AAR Corp Stock Buy Hold or Sell Recommendation

AIR
 Stock
  

USD 42.00  0.16  0.38%   

Considering the 90-day investment horizon and your highly speculative risk level, our recommendation regarding AAR Corp is 'Strong Buy'. Macroaxis provides AAR Corp buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding AAR Corp positions. The advice algorithm takes into account all of AAR Corp's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from AAR Corp's buy-and-hold perspective. Please continue to AAR Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as AAR Corp and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards AAR Corp.

Execute AAR Corp Buy or Sell Advice

The AAR Corp recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on AAR Corp. Macroaxis does not own or have any residual interests in AAR Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute AAR Corp's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AAR CorpBuy AAR Corp
Strong Buy

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon AAR Corp has a Risk Adjusted Performance of (0.10), Jensen Alpha of 0.0402, Total Risk Alpha of 0.1294 and Treynor Ratio of (0.16)
AAR Corp advice module can be used to check and cross-verify current investment recommendation provided by analysts examining the company's potential to grow using all of fundamental, technical, data market data available right now. To make sure AAR Corp is not overpriced, please confirm all AAR Corp fundamentals, including its book value per share, working capital, and the relationship between the cash and equivalents and number of employees . Given that AAR Corp has a price to earning of 20.02 X, we suggest you to validate AAR Corp market performance and probability of bankruptcy to ensure the company can sustain itself in the future given your prevailing risk tolerance and investing horizon.

AAR Corp Trading Alerts and Improvement Suggestions

AAR Corp generated a negative expected return over the last 90 days
Latest headline from www.defenseworld.net: AAR Corp. Given Average Recommendation of Moderate Buy by Brokerages - Defense World

AAR Corp current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. AAR Corp analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. AAR Corp analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price54.67
Target Median Price56.00
Target High Price58.00
Recommendation Mean2.00
Number Of Analyst Opinions3
Target Low Price50.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

AAR Corp Returns Distribution Density

The distribution of AAR Corp's historical returns is an attempt to chart the future uncertainty of AAR Corp's future price movements. The chart of the probability distribution of AAR Corp stock daily returns describes the distribution of returns around its average expected value. We use AAR Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of AAR Corp returns is essential to provide solid investment advice for AAR Corp stock.
Mean Return-0.18Value At Risk-4.04
Potential Upside3.68Standard Deviation2.37
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of AAR Corp historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

AAR Corp Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as AAR Corp is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading AAR Corp backward and forwards among themselves. AAR Corp's institutional investor refers to the entity that pools money to purchase AAR Corp's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Blackrock IncCommon Shares6.2 M302.2 M
Vanguard Group IncCommon Shares3.6 M174.2 M
Dimensional Fund Advisors LpCommon Shares2.6 M125.1 M
Earnest Partners LlcCommon Shares2.5 M120.2 M
State Street CorpCommon Shares2.2 M107 M
Rubric Capital Management LpCommon Shares1.6 M76 M
Goldman Sachs Group IncCommon SharesM49.3 M
Note, although AAR Corp's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

AAR Corp Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(22 M)(17.4 M)(23.6 M)(11.3 M)(12.99 M)(14.02 M)
Depreciation Amortization and Accretion40.5 M42.8 M43.7 M36.3 M32.67 M38.53 M
Net Cash Flow or Change in Cash and Cash Equivalents31.3 M(500 K)383.6 M(364.5 M)(328.05 M)(336.68 M)
Issuance Purchase of Equity Shares(1.5 M)(1.8 M)(3 M)600 K690 K744.47 K
Issuance Repayment of Debt Securities23.8 M(35 M)459.5 M(470 M)(423 M)(434.13 M)
Payment of Dividends and Other Cash Distributions(10.3 M)(10.5 M)(10.7 M)(100 K)(115 K)(124.08 K)
Net Cash Flow from Financing10 M(48.7 M)444.5 M(469.5 M)(422.55 M)(433.67 M)
Net Cash Flow from Investing(42.9 M)(19 M)(24.8 M)(500 K)(575 K)(590.13 K)
Net Cash Flow from Operations64.3 M67.4 M(36.1 M)105.2 M94.68 M75.46 M
Share Based Compensation15.3 M13.5 M7.3 M9.2 M8.28 M8.67 M

