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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.16
AIR's Cash to Debt is ranked higher than
59% of the 255 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 0.71 vs. AIR: 0.16 )
AIR' s 10-Year Cash to Debt Range
Min: 0   Max: 0.46
Current: 0.16

0
0.46
Equity to Asset 0.45
AIR's Equity to Asset is ranked higher than
76% of the 261 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 0.40 vs. AIR: 0.45 )
AIR' s 10-Year Equity to Asset Range
Min: 0.39   Max: 0.56
Current: 0.45

0.39
0.56
Interest Coverage 2.95
AIR's Interest Coverage is ranked higher than
56% of the 162 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 13.99 vs. AIR: 2.95 )
AIR' s 10-Year Interest Coverage Range
Min: 0.05   Max: 6.54
Current: 2.95

0.05
6.54
F-Score: 4
Z-Score: 2.29
M-Score: -2.65
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 5.74
AIR's Operating margin (%) is ranked higher than
70% of the 259 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 7.82 vs. AIR: 5.74 )
AIR' s 10-Year Operating margin (%) Range
Min: -12.73   Max: 9.71
Current: 5.74

-12.73
9.71
Net-margin (%) 2.57
AIR's Net-margin (%) is ranked higher than
65% of the 259 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 5.29 vs. AIR: 2.57 )
AIR' s 10-Year Net-margin (%) Range
Min: -9.23   Max: 5.53
Current: 2.57

-9.23
5.53
ROE (%) 5.99
AIR's ROE (%) is ranked higher than
68% of the 251 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 11.68 vs. AIR: 5.99 )
AIR' s 10-Year ROE (%) Range
Min: -19   Max: 12.84
Current: 5.99

-19
12.84
ROA (%) 2.57
AIR's ROA (%) is ranked higher than
68% of the 260 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 4.66 vs. AIR: 2.57 )
AIR' s 10-Year ROA (%) Range
Min: -8.3   Max: 5.74
Current: 2.57

-8.3
5.74
ROC (Joel Greenblatt) (%) 12.05
AIR's ROC (Joel Greenblatt) (%) is ranked higher than
71% of the 260 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 24.60 vs. AIR: 12.05 )
AIR' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -20.49   Max: 21.52
Current: 12.05

-20.49
21.52
Revenue Growth (%) 19.90
AIR's Revenue Growth (%) is ranked higher than
94% of the 240 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 5.30 vs. AIR: 19.90 )
AIR' s 10-Year Revenue Growth (%) Range
Min: -20.9   Max: 19.9
Current: 19.9

-20.9
19.9
EBITDA Growth (%) 17.40
AIR's EBITDA Growth (%) is ranked higher than
86% of the 220 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 10.00 vs. AIR: 17.40 )
AIR' s 10-Year EBITDA Growth (%) Range
Min: -34.9   Max: 38.7
Current: 17.4

-34.9
38.7
EPS Growth (%) 3.70
AIR's EPS Growth (%) is ranked higher than
72% of the 192 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 10.10 vs. AIR: 3.70 )
AIR' s 10-Year EPS Growth (%) Range
Min: -41.2   Max: 116.5
Current: 3.7

-41.2
116.5
» AIR's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

AIR Guru Trades in Q1 2013

Paul Tudor Jones 49,100 sh (+154.4%)
Joel Greenblatt 130,680 sh (+48.02%)
Mario Gabelli 75,000 sh (unchged)
Diamond Hill Capital 951,847 sh (-9.53%)
Arnold Schneider 171,800 sh (-29.47%)
Jim Simons 47,700 sh (-84.09%)
» More
Q2 2013

AIR Guru Trades in Q2 2013

David Dreman 516,260 sh (New)
Joel Greenblatt 144,879 sh (+10.87%)
Diamond Hill Capital 1,002,927 sh (+5.37%)
Mario Gabelli 75,000 sh (unchged)
Paul Tudor Jones Sold Out
Arnold Schneider 101,270 sh (-41.05%)
Jim Simons 23,761 sh (-50.19%)
» More
Q3 2013

AIR Guru Trades in Q3 2013

Paul Tudor Jones 25,500 sh (New)
Steven Cohen 10,126 sh (New)
Chuck Royce 17,700 sh (New)
Jim Simons 276,300 sh (+1062.83%)
Mario Gabelli 75,000 sh (unchged)
Arnold Schneider Sold Out
Joel Greenblatt 130,502 sh (-9.92%)
Diamond Hill Capital 382,402 sh (-61.87%)
David Dreman 145,242 sh (-71.87%)
» More
Q4 2013

