AAR Corp.
Find Ratings ReportsAAR CORP's gross profit margin for the second quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its subsector this quarter as compared to the same quarter a year ago. AAR CORP has average liquidity. Currently, the Quick Ratio is 1.11 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
During the same period, stockholders' equity ("net worth") has increased by 11.61% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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Income Statement | Q2 FY23 | Q2 FY22 |
---|---|---|
Net Sales ($mil) | 545.4 | 469.8 |
EBITDA ($mil) | 51.1 | 42.7 |
EBIT ($mil) | 42.4 | 36.2 |
Net Income ($mil) | 23.8 | 22.5 |
Balance Sheet | Q2 FY23 | Q2 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 75.5 | 51.2 |
Total Assets ($mil) | 1965.6 | 1646.9 |
Total Debt ($mil) | 348.2 | 249.1 |
Equity ($mil) | 1155.5 | 1035.3 |
Profitability | Q2 FY23 | Q2 FY22 |
---|---|---|
Gross Profit Margin | 20.55 | 20.14 |
EBITDA Margin | 9.36 | 9.08 |
Operating Margin | 7.77 | 7.71 |
Sales Turnover | 1.1 | 1.12 |
Return on Assets | 3.46 | 5.56 |
Return on Equity | 5.9 | 8.82 |
Debt | Q2 FY23 | Q2 FY22 |
---|---|---|
Current Ratio | 3.14 | 3.28 |
Debt/Capital | 0.23 | 0.19 |
Interest Expense | 6.2 | 2.1 |
Interest Coverage | 6.84 | 17.24 |
Share Data | Q2 FY23 | Q2 FY22 |
---|---|---|
Shares outstanding (mil) | 35.5 | 34.46 |
Div / share | 0.0 | 0.0 |
EPS | 0.67 | 0.64 |
Book value / share | 32.55 | 30.05 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 319070.0 | 219519.0 |
BUY. AAR CORP's P/E ratio indicates a premium compared to an average of 24.06 for the Merchant Wholesalers, Durable Goods subsector and a premium compared to the S&P 500 average of 27.95. For additional comparison, its price-to-book ratio of 1.98 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 6.83. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount.
Price/Earnings |
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Price/Cash Flow |
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AIR 33.32 | Peers 24.06 | AIR 36.31 | Peers 17.73 | |||||||||||||||||||||
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. AIR is trading at a significant premium to its peers. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AIR is trading at a significant premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AIR 16.49 | Peers 24.12 | AIR 1.06 | Peers 3.31 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AIR is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AIR trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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AIR 1.98 | Peers 6.83 | AIR -24.32 | Peers -19.81 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AIR is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, AIR is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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AIR 1.05 | Peers 1.87 | AIR 17.70 | Peers -0.87 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AIR is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. AIR has a sales growth rate that significantly exceeds its peers. |
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