Aar Corp Stock Fair Value – AAR CORP Expands Global Reach with New Aircraft Maintenance Acquisition
December 31, 2023
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AAR CORP ($NYSE:AIR) is a leading provider of aviation services to commercial and government customers, providing a comprehensive suite of products and services to the aerospace industry. The company has recently taken another step to strengthen its global reach with the acquisition of aircraft maintenance company, International Aviation Services Group (IASG). This move will further expand AAR’s capabilities in the aircraft maintenance sector, allowing them to better serve their customers and improve their bottom line. The acquisition of IASG adds a range of new capabilities to AAR’s portfolio, such as the maintenance of a wide variety of aircraft, including narrow-body and wide-body aircraft.
Additionally, IASG has a history of excellent customer service, which is expected to be beneficial to AAR’s existing customer base. AAR’s commitment to providing the best service to its customers has been further strengthened by this acquisition. With its extensive capabilities and expertise in the aircraft maintenance sector, IASG is an ideal addition to AAR’s portfolio and will help the company expand its reach and provide its customers with superior service.
Price History
On Thursday, AAR CORP, a leading global provider of aviation services, announced the acquisition of a major aircraft maintenance provider. This acquisition has expanded AAR’s global reach, providing additional capabilities and resources to serve customers around the world. The news caused the company’s stock to open at $63.1 and close at $62.7, down by 0.6% from prior closing price of 63.1. This acquisition marks a key step forward in AAR’s expansion plans and is expected to strengthen the company’s position in the aviation services industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aar Corp. More…
| Total Revenues | Net Income | Net Margin |
| 2.17k | 67.4 | 3.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aar Corp. More…
| Operations | Investing | Financing |
| 61.3 | -140 | 103 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aar Corp. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.97k | 810.1 | 32.55 |
Key Ratios Snapshot
Some of the financial key ratios for Aar Corp are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.9% | 98.9% | 4.8% |
| FCF Margin | ROE | ROA |
| 1.3% | 5.8% | 3.3% |
Analysis – Aar Corp Stock Fair Value
At GoodWhale, we have taken a close look at AAR CORP‘s financials. After thorough consideration of various metrics, our proprietary Valuation Line has determined the intrinsic value of AAR CORP shares at around $52.9. However, it appears that the market is placing a fair price on the stock, trading it at $62.7, which means a 18.6% overvaluation. More…
Peers
The aerospace industry is highly competitive, with companies vying for contracts from airlines and governments around the world. Its competitors include Sichuan Haite High-tech Co Ltd, Destini Bhd, Embraer SA, and other large aerospace firms. AAR Corp has a strong track record of delivering quality products and services, and is well-positioned to continue its success in the years to come.
– Sichuan Haite High-tech Co Ltd ($SZSE:002023)
Sichuan Haite High-tech Co Ltd is a Chinese company that manufactures and sells a variety of products, including semiconductors, integrated circuits, and other electronic components. The company has a market cap of 6.96B as of 2022 and a Return on Equity of 0.16%.
– Destini Bhd ($KLSE:7212)
Destini Bhd is a Malaysian company that provides engineering solutions. The company has a market capitalization of 133.08 million as of 2022 and a return on equity of 1.97%. Destini Bhd’s main business activities include providing engineering solutions for the aerospace, oil and gas, and defense industries. The company also has a joint venture with Airbus Group to provide engineering solutions for the A320neo aircraft.
– Embraer SA ($NYSE:ERJ)
Embraer SA is a Brazilian aerospace conglomerate that manufactures aircraft and provides aviation services. The company has a market cap of 1.93B as of 2022 and a return on equity of 4.38%. Embraer is the world’s third-largest producer of commercial jets, and its products are used by airlines around the globe. The company has a strong presence in the regional jet market, and its products are known for their fuel efficiency and reliability. Embraer has a long history of innovation, and its products are some of the most advanced in the aviation industry. The company is a major player in the global aerospace market, and its products are used by many of the world’s leading airlines.
Summary
AAR Corp is an aviation services company that recently acquired an aircraft maintenance business, expanding their global reach. This is an attractive investment opportunity due to AAR’s strong fundamentals and attractive financials. Their revenue has been growing steadily year-over-year, and they have maintained strong margins.
Their balance sheet is healthy with no long-term debt, and free cash flow has been consistently positive. Furthermore, the acquisition of the aircraft maintenance business is expected to accelerate AAR’s growth and returns, making it an appealing investment for those looking for long-term growth in the aviation industry.
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