AIR Guru Trades in Q4 2013

Steven Cohen 28,116 sh (+177.66%)
Joel Greenblatt 252,458 sh (+93.45%)
Chuck Royce 27,000 sh (+52.54%)
Paul Tudor Jones 32,000 sh (+25.49%)
David Dreman 165,928 sh (+14.24%)
Mario Gabelli 75,000 sh (unchged)
Diamond Hill Capital 380,542 sh (-0.49%)
Jim Simons 213,400 sh (-22.77%)
» More
» Details

Insider Trades

Latest Guru Trades with AIR

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Add 93.45%0.08%$26.15 - $31.3 $ 26.78-8%252458
David Dreman 2013-09-30 Reduce -71.87%0.32%$22.37 - $29.93 $ 26.785%145242
David Dreman 2013-06-30 New Buy$16.47 - $21.98 $ 26.7839%516260
Joel Greenblatt 2013-03-31 Add 48.02%0.04%$16.53 - $20.11 $ 26.7844%130680
Joel Greenblatt 2012-12-31 Add 242.32%0.07%$13.55 - $18.97 $ 26.7870%88285
Joel Greenblatt 2012-09-30 New Buy0.03%$12.64 - $17.17 $ 26.7884%25790
George Soros 2011-09-30 Sold Out 0.0049%$16.72 - $31.42 $ 26.789%0
Mario Gabelli 2011-03-31 Reduce -35.09%0.01%$26.05 - $29.03 $ 26.78-2%75000
George Soros 2011-03-31 New Buy$26.05 - $29.03 $ 26.78-2%11700
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 18.90
AIR's P/E(ttm) is ranked higher than
74% of the 222 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 19.50 vs. AIR: 18.90 )
AIR' s 10-Year P/E(ttm) Range
Min: 6.31   Max: 96.88
Current: 18.9

6.31
96.88
P/B 1.00
AIR's P/B is ranked higher than
89% of the 237 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 2.45 vs. AIR: 1.00 )
AIR' s 10-Year P/B Range
Min: 0.43   Max: 2.7
Current: 1

0.43
2.7
P/S 0.50
AIR's P/S is ranked higher than
89% of the 260 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.10 vs. AIR: 0.50 )
AIR' s 10-Year P/S Range
Min: 0.21   Max: 1.37
Current: 0.5

0.21
1.37
PFCF 9.70
AIR's PFCF is ranked higher than
93% of the 147 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 21.45 vs. AIR: 9.70 )
AIR' s 10-Year PFCF Range
Min: 5.13   Max: 3152
Current: 9.7

5.13
3152
EV-to-EBIT 14.10
AIR's EV-to-EBIT is ranked higher than
74% of the 233 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 14.80 vs. AIR: 14.10 )
AIR' s 10-Year EV-to-EBIT Range
Min: 6.7   Max: 517.4
Current: 14.1

6.7
517.4
PEG 1.60
AIR's PEG is ranked higher than
67% of the 185 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.57 vs. AIR: 1.60 )
AIR' s 10-Year PEG Range
Min: 0.2   Max: 3.52
Current: 1.6

0.2
3.52
Shiller P/E 16.40
AIR's Shiller P/E is ranked higher than
80% of the 209 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 21.40 vs. AIR: 16.40 )
AIR' s 10-Year Shiller P/E Range
Min: 6.46   Max: 1797
Current: 16.4

6.46
1797

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.10
AIR's Dividend Yield is ranked lower than
67% of the 180 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.83 vs. AIR: 1.10 )
AIR' s 10-Year Dividend Yield Range
Min: 0.24   Max: 2.9
Current: 1.1

0.24
2.9
Dividend Payout 0.22
AIR's Dividend Payout is ranked higher than
80% of the 162 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 0.30 vs. AIR: 0.22 )
AIR' s 10-Year Dividend Payout Range
Min: 0.15   Max: 5.77
Current: 0.22

0.15
5.77
Yield on cost (5-Year) 1.10
AIR's Yield on cost (5-Year) is ranked lower than
71% of the 187 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 2.16 vs. AIR: 1.10 )
AIR' s 10-Year Yield on cost (5-Year) Range
Min: 0.24   Max: 2.9
Current: 1.1

0.24
2.9
Share Buyback Rate 2.00
AIR's Share Buyback Rate is ranked higher than
92% of the 194 Companies
in the Global Aerospace & Defense industry.

