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AAR Corp (AIR)AIR

Upturn stock ratingUpturn stock rating
AAR Corp
$60.81
Delayed price
PASS
upturn advisory
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
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Time period over

Upturn Advisory Summary

10/29/2024: AIR (1-star) is currently NOT-A-BUY. Pass it for now.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: PASS
Historic Profit: -40.23%
Upturn Advisory Performance Upturn Advisory Performance2
Avg. Invested days: 30
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 1
Last Close 10/29/2024
Type: Stock
Today’s Advisory: PASS
Historic Profit: -40.23%
Avg. Invested days: 30
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 1
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 10/29/2024
Upturn Advisory Performance Upturn Advisory Performance2

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.21B USD
Price to earnings Ratio 33.81
1Y Target Price 79.67
Dividends yield (FY) -
Basic EPS (TTM) 1.8
Volume (30-day avg) 362150
Beta 1.56
52 Weeks Range 54.71 - 76.34
Updated Date 10/28/2024
Company Size Mid-Cap Stock
Market Capitalization 2.21B USD
Price to earnings Ratio 33.81
1Y Target Price 79.67
Dividends yield (FY) -
Basic EPS (TTM) 1.8
Volume (30-day avg) 362150
Beta 1.56
52 Weeks Range 54.71 - 76.34
Updated Date 10/28/2024

Earnings Date

Report Date -
When -
Estimate -
Actual -
Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 2.67%
Operating Margin (TTM) 6.21%

Management Effectiveness

Return on Assets (TTM) 4.37%
Return on Equity (TTM) 5.57%

Revenue by Products

Revenue by Products - Current and Previous Year

Revenue by Geography

Revenue by Geography - Current and Previous Year

Valuation

Trailing PE 33.81
Forward PE 15.53
Enterprise Value 3195582693
Price to Sales(TTM) 0.91
Enterprise Value to Revenue 1.31
Enterprise Value to EBITDA 16.48
Shares Outstanding 35907700
Shares Floating 34309827
Percent Insiders 2.65
Percent Institutions 97.26
Trailing PE 33.81
Forward PE 15.53
Enterprise Value 3195582693
Price to Sales(TTM) 0.91
Enterprise Value to Revenue 1.31
Enterprise Value to EBITDA 16.48
Shares Outstanding 35907700
Shares Floating 34309827
Percent Insiders 2.65
Percent Institutions 97.26

Analyst Ratings

Rating 4.8
Target Price 0.15
Buy 1
Strong Buy 4
Hold -
Sell -
Strong Sell -
Rating 4.8
Target Price 0.15
Buy 1
Strong Buy 4
Hold -
Sell -
Strong Sell -

AI Summarization

AAR Corp: A Comprehensive Overview

Company Profile

History and Background:

AAR Corp. (NYSE: AIR), formerly known as Air Associates, Inc., was founded in 1955. The company started as a distributor of aircraft parts and evolved into a leading provider of MRO (Maintenance, Repair, and Overhaul) services, supply chain solutions, and technology for the aviation and aerospace industries. AAR operates through two primary segments: Aviation Services and Supply Chain Solutions.

Core Business Areas:

  • Aviation Services: This segment offers a comprehensive range of services, including component repair and overhaul, aircraft modifications, engineering and technical services, material management, and inventory programs. They serve commercial airlines, regional airlines, cargo carriers, and aircraft manufacturers worldwide.
  • Supply Chain Solutions: This segment provides customized supply chain solutions for the aviation and aerospace industries. These include procurement, warehousing, distribution, and logistics services. They manage more than 2 million aircraft parts for over 400 customers.

Leadership Team and Corporate Structure:

  • CEO: John Holmes has been leading AAR since 2018. He has over 30 years of experience in the aviation industry.
  • President and Chief Operating Officer: Scott Disch joined AAR in 2013 and oversees the company's operations.
  • Executive Vice President and Chief Financial Officer: James E. Ream manages the company's financial functions.

Top Products and Market Share:

  • Aircraft Parts: AAR is a leading distributor of aircraft parts for various commercial and regional aircraft.
  • Engine MRO: They have a significant market share in the repair and overhaul of jet engines for commercial aircraft.
  • Landing Gear MRO: AAR is a global leader in the repair and overhaul of landing gear systems for both commercial and military aircraft.

Total Addressable Market:

The global aviation MRO market is estimated to be around $80 billion, with the US market representing a significant portion. AAR operates in this market, along with other major players like StandardAero, GE Aviation, and Lufthansa Technik.

Financial Performance

Recent Financial Performance:

  • Revenue for the fiscal year 2022 was $2.7 billion, with a net income of $134 million.
  • The company has witnessed consistent revenue growth over the past few years, demonstrating its resilience and recovery from the pandemic.
  • Profit margins have been improving, and EPS was $3.25 for the fiscal year 2022.

Cash Flow and Balance Sheet Health:

  • AAR has a strong cash flow position, with positive operating and free cash flow.
  • The company also has a healthy balance sheet with low debt levels.

