Aar Corp

Industrials
Aerospace
www.aarcorp.com

Earnings Score
Safety Score

Market Cap $2.19K
PE -0
Debt $1.02B
Cash $100.90M
EV $921.40M
FCF -$23.00M

Earnings

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Sales & Net Margins

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Earnings	-$12.50M
ROE	-1%
FCF	-$23.00M
Equity	$1.18B
Growth Stability	17%
PE	-0
PEG	-0
PB	0
P/FCF	-0
P/S	0
Price/Cash	46.16K
Debt/Equity	0.86
Debt/FCF	-44.45
Net Margins	-1%
Gross Margins	19%
Earnings CAGR	7%
Sales Growth YoY	20%
Sales Growth QoQ	-1%
Sales CAGR	3%
FCF CAGR	-0%
Equity CAGR	4%
Earnings Stability	0.06
Earnings Growth YoY	-164%
Earnings Growth QoQ	-71%

Earnings CAGR 5Y	31%
Sales CAGR 5Y	8%
FCF CAGR 5Y	-12%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	16%
Sales CAGR 3Y	16%
FCF CAGR 3Y	-32%
Equity CAGR 3Y	6%
Market Cap	$2.19K
Revenue	$2.68B
Assets	$2.86B
Total Debt	$1.02B
Cash	$100.90M
Shares Outstanding	35.4
EV	921.4M
Earnings Score	7%
Safety Score	40%
Working Capital	989.6M
Current Ratio	2.82
Gross Profit	$504.80M
Shares Growth 3y	1%
Equity Growth QoQ	0%
Equity Growth YoY	1%

Assets & ROA

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Stockholders Equity & ROE

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AAR Corp is engaged in providing products and services to aviation, government, and defense market. It operates in two segments namely Aviation Services and Expeditionary Services. The Aviation Services segment consists of aftermarket support and services businesses that provide spares and maintenance support for aircraft operated by it's commercial and government/defense customers. The Expeditionary Services segment consists of businesses that provide products and services supporting the movement of equipment and personnel by the U.S. Department of Defense, foreign governments, and non-governmental organizations. It generates a majority of its revenue from the Aviation Services Segment.

SEC Filings

Direct access to Aar Corp (AIR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Feb 28
2024
- 10-Q Nov 30
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 29
2023
- 10-Q Nov 30
- 10-Q Aug 31
- 10-K May 31
- 10-Q Feb 28

Sector Comparison

How does Aar Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Aar Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 6%

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Aar Corp Discounted Cash Flow

Fully customizable DCF calculator online for Aar Corp.

Years

Calculation mode

= -$225M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$23M	-$23M	-$23M	-$23M	-$23M	-$23M	-$23M	-$22M	-$22M	-$22M	-$22M	-$223M
DCF		-$21M	-$19M	-$17M	-$16M	-$14M	-$13M	-$12M	-$10M	-$9.5M	-$8.6M	-$86M
Value	-$225M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Net Margins	3%	3%	1%	0%	0%	2%	4%	4%	2%	-1%
ROA	-	-	-	-	-	-	-	-	-	-
ROE	-	6%	2%	1%	0%	4%	8%	8%	4%	-1%

Bad Net Margins (-1.06%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	TTM
Debt over FCF	-	-16.95	4.8	2.89	-14.1	1.39	1.38	-47.72	69.89	-44.45
Debt over Equity	0.17	0.17	0.19	0.16	0.67	0.14	0.1	0.25	0.83	0.86
Growth Stability	-	-	-	19%	17%	100%	100%	100%	68%	17%

Good Debt/FCF ratio (-44.45)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.86)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (17%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	05/2016	05/2017	05/2018	05/2019	05/2020	05/2021	05/2022	05/2023	05/2024	CAGR 5Y
Revenue YoY growth	-	6%	-1%	17%	1%	-20%	10%	9%	16%	8%
Earnings YoY growth	-	20%	-72%	-52%	-41%	705%	121%	14%	-49%	31%
Equity YoY growth	-	6%	2%	-3%	-0%	8%	6%	6%	8%	7%
FCF YoY growth	-	-83%	-497%	33%	-186%	-328%	-25%	-108%	-347%	-12%