AAR Corp Piotroski F Score

AIR
 Stock
  

USD 45.13  0.08  0.18%   

This module uses fundamental data of AAR Corp to approximate its Piotroski F score. AAR Corp F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of AAR Corp. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about AAR Corp financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Please continue to AAR Corp Altman Z Score, AAR Corp Correlation, AAR Corp Valuation, as well as analyze AAR Corp Alpha and Beta and AAR Corp Hype Analysis.
  
AAR Corp Total Debt is relatively stable at the moment as compared to the past year. AAR Corp reported last year Total Debt of 156.3 Million. As of 08/07/2022, Debt Current is likely to grow to about 92.4 K, while Issuance Repayment of Debt Securities is likely to drop (36.9 M). AAR Corp Cash Flow Per Share is relatively stable at the moment as compared to the past year. AAR Corp reported last year Cash Flow Per Share of 2.12. As of 08/07/2022, Asset Turnover is likely to grow to 1.21, while Operating Margin is likely to drop 6.00.
At this time, it appears that AAR Corp's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeHigher LeverageFocus
8
Change In Outstending SharesDecreaseFocus
9
Change in Gross MarginIncreaseFocus

AAR Corp Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to AAR Corp is to make sure AAR Corp is not a subject of accounting manipulations and runs a healthy internal audit department. So, if AAR Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if AAR Corp's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares34 M35.2 M
Sufficiently Down
Decreasing
Slightly volatile
Weighted Average Shares Diluted40.9 M36 M
Fairly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations65.8 M75.2 M
Fairly Down
Decreasing
Stable
Total Assets1.6 B1.6 B
Slightly Down
Decreasing
Slightly volatile
Total Liabilities628.8 M539.4 M
Fairly Up
Decreasing
Slightly volatile
Current Assets1.1 BB
Significantly Up
Increasing
Very volatile
Current Liabilities340.6 M348.2 M
Fairly Down
Decreasing
Slightly volatile
Total Debt232.6 M156.3 M
Way Up
Decreasing
Slightly volatile
Return on Average Assets0.05510.051
Significantly Up
Increasing
Very volatile
Gross Margin0.180.172
Sufficiently Up
Increasing
Slightly volatile
Asset Turnover1.211.176
Fairly Up
Increasing
Slightly volatile

AAR Corp F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between AAR Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards AAR Corp in a much-optimized way.

About AAR Corp Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Weighted Average Shares

33.98 Million

AAR Corp Weighted Average Shares is relatively stable at the moment as compared to the past year. AAR Corp reported last year Weighted Average Shares of 35.2 Million

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 K16.23 K17.51 K
Revenue Per Employee302.74 K313.25 K382.65 K335.83 K375.26 K326.24 K
Average Assets1.53 B1.55 B1.84 B1.64 B1.55 B1.56 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA67.6 M64.7 M63 M95.3 M140.8 M124.26 M
Earnings Before Interest Taxes and Depreciation Amortization USD67.6 M64.7 M63 M95.3 M140.8 M124.26 M
Earnings before Tax19.1 M12.4 M10 M54 M105.3 M113.61 M
Average Equity920.67 M917.5 M915.8 M924.52 M1.01 B1.07 B
Enterprise Value1.71 B1.18 B929.08 M1.63 B1.82 B1.78 B
Free Cash Flow42.3 M50 M(59.7 M)93.9 M57.9 M62.47 M
Invested Capital1.18 B1.12 B1.82 B1.21 B1.2 B1.22 B
Invested Capital Average1.22 B1.21 B1.52 B1.3 B1.21 B1.25 B
Market Capitalization1.55 B1.06 B707.98 M1.47 B1.7 B1.52 B
Tangible Asset Value1.38 B1.38 B1.96 B1.42 B1.45 B1.4 B
Working Capital609.4 M595 M1.06 B600.2 M659 M717.41 M

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 4500 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.
Investor biases related to AAR Corp's public news can be used to forecast risks associated with investment in AAR Corp. The trend in average sentiment can be used to explain how an investor holding AAR Corp can time the market purely based on public headlines and social activities around AAR Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
AAR Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for AAR Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average AAR Corp's news discussions. The higher the estimate score, the more favorable is the investor's outlook on AAR Corp.

AAR Corp Implied Volatility

    
  34.38  
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.

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.
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 Altman Z Score, AAR Corp Correlation, AAR Corp Valuation, as well as analyze AAR Corp Alpha and Beta and AAR Corp Hype 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

Complementary Tools for AAR Corp Stock analysis

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
0.68
Market Capitalization
1.6 B
Quarterly Revenue Growth YOY
0.088
Return On Assets
0.0447
Return On Equity
0.0782
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.