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AAR Corp is an aerospace & defense business based in the US. AAR shares (AIR) are listed on the NYSE and all prices are listed in US Dollars. AAR employs 4,200 staff and has a trailing 12-month revenue of around USD$1.9 billion.
Since the stock market crash in March caused by coronavirus, AAR's share price has had significant negative movement.
Its last market close was USD$26.66, which is 41.70% down on its pre-crash value of USD$45.73 and 211.45% up on the lowest point reached during the March crash when the shares fell as low as USD$8.56.
If you had bought USD$1,000 worth of AAR shares at the start of February 2020, those shares would have been worth USD$310.70 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth USD$627.04.
|Latest market close||USD$26.66|
|52-week range||USD$8.56 - USD$48.43|
|50-day moving average||USD$19.3821|
|200-day moving average||USD$19.2793|
|Wall St. target price||USD$24|
|Dividend yield||USD$0.3 (1.51%)|
|Earnings per share (TTM)||USD$0.124|
The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.
|1 week (2020-11-20)||0.49%|
|1 month (2020-10-30)||37.00%|
|3 months (2020-08-28)||30.11%|
|6 months (2020-05-29)||32.18%|
|1 year (2019-11-29)||-40.34%|
|2 years (2018-11-29)||-38.09%|
|3 years (2017-11-29)||-35.56%|
|5 years (2015-11-27)||10.39%|
Valuing AAR stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of AAR's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
AAR's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 25x. In other words, AAR shares trade at around 25x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
AAR's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.5284. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into AAR's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
AAR's EBITDA (earnings before interest, taxes, depreciation and amortisation) is USD$78.9 million.
The EBITDA is a measure of a AAR's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||USD$1.9 billion|
|Operating margin TTM||1.92%|
|Gross profit TTM||USD$283.2 million|
|Return on assets TTM||1.36%|
|Return on equity TTM||-0.69%|
|Market capitalisation||USD$702.5 million|
TTM: trailing 12 months
There are currently 1.2 million AAR shares held short by investors – that's known as AAR's "short interest". This figure is 16.2% down from 1.5 million last month.
There are a few different ways that this level of interest in shorting AAR shares can be evaluated.
AAR's "short interest ratio" (SIR) is the quantity of AAR shares currently shorted divided by the average quantity of AAR shares traded daily (recently around 378948.17073171). AAR's SIR currently stands at 3.28. In other words for every 100,000 AAR shares traded daily on the market, roughly 3280 shares are currently held short.
However AAR's short interest can also be evaluated against the total number of AAR shares, or, against the total number of tradable AAR shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case AAR's short interest could be expressed as 0.04% of the outstanding shares (for every 100,000 AAR shares in existence, roughly 40 shares are currently held short) or 0.0515% of the tradable shares (for every 100,000 tradable AAR shares, roughly 52 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against AAR.
Find out more about how you can short AAR stock.
Dividend payout ratio: 6.49% of net profits
Recently AAR has paid out, on average, around 6.49% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.51% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), AAR shareholders could enjoy a 1.51% return on their shares, in the form of dividend payments. In AAR's case, that would currently equate to about $0.3 per share.
While AAR's payout ratio might seem low, this can signify that AAR is investing more in its future growth.
AAR's most recent dividend payout was on 9 April 2020. The latest dividend was paid out to all shareholders who bought their shares by 27 March 2020 (the "ex-dividend date").
AAR's shares were split on a 3:2 basis on 24 February 1998. So if you had owned 2 shares the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your AAR shares – just the quantity. However, indirectly, the new 33.3% lower share price could have impacted the market appetite for AAR shares which in turn could have impacted AAR's share price.
Over the last 12 months, AAR's shares have ranged in value from as little as $8.56 up to $48.43. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while AAR's is 1.5863. This would suggest that AAR's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The company operates in two segments, Aviation Services and Expeditionary Services. 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, as well as composite materials for commercial, business, and military aircraft; and provides engineering, design, and system integration services for command and control systems. The company serves commercial, government, and defense aircraft fleet operators; original equipment manufacturers; and independent service providers, as well as various other domestic and foreign military customers. It primarily markets and sells products and services through its employees and foreign sales representatives. The company was founded in 1951 and is headquartered in Wood Dale, Illinois.
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