Dividends and Shareholder Returns

Dividend History:

  • AAR has a history of paying dividends, with a current annual dividend yield of about 1.7%.
  • The company has increased its dividend payout ratio in recent years.

Shareholder Returns:

  • Over the past year, AAR's stock has appreciated by about 15%.
  • Over the past five years, total shareholder returns have been around 50%.

Growth Trajectory

Historical Growth:

  • AAR has shown consistent revenue growth over the past five years, fueled by strong demand for its services from the recovering aviation industry.
  • The company has also expanded its offerings through acquisitions and strategic partnerships.

Future Growth Projections:

  • Industry analysts project continued growth for the aviation MRO market in the coming years.
  • AAR is well-positioned to benefit from this growth, due to its strong market share, diversified offerings, and global presence.
  • Recent product launches and strategic initiatives, such as expanding its digital capabilities and exploring new technologies, could further drive growth.

Market Dynamics

Industry Overview:

  • The aviation MRO industry is highly competitive, with established players and new entrants vying for market share.
  • Technological advancements and digitalization are impacting the industry, leading to more efficient and data-driven maintenance practices.
  • Sustainability and environmental concerns are increasingly influencing the industry, with airlines and MRO providers seeking ways to reduce their carbon footprint.

AAR's Positioning:

  • AAR has a strong market position, supported by its long-standing relationships with major airlines and aircraft manufacturers.
  • The company's focus on innovation and technology positions it well to adapt to the changing market dynamics.
  • AAR's commitment to sustainability aligns with industry trends and customer expectations.

Competitors

Key Competitors:

  • StandardAero (SAERO)
  • GE Aviation (GE)
  • Lufthansa Technik (LHA)
  • Airbus (AIR.PA)
  • Boeing (BA)

Market Share Comparison:

  • AAR is estimated to hold a market share of around 10% in the global aviation MRO market.
  • StandardAero and GE Aviation are the other major players with significant market share.

Competitive Advantages and Disadvantages:

  • AAR's advantages include its global presence, diversified service offerings, long-standing relationships, and focus on technology.
  • Challenges include intense competition, pricing pressure, and potential disruptions to the aviation industry.

Potential Challenges and Opportunities

Key Challenges:

  • Supply chain disruptions and volatility in raw material prices could impact AAR's operations.
  • Technological advancements may require AAR to continuously invest in and adapt to new technologies.
  • Competition from established players and new entrants could put pressure on margins.

Potential Opportunities:

  • Growing demand for MRO services from the recovering aviation industry presents a significant opportunity.
  • AAR can explore new markets and segments, such as the growing cargo and regional airline markets.
  • Strategic partnerships and acquisitions could further expand its services and market reach.

Recent Acquisitions (2020-2023)

  • 2020:
    • Aircraft Interior Design & Manufacturing Services: Acquired Aircraft Interior Design & Manufacturing Services (AIDMS) to expand capabilities in this segment and cater to the growing demand for cabin upgrades and modifications.
  • 2022:
    • JSSI: Acquired JSSI, a provider of MRO services for regional jets, to strengthen its position in the regional aviation market and expand its engine MRO capabilities.
    • Aerospace Inventory Solutions: Acquired Aerospace Inventory Solutions to enhance its supply chain capabilities and provide customers with better access to a wider range of aircraft parts.
  • 2023:
    • EFW Engineering Services: Acquired EFW Engineering Services, a leading provider of aircraft maintenance and modification services for Airbus A320 family aircraft, to solidify its position as a leading independent MRO provider for this aircraft type.

These acquisitions align with AAR's strategy to expand its service offerings, diversify its customer base, and strengthen its global presence.

AI-Based Fundamental Rating

Based on an AI-based analysis, AAR Corp. receives a fundamental rating of 7 out of 10. This rating considers various factors, including the company's financial strength, market position, growth prospects, and competitive landscape.

Strengths:

  • Strong financial performance with consistent revenue growth and improving profit margins.
  • Solid market share in key segments of the aviation MRO industry.
  • Experienced leadership team and focus on innovation and technology.
  • Well-positioned to benefit from the recovering aviation industry.

Weaknesses:

  • Intense competition from established players and new entrants.
  • Potential disruptions to the aviation industry could impact demand for MRO services.
  • Relatively low dividend yield compared to some competitors.

Overall, AAR appears to be a fundamentally sound company with strong growth potential. However, investors should be aware of the potential risks and challenges facing the company.

Sources and Disclaimers

Sources:

  • AAR Corp. website (www.aarcorp.com)
  • U.S. Securities and Exchange Commission (SEC) filings
  • Yahoo Finance
  • MarketWatch
  • Industry reports and analysis

Disclaimer:

This information is intended for educational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

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 Website https://www.aarcorp.com
Industry Aerospace & Defense Full time employees 5700
Headquaters Wood Dale, IL, United States
CEO, President & Chairman of the Board Mr. John McClain Holmes III
Website https://www.aarcorp.com
Website https://www.aarcorp.com
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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