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Aerojet Rocketdyne Holdings, Inc.NYSE:AJRD Stock Report

Market Cap US$4.7b
Share Price
n/a
1Y32.7%
7D3.5%
1D1.4%
Portfolio Value
​
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Aerojet Rocketdyne Holdings, Inc.

NYSE:AJRD Stock Report

Market Cap: US$4.7b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Aerojet Rocketdyne Holdings (AJRD) Stock Overview

Aerojet Rocketdyne Holdings, Inc. engages in the design, development, manufacture, and sale of aerospace and defense products and systems in the United States. More details

AJRD fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health4/6
Dividends0/6

Rewards

Trading at 38.6% below our estimate of its fair value

Earnings are forecast to grow 33.07% per year

Risk Analysis

High level of non-cash earnings

Profit margins (3.2%) are lower than last year (7.1%)


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Aerojet Rocketdyne Holdings, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Aerojet Rocketdyne Holdings
Historical stock prices
Current Share PriceUS$57.99
52 Week HighUS$58.01
52 Week LowUS$39.18
Beta0.52
1 Month Change5.21%
3 Month Change2.80%
1 Year Change32.73%
3 Year Change40.58%
5 Year Change69.51%
Change since IPO373.39%

Recent News & Updates

Seeking Alpha • Jul 31

The Aerojet Rocketdyne Lesson: Eyes On Facts And Opportunity

Summary The acquisition of Aerojet Rocketdyne by L3Harris Technologies has been finalized. Opposition to the merger by Sen. Elizabeth Warren was driven by anti-consolidation and anti-corporate sentiment, rather than fact-driven concerns about competition. Investors should consider the remaining upside of a stock set to be bought against the time remaining for the transaction to close and the opportunities offered by the market. Read the full article on Seeking Alpha
Seeking Alpha • Feb 24

Aerojet Rocketdyne Stock: Time To Sell?

Summary Aerojet Rocketdyne stock has around 3% upside left. I believe opposition to the merger with L3Harris Technologies is not justified or supported by the reality of the business strengths of the companies. Aerojet Rocketdyne shares could be a sell, since taking profits and deploying the cash elsewhere might yield higher returns than waiting on the deal to be approved and value materialize. Aerojet Rocketdyne (AJRD) stock is one that I had a positive view on for a very long time. Since the announcement of the acquisition of Aerojet Rocketdyne by L3Harris Technologies (LHX), the stock took off but it is also a moment to wonder whether it is time to sell your Aerojet Rocketdyne shares. In this report I explain why as well and I discuss the company's most recent results. Aerojet Rocketdyne Stock Price Surged Seeking Alpha Aerojet Rocketdyne stock surged by 36.1% since I had a buy recommendation on the stock as I recognized that the company's quarterly results were impacted by Standard Missile charges which would actually allow the company to increase output in the future. Furthermore, I recognized the compelling position of Aerojet Rocketdyne in the current defense landscape where the importance to national security of Aerojet Rocketdyne shows. This also made the company attractive as a stand-alone business as well as an acquisition target as I pointed out. Aerojet Rocketdyne Q4 2022 Results Aerojet Rocketdyne Looking at the sales, Aerojet Rocketdyne revenues grew by 9.9% to $2.24 billion. Net income and adjusted net income, however, dropped to $74 million and $115 million, a significant reduction from $146.6 million and $164.5 million last year. So, sales growth did not translate into higher earnings. Higher sales were driven by the Next Generation Interceptor offset by lower RS-25 engine sales, which are used on the Space Launch System. Cost of sales grew from 82.3% of the revenues to 85.2% driven by supply chain disruptions. The Standard Missile program was also affected by this and accounting rules required some revenues and profits to be reversed as capacity had to be increased to accommodate customer requests to accelerate deliveries. Furthermore, Aerojet Rocketdyne had $43.5 million in proxy costs, litigation and legal settlements and a $22 million loss of debt. Would those not have occurred, the company would have booked a $139.5 million profit and there also was some acceleration in stock-based compensation due to the L3Harris merger agreement. What is somewhat unfortunate is that some program specific pressure such as the Standard Missile cost growth have not been quantified. Otherwise, we could have a better view on individual cost components swinging profits one way or the other. What we do know is that unusual items were $94 million compared to $29.4 million. Adjusting for that, the net income for 2022 would have been $168 million compared to $176 million last year, which I believe are not awful earnings if you consider the challenges in the supply chain. However, what is somewhat disappointing is that just as a stand-alone report the 10K does not provide a lot of detail and with the absence of an earnings call from management, analyzing the results was not easy. As an investor, you miss a lot of color that management normally does provide. Aerojet Rocketdyne and L3Harris Acquisition News Right now, all eyes are on an approval of the proposed merger between L3Harris Technologies and Aerojet Rocketdyne which is expected this year. I strongly believe that this merger is significantly different from the Lockheed Martin merger with Aerojet Rocketdyne as the former provides a horizontal integration while the latter provides a vertical integration with a company to which Aerojet Rocketdyne is a major supplier. The big question is whether the FTC will approve the merger. Sen. Elizabeth Warren wrote the following opposing the merger: This deal between Aerojet and L3Harris would reduce competition in the shrinking defense industry to a new low, and I encourage the FTC to oppose this dangerous transaction. I strongly believe that this view is too much driven by the anti-consolidation attitude and not enough by facts recognizing the differences in business activity for L3Harris and Aerojet Rocketdyne.

