AIR

AAR Corp.

Fundamental data last updated:June 3, 2026

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company profile

SECTOR

Industrials

industry

Aerospace & Defense

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/15/2026

Business Summary

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services. This segment also sells and leases new, overhauled, and repaired engine and airframe parts, and components; and provides inventory and repair programs, warranty claim management, and outsourcing programs for engine and airframe parts and components, as well as performance-based supply chain logistics programs in support of the U.S. department of defense and foreign governments. In addition, it offers airframe inspection, maintenance, repair and overhaul, painting, line maintenance, airframe modification, structural repair, avionic and installation, exterior and interior refurbishment, and engineering and support services; and repairs and overhauls components, landing gears, wheels, and brakes. The Expeditionary Services segment provides products and services supporting the movement of equipment and personnel by the U.S. and foreign governments, and non-governmental organizations. This segment also designs, manufactures, and repairs transportation pallets, and various containers and shelters; and provides engineering, design, and system integration services for command and control systems. The company serves domestic and foreign passenger airlines; domestic and foreign cargo airlines; regional and commuter airlines; business and general aviation operators; original equipment manufacturers; aircraft leasing companies; aftermarket aviation support companies; and domestic and foreign military customers. It primarily markets and sells products and services through its employees and foreign sales representatives. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

 


VALUATION

P/E

25.41

Market Cap ($M USD)

$4.57B

Forward P/E

13.45

PEG

0.15

PRICE TO SALES

1.46

PRICE TO BOOK

2.64

EV / EBITDA

16.54

5-Year Average P/E

Free Cash Flow Yield

1.85%

DCF Value

$-49.96

Graham Number

$66.52

Price to FCF

53.91

EV to FCF

64.28

Earnings Yield

3.93%

FCF Yield

1.85%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.52

Next Year EPS Growth Estimate

$8.55

Next Year Revenue Growth Estimate

$438.60B

Return on Equity (ROE)

12.07%

FREE CASH FLOW

Operating Margin

8.62%

Debt-to-Equity

0.86

Piotroski F-Score

5

Altman Z-Score

3.60

Return on Invested Capital (ROIC)

10.09%

Current Ratio

2.70

Quick Ratio

1.23

Net Debt to EBITDA

2.67

Interest Coverage

3.66

Gross Profit margin

19.00%

FCF PER SHARE

$2.24

REVENUE PER SHARE

$82.92

Gainseekers Quantitative Analysis

Summary

The market seems to have misjudged AIR AAR Corp.’s valuation. Despite a snapshot price that traded significantly above its DCF value, the Forward P/E of 13.78 suggests potential undervaluation relative to future earnings. The Earnings Yield of 3.84% and a robust Altman Z-score of 3.73 indicate a financially stable company with growth prospects. However, the Price to FCF ratio of 55.23 raises concerns about cash flow efficiency, hinting at potential overvaluation in terms of free cash generation.

AI Exposure / Tech Reliance

Operating in the Aerospace & Defense industry, AIR AAR Corp. is strategically positioned to leverage AI and modern tech advancements. The sector's inherent demand for cutting-edge technology ensures the company remains relevant and competitive. Its adaptability to tech shifts is crucial for maintaining its market position.

The Bull Case

For the discerning GARP investor, AIR AAR Corp. presents a compelling opportunity. With a solid ROIC of 10.09% and a Piotroski F-Score of 5, the company demonstrates efficient capital allocation and moderate financial health. The operating margin of 8.62% underscores its pricing power, while a current ratio of 2.70 reflects strong liquidity. These metrics suggest a company capable of sustaining growth and delivering shareholder value.

The Bear Case

Despite its strengths, AIR AAR Corp. faces notable risks. The Price/Book ratio of 2.71 and Price/Sales ratio of 1.49 suggest the stock may be overvalued relative to its assets and revenue. Additionally, the EV to FCF ratio of 65.60 highlights inefficiencies in cash flow generation. With the stock trading close to its 52-week high, it appears technically overextended, posing a risk for potential investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$120.00

Institutional Ownership %

1-Year Beta

1.15

Insider Buying % (6 Mo)

Distance to 52-Week High

10.65%

Distance to 52-Week Low

47.28%

EARNINGS SURPRISE %

3.31%

50-DAY SMA

$112.42

200-DAY SMA

$95.46

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.