AAR Corp Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to AAR Corp or Industrials sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that AAR Corp stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a AAR Corp stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.040185
β
Beta against DOW1.21
σ
Overall volatility
2.42
Ir
Information ratio 0.0004

AAR Corp Volatility Alert

AAR Corp exhibits very low volatility with skewness of -0.39 and kurtosis of 0.61. However, we advise investors to further study AAR Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure AAR Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact AAR Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

AAR Corp Implied Volatility

AAR Corp's implied volatility exposes the market's sentiment of AAR Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if AAR Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that AAR Corp stock will not fluctuate a lot when AAR Corp's options are near their expiration.

AAR Corp Fundamentals Vs Peers

Comparing AAR Corp's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze AAR Corp's direct or indirect competition across all of the common fundamentals between AAR Corp and the related equities. This way, we can detect undervalued stocks with similar characteristics as AAR Corp or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of AAR Corp's fundamental indicators could also be used in its relative valuation, which is a method of valuing AAR Corp by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare AAR Corp to competition
FundamentalsAAR CorpPeer Average
Return On Equity7.11 %(0.31) %
Return On Asset3.79 %(0.14) %
Profit Margin3.86 %(1.27) %
Operating Margin7.38 %(5.51) %
Current Valuation1.76 B16.62 B
Shares Outstanding35.47 M571.82 M
Shares Owned by Insiders5.05 %10.09 %
Shares Owned by Institutions104.45 %39.21 %
Number of Shares Shorted1.47 M4.71 M
Price to Earning20.02 X28.72 X
Price to Book1.45 X9.51 X
Price to Sales0.83 X11.42 X
Revenue1.78 B9.43 B
Gross Profit236.8 M27.38 B
EBITDA131.5 M3.9 B
Net Income68.7 M570.98 M
Cash and Equivalents40.6 M2.7 B
Cash per Share1.17 X5.01 X
Total Debt161.2 M5.32 B
Debt to Equity0.16 %48.70 %
Current Ratio2.85 X2.16 X
Book Value Per Share28.70 X1.93 K
Cash Flow from Operations57.7 M971.22 M
Short Ratio3.32 X4.00 X
Earnings Per Share2.07 X3.12 X
Price to Earnings To Growth1.42 X4.89 X
Number of Employees4.7 K18.84 K
Beta1.66-0.15
Market Capitalization1.47 B19.03 B
Total Asset1.46 B29.47 B
Retained Earnings787.11 M9.33 B
Working Capital540.3 M1.48 B
Current Asset881.7 M9.34 B
   AAR Corp exotic insider transaction detected [view details]

About AAR Corp Buy or Sell Advice

When is the right time to buy or sell AAR Corp? Buying financial instruments such as AAR Corp Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although AAR Corp investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables171.9 M166.7 M191.71 M239.36 M
Inventories623.1 M540.6 M486.54 M455.25 M

Use Investing Ideas to Build Portfolios

In addition to having AAR Corp in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Rentals Thematic Idea Now

Rentals
Rentals Theme
Companies providing rental and leasing services to public and business. The Rentals theme has 1 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Rentals Theme or any other thematic opportunities.
View All  Next Launch Rentals
Please continue to AAR Corp Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the AAR Corp information on this page should be used as a complementary analysis to other AAR Corp's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

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Is AAR Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of AAR Corp. If investors know AAR Corp will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about AAR Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.2
Market Capitalization
1.5 B
Quarterly Revenue Growth YOY
0.1
Return On Assets
0.0379
Return On Equity
0.0711
The market value of AAR Corp is measured differently than its book value, which is the value of AAR Corp that is recorded on the company's balance sheet. Investors also form their own opinion of AAR Corp's value that differs from its market value or its book value, called intrinsic value, which is AAR Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because AAR Corp's market value can be influenced by many factors that don't directly affect AAR Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between AAR Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine AAR Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, AAR Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.