AAR Corp. Stock Analysis, Valuation (NYSE:AIR)

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$46.91 $0.2 (0.43%) AIR stock closing price May 18, 2018 (Closing)
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AAR Corp.
Updated on : May 18, 2018
previous close
AIR 46.9 (0%)
S&P 500 2713 (0%)
Closing Price On: May 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Aerospace Defense Equipment
Sector :
Aerospace
5 Quarter Revenue
Revenue Growth
2018-Q3
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-3.1%
Operating Profit
Operating Margin:
1.6%
Sector Average:
9.9%
5 Quarter Net Profit
Net Margins
2018-Q3
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
194.4M
Debt/Equity Ratio:
 0.21
Compared to the industry
Cash Flow
Operating cash flow:
$42.8M
Net Income:
$15.5M
Dividend Yield
AIR dividend yield:
0.68%
PROS      CONS
Low Debt Burden
FCF Margin
PS Valuation
Long Term Growth
Operating Margins
Net Margins
ROIC
ROE
PE Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
AIR PS :
0.9
Industry PS :
1.6
Sector:   Aerospace.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1.6%
Return on Equity:
2.7%
Free Cash Flow Margin:
9.3%
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AAR Corp. Stock Analysis

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Watch the robo advisor video of AAR Corp. stock analysis on Amigobulls. Our AIR analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

AAR Corp. Stock Rating 2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for AIR stock analysis. We compare AAR Corp. valuation with its sector peers to gauge relative attractiveness of AIR stock. Based on a company's historical fundamentals we arrive at AAR Corp. stock rating which is indicative of the company's financial performance.

Should you buy AIR stock?

  • With a debt/equity ratio of  0.21, AAR Corp. is comparatively less leveraged than its peers in the Aerospace sector.
  • The lower PS ratio 0.9 for AIR stock versus Aerospace Defense Equipment industry average of 1.6 is a positive for the company.
  • The company has a healthy free cash flow margin of 9.3%.

Should you sell AIR stock?

  • Revenue declined at a CAGR of -3.1% over the last 5 years.
  • AAR Corp. had a poor average operating margin of 1.6% over the last 4 quarters.
  • AAR Corp.'s Net margins were poor at 1.3% in the last twelve months.
  • Trading at a PE ratio of 29.5, AIR stock is overvalued in comparison to industry average multiple of 23.8.
  • AAR Corp. provides a low return on invested capital of 1.6%.
  • The TTM ROE (Return On Equity) for AAR Corp. is not so attractive at 2.7%.

Comments on this video and AAR Corp. stock

Investors can make use of the Amigobulls AAR Corp. stock analysis to ascertain how AIR stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, AAR Corp. revenue growth along with the profit or net income give a clear picture of the financial health. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of AAR Corp. stock.