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

Add to My Stocks
$46.75 $0.33 (0.7%) AIR stock closing price Jul 20, 2018 (Closing)

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 2.3/5

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 its debt/equity ratio of 0.19, AAR Corp. has a lower debt burden when compared to the Aerospace average.
  • When compared with the Aerospace sector average PS ratio of 1.7, the price-to-sales ratio of 0.9 for AIR stock is attractive.
  • The company has a healthy free cash flow margin of 6.9.

Should you sell AIR stock?

  • AAR Corp. sales declined by -18.1% year on year in 2018-05.
  • Revenue declined at a CAGR of -3.9 over the last 5 years.
  • AAR Corp.'s TTM operating margin of 4.92 was rather poor.
  • AAR Corp. posted a TTM Net margin of 0.9%.
  • The AIR stock currently trades at a PE of 27.7, which is expensive, compared to the sector average of 23.6.
  • The TTM ROE (Return On Equity) for AAR Corp. is not so attractive at 1.7.

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.