AARFRA:ARZ +3.99%83 FCF Yield % is 0.66 as of Jun. 30, 2026, which is 59% below its 10-year median of 1.62. GuruFocus rates FRA:ARZ with a GF Score™ of 83/100 and a GF Value™ of €74.65 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 357 Aerospace & Defense companies, AAR ranks better than 56.3% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
As of today, AAR's Trailing 12-Month Free Cash Flow is €33 Mil, and Market Cap is €4,953 Mil. Therefore, AAR's FCF Yield % for today is 0.66%.
The historical rank and industry rank for AAR's FCF Yield % or its related term are showing as below:
FRA:ARZ'
s FCF Yield % Range Over the Past 10 Years
Min: -9.96 Med: 1.62 Max: 10.19
Current: 0.66
During the past 13 years, the highest FCF Yield % of AAR was 10.19%. The lowest was -9.96%. And the median was 1.62%.
FRA:ARZ's FCF Yield % is ranked better than 56.3% of 357
companies
in the Aerospace & Defense industry
Industry Median: 0.01
vs FRA:ARZ: 0.66
AAR's FCF Margin % for the quarter that ended in Feb. 2026 was 4.93%.
AAR FCF Yield % Explanation
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
AAR FCF Yield % Related Terms
AAR FCF Yield % Historical Data
* Premium members only.
The historical data trend for AAR's FCF Yield % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:ARZ vs KRMN, VSEC, MRCY: FCF Yield % Comparison
For the Aerospace & Defense subindustry, AAR's FCF Yield %, along with its competitors' market caps and FCF Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AAR FCF Yield % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's FCF Yield % distribution charts can be found below:
* The bar in red indicates where AAR's FCF Yield % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AAR (FRA:ARZ) has a FCF Yield % of 0.66 as of Jun. 30, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on AAR and its competitors. This is 59% below median its historical median of 1.62. According to the industry distribution chart, AAR ranks #156 out of 357 companies in the Aerospace & Defense industry, placing it in the top 43.7%.
Is AAR's FCF Yield % too high?
AAR's current FCF Yield % of 0.66 is 59% below median its 10-year median of 1.62. The Aerospace & Defense industry median FCF Yield % is 0.01. AAR's value of 0.66 is 6500% above this industry median. Based on the distribution chart, AAR ranks #156 out of 357 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, AAR has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does AAR's FCF Yield % compare to KRMN and VSEC?
According to the Aerospace & Defense industry distribution chart, AAR ranks #156 out of 357 companies for FCF Yield %. This puts AAR in the upper half of its industry. The industry median FCF Yield % is 0.01. AAR's value of 0.66 is 6500% above this benchmark. While the company's 10-year median is 1.62 vs. the industry median of 0.01, AAR has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for an Aerospace & Defense company?
The median FCF Yield % among Aerospace & Defense companies is 0.01, based on 357 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current FCF Yield % of 0.66 is 6500% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median FCF Yield % is 0.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current FCF Yield % is 0.66, which is 59% below median its own 10-year median of 1.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAR stock overvalued right now?
Based on GuruFocus' analysis, AAR (FRA:ARZ) is currently considered Significantly Overvalued. The stock's GF Value™ is €74.65, compared to a current price of €125.00 — trading 67.4% above its estimated fair value. The current FCF Yield % is 0.66, which is 59% below median its 10-year median of 1.62 and 6500% above the Aerospace & Defense industry median of 0.01. AAR's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For AAR (FRA:ARZ), the current FCF Yield % is 0.66 as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is AAR (FRA:ARZ) Overvalued in 2026?
Based on GuruFocus' analysis, AAR stock appears to be overvalued.
The current stock price of €125.00 is trading 67.4% above its estimated GF Value™ of €74.65.
GuruFocus considers AAR to be Significantly Overvalued.
Key valuation signals for FRA:ARZ:
FCF Yield %: 0.66 (59% below median its 10-year median of 1.62)
GF Value™: €74.65 vs. price of €125.00 (67.4% above fair value)
Industry Position: 6500% above the Aerospace & Defense median (#156 of 357)
No single metric tells the full story. See the FRA:ARZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAR Corp is engaged in providing products and services to aviation, government and defense market. It operates in segments namely: The parts supply segment majorly consists of sales and leasing of USM and aftermarket distribution of new, OEM-supplied replacement parts; Repair & Engineering segment provides airframe maintenance, component repair, and landing gear overhaul services; Integrated Solutions segment consists of its fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense, flight hour component inventory; and The Expeditionary Services segment consists of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and NGOs.
83GF Score
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FCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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