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AAR

DB:ARZ
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARZ
DB
$1B
Market Cap
  1. Home
  2. DE
  3. Capital Goods
Company description

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The last earnings update was 15 days ago. More info.


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ARZ Share Price and Events
7 Day Returns
0.5%
DB:ARZ
0.2%
Europe Aerospace & Defense
1.2%
DE Market
1 Year Returns
-1%
DB:ARZ
12.5%
Europe Aerospace & Defense
0.4%
DE Market
ARZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
AAR (ARZ) 0.5% -8.1% 0.5% -1% 33.7% 96.3%
Europe Aerospace & Defense 0.2% -3.1% 0% 12.5% 67.6% 118.2%
DE Market 1.2% -1.3% -0.9% 0.4% 6.9% 24.4%
1 Year Return vs Industry and Market
  • ARZ underperformed the Aerospace & Defense industry which returned 12.5% over the past year.
  • ARZ underperformed the Market in Germany which returned 0.4% over the past year.
Price Volatility
ARZ
Industry
5yr Volatility vs Market

Value

 Is AAR undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of AAR to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for AAR.

DB:ARZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.2%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:ARZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.862 (1 + (1- 21%) (19.68%))
0.997
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.997 * 5.96%)
6.17%

Discounted Cash Flow Calculation for DB:ARZ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for AAR is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:ARZ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.17%)
2020 43.77 Analyst x3 41.22
2021 102.20 Analyst x3 90.67
2022 125.00 Analyst x1 104.45
2023 141.25 Est @ 13% 111.17
2024 154.20 Est @ 9.17% 114.31
2025 164.21 Est @ 6.49% 114.65
2026 171.78 Est @ 4.61% 112.96
2027 177.44 Est @ 3.29% 109.90
2028 181.65 Est @ 2.37% 105.97
2029 184.79 Est @ 1.73% 101.54
Present value of next 10 years cash flows $1,006.00
DB:ARZ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $184.79 × (1 + 0.23%) ÷ (6.17% – 0.23%)
$3,116.80
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,116.80 ÷ (1 + 6.17%)10
$1,712.66
DB:ARZ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,006.00 + $1,712.66
$2,718.66
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,718.66 / 34.44
$78.94
DB:ARZ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:ARZ represents 0.90398x of NYSE:AIR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.90398x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 78.94 x 0.90398
€71.36
Value per share (EUR) From above. €71.36
Current discount Discount to share price of €37.00
= -1 x (€37.00 - €71.36) / €71.36
48.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price AAR is available for.
Intrinsic value
48%
Share price is €37 vs Future cash flow value of €71.36
Current Discount Checks
For AAR to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • AAR's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • AAR's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for AAR's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are AAR's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:ARZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-08-31) in USD $2.37
NYSE:AIR Share Price ** NYSE (2019-10-11) in USD $40.93
Europe Aerospace & Defense Industry PE Ratio Median Figure of 36 Publicly-Listed Aerospace & Defense Companies 21.29x
Germany Market PE Ratio Median Figure of 417 Publicly-Listed Companies 19.64x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of AAR.

DB:ARZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AIR Share Price ÷ EPS (both in USD)

= 40.93 ÷ 2.37

17.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAR is good value based on earnings compared to the Europe Aerospace & Defense industry average.
  • AAR is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does AAR's expected growth come at a high price?
Raw Data
DB:ARZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
16.3%per year
Europe Aerospace & Defense Industry PEG Ratio Median Figure of 26 Publicly-Listed Aerospace & Defense Companies 1.56x
Germany Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

DB:ARZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.25x ÷ 16.3%

1.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAR is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on AAR's assets?
Raw Data
DB:ARZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-08-31) in USD $26.41
NYSE:AIR Share Price * NYSE (2019-10-11) in USD $40.93
Europe Aerospace & Defense Industry PB Ratio Median Figure of 49 Publicly-Listed Aerospace & Defense Companies 1.99x
Germany Market PB Ratio Median Figure of 597 Publicly-Listed Companies 1.72x
DB:ARZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AIR Share Price ÷ Book Value per Share (both in USD)

