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Intrinsic value of AAR Corp. (AIR)

Previous Close$45.13
Intrinsic Value
Upside potential
Previous Close
$45.13
Use floor (the cash flow based valuation has rendered a result, which is lower than an estimated minimum value derived from the company’s balance sheet analysis)

VALUATION INPUT DATA (original, your and others' valuations)

ParameterOrig.Your
Date of valuation (DoV)  
Intrinsic value (IV) at DoV, $/sh  
IV at current val. algorithm, $/sh21.75 

The original valuation is based on fiscal year data as of 2021-05-31 and quarterly data as of 2022-02-28.

Registered users can save their valuation input data

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

NOTE: The bar chart shows historic and forecasted yearly revenue growth rates. Its purpose is to help you in determining what initial revenue rate you want to base your stock valuation on. Please make sure that you are confident in the value you select - for most stocks it is by far the most important parameter in valuation.

Company 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 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.

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2021(a)2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046

INCOME STATEMENT

Revenue growth rate, %-20.3NaN
Revenue, $1652NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m1567NaN
Operating income, $m85NaN
EBITDA, $m122NaN
Interest expense (income), $mNaN
Earnings before tax, $m53NaN
Tax expense, $m18NaN
Net income, $m35NaN

BALANCE SHEET

Cash and short-term investments, $m60NaN
Total assets, $m1540NaN
Adjusted assets (=assets-cash), $m1480NaN
Average production assets, $m532NaN
Working capital, $m600NaN
Total debt, $m206NaN
Total liabilities, $m566NaN
Total equity, $m974NaN
Debt-to-equity ratio0.211NaN
Adjusted equity ratio0.626NaN

CASH FLOW

Net income, $m35NaN
Depreciation, amort., depletion, $m36NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m105NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-11NaN
Free cash flow, $m117NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m600
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
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