AAR Corp Story

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AIR -- USA Stock  

USD 37.02  0.41  1.10%

As many millenniums are excited about industrials space, it is only fair to sum up AAR Corp. We will evaluate why recent AAR Corp price moves suggest a bounce in January. Is the firm valuation justified? Here we go over AAR Corp perspective on valuation to give you a better outlook on taking a position in this stock.
Published over a month ago
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Should I rely on AAR Corp management in January 2021?
The entity has 363.9 M in debt with debt to equity (D/E) ratio of 0.41, which is OK given its current industry classification. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. AAR Corp has an asset utilization ratio of 132.55 percent. This connotes that the company is making $1.33 for each dollar of assets. An increasing asset utilization means that AAR Corp is more efficient with each dollar of assets it utilizes for everyday operations.
We determine the current worth of AAR Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of AAR Corp based exclusively on its fundamental and basic technical indicators. By analyzing AAR Corp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of AAR Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of AAR Corp. We calculate exposure to AAR Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to AAR Corp's related companies.

AAR Corp Investment Alerts

AAR Corp investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring AAR Corp performance across your portfolios.Please check all investment alerts for AAR Corp

AAR Corp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare AAR Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across AAR Corp competition to find correlations between indicators driving the intrinsic value of AAR Corp.

How AAR Corp utilizes its cash?

To perform a cash flow analysis of AAR Corp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash AAR Corp is receiving and how much cash it distributes out in a given period. The AAR Corp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. AAR Corp Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. AAR Corp reported last year Net Cash Flow from Operations of (32.49 Million)

Is AAR Corp valued sensibly by the market?

The firm reported the last year's revenue of 1.93 B. Reported Net Loss for the year was (6.2 M) with profit before taxes, overhead, and interest of 283.2 M.

Margins Breakdown

AAR Corp profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or AAR Corp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of AAR Corp profit margins.
Operating Margin2.14
EBITDA Margin0.0467
Gross Margin0.13
Profit Margin0.002053

AAR Corp Average Assets is decreasing over the last 8 years. Moreover, AAR Corp Revenue Per Employee is relatively stable at the moment.

Another setback for AAR Corp retail investors

Latest skewness is at 1.28. AAR Corp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.22 and Jensen Alpha of 0.96. However, we do advice investors to further question AAR Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Current Takeaway on AAR Corp Investment

While some other firms under the aerospace & defense industry are still a bit expensive, AAR Corp may offer a potential longer-term growth to retail investors. With an optimistic outlook on your 30 days horizon, it may be a good time to acquire new shares of AAR Corp or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to AAR Corp.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of AAR Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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