( Industry Median: -0.60 vs. AIR: 2.00 )
AIR' s 10-Year Share Buyback Rate Range
Min: 2   Max: -9.6
Current: 2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.90
AIR's Price/Tangible Book is ranked higher than
74% of the 167 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 3.20 vs. AIR: 1.90 )
AIR' s 10-Year Price/Tangible Book Range
Min: 0.54   Max: 3.2
Current: 1.9

0.54
3.2
Price/DCF (Projected) 0.60
AIR's Price/DCF (Projected) is ranked higher than
94% of the 181 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.30 vs. AIR: 0.60 )
AIR' s 10-Year Price/DCF (Projected) Range
Min: 0.58   Max: 13
Current: 0.6

0.58
13
Price/Median PS Value 0.90
AIR's Price/Median PS Value is ranked higher than
91% of the 244 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.10 vs. AIR: 0.90 )
AIR' s 10-Year Price/Median PS Value Range
Min: 0.4   Max: 2.16
Current: 0.9

0.4
2.16
Price/Peter Lynch Fair Value 1.50
AIR's Price/Peter Lynch Fair Value is ranked higher than
61% of the 119 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.10 vs. AIR: 1.50 )
AIR' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.32   Max: 3.26
Current: 1.5

0.32
3.26
Price/Graham Number 1.30
AIR's Price/Graham Number is ranked higher than
79% of the 156 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 1.90 vs. AIR: 1.30 )
AIR' s 10-Year Price/Graham Number Range
Min: 0.58   Max: 2.07
Current: 1.3

0.58
2.07
Earnings Yield (Greenblatt) 7.10
AIR's Earnings Yield (Greenblatt) is ranked higher than
75% of the 240 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 6.70 vs. AIR: 7.10 )
AIR' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.2   Max: 14.9
Current: 7.1

0.2
14.9
Forward Rate of Return (Yacktman) 16.58
AIR's Forward Rate of Return (Yacktman) is ranked higher than
83% of the 228 Companies
in the Global Aerospace & Defense industry.

( Industry Median: 9.52 vs. AIR: 16.58 )
AIR' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -11.5   Max: 33.4
Current: 16.58

-11.5
33.4

Business Description

Industry: Aerospace & Defense » Aerospace & Defense
Compare:BA, ERJ, EADSY, RYCEY, HON » details
Traded in other countries:ARZ.Germany
AAR Corporation was founded in 1951, organized in 1955 and reincorporated in Delaware in 1966. It is a diversified provider of products and services to the aviation and government and defense markets. It conducts its business activities through six operating subsidiaries: AAR Parts Trading, Inc.; AAR Aircraft & Engine Sales & Leasing, Inc.; AAR Aircraft Services, Inc.; AAR Manufacturing, Inc.; AAR Airlift Group, Inc.; and AAR International, Inc. The Company's international business activities are conducted through AAR International, Inc. It reports its activities in two business segments: Aviation Services, comprised of business activities conducted through AAR Parts Trading, Inc.; AAR Aircraft & Engine Sales & Leasing, Inc.; AAR Aircraft Services, Inc.; AAR Allen Services, Inc. (a wholly-owned subsidiary of AAR Parts Trading, Inc.);. AAR Airlift Group, Inc. and AAR International, Inc.; and Technology Products, comprised of business activities conducted through AAR Manufacturing, Inc. and AAR International, Inc. It currently performs airframe maintenance, repair and overhaul activities at lease facilities in Indianapolis, Indiana; Oklahoma City, Oklahoma; Miami, Florida; Duluth, Minnesota; and Hot Springs, Arkansas. It is a provider of complex machined and fabricated parts, components and sub-systems for various aerospace and defense programs and other applications, and it designs and manufactures advanced composite materials for commercial, business and military aircraft. In this segment, sales are made to customers pursuant to standard commercial purchase orders and contracts. Competitors in its Aviation Services segment include OEMs, the service divisions of large commercial airlines, and other independent suppliers of parts, repair, and overhaul services to the commercial and defense markets. Its expeditionary airlift services unit competes with domestic and foreign contracting companies. The aviation industry is highly regulated by the FAA in the United States and equivalent regulatory agencies in other countries.

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