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 25.19%, its profits have fallen by -93.5%
4
Market Beating performance in long term as well as near term
- Along with generating 25.19% 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 buy?
- 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.
69.39%
0.69
39.78%
S&P 500
13.68%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.84%
EBIT Growth (5y)
81.08%
EBIT to Interest (avg)
15.96
Debt to EBITDA (avg)
2.08
Net Debt to Equity (avg)
0.71
Sales to Capital Employed (avg)
1.28
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
51
Industry P/E
Price to Book Value
3.34
EV to EBIT
21.52
EV to EBITDA
17.86
EV to Capital Employed
2.51
EV to Sales
2.05
PEG Ratio
0.26
Dividend Yield
NA
ROCE (Latest)
11.68%
ROE (Latest)
6.54%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend24What is working for the Company
ROCE(HY)
Highest at 6.86%
RAW MATERIAL COST(Y)
Fallen by -5.58% (YoY
NET SALES(Q)
Highest at USD 795.3 MM
OPERATING PROFIT(Q)
Highest at USD 89.9 MM
PRE-TAX PROFIT(Q)
Highest at USD 53.8 MM
NET PROFIT(Q)
Highest at USD 38.7 MM
-5What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD -1.1 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.82 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.79 times
Here's what is working for AAR Corp.
Pre-Tax Profit
At USD 53.8 MM has Grown at 366.34%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 38.7 MM has Grown at 236.75%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Net Sales
Highest at USD 795.3 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 89.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 53.8 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 38.7 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Raw Material Cost
Fallen by -5.58% (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
Depreciation
Highest at USD 17.1 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for AAR Corp.
Operating Cash Flow
Lowest at USD -1.1 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Inventory Turnover Ratio
Lowest at 2.82 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Debtors Turnover Ratio
Lowest at 5.79 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
GET THE MARKETSMOJO APP
Company
Stocks
Portfolio
"Investment in securities markets are subject to market risk. Read all the related documents carefully before investing."
