ScoreWhy is AAR Corp. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.08 times
2
Healthy long term growth as Operating profit has grown by an annual rate 34.82%
- INTEREST COVERAGE RATIO(Q) Highest at 470.74
- RAW MATERIAL COST(Y) Fallen by -2.83% (YoY)
- INVENTORY TURNOVER RATIO(HY) Highest at 2.92 times
3
With ROCE of 7.73%, it has a risky valuation with a 1.90 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 19.22%, its profits have fallen by -93.5%
4
Market Beating performance in long term as well as near term
- Along with generating 19.22% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to AAR Corp. should be less than 10%
- Overall Portfolio exposure to Aerospace & Defense should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is AAR Corp. for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
AAR Corp.
19.22%
0.66
39.96%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
6.06%
EBIT Growth (5y)
34.82%
EBIT to Interest (avg)
15.96
Debt to EBITDA (avg)
2.08
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
1.33
Tax Ratio
67.87%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
8.99%
ROE (avg)
5.58%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
720
Industry P/E
Price to Book Value
2.60
EV to EBIT
24.56
EV to EBITDA
18.20
EV to Capital Employed
1.90
EV to Sales
1.49
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
7.73%
ROE (Latest)
0.36%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend12What is working for the Company
INTEREST COVERAGE RATIO(Q)
Highest at 470.74
RAW MATERIAL COST(Y)
Fallen by -2.83% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 2.92 times
NET SALES(Q)
Highest at USD 754.5 MM
OPERATING PROFIT(Q)
Highest at USD 88.5 MM
PRE-TAX PROFIT(Q)
Highest at USD 49.5 MM
NET PROFIT(Q)
Highest at USD 35.36 MM
EPS(Q)
Highest at USD 0.96
-9What is not working for the Company
INTEREST(9M)
At USD 56.6 MM has Grown at 51.34%
NET PROFIT(HY)
At USD 28.26 MM has Grown at -24.28%
DEBTORS TURNOVER RATIO(HY)
Lowest at 6.02 times
Here's what is working for AAR Corp.
Interest Coverage Ratio
Highest at 470.74
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Net Profit
At USD 35.36 MM has Grown at 106.81%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 754.5 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 88.5 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 49.5 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 49.5 MM has Grown at 92.61%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 35.36 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.96
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Inventory Turnover Ratio
Highest at 2.92 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -2.83% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for AAR Corp.
Interest
At USD 56.6 MM has Grown at 51.34%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 6.02 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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