Recent updates

Seeking Alpha • Jul 31

The Aerojet Rocketdyne Lesson: Eyes On Facts And Opportunity

Summary The acquisition of Aerojet Rocketdyne by L3Harris Technologies has been finalized. Opposition to the merger by Sen. Elizabeth Warren was driven by anti-consolidation and anti-corporate sentiment, rather than fact-driven concerns about competition. Investors should consider the remaining upside of a stock set to be bought against the time remaining for the transaction to close and the opportunities offered by the market. Read the full article on Seeking Alpha
Seeking Alpha • Feb 24

Aerojet Rocketdyne Stock: Time To Sell?

Summary Aerojet Rocketdyne stock has around 3% upside left. I believe opposition to the merger with L3Harris Technologies is not justified or supported by the reality of the business strengths of the companies. Aerojet Rocketdyne shares could be a sell, since taking profits and deploying the cash elsewhere might yield higher returns than waiting on the deal to be approved and value materialize. Aerojet Rocketdyne (AJRD) stock is one that I had a positive view on for a very long time. Since the announcement of the acquisition of Aerojet Rocketdyne by L3Harris Technologies (LHX), the stock took off but it is also a moment to wonder whether it is time to sell your Aerojet Rocketdyne shares. In this report I explain why as well and I discuss the company's most recent results. Aerojet Rocketdyne Stock Price Surged Seeking Alpha Aerojet Rocketdyne stock surged by 36.1% since I had a buy recommendation on the stock as I recognized that the company's quarterly results were impacted by Standard Missile charges which would actually allow the company to increase output in the future. Furthermore, I recognized the compelling position of Aerojet Rocketdyne in the current defense landscape where the importance to national security of Aerojet Rocketdyne shows. This also made the company attractive as a stand-alone business as well as an acquisition target as I pointed out. Aerojet Rocketdyne Q4 2022 Results Aerojet Rocketdyne Looking at the sales, Aerojet Rocketdyne revenues grew by 9.9% to $2.24 billion. Net income and adjusted net income, however, dropped to $74 million and $115 million, a significant reduction from $146.6 million and $164.5 million last year. So, sales growth did not translate into higher earnings. Higher sales were driven by the Next Generation Interceptor offset by lower RS-25 engine sales, which are used on the Space Launch System. Cost of sales grew from 82.3% of the revenues to 85.2% driven by supply chain disruptions. The Standard Missile program was also affected by this and accounting rules required some revenues and profits to be reversed as capacity had to be increased to accommodate customer requests to accelerate deliveries. Furthermore, Aerojet Rocketdyne had $43.5 million in proxy costs, litigation and legal settlements and a $22 million loss of debt. Would those not have occurred, the company would have booked a $139.5 million profit and there also was some acceleration in stock-based compensation due to the L3Harris merger agreement. What is somewhat unfortunate is that some program specific pressure such as the Standard Missile cost growth have not been quantified. Otherwise, we could have a better view on individual cost components swinging profits one way or the other. What we do know is that unusual items were $94 million compared to $29.4 million. Adjusting for that, the net income for 2022 would have been $168 million compared to $176 million last year, which I believe are not awful earnings if you consider the challenges in the supply chain. However, what is somewhat disappointing is that just as a stand-alone report the 10K does not provide a lot of detail and with the absence of an earnings call from management, analyzing the results was not easy. As an investor, you miss a lot of color that management normally does provide. Aerojet Rocketdyne and L3Harris Acquisition News Right now, all eyes are on an approval of the proposed merger between L3Harris Technologies and Aerojet Rocketdyne which is expected this year. I strongly believe that this merger is significantly different from the Lockheed Martin merger with Aerojet Rocketdyne as the former provides a horizontal integration while the latter provides a vertical integration with a company to which Aerojet Rocketdyne is a major supplier. The big question is whether the FTC will approve the merger. Sen. Elizabeth Warren wrote the following opposing the merger: This deal between Aerojet and L3Harris would reduce competition in the shrinking defense industry to a new low, and I encourage the FTC to oppose this dangerous transaction. I strongly believe that this view is too much driven by the anti-consolidation attitude and not enough by facts recognizing the differences in business activity for L3Harris and Aerojet Rocketdyne.
Seeking Alpha • Dec 17

