Is AAR Corp Stock a Good Investment?
AAR Corp Investment Advice | AIR |
- Examine AAR Corp's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research AAR Corp's leadership team and their track record. Good management can help AAR Corp navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Aerospace & Defense space and any emerging trends that could impact AAR Corp's business and its evolving consumer preferences.
- Compare AAR Corp's performance and market position to its competitors. Analyze how AAR Corp is positioned in terms of product offerings, innovation, and market share.
- Check if AAR Corp pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about AAR Corp's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in AAR Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if AAR Corp is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine AAR Corp Stock
Researching AAR Corp's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 98.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.8. Some equities with similar Price to Book (P/B) outperform the market in the long run. AAR Corp has Price/Earnings To Growth (PEG) ratio of 2.41. The entity last dividend was issued on the 27th of March 2020. The firm had 3:2 split on the 24th of February 1998.
To determine if AAR Corp is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding AAR Corp's research are outlined below:
| AAR Corp generated a negative expected return over the last 90 days | |
| Over 98.0% of the company shares are held by institutions such as insurance companies | |
| Latest headline from gurufocus.com: AAR announces divestiture of non-core Landing Gear Overhaul business to optimize portfolio |
AAR Corp Quarterly Long Term Debt |
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AAR Corp uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in AAR Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to AAR Corp's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 19th of March 2024 Upcoming Quarterly Report | View | |
| 16th of July 2024 Next Financial Report | View | |
| 29th of February 2024 Next Fiscal Quarter End | View | |
| 16th of July 2024 Next Fiscal Year End | View | |
| 30th of November 2023 Last Quarter Report | View | |
| 31st of May 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact AAR Corp's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises AAR Corp's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2004-09-22 | 2004-08-31 | 0.06 | 0.07 | 0.01 | 16 | ||
2004-06-29 | 2004-05-31 | 0.07 | 0.08 | 0.01 | 14 | ||
2003-03-27 | 2003-02-28 | 0.01 | 0.02 | 0.01 | 100 | ||
2005-12-22 | 2005-11-30 | 0.2 | 0.22 | 0.02 | 10 | ||
2003-12-18 | 2003-11-30 | 0.01 | 0.03 | 0.02 | 200 | ||
2002-12-19 | 2002-11-30 | -0.04 | -0.02 | 0.02 | 50 | ||
1996-07-01 | 1996-05-31 | 0.19 | 0.21 | 0.02 | 10 | ||
2017-09-19 | 2017-08-31 | 0.3 | 0.27 | -0.03 | 10 |
Know AAR Corp's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as AAR Corp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading AAR Corp backward and forwards among themselves. AAR Corp's institutional investor refers to the entity that pools money to purchase AAR Corp's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Allspring Global Investments Holdings, Llc | 2024-09-30 | 733 K | Charles Schwab Investment Management Inc | 2024-09-30 | 518.3 K | Fred Alger Management, Llc | 2024-09-30 | 508.2 K | Principal Financial Group Inc | 2024-09-30 | 500.2 K | Emerald Advisers, Llc | 2024-09-30 | 491.4 K | Rubric Capital Management Lp | 2024-09-30 | 471.7 K | Royal Bank Of Canada | 2024-09-30 | 465 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 429 K | Northern Trust Corp | 2024-09-30 | 405 K | Blackrock Inc | 2024-06-30 | 5.6 M | Vanguard Group Inc | 2024-09-30 | 3.8 M |
AAR Corp's market capitalization trends
The company currently falls under 'Mid-Cap' category with a total capitalization of 2.17 B.Market Cap |
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AAR Corp's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.04 | |
| Return On Capital Employed | 0.06 | 0.09 | |
| Return On Assets | 0.02 | 0.02 | |
| Return On Equity | 0.04 | 0.07 |
Determining AAR Corp's profitability involves analyzing its financial statements and using various financial metrics to determine if AAR Corp is a good buy. For example, gross profit margin measures AAR Corp's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of AAR Corp's profitability and make more informed investment decisions.
