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/17 23:30 |
| End of Day Share Price | 2019/10/17 00:00 |
| Earnings | 2019/08/31 |
| Annual Earnings | 2019/05/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.