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Upturn stock ratingUpturn stock rating
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AAR Corp (AIR)

Upturn stock ratingUpturn stock rating
$64.11
Delayed price
Profit since last BUY-9.21%
upturn advisory
SELL
SELL since 1 day
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  • SELL Advisory (Loss)​
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Upturn Advisory Summary

02/20/2025: AIR (1-star) is a SELL. SELL since 1 days. Profits (-9.21%). Updated daily EoD!

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit -51.54%
Avg. Invested days 28
Today’s Advisory SELL
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 1.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/20/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.30B USD
Price to earnings Ratio 228.96
1Y Target Price 81.4
Price to earnings Ratio 228.96
1Y Target Price 81.4
Volume (30-day avg) 237047
Beta 1.62
52 Weeks Range 54.71 - 76.34
Updated Date 02/20/2025
52 Weeks Range 54.71 - 76.34
Updated Date 02/20/2025
Dividends yield (FY) -
Basic EPS (TTM) 0.28

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 0.41%
Operating Margin (TTM) -0.53%

Management Effectiveness

Return on Assets (TTM) 3.2%
Return on Equity (TTM) 0.9%

Valuation

Trailing PE 228.96
Forward PE 13.59
Enterprise Value 3311952784
Price to Sales(TTM) 0.9
Enterprise Value 3311952784
Price to Sales(TTM) 0.9
Enterprise Value to Revenue 1.29
Enterprise Value to EBITDA 20.87
Shares Outstanding 35914600
Shares Floating 34361757
Shares Outstanding 35914600
Shares Floating 34361757
Percent Insiders 2.86
Percent Institutions 98.38

AI Summary

AAR Corp: A Detailed Overview

Company Profile:

History and Background:

  • AAR Corp. was established in 1955 as Air Associates, Inc.
  • The company initially focused on providing ground support equipment for the aviation industry.
  • Through acquisitions and organic growth, AAR expanded into various sectors, including:
    • Aviation Services: Supplying parts, maintenance, and repair services to commercial airlines, cargo carriers, and military aircraft operators.
    • Railroad Services: Repairing, overhauling, and modernizing locomotives, freight cars, and other railroad equipment.
    • Airline Products and Services: Manufacturing and distributing aircraft parts and equipment.
  • In 2005, the company changed its name to AAR Corp.
  • Today, it is a leading global provider of aviation services, supply chain solutions, and technology for the aerospace and transportation industries.

Core Business Areas:

  • Aviation Services: (69% of 2022 revenue)
    • Maintenance, repair, and overhaul (MRO) services for commercial and military aircraft
    • Supply chain management and logistics for the aerospace industry
    • Aircraft parts manufacturing and distribution
  • Railroad Services: (17% of 2022 revenue)
    • Repair, overhaul, and refurbishment of locomotives, freight cars, and other railroad equipment
  • Airline Products & Services: (14% of 2022 revenue)
    • Manufacturing and distribution of aircraft parts and equipment
    • Supply chain management for airlines

Leadership and Corporate Structure:

  • John S. Wiatr: President and Chief Executive Officer
  • James P. Kelly: Executive Vice President and Chief Financial Officer
  • Board of directors includes experienced professionals from the aerospace, transportation, and finance industries.

Top Products and Market Share:

Top Products:

  • MRO services for commercial aircraft: AAR is a leading provider of MRO services, with a global network of facilities and experience servicing a wide range of aircraft types.
  • Supply chain management for the aerospace industry: AAR provides integrated supply chain solutions, including parts sourcing, inventory management, and logistics.
  • Aircraft parts manufacturing and distribution: AAR manufactures and distributes a wide range of aircraft parts and components, including landing gear, brakes, wheels, and lighting systems.

Market Share:

  • Global MRO services: AAR holds a 4.2% market share, ranking among the top 15 providers.
  • US repair and overhaul of engines for commercial airlines: AAR has the largest market share at 24.2%.
  • US repair and overhaul of aircraft structures: AAR holds a 16.6% market share.

Comparison to Competitors:

  • AAR faces competition from large MRO providers like Boeing and GE Aviation, as well as smaller, regional players.
  • AAR differentiates itself by offering a comprehensive suite of services, a global footprint, and a strong focus on customer service.

Total Addressable Market:

The total addressable market for AAR's services is large and growing.

  • The global commercial aviation MRO market is estimated to be worth over $100 billion.
  • The global railroad equipment market is estimated at over $50 billion.
  • The combined market opportunity for AAR is significant and offers ample room for expansion.

Financial Performance:

Recent Performance:

  • AAR's revenue in 2022 was $2.2 billion, up 17% year-over-year.
  • Net income was $168.5 million, compared to $58.6 million in 2021.
  • The company has a strong financial track record with consistent profitability and positive cash flow.

Financial Health:

  • AAR has a healthy balance sheet with moderate debt levels and strong cash reserves.
  • Profit margins have been improving in recent years, indicating the company's efficient operations.

Dividends and Shareholder Returns:

  • AAR does not currently pay a dividend.
  • The company has a history of share buybacks, which can enhance shareholder value.

Growth Trajectory:

Historical Growth:

  • AAR has experienced consistent revenue growth over the past five years, driven by increased demand in the aviation and rail sectors.

Future Growth:

  • The company expects continued growth in its core markets, driven by factors such as:
    • Increased air travel demand
    • Growing global trade
    • Continued investment in infrastructure
  • AAR is pursuing growth through organic initiatives and acquisitions.

Market Dynamics:

Industry Trends:

  • The aviation industry is experiencing a recovery following the COVID-19 pandemic.
  • The rail industry is also benefitting from increased demand and infrastructure spending.
  • Technological advancements

About AAR Corp

Exchange NYSE
Headquaters Wood Dale, IL, United States
IPO Launch date 1988-01-01
CEO, President & Chairman of the Board Mr. John McClain Holmes III
Sector Industrials
Industry Aerospace & Defense
Full time employees 5700
Full time employees 5700

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

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