Evaluate AAR Corp's management efficiency
AAR Corp has Return on Asset of 0.0437 % which means that on every $100 spent on assets, it made $0.0437 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0557 %, implying that it generated $0.0557 on every 100 dollars invested. AAR Corp's management efficiency ratios could be used to measure how well AAR Corp manages its routine affairs as well as how well it operates its assets and liabilities. At this time, AAR Corp's Return On Tangible Assets are relatively stable compared to the past year. As of 12/22/2024, Return On Capital Employed is likely to grow to 0.09, while Return On Assets are likely to drop 0.02. At this time, AAR Corp's Fixed Asset Turnover is relatively stable compared to the past year. As of 12/22/2024, Asset Turnover is likely to grow to 1.19, while Total Current Assets are likely to drop slightly above 714.3 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 33.90 | 35.59 | |
| Tangible Book Value Per Share | 11.38 | 10.08 | |
| Enterprise Value Over EBITDA | 24.42 | 12.65 | |
| Price Book Value Ratio | 2.09 | 1.61 | |
| Enterprise Value Multiple | 24.42 | 12.65 | |
| Price Fair Value | 2.09 | 1.61 | |
| Enterprise Value | 1.3 B | 1.4 B |
The operational strategies employed by AAR Corp management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Beta 1.569 |
Basic technical analysis of AAR Stock
As of the 22nd of December, AAR Corp shows the Coefficient Of Variation of (1,284), variance of 5.49, and Mean Deviation of 1.57. AAR Corp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the entity's future prices. Please confirm AAR Corp information ratio and skewness to decide if AAR Corp is priced adequately, providing market reflects its regular price of 60.57 per share. Given that AAR Corp has information ratio of (0.09), we suggest you to validate AAR Corp's prevailing market performance to make sure the company can sustain itself in the future.AAR Corp's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific AAR Corp insiders, such as employees or executives, is commonly permitted as long as it does not rely on AAR Corp's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases AAR Corp insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
AAR Corp's Outstanding Corporate Bonds
AAR Corp issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. AAR Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most AAR bonds can be classified according to their maturity, which is the date when AAR Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| ABB FIN USA Corp BondUS00037BAC63 | View | |
| ABB FIN USA Corp BondUS00037BAF94 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View | |
| Morgan Stanley 3971 Corp BondUS61744YAL20 | View |
Understand AAR Corp's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing AAR Corp's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.1) | |||
| Mean Deviation | 1.57 | |||
| Coefficient Of Variation | (1,284) | |||
| Standard Deviation | 2.34 | |||
| Variance | 5.49 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 15.31 | |||
| Value At Risk | (4.50) | |||
| Potential Upside | 2.75 | |||
| Skewness | 0.9052 | |||
| Kurtosis | 4.68 |
| Risk Adjusted Performance | (0.06) | |||
| Market Risk Adjusted Performance | (0.1) | |||
| Mean Deviation | 1.57 | |||
| Coefficient Of Variation | (1,284) | |||
| Standard Deviation | 2.34 | |||
| Variance | 5.49 | |||
| Information Ratio | (0.09) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.26) | |||
| Treynor Ratio | (0.11) | |||
| Maximum Drawdown | 15.31 | |||
| Value At Risk | (4.50) | |||
| Potential Upside | 2.75 | |||
| Skewness | 0.9052 | |||
| Kurtosis | 4.68 |
Consider AAR Corp's intraday indicators
AAR Corp intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of AAR Corp stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
AAR Corp Corporate Filings
8K | 20th of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 2nd of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 24th of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
AAR Stock media impact
Far too much social signal, news, headlines, and media speculation about AAR Corp that are available to investors today. That information is available publicly through AAR media outlets and privately through word of mouth or via AAR internal channels. However, regardless of the origin, that massive amount of AAR data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of AAR Corp news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of AAR Corp relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to AAR Corp's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive AAR Corp alpha.
AAR Corp Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards AAR Corp can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
AAR Corp Historical Investor Sentiment
Investor biases related to AAR Corp's public news can be used to forecast risks associated with an investment in AAR. The trend in average sentiment can be used to explain how an investor holding AAR can time the market purely based on public headlines and social activities around AAR Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
AAR Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AAR Corp and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average AAR Corp news discussions. The higher the estimate score, the more favorable the investor's outlook on AAR Corp.
AAR Corp Corporate Directors
| Robert Leduc | Independent Director | Profile | |
| Anthony Anderson | Independent Director | Profile | |
| Michael Boyce | Independent Director | Profile | |
| Marc Walfish | Independent Director | Profile |
Already Invested in AAR Corp?
The danger of trading AAR Corp is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of AAR Corp is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than AAR Corp. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile AAR Corp is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for AAR Stock Analysis
When running AAR Corp's price analysis, check to measure AAR Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AAR Corp is operating at the current time. Most of AAR Corp's value examination focuses on studying past and present price action to predict the probability of AAR Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move AAR Corp's price. Additionally, you may evaluate how the addition of AAR Corp to your portfolios can decrease your overall portfolio volatility.