Market Cap
US$1.3b
Last Updated
2021/01/18 23:38 UTC
Data Sources
Company Financials +
Executive Summary
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with reasonable growth potential.
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
Stable Share Price: AIR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: AIR's weekly volatility has decreased from 14% to 9% over the past year.
Market Performance
7 Day Return
1.1%
AIR
1.8%
US Aerospace & Defense
-0.4%
US Market
1 Year Return
-16.6%
AIR
-28.5%
US Aerospace & Defense
19.5%
US Market
Return vs Industry: AIR exceeded the US Aerospace & Defense industry which returned -28.5% over the past year.
Return vs Market: AIR underperformed the US Market which returned 19.6% over the past year.
Shareholder returns
| AIR | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 1.8% | -0.4% |
| 30 Day | 8.6% | 0.9% | 2.3% |
| 90 Day | 90.1% | 9.7% | 12.7% |
| 1 Year | -16.3%-16.6% | -13.6%-28.5% | 22.3%19.5% |
| 3 Year | -5.2%-6.9% | 3.4%-18.1% | 44.4%34.8% |
| 5 Year | 89.2%81.6% | 77.9%34.5% | 128.7%103.3% |
Long-Term 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
A Quick Analysis On AAR's (NYSE:AIR) CEO Salary3 weeks ago | Simply Wall St
Don't Ignore The Fact That This Insider Just Sold Some Shares In AAR Corp. (NYSE:AIR)4 weeks ago | Simply Wall St
Is Now An Opportune Moment To Examine AAR Corp. (NYSE:AIR)?Valuation
Is AAR undervalued compared to its fair value and its price relative to the market?
37.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AIR ($38.2) is trading below our estimate of fair value ($61.39)
Significantly Below Fair Value: AIR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AIR is unprofitable, so we can't compare its PE Ratio to the US Aerospace & Defense industry average.
PE vs Market: AIR is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate AIR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: AIR is good value based on its PB Ratio (1.5x) compared to the US Aerospace & Defense industry average (3x).
Next Steps
Future Growth
How is AAR forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
76.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AIR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).
Earnings vs Market: AIR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: AIR's is expected to become profitable in the next 3 years.
Revenue vs Market: AIR's revenue (10.5% per year) is forecast to grow faster than the US market (10.3% per year).
High Growth Revenue: AIR's revenue (10.5% 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
Next Steps
Past Performance
How has AAR performed over the past 5 years?
15.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AIR is currently unprofitable.
Growing Profit Margin: AIR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AIR is unprofitable, but has reduced losses over the past 5 years at a rate of 15.4% per year.
Accelerating Growth: Unable to compare AIR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: AIR is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (-6.7%).
Return on Equity
High ROE: AIR has a negative Return on Equity (-1.32%), as it is currently unprofitable.
Next Steps
Financial Health
How is AAR's financial position?
Financial Position Analysis
Short Term Liabilities: AIR's short term assets ($1.0B) exceed its short term liabilities ($408.2M).
Long Term Liabilities: AIR's short term assets ($1.0B) exceed its long term liabilities ($360.4M).
Debt to Equity History and Analysis
Debt Level: AIR's debt to equity ratio (25.6%) is considered satisfactory.
Reducing Debt: AIR's debt to equity ratio has increased from 19.8% to 25.6% over the past 5 years.
Debt Coverage: AIR's debt is well covered by operating cash flow (20.5%).
Interest Coverage: AIR is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is AAR current dividend yield, its reliability and sustainability?
0.39%
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?
3.6yrs
Average management tenure
CEO
John Holmes (43 yo)
2.58yrs
Tenure
US$4,736,907
Compensation
Mr. John McClain Holmes III, has been the President at AAR Corp. since June 1, 2017 and its Chief Executive Officer since June 1, 2018. Mr. Holmes served as Chief Operating Officer of Aviation Services at ...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD4.74M) is about average for companies of similar size in the US market ($USD3.88M).
Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.58yrs | US$4.74m | 0.35% $ 4.7m | |
| VP & CFO | 2yrs | US$1.74m | 0.056% $ 745.3k | |
| VP, Controller & Chief Accounting Officer | 4.5yrs | US$1.04m | 0.048% $ 643.0k | |
| VP, General Counsel & Secretary | 0.92yr | US$339.57k | 0.021% $ 280.8k | |
| Chief Commercial Officer & VP | 3.58yrs | US$1.57m | 0.083% $ 1.1m | |
| Executive Vice President | no data | US$1.08m | no data | |
| SVP of Repair and Engineering Services | no data | no data | no data | |
| Senior VP of Government Programs | no data | no data | no data | |
| President of International Supply Chain | 4.75yrs | no data | no data | |
| VP & Treasurer | 4.75yrs | no data | no data | |
| Interim President & COO of AAR Airlift | 4.08yrs | no data | no data | |
| Vice-President of Parts Supply | 3.5yrs | no data | no data |
3.6yrs
Average Tenure
43yo
Average Age
Experienced Management: AIR's management team is considered experienced (3.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 2.58yrs | US$4.74m | 0.35% $ 4.7m | |
| Independent Director | 18yrs | US$215.44k | 0.34% $ 4.6m | |
| Chairman of the Board | 15.25yrs | US$505.46k | 3.08% $ 41.0m | |
| Independent Lead Director | no data | US$243.94k | 0.21% $ 2.8m | |
| Independent Director | 5yrs | US$205.44k | 0.071% $ 947.4k | |
| Independent Director | 0.50yr | no data | 0.015% $ 202.0k | |
| Independent Director | 15.42yrs | US$210.75k | 0.25% $ 3.3m | |
| Independent Director | 10yrs | US$204.19k | 0.079% $ 1.1m | |
| Independent Director | 8.25yrs | US$200.92k | 0.060% $ 800.9k | |
| Independent Director | 3.75yrs | US$205.44k | 0.024% $ 320.6k | |
| Independent Director | 0.83yr | US$43.38k | 0.020% $ 265.8k |
6.6yrs
Average Tenure
67yo
Average Age
Experienced Board: AIR's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AIR insiders have only sold shares 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 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$1.333b
- Shares outstanding: 34.91m
- 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 | 2021/01/18 23:38 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/11/30 |
| Annual Earnings | 2020/05/31 |
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.