AARFRA:ARZ +0.24%83 OCF Yield % is 1.67 as of Jul. 02, 2026, which is 45% below its 10-year median of 3.03. GuruFocus rates FRA:ARZ with a GF Score™ of 83/100 and a GF Value™ of €73.08 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 357 Aerospace & Defense companies, AAR ranks better than 50.7% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
The historical rank and industry rank for AAR's OCF Yield % or its related term are showing as below:
FRA:ARZ'
s OCF Yield % Range Over the Past 10 Years
Min: -6.02 Med: 3.03 Max: 13.25
Current: 1.67
During the past 13 years, the highest OCF Yield % of AAR was 13.25%. The lowest was -6.02%. And the median was 3.03%.
FRA:ARZ's OCF Yield % is ranked better than 50.7% of 357
companies
in the Aerospace & Defense industry
Industry Median: 1.53
vs FRA:ARZ: 1.67
AAR's OCF Margin % for the quarter that ended in Feb. 2026 was %.
AAR OCF Yield % Explanation
Similar to Earnings Yield %, OCF 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 operating 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 OCF Yield % Related Terms
AAR OCF Yield % Historical Data
* Premium members only.
The historical data trend for AAR's OCF 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: OCF Yield % Comparison
For the Aerospace & Defense subindustry, AAR's OCF Yield %, along with its competitors' market caps and OCF 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 OCF Yield % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's OCF Yield % distribution charts can be found below:
* The bar in red indicates where AAR's OCF 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 OCF Yield % of 1.67 as of Jul. 02, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on AAR and its competitors. This is 45% below median its historical median of 3.03. According to the industry distribution chart, AAR ranks #176 out of 357 companies in the Aerospace & Defense industry, placing it in the top 49.3%.
Is AAR's OCF Yield % too high?
AAR's current OCF Yield % of 1.67 is 45% below median its 10-year median of 3.03. The Aerospace & Defense industry median OCF Yield % is 1.53. AAR's value of 1.67 is 9.2% above this industry median. Based on the distribution chart, AAR ranks #176 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 OCF Yield % compare to KRMN and VSEC?
According to the Aerospace & Defense industry distribution chart, AAR ranks #176 out of 357 companies for OCF Yield %. This puts AAR in the upper half of its industry. The industry median OCF Yield % is 1.53. AAR's value of 1.67 is 9.2% above this benchmark. While the company's 10-year median is 3.03 vs. the industry median of 1.53, 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 OCF Yield % for an Aerospace & Defense company?
The median OCF Yield % among Aerospace & Defense companies is 1.53, based on 357 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current OCF Yield % of 1.67 is 9.2% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median OCF Yield % is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current OCF Yield % is 1.67, which is 45% below median its own 10-year median of 3.03. 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 €73.08, compared