AAR Corp Z Score

AIR
 Stock
  

USD 41.39  1.46  3.66%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please continue to AAR Corp Piotroski F Score and AAR Corp Valuation analysis.
  
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AAR Corp Invested Capital is relatively stable at the moment as compared to the past year. AAR Corp reported last year Invested Capital of 1.09 Billion. As of 06/26/2022, Invested Capital Average is likely to grow to about 1.2 B, while Return on Invested Capital is likely to drop 0.0398. AAR Corp Net Income Common Stock is relatively stable at the moment as compared to the past year. AAR Corp reported last year Net Income Common Stock of 32.22 Million. As of 06/26/2022, Operating Expenses is likely to grow to about 224.8 M, while Operating Income is likely to drop slightly above 72.9 M.

AAR Corp Z Score Analysis

AAR Corp's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 2019 2020 (projected)
Long Term Debt to Equity0.660.14
Interest Coverage4.9117.71
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current AAR Corp Z Score

    
  6.4  
Most of AAR Corp's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, AAR Corp is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

AAR Corp Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for AAR Corp is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since AAR Corp's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of AAR Corp's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of AAR Corp's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, AAR Corp has a Z Score of 6.4. This is 57.25% higher than that of the Industrials sector and 170.04% higher than that of the Aerospace & Defense industry. The z score for all United States stocks is 26.61% higher than that of the company.

AAR Corp Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses AAR Corp's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of AAR Corp could also be used in its relative valuation, which is a method of valuing AAR Corp by comparing valuation metrics of similar companies.
AAR Corp is currently under evaluation in z score category among related companies.

AAR Corp Current Valuation Drivers

We derive many important indicators used in calculating different scores of AAR Corp from analyzing AAR Corp's financial statements. These drivers represent accounts that assess AAR Corp's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of AAR Corp's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee2.7 K1.15 K8137.28 K8.37 K8.17 K
Revenue Per Employee302.74 K313.25 K382.65 K335.83 K302.25 K285.38 K
Average Assets1.53 B1.55 B1.84 B1.64 B1.48 B1.53 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA67.6 M64.7 M63 M95.3 M85.77 M94.39 M
Earnings Before Interest Taxes and Depreciation Amortization USD67.6 M64.7 M63 M95.3 M85.77 M94.39 M
Earnings before Tax19.1 M12.4 M10 M54 M48.6 M46.51 M
Average Equity920.67 M917.5 M915.8 M924.52 M1.06 B1.09 B
Enterprise Value1.71 B1.18 B929.08 M1.63 B1.47 B1.35 B
Free Cash Flow42.3 M50 M(59.7 M)93.9 M84.51 M91.18 M
Invested Capital1.18 B1.12 B1.82 B1.21 B1.09 B1.17 B
Invested Capital Average1.22 B1.21 B1.52 B1.3 B1.17 B1.25 B
Market Capitalization1.55 B1.06 B707.98 M1.47 B1.7 B1.49 B
Tangible Asset Value1.38 B1.38 B1.96 B1.42 B1.27 B1.3 B
Working Capital609.4 M595 M1.06 B600.2 M690.23 M732.75 M

AAR Corp Institutional Holders

Institutional Holdings refers to the ownership stake in AAR Corp that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of AAR Corp's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing AAR Corp's value.
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

AAR Corp Fundamentals

About AAR Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze AAR Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of AAR Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of AAR Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois. AAR Corp operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 4700 people.

AAR Corp Investors Sentiment

The influence of AAR Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in AAR Corp. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

AAR Corp Implied Volatility

    
  42.01  
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.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards AAR Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, AAR Corp's short interest history, or implied volatility extrapolated from AAR Corp options trading.

Current Sentiment - AIR

AAR Corp Investor Sentiment

Greater number of Macroaxis users are presently bullish on AAR Corp. What is your sentiment towards investing in AAR Corp? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Pair Trading with AAR Corp

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if AAR Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in AAR Corp will appreciate offsetting losses from the drop in the long position's value.

AAR Corp Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to AAR Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace AAR Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back AAR Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling AAR Corp to buy it.
The correlation of AAR Corp is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as AAR Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if AAR Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for AAR Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to AAR Corp Piotroski F Score and AAR Corp Valuation analysis. 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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When running AAR Corp price analysis, check to measure AAR Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy AAR Corp is operating at the current time. Most of AAR Corp's value examination focuses on studying past and present price action to predict the probability of AAR Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move AAR Corp's price. Additionally, you may evaluate how the addition of AAR Corp to your portfolios can decrease your overall portfolio volatility.
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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.