NYSE:AJRD

Stock Analysis Report

Aerojet Rocketdyne Holdings

Executive Summary

Aerojet Rocketdyne Holdings, Inc. designs, develops, manufactures, and sells aerospace and defense products and systems in the United States.

Rewards

Earnings are forecast to grow 8.14% per year

Earnings grew by 126.4% over the past year

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with solid track record.


Similar Companies

Share Price & News

How has Aerojet Rocketdyne Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

AJRD

1.7%

US Aerospace & Defense

0.8%

US Market


1 Year Return

33.3%

AJRD

38.8%

US Aerospace & Defense

25.1%

US Market

Return vs Industry: AJRD underperformed the US Aerospace & Defense industry which returned 37% over the past year.

Return vs Market: AJRD exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

AJRDIndustryMarket
7 Day-2.6%1.7%0.8%
30 Day12.6%6.1%3.1%
90 Day13.8%10.2%10.9%
1 Year33.3%33.3%41.4%38.8%27.7%25.1%
3 Year182.3%182.3%59.6%51.1%51.3%41.6%
5 Year204.4%204.4%101.8%82.6%77.2%57.6%

Price Volatility Vs. Market

How volatile is Aerojet Rocketdyne Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Aerojet Rocketdyne Holdings undervalued compared to its fair value and its price relative to the market?

29.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AJRD ($52.88) is trading above our estimate of fair value ($40.33)

Significantly Below Fair Value: AJRD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AJRD is poor value based on its PE Ratio (29.8x) compared to the Aerospace & Defense industry average (20.7x).

PE vs Market: AJRD is poor value based on its PE Ratio (29.8x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: AJRD is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: AJRD is overvalued based on its PB Ratio (7.2x) compared to the US Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is Aerojet Rocketdyne Holdings forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJRD's forecast earnings growth (8.1% per year) is above the savings rate (1.7%).

Earnings vs Market: AJRD's earnings (8.1% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: AJRD's earnings are forecast to grow, but not significantly.

Revenue vs Market: AJRD's revenue (5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: AJRD's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AJRD's Return on Equity is forecast to be low in 3 years time (19.1%).


Next Steps

Past Performance

How has Aerojet Rocketdyne Holdings performed over the past 5 years?

58.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJRD has high quality earnings.

Growing Profit Margin: AJRD's current net profit margins (7.2%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: AJRD has become profitable over the past 5 years, growing earnings by 58.3% per year.

Accelerating Growth: AJRD's earnings growth over the past year (126.4%) exceeds its 5-year average (58.3% per year).

Earnings vs Industry: AJRD earnings growth over the past year (126.4%) exceeded the Aerospace & Defense industry 13.9%.


Return on Equity

High ROE: Whilst AJRD's Return on Equity (24.56%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aerojet Rocketdyne Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AJRD's short term assets ($1.4B) exceed its short term liabilities ($875.6M).

Long Term Liabilities: AJRD's short term assets ($1.4B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: AJRD's debt to equity ratio (104.4%) is considered high.

Reducing Debt: AJRD had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: AJRD's debt is well covered by operating cash flow (42.6%).

Interest Coverage: AJRD's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet

Inventory Level: AJRD has a low level of unsold assets or inventory.

Debt Coverage by Assets: AJRD's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is Aerojet Rocketdyne Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AJRD's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AJRD's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AJRD's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AJRD's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AJRD'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 Aerojet Rocketdyne Holdings's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Eileen Drake (52yo)

4.6yrs

Tenure

US$5,534,650

Compensation

Ms. Eileen P. Drake has been the Chief Executive Officer and President of Aerojet Rocketdyne Holdings, Inc. since June 01, 2015. Ms. Drake serves as the Chief Executive Officer and President at Aerojet Roc ...


CEO Compensation Analysis

Compensation vs Market: Eileen's total compensation ($USD5.53M) is about average for companies of similar size in the US market ($USD4.99M).

