AARFRA:ARZ +0.52%83 Net Margin % is 8.05% as of Feb. 2026, which is 285% above its 10-year median of 2.09. GuruFocus rates FRA:ARZ with a GF Score™ of 83/100 and a GF Value™ of €70.82 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 347 Aerospace & Defense companies, AAR ranks better than 52.45% on this metric.
Net margin is calculated as Net Income divided by its Revenue. AAR's Net Income for the
three
months ended in Feb. 2026 was €58 Mil. AAR's Revenue for the
three
months ended in Feb. 2026 was €715 Mil. Therefore, AAR's net margin for the quarter that ended in Feb. 2026 was 8.05%.
The historical rank and industry rank for AAR's Net Margin % or its related term are showing as below:
FRA:ARZ'
s Net Margin % Range Over the Past 10 Years
Min: 0.21 Med: 2.09 Max: 5.46
Current: 5.46
FRA:ARZ's Net Margin % is ranked better than 52.45% of 347
companies
in the Aerospace & Defense industry
Industry Median: 4.9
vs FRA:ARZ: 5.46
AAR (FRA:ARZ) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
AAR Net Margin % Related Terms
AAR Net Margin % Historical Data
* Premium members only.
The historical data trend for AAR's Net Margin % 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 YSS, BETA, RDW: Net Margin % Comparison
For the Aerospace & Defense subindustry, AAR's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's Net Margin % distribution charts can be found below:
* The bar in red indicates where AAR's Net Margin % 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 Net Margin % of 8.05% as of Feb. 2026. Net margin is the ratio of total net income to net sales. View historical data on AAR and its competitors. This is 285% above median its historical median of 2.09. Over the past decade, AAR's Net Margin % has ranged from 0.21 to 5.46. According to the industry distribution chart, AAR ranks #165 out of 347 companies in the Aerospace & Defense industry, placing it in the top 47.6%.
Is AAR's Net Margin % too high?
AAR's current Net Margin % of 8.05% is 285% above median its 10-year median of 2.09. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 5.46. The Aerospace & Defense industry median Net Margin % is 4.90. AAR's value of 8.05% is 64.3% above this industry median. Based on the distribution chart, AAR ranks #165 out of 347 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 Net Margin % compare to YSS and BETA?
According to the Aerospace & Defense industry distribution chart, AAR ranks #165 out of 347 companies for Net Margin %. This puts AAR in the upper half of its industry. The industry median Net Margin % is 4.90. AAR's value of 8.05% is 64.3% above this benchmark. Historically, AAR's own Net Margin % has ranged from 0.21 to 5.46 over the past decade. While the company's 10-year median is 2.09 vs. the industry median of 4.90, 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 Net Margin % for an Aerospace & Defense company?
The median Net Margin % among Aerospace & Defense companies is 4.90, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current Net Margin % of 8.05% is 64.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median Net Margin % is 4.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current Net Margin % is 8.05%, which is 285% above median its own 10-year median of 2.09. 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 €70.82, compared to a current price of €115.80 — trading 63.5% above its estimated fair value. The current Net Margin % is 8.05%, which is 285% above median its 10-year median of 2.09 and 64.3% above the Aerospace & Defense industry median of 4.90. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For AAR (FRA:ARZ), the current Net Margin % is 8.05% as of Feb. 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 €115.80 is trading 63.5% above its estimated GF Value™ of €70.82.
GuruFocus considers AAR to be Significantly Overvalued.
Key valuation signals for FRA:ARZ:
Net Margin %: 8.05% (285% above median its 10-year median of 2.09)
GF Value™: €70.82 vs. price of €115.80 (63.5% above fair value)
Industry Position: 64.3% above the Aerospace & Defense median (#165 of 347)
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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