AAR CORP. provides products and services to commercial aviation, government, and defense markets worldwide. It operates in two segments, Aviation Services and Expeditionary Services. The company was founded in 1951 and is based in Wood Dale, Illinois.
AIR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Aar Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Aar Corp ranked in the 5th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Aar Corp, consider:
The company's compound free cash flow growth rate over the past 5.77 years comes in at -0.27%; that's greater than only 5.64% of US stocks we're applying DCF forecasting to.
As a business, AIR is generating more cash flow than merely 11.66% of positive cash flow stocks in the Industrials.
Aar Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.83. This coverage rate is greater than that of merely 21.37% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ATSG, ATTO, DHX, ENG, and GLBS can be thought of as valuation peers to AIR, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
AAR ([[AIR]] +9.4%) reported FQ1 sales decline of 26% Y/Y to $400.1M, reflecting commercial customers decrease of 48% Y/Y due to the continued impact of COVID-19. Adj. EPS from continuing operations decreased 70% Y/Y to $0.17 per share.Aviation Services sales $363.6M (-28.9% Y/Y); and Expeditionary Services $37.2M (+25.3% Y/Y). Sales to...
AAR’s (AIR) subsidiary AAR Supply Chain Inc. has been awarded a maximum ~$11.79M firm-fixed-price, one-time buy contract for control and turbine assemblies and diffusers by the Defense Logistics Agency Aviation.The contract is for three years with no option periods, with delivery completion date of October 15, 2023.SourceShares +0.26% AH....
LOS ANGELES--(BUSINESS WIRE)--Today Air Lease Corporation (“ALC”) (NYSE: AL) announced the delivery of one new Airbus A350-1000 aircraft on long-term lease to Virgin Atlantic. Powered by Trent XWB-97 engines, this aircraft is the first of four A350-1000s confirmed to deliver to the airline from ALC’s order book with Airbus. “We are pleased to announce this first new A350-1000 aircraft delivery to Virgin Atlantic today,” said Steven F. Udvar-Házy, Executive Chairman of Air Lease Corporation. “Ou
Wood Dale, July 27, 2020 (GLOBE NEWSWIRE) -- AAR (NYSE: AIR), a leading provider of aviation services to commercial airlines and governments worldwide, has been awarded a three-year contract by the Royal Netherlands Air Force (RNLAF) to perform maintenance, repair and overhaul on F-16 jet fuel starters.AAR will service the jet fuel starters in its component repair facility in Amsterdam, where AAR has been supporting European Participating Air Forces (EPAF) for over 30 years as a prime provider or subcontractor for repair management, component maintenance, supply chain and depot services.“The RNLAF is pleased to have an MRO contract in place for its F-16 jet fuel starters,” said Lieutenant Colonel Ronald Zoeteman, Program Manager F-16. “The F-16 community is excited to have a trusted par...