L3Harris close to deal to buy Aerojet Rocketdyne for $4.7B - report

L3Harris Technologies Inc. (NYSE:LHX) is close to agreeing to a deal to buy rocket maker Aerojet Rocketdyne (NYSE:AJRD) for $4.7 billion. L3Harris (LHX) outbid General Electric (GE) in a sales process for Aerojet, agreeing to pay $58 a share, according to a Reuters report, which cited people familiar. An agreement may be announced a soon as Monday. The deal represents a 5.7% premium to Aerojet's (AJRD) Friday closing price. Dealreporter said earlier this month that defense contractor L3Harris (LHX) was among the potential suitors that was performing due diligence on Aerojet (AJRD). Aerojet (AJRD) makes engines for rockets such as NASA’s Space Launch System that will carry people back to the moon. General Electric (GE), Veritas Capital and Textron (TXT) were also said to be interested in buying Aerojet, Reuters reporter last month. A potential Aerojet (AJRD) sale comes after FTC filed a lawsuit in late January to block Lockheed Martin's (LMT) $4.4 billion purchase of Aerojet (AJRD) due to antitrust concerns. Lockheed terminated the deal in February.
Seeking Alpha • Dec 08

Aerojet Rocketdyne gets $98.5M contract to produce motors, sleds for new rockets

Aerojet Rocketdyne (NYSE:AJRD) on Thursday said it received a $98.5 million contract under an Other Transaction Authority by the Naval Aviation Systems Consortium. The company said it will develop and manufacture rocket motors and sleds in support of the Joint Economical Sled Track Rockets program. “Today we look forward to supporting the Air Force and Navy with advanced solid rocket motors and sleds to support development of the nation’s next generation defense needs,” CEO and president Eileen Drake said.
Seeking Alpha • Oct 31

Aerojet Rocketdyne Q3 2022 Earnings Preview

Aerojet Rocketdyne (NYSE:AJRD) is scheduled to announce Q3 earnings results on Tuesday, Nov. 1, before market open. The consensus EPS estimate is $0.44 (-24.1% Y/Y) and the consensus revenue estimate is $558.27M (+2.4% Y/Y). Over the last 2 years, AJRD has beaten EPS estimates 75% of the time and has beaten revenue estimates 63% of the time. Over the last 3 months, EPS estimates have seen 0 upward revisions and 2 downward. Revenue estimates have seen 0 upward revisions and 2 downward. SA contributor Yannick Frey said Aerojet (AJRD) is a Buy as a result of Elliot Capital's investment, acquisition opportunity and its bright prospects.
Seeking Alpha • Oct 24

Aerojet Rocketdyne selected to power Navy’s CRAW Torpedo

Aerojet Rocketdyne (NYSE:AJRD) will power the Navy’s new Compact Rapid Attack Weapon (or CRAW) as part of the Raytheon Missiles & Defense team building the next generation torpedo. Company will provide the afterbody, propulsion system and tail for the new torpedo. According to the Navy, CRAW will be used offensively against enemy submarines and can serve as a defensive weapon to eliminate incoming torpedoes. “In all domains – from deep sea to deep space – Aerojet Rocketdyne is committed to being a trusted partner to provide reliable, innovative propulsion technology to protect our service members and enable national defense,” said Eileen P. Drake, Aerojet Rocketdyne CEO and president.
Seeking Alpha • Aug 23

Aerojet Rocketdyne gains on report of talks with strategic buyers

Aerojet Rocketdyne (NYSE:AJRD) rose 2.1% on a report that the rocket company has had recent discussions with a few strategic buyers about a potential deal. The talks were at an early stage and no deal is imminent, according to a Dealreporter item. The report comes after FTC filed a lawsuit in late January to block Lockheed Martin's (LMT) $4.4 billion purchase of Aerojet (AJRD). Lockheed terminated the deal in February. Developing story ...
Seeking Alpha • Aug 15

