Last Updated: 15 Oct 2024
Executive Summary
AAR Corp. (AIR) is a leading provider of aviation services and products. The company has a market capitalization of $2.21 billion and trades on the NYSE. AAR's latest stock price is $61.45. The company has a strong financial position with an EBITDA of $212.8 million and a profit margin of 2.67%. AAR's forward P/E ratio of 15.7 is attractive compared to the industry average of 18.5. The company has a positive long-term outlook due to the increasing demand for air travel and the need for aircraft maintenance and repair services.
Company Overview
AAR Corp. is headquartered in Wood Dale, Illinois. The company provides a wide range of aviation services, including aircraft maintenance, repair, and overhaul (MRO), parts distribution, and supply chain management. AAR also manufactures aircraft components and systems. The company's customers include airlines, aircraft manufacturers, and government agencies.
Fundamental Analysis
AAR's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 5.6% over the past five years. AAR's EBITDA has also grown at a CAGR of 6.2% over the same period. The company's profit margin has remained relatively stable at around 2.5%.
AAR's balance sheet is also strong. The company has a low level of debt and a strong cash position. AAR's current ratio is 1.5 and its debt-to-equity ratio is 0.3.
Technical Analysis
AAR's stock price has been trading in a range between $54.71 and $76.34 over the past 52 weeks. The stock is currently trading near the bottom of this range. The 50-day moving average is $64.11 and the 200-day moving average is $65.31. The relative strength index (RSI) is 45.4, which indicates that the stock is neither overbought nor oversold.
Short Term Outlook
AAR's stock price is likely to remain range-bound in the short term. The company's financial performance is strong, but the stock is trading at a premium to its peers. A breakout above $65.31 could lead to a rally to $70.00. A breakdown below $54.71 could lead to a decline to $50.00.
Long Term Outlook
AAR's long-term outlook is positive. The company is well-positioned to benefit from the increasing demand for air travel and the need for aircraft maintenance and repair services. AAR's strong financial position and experienced management team should allow the company to continue to grow in the years to come.
Analyst Recommendations
The consensus analyst rating for AAR is "Buy." The average analyst target price is $83.00. Two analysts have a "Strong Buy" rating, four analysts have a "Buy" rating, and zero analysts have a "Hold," "Sell," or "Strong Sell" rating.