Compensation vs Earnings: Eileen's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.6yrs

Average Tenure

54yo

Average Age

Experienced Management: AJRD's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

64yo

Average Age

Experienced Board: AJRD's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$008 Nov 19
GAMCO Investors, Inc.
EntityCompany
Shares22,670
Max PriceUS$52.66
SellUS$617,66308 Nov 19
Teton Advisors, Inc
EntityCompany
Shares13,000
Max PriceUS$51.70
SellUS$1,768,53408 Nov 19
GAMCO Investors, Inc.
EntityCompany
Shares98,717
Max PriceUS$52.56
SellUS$2,012,90718 Sep 19
Eileen Drake
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares38,656
Max PriceUS$52.07
SellUS$489,35613 Aug 19
Thomas Corcoran
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$48.94
SellUS$237,84306 Aug 19
Martin Turchin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$47.57
SellUS$1,018,55727 Mar 19
Eileen Drake
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares29,592
Max PriceUS$34.42

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4%.


Management Team

  • Warren Lichtenstein (54yo)

    Executive Chairman

    • Tenure: 6.8yrs
  • Mark Tucker (60yo)

    Chief Operating Officer

    • Tenure: 4.6yrs
    • Compensation: US$2.47m
  • John Schumacher (64yo)

    Senior Vice President of Washington Operations & Communications

    • Tenure: 3.4yrs
    • Compensation: US$1.31m
  • Eileen Drake (52yo)

    CEO, President & Director

    • Tenure: 4.6yrs
    • Compensation: US$5.53m
  • Greg Jones (57yo)

    Senior Vice President of Strategy & Business Development

    • Tenure: 1.9yrs
  • Dick Bregard (76yo)

    Deputy to the President of Aerojet

    • Tenure: 9.6yrs
    • Compensation: US$605.35k
  • Arjun Kampani (47yo)

    VP, General Counsel & Secretary

    • Tenure: 3.8yrs
    • Compensation: US$1.25m
  • Paul Lundstrom (44yo)

    VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$2.06m
  • Daniel Boehle (47yo)

    VP, Controller & Principal Accounting Officer

    • Tyler Evans

      Senior Vice President of Defense Business Unit

      • Tenure: 0.3yrs

    Board Members

    • Warren Lichtenstein (54yo)

      Executive Chairman

      • Tenure: 6.8yrs
    • Jim Henderson (61yo)

      Independent Director

      • Tenure: 11.8yrs
      • Compensation: US$276.13k
    • Tom Corcoran (75yo)

      Independent Director

      • Tenure: 11.3yrs
      • Compensation: US$236.85k
    • Martin Turchin (77yo)

      Independent Director

      • Tenure: 11.8yrs
      • Compensation: US$253.64k
    • Eileen Drake (52yo)

      CEO, President & Director

      • Tenure: 4.6yrs
      • Compensation: US$5.53m
    • Lance Lord (72yo)

      Independent Director

      • Tenure: 4.9yrs
      • Compensation: US$209.20k
    • Chili Chilton (64yo)

      Director

      • Tenure: 1.3yrs
      • Compensation: US$91.33k

    Company Information

    Aerojet Rocketdyne Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Aerojet Rocketdyne Holdings, Inc.
    • Ticker: AJRD
    • Exchange: NYSE
    • Founded: 1915
    • Industry: Aerospace and Defense
    • Sector: Capital Goods
    • Market Cap: US$4.081b
    • Shares outstanding: 78.84m
    • Website: https://www.aerojetrocketdyne.com

    Number of Employees


    Location

    • Aerojet Rocketdyne Holdings, Inc.
    • 222 North Pacific Coast Highway
    • Suite 500
    • El Segundo
    • California
    • 90245
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    AJRDNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1968
    GCYDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1968
    0HA5LSE (London Stock Exchange)YesCommon StockGBUSDJan 1968

    Biography

    Aerojet Rocketdyne Holdings, Inc. designs, develops, manufactures, and sells aerospace and defense products and systems in the United States. The company operates through 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. This segment provides propulsion systems, such as liquid, solid, air-breathing, and electric propulsion systems for space, defense, civil, and commercial applications; and armament systems. The Real Estate segment engages in the re-zoning, entitlement, sale, and leasing of the company’s excess real estate assets. It owns 11,451 acres of land adjacent to the United States Highway 50 between Rancho Cordova and Folsom, California east of Sacramento. The company was formerly known as GenCorp Inc. and changed its name to Aerojet Rocketdyne Holdings, Inc. in April 2015. Aerojet Rocketdyne Holdings, Inc. was founded in 1915 and is headquartered in El Segundo, California. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 23:37
    End of Day Share Price2020/01/22 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.