= 40.93 ÷ 26.41

1.55x

* Primary Listing of AAR.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAR is good value based on assets compared to the Europe Aerospace & Defense industry average.
X
Value checks
We assess AAR's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. AAR has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is AAR expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is AAR expected to grow at an attractive rate?
  • AAR's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • AAR's earnings growth is expected to exceed the Germany market average.
  • AAR's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:ARZ Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:ARZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 16.3%
DB:ARZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 4.3%
Europe Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.2%
Europe Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 4.2%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.9%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:ARZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:ARZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-05-31 2,401 111 1
2021-05-31 2,300 117 104 5
2020-05-31 2,207 65 81 5
2019-10-11
DB:ARZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-08-31 2,127 62 82
2019-05-31 2,052 67 84
2019-02-28 1,963 56 75
2018-11-30 1,889 39 79
2018-08-31 1,817 58 81
2018-05-31 1,748 64 73
2018-02-28 1,725 66 71
2017-11-30 1,676 13 55
2017-08-31 1,584 2 53
2017-05-31 1,591 22 52
2017-02-28 1,609 35 47
2016-11-30 1,614 47 43

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • AAR's earnings are expected to grow by 16.3% yearly, however this is not considered high growth (20% yearly).
  • AAR's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:ARZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from AAR Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ARZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-05-31 3.19 3.19 3.19 1.00
2021-05-31 2.96 3.02 2.91 5.00
2020-05-31 2.41 2.63 2.19 4.00
2019-10-11
DB:ARZ Past Financials Data
Date (Data in USD Millions) EPS *
2019-08-31 2.37
2019-05-31 2.43
2019-02-28 2.18
2018-11-30 2.29
2018-08-31 2.36
2018-05-31 2.14
2018-02-28 2.09
2017-11-30 1.61
2017-08-31 1.55
2017-05-31 1.52
2017-02-28 1.39
2016-11-30 1.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • AAR is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess AAR's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
AAR has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has AAR performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare AAR's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • AAR has delivered over 20% year on year earnings growth in the past 5 years.
  • AAR's 1-year earnings growth is less than its 5-year average (1.1% vs 33%)
  • AAR's earnings growth has not exceeded the Europe Aerospace & Defense industry average in the past year (1.1% vs 16.4%).
Earnings and Revenue History
AAR's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from AAR Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:ARZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-08-31 2,127.00 81.90 227.00
2019-05-31 2,051.80 83.70 217.80
2019-02-28 1,962.60 75.20 228.10
2018-11-30 1,889.40 78.90 225.20
2018-08-31 1,816.70 81.00 212.90
2018-05-31 1,748.30 73.10 208.60
2018-02-28 1,725.30 71.20 200.50
2017-11-30 1,676.20 54.50 191.00
2017-08-31 1,583.90 52.60 180.80
2017-05-31 1,590.80 51.50 181.10
2017-02-28 1,608.90 47.10 173.60
2016-11-30 1,613.80 42.60 173.60
2016-08-31 1,717.00 40.50 178.00
2016-05-31 1,525.40 45.10 157.60
2016-02-29 1,646.10 -55.60 172.10
2015-11-30 1,614.10 -63.60 170.70
2015-08-31 1,585.90 -59.20 167.70
2015-05-31 1,621.40 -74.20 167.20
2015-02-28 1,599.10 41.60 166.30
2014-11-30 1,618.80 56.30 162.30
2014-08-31 1,589.70 59.80 157.10
2014-05-31 1,709.10 65.70 166.30
2014-02-28 1,842.30 51.70 172.80
2013-11-30 1,962.70 52.90 185.90
2013-08-31 2,101.30 52.90 201.80
2013-05-31 1,807.90 46.80 173.00
2013-02-28 2,146.80 64.90 205.40
2012-11-30 2,160.80 67.00 205.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • AAR has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • AAR used its assets more efficiently than the Europe Aerospace & Defense industry average last year based on Return on Assets.
  • AAR has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess AAR's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
AAR has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is AAR's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up AAR's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • AAR is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • AAR's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of AAR's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from AAR Company Filings, last reported 1 month ago.