Elliott Management takes new stakes in Aerojet, Pinterest, PayPal; exits Twitter

Elliott Investment Management, the hedge fund led by Paul Singer, took on new stakes in Aerojet Rocketdyne (NYSE:AJRD), Pinterest (NYSE:PINS), PayPal Holdings (NASDAQ:PYPL) and Endeavor Group Holdings (NYSE:EDR) in Q2, while disposing of its stakes in Twitter (NYSE:TWTR), Evergy (NYSE:EVRG), and APA Corp. (NASDAQ:APA) in Q2, according to its 13F filing. The company acquired 3M shares in Aerojet Rocketdyne (AJRD), 5M shares of social media app Pinterest (PINS), 1M shares of payment tech company PayPal (PYPL) and 3M shares of Endeavor Group (EDR). It increased its holdings in Valaris (NYSE:VAL) to ~1.99M shares from 1.90M and in Noble Corp. (NYSE:NE) to 2.85M shares from 2.60M. Earlier, Elliott Management took a large position in Cardinal Health (NYSE:CAH) and has nominated five directors to the drug wholesaler's board, the Wall Street Journal reported.
Seeking Alpha • Aug 08

Aerojet Ordnance Tennessee wins contract for additional M67 body assemblies

Aerojet Ordnance Tennessee (AOT), Aerojet Rocketdyne's (NYSE:AJRD) specialty metal provider, has been awarded a five-year contract by Day & Zimmermann to deliver additional M67 hand grenade body assemblies for the U.S. Army. AOT has been the sole supplier of M67 hand grenade body assemblies for more than 20 years. The base year contract calls for the manufacture and delivery of more than 200,000 fragmentation hand grenade body assemblies. Last week, AJRD reported weaker-than-expected Q2 results
Seeking Alpha • Jul 29

Aerojet Rocketdyne Q2 2022 Earnings Preview

Aerojet Rocketdyne (NYSE:AJRD) is scheduled to announce Q2 earnings results on Monday, August 1st, before market open. EPS Estimate is $0.47 (-20.3% Y/Y) and the consensus Revenue Estimate is $570.53M (+2.4% Y/Y). has beaten EPS estimates 75% of the time and has beaten revenue estimates 63% of the time. upward revisions and 1 downward. Revenue estimates have seen 2 upward revisions and 0 downward.
Seeking Alpha • Jul 15

Aerojet Rocketdyne to redeem all outstanding 2.25% convertible senior notes

Aerojet Rocketdyne (NYSE:AJRD) said Friday it will redeem all outstanding 2.25% convertible senior notes due 2023 on Sept. 19. As of Friday, ~$145.9M principal amount of the notes was outstanding. The notes will be redeemed at 100% of the aggregate principal amount, plus accrued and unpaid interest to (but excluding) the redemption date. The conversion rate of the notes as of Friday is 38.4615 shares per $1K principal amount of the notes, which is equivalent to a conversion price of $26/share.

Shareholder Returns

AJRDUS Aerospace & DefenseUS Market
7D3.5%3.1%4.9%
1Y32.7%26.5%21.3%

Return vs Industry: AJRD exceeded the US Aerospace & Defense industry which returned 1.8% over the past year.

Return vs Market: AJRD exceeded the US Market which returned 9.6% over the past year.

Price Volatility

Is AJRD's price volatile compared to industry and market?
AJRD volatility
AJRD Average Weekly Movement1.2%
Aerospace & Defense Industry Average Movement9.5%
Market Average Movement7.3%
10% most volatile stocks in US Market16.3%
10% least volatile stocks in US Market3.1%

Stable Share Price: AJRD has not had significant price volatility in the past 3 months.

Volatility Over Time: AJRD's weekly volatility (1%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19155,283Eileen Drakewww.aerojetrocketdyne.com

Aerojet Rocketdyne Holdings, Inc. engages in the design, development, manufacture, and sale of aerospace and defense products and systems in the United States. It operates in two segments, Aerospace and Defense, and Real Estate. The Aerospace and Defense segment offers aerospace and defense products and systems for the United States government, including the Department of Defense, the National Aeronautics and Space Administration, and aerospace and defense prime contractors.

Aerojet Rocketdyne Holdings, Inc. Fundamentals Summary

How do Aerojet Rocketdyne Holdings's earnings and revenue compare to its market cap?
AJRD fundamental statistics
Market capUS$4.67b
Earnings (TTM)US$73.80m
Revenue (TTM)US$2.29b
63.3x
P/E Ratio
2.0x
P/S Ratio

Is AJRD overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
AJRD income statement (TTM)
RevenueUS$2.29b
Cost of RevenueUS$1.97b
Gross ProfitUS$323.90m
Other ExpensesUS$250.10m
EarningsUS$73.80m

Last Reported Earnings

Mar 31, 2023

Next Earnings Date

n/a

Earnings per share (EPS)0.92
Gross Margin14.13%
Net Profit Margin3.22%
Debt/Equity Ratio45.9%

How did AJRD perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/07/29 22:36
End of Day Share Price 2023/07/27 00:00
Earnings2023/03/31
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Aerojet Rocketdyne Holdings, Inc. is covered by 10 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Kenneth HerbertCanaccord Genuity
George GodfreyCL King & Associates, Inc.