| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 4/6 |
| Past Performance | 3/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
AIR Overview
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide.
AAR Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$31.91 |
| 52 Week High | US$16.90 |
| 52 Week Low | US$45.49 |
| Beta | 1.75 |
| 1 Month Change | -0.75% |
| 3 Month Change | -19.48% |
| 1 Year Change | 60.92% |
| 3 Year Change | -28.95% |
| 5 Year Change | 7.59% |
| Change since IPO | 32.96% |
Recent News & Updates
AAR (NYSE:AIR) Could Be Struggling To Allocate Capital
To avoid investing in a business that's in decline, there's a few financial metrics that can provide early indications...
AAR Corp. - Earnings Confirm A Bright Future
AAR's earnings release contained strong financials and comments that underline the company's capabilities to generate value. The company's government contracts are paying off and could soon get support from the rebounding commercial aviation industry. I believe that the company is undervalued and poised to outperform the S&P 500 on a long-term basis.
At US$34.28, Is It Time To Put AAR Corp. (NYSE:AIR) On Your Watch List?
AAR Corp. ( NYSE:AIR ), might not be a large cap stock, but it saw significant share price movement during recent...
There's Been No Shortage Of Growth Recently For AAR's (NYSE:AIR) Returns On Capital
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Shareholder Returns
| AIR | US Aerospace & Defense | US Market | |
|---|---|---|---|
| 7D | -0.6% | -1.4% | -0.6% |
| 1Y | 60.9% | 16.7% | 33.8% |
Return vs Industry: AIR exceeded the US Aerospace & Defense industry which returned 16.1% over the past year.
Return vs Market: AIR exceeded the US Market which returned 33.6% over the past year.
Price Volatility
| AIR volatility | |
|---|---|
| AIR Beta | 1.75 |
| Industry Beta | 1.06 |
| Market Beta | 1 |
Stable Share Price: AIR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: AIR's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1951 | 4,700 | John Holmes | https://www.aarcorp.com |
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. 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.
Valuation
Is AAR undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AIR ($31.91) is trading below our estimate of fair value ($101.46)
Significantly Below Fair Value: AIR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AIR is poor value based on its PE Ratio (24.7x) compared to the US Aerospace & Defense industry average (20.4x).
PE vs Market: AIR is poor value based on its PE Ratio (24.7x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: AIR is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: AIR is good value based on its PB Ratio (1.2x) compared to the US Aerospace & Defense industry average (3.1x).
Future Growth
How is AAR forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
42.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIR's forecast earnings growth (42.2% per year) is above the savings rate (2%).
Earnings vs Market: AIR's earnings (42.2% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AIR's revenue (12.1% per year) is forecast to grow faster than the US market (9.7% per year).
High Growth Revenue: AIR's revenue (12.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if AIR's Return on Equity is forecast to be high in 3 years time
Past Performance
How has AAR performed over the past 5 years?
-8.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AIR has a large one-off gain of $19.9M impacting its May 31 2021 financial results.
Growing Profit Margin: AIR's current net profit margins (2.8%) are higher than last year (1.2%).
Past Earnings Growth Analysis
Earnings Trend: AIR's earnings have declined by 8.8% per year over the past 5 years.
Accelerating Growth: AIR's earnings growth over the past year (85.8%) exceeds its 5-year average (-8.8% per year).
Earnings vs Industry: AIR earnings growth over the past year (85.8%) exceeded the Aerospace & Defense industry 2.5%.
Return on Equity
High ROE: AIR's Return on Equity (4.8%) is considered low.
Financial Health
How is AAR's financial position?
Financial Position Analysis
Short Term Liabilities: AIR's short term assets ($937.0M) exceed its short term liabilities ($336.8M).
Long Term Liabilities: AIR's short term assets ($937.0M) exceed its long term liabilities ($228.5M).
Debt to Equity History and Analysis
Debt Level: AIR's debt to equity ratio (13.7%) is considered satisfactory.
Reducing Debt: AIR's debt to equity ratio has reduced from 17.1% to 13.7% over the past 5 years.
Debt Coverage: AIR's debt is well covered by operating cash flow (78.7%).
Interest Coverage: AIR's interest payments on its debt are well covered by EBIT (9.4x coverage).
Balance Sheet
Dividend
What is AAR current dividend yield, its reliability and sustainability?
0.94%
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AIR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AIR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AIR's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AIR's dividend payments have been 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
How experienced are the management team and are they aligned to shareholders interests?
4.2yrs
Average management tenure
CEO
John Holmes (44 yo)
3.25yrs
Tenure
US$4,123,426
Compensation
Mr. John McClain Holmes III, has been the President at AAR Corp. since June 1, 2017 and its Chief Executive Officer since June 1, 2018. Mr. Holmes served as Chief Operating Officer of Aviation Services at...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD4.12M) is above average for companies of similar size in the US market ($USD2.33M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AIR's management team is considered experienced (4.2 years average tenure).
Board Members
Experienced Board: AIR's board of directors are considered experienced (5.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
AAR Corp.'s 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$1.132b
- Shares outstanding: 35.48m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:01 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/05/31 |
| Annual Earnings | 2021/05/31 |
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.