AAR Corp (AIR) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
AAR Corp stock (AIR) is currently trading at $118.52. AAR Corp PE ratio is 42.11. AAR Corp PS ratio (Price-to-Sales) is 1.44. Analyst consensus price target for AIR is $119.80. WallStSmart rates AIR as Hold.
- AIR PE ratio analysis and historical PE chart
- AIR PS ratio (Price-to-Sales) history and trend
- AIR intrinsic value — DCF, Graham Number, EPV models
- AIR stock price prediction 2025 2026 2027 2028 2029 2030
- AIR fair value vs current price
- AIR insider transactions and insider buying
- Is AIR undervalued or overvalued?
- AAR Corp financial analysis — revenue, earnings, cash flow
- AIR Piotroski F-Score and Altman Z-Score
- AIR analyst price target and Smart Rating
AAR Corp
📊 No data available
Try selecting a different time range
AIR Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · AAR Corp (AIR)
AIR is trading near its Graham intrinsic value of $119.81, suggesting the stock is reasonably priced at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
AAR Corp (AIR) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, eps growth, institutional own.. Concerns around return on equity and operating margin. Fundamentals are solid but monitor weak areas for improvement.
AAR Corp (AIR) Key Strengths (4)
Earnings per share surging 92.00% year-over-year
99.23% of shares held by major funds and institutions
Paying $1.44 for every $1 of annual revenue
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
AAR Corp (AIR) Areas to Watch (6)
Very thin margins with limited operational efficiency
Very thin margins, barely profitable
Low profitability relative to shareholder equity
Paying a premium for growth, expensive relative to earnings expansion
Fairly priced relative to book value
Solid revenue growth at 15.90% per year
Supporting Valuation Data
AAR Corp (AIR) Detailed Analysis Report
Overall Assessment
This company scores 57/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 4 register as strengths (avg 8.8/10) while 6 fall into concern territory (avg 3.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on EPS Growth, Institutional Own., Price/Sales. Valuation metrics including Price/Sales (1.44) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 92.00%.
The Bear Case
The primary concerns are Operating Margin, Profit Margin, Return on Equity. Some valuation metrics including PEG Ratio (2.40), Price/Book (2.57) suggest expensive pricing. Growth concerns include Revenue Growth at 15.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 6.86%, Operating Margin at 8.51%, Profit Margin at 3.17%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 6.86% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 15.90% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (EPS Growth, Institutional Own.) and negatives (Operating Margin, Profit Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AIR Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AIR's Price-to-Sales ratio of 1.44x trades 100% above its historical average of 0.72x (97th percentile), historically expensive. The current valuation is 8% below its historical high of 1.56x set in Mar 2026, and 453% above its historical low of 0.26x in Jun 2012.
WallStSmart Analysis Synopsis
Data-driven financial summary for AAR Corp (AIR) · INDUSTRIALS › AEROSPACE & DEFENSE
The Big Picture
AAR Corp is a strong growth company balancing expansion with improving profitability. Revenue reached 3.0B with 16% growth year-over-year. Profit margins are thin at 3.2%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 6M in free cash flow and 14M in operating cash flow. Earnings are translating into actual cash generation.
Profit margin at 3.2% is thin. While this is common for high-growth companies, margins need to expand as growth naturally decelerates.
What to Watch Next
Margin expansion: can AAR Corp push profit margins above 15% as the business scales?
Debt management: total debt of 1.0B is significantly higher than cash (76M). Monitor refinancing risk.
Sector dynamics: monitor AEROSPACE & DEFENSE industry trends, competitive moves, and regulatory changes that could impact AAR Corp.
Bottom Line
AAR Corp offers an attractive blend of growth (16% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(45 last 3 months)
| Insider | Type | Shares |
|---|---|---|
GARASCIA, JESSICA A. Senior VP, GC, CAO & Secretary | Sell | -4,787 |
| Insider | Type | Shares |
|---|---|---|
HOLMES, JOHN MCCLAIN III Director, Chairman, President & CEO | Sell | -23,077 |
Data sourced from SEC Form 4 filings
Last updated: 10:02:23 AM
About AAR Corp(AIR)
NYSE
INDUSTRIALS
AEROSPACE & DEFENSE
USA
AAR Corp. The company is headquartered in Wood Dale, Illinois.