DB:ARZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-08-31 909.50 202.20 39.90
2019-05-31 905.90 141.70 21.30
2019-02-28 899.40 177.20 28.90
2018-11-30 935.60 218.90 25.70
2018-08-31 929.10 209.10 22.70
2018-05-31 936.30 177.20 31.10
2018-02-28 915.20 194.40 23.90
2017-11-30 906.50 217.50 54.80
2017-08-31 924.70 191.00 48.80
2017-05-31 914.20 154.20 10.30
2017-02-28 885.70 170.70 38.00
2016-11-30 872.40 161.10 52.70
2016-08-31 858.50 149.80 40.70
2016-05-31 865.80 148.10 63.10
2016-02-29 858.30 195.70 85.60
2015-11-30 862.50 170.30 99.60
2015-08-31 857.00 179.50 66.00
2015-05-31 845.10 151.40 81.00
2015-02-28 941.80 645.60 106.60
2014-11-30 1,002.10 637.80 126.10
2014-08-31 1,004.50 629.50 131.30
2014-05-31 1,000.70 636.80 128.40
2014-02-28 988.10 717.30 161.70
2013-11-30 967.20 683.90 139.90
2013-08-31 939.40 704.60 151.40
2013-05-31 919.50 708.60 111.40
2013-02-28 924.70 722.80 108.50
2012-11-30 903.40 778.90 122.80
  • AAR's level of debt (22.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (62.7% vs 22.2% today).
  • Debt is well covered by operating cash flow (30.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.5x coverage).
X
Financial health checks
We assess AAR's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. AAR has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is AAR's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.73%
Current annual income from AAR dividends. Estimated to be 0.49% next year.
If you bought €2,000 of AAR shares you are expected to receive €15 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • AAR's pays a lower dividend yield than the bottom 25% of dividend payers in Germany (1.48%).
  • AAR's dividend is below the markets top 25% of dividend payers in Germany (3.96%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:ARZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 30 Stocks 1.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 337 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:ARZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-05-31
2021-05-31 0.15 2.00
2020-05-31 0.30 1.00
2019-10-11
DB:ARZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-09-25 0.300 0.729
2019-07-09 0.300 0.708
2019-04-16 0.300 0.900
2019-01-16 0.300 0.850
2018-10-11 0.300 0.712
2018-07-10 0.300 0.655
2018-04-17 0.300 0.651
2018-01-09 0.300 0.715
2017-10-11 0.300 0.745
2017-07-10 0.300 0.820
2017-04-18 0.300 0.859
2017-01-11 0.300 0.900
2016-10-11 0.300 0.874
2016-07-12 0.300 1.153
2016-04-19 0.300 1.266
2016-01-12 0.300 1.382
2015-10-13 0.300 1.267
2015-07-14 0.300 1.237
2015-04-15 0.300 0.981
2015-01-13 0.300 1.000
2014-10-08 0.300 1.154
2014-07-15 0.300 1.119
2014-04-15 0.300 1.152
2014-01-14 0.300 1.091
2013-10-09 0.300 1.033
2013-07-16 0.300 1.156
2013-04-22 0.300 1.475
2013-01-16 0.300 1.653
2012-10-10 0.300 1.862
2012-07-17 0.300 2.005
2012-04-17 0.300 2.269
2012-01-19 0.300 1.465
2011-10-12 0.300 1.607
2011-07-12 0.300 1.345
2011-04-13 0.300 1.150

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • AAR is not paying a notable dividend for Germany, therefore no need to check if the payments are stable.
  • AAR is not paying a notable dividend for Germany, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of AAR's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of AAR's dividends as it is not paying a notable one for Germany.
Future Payout to shareholders
  • No need to calculate the sustainability of AAR's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess AAR's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can AAR afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. AAR has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of AAR's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Holmes
COMPENSATION $3,345,147
AGE 42
TENURE AS CEO 1.3 years
CEO Bio

Mr. John McClain Holmes III, has been the President at AAR Corp. since June 1, 2017 and its Chief Executive Officer since June 1, 2018. Mr. Holmes served as Chief Operating Officer of Aviation Services at AAR Corp. since February 2015 to June 2017 and served as its Vice President. He was Chief Operating Officer at AAR Corp. from June 1, 2017 to 2018. Mr. Holmes served as Aviation Services Group Vice President of Inventory Management and Distribution at AAR Corp. from 2012 to 2015. Mr. Holmes oversees its global parts trading and distribution businesses. AAR’s Aviation Supply Chain Group also develops, implements, and manages customized end-to-end supply chain and repair management programs for commercial airline and government customers around the world. Mr. Holmes served as Group Vice President of Supply Chain of AAR Corp. since July 17, 2012. He served as Vice President and General Manager of AAR Supply Chain, Inc. He served as General Manager and Division President of AAR Allen Asset Management at AAR Corp. from 2003 to 2012. Mr. Holmes joined AAR in 2001 as Director of Mergers and Acquisitions. He served as General Manager of AAR Allen Aircraft since 2003 and assumed responsibility for AAR Distribution in 2004. In 2012, Mr. Holmes assumed responsibility for its Defense Systems and Logistics business and was appointed Group Vice President, Aviation Supply Chain. Prior to joining AAR, he spent time in investment banking and private equity. He serves on the board of Columbia College Chicago, Primo Center and Alliance Francaise. He is a member of the Economic Club of Chicago and the Wings Club. He has been a Director of AAR Corp. since July 10, 2017. Mr. Holmes earned a Bachelor's degree in Finance from the University of Illinois and an MBA from the University of Chicago.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the AAR management team in years:

3.3
Average Tenure
44
Average Age
  • The tenure for the AAR management team is about average.
Management Team

John Holmes

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
42
TENURE
1.3 yrs

Mike Gillen

TITLE
VP & CFO
COMPENSATION
$987K
AGE
33
TENURE
0.8 yrs

Eric Pachapa

TITLE
VP, Controller & Chief Accounting Officer
COMPENSATION
$890K
AGE
46
TENURE
3.3 yrs

Bob Regan

TITLE
VP, General Counsel & Secretary
COMPENSATION
$2M
AGE
61
TENURE
11.3 yrs

Terry Stinson

TITLE
Executive Vice President
COMPENSATION
$1M
AGE
77

Chris Jessup

TITLE
Chief Commercial Officer & VP
AGE
41
TENURE
2.3 yrs

Brian Sartain

TITLE
SVP of Repair and Engineering Services

Nick Gross

TITLE
Senior VP of Government Programs

Deepak Sharma

TITLE
President of International Supply Chain
TENURE
3.5 yrs

Jason Secore

TITLE
VP & Treasurer
TENURE
3.5 yrs
Board of Directors Tenure

Average tenure and age of the AAR board of directors in years:

13.3
Average Tenure
66.5
Average Age
  • The average tenure for the AAR board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

David Storch

TITLE
Chairman of the Board
COMPENSATION
$397K
AGE
66
TENURE
14 yrs

John Holmes

TITLE
CEO, President & Director
COMPENSATION
$3M
AGE
42
TENURE
2.3 yrs

James Goodwin

TITLE
Lead Director
COMPENSATION
$246K
AGE
75

Marc Walfish

TITLE
Independent Director
COMPENSATION
$216K
AGE
67
TENURE
16.8 yrs

Ronald Woodard

TITLE
Independent Director
COMPENSATION
$218K
AGE
76
TENURE
15.3 yrs

Patrick Kelly

TITLE
Independent Director
COMPENSATION
$205K
AGE
64
TENURE
13.3 yrs

Michael Boyce

TITLE
Independent Director
COMPENSATION
$207K
AGE
71
TENURE
14.2 yrs

Peter Pace

TITLE
Independent Director
COMPENSATION
$206K
AGE
73
TENURE
8.8 yrs

Tony Anderson

TITLE
Independent Director
COMPENSATION
$198K
AGE
63
TENURE
7 yrs

Jennifer Vogel

TITLE
Independent Director
COMPENSATION
$202K
AGE
57
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • AAR individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. Sep 19 Sell Eric Pachapa Individual 30. Sep 19 30. Sep 19 -1,000 €38.56 €-38,557
04. Jun 19 Sell Peter Pace Individual 29. Mar 19 29. Mar 19 -1 €29.04 €-19
02. Apr 19 Sell Anthony Anderson Individual 02. Apr 19 02. Apr 19 -3,615 €29.71 €-107,392
11. Jan 19 Sell David Storch Individual 10. Jan 19 10. Jan 19 -30,000 €33.63 €-1,008,966
17. Oct 18 Sell David Storch Individual 16. Oct 18 16. Oct 18 -983 €38.89 €-38,226
15. Oct 18 Sell David Storch Individual 15. Oct 18 15. Oct 18 -22,570 €38.00 €-857,764
X
Management checks
We assess AAR's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. AAR has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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 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. It serves commercial, defense, and governmental aircraft fleet operators; original equipment manufacturers; and independent service providers, as well as various other domestic and foreign military customers. The company primarily markets and sells products and services through its employees and foreign sales representatives. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

Details
Name: AAR Corp.
ARZ
Exchange: DB
Founded: 1951
$1,273,470,380
34,438,316
Website: http://www.aarcorp.com
Address: AAR Corp.
One AAR Place,
1100 North Wood Dale Road,
Wood Dale,
Illinois, 60191,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AIR Common Stock New York Stock Exchange US USD 24. Apr 1972
DB ARZ Common Stock Deutsche Boerse AG DE EUR 24. Apr 1972
Number of employees
Current staff
Staff numbers
5,650
AAR employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/11 21:35
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/09/30
Last earnings filing: 2019/09/26
Last earnings reported: 2019/08/31
Last annual earnings reported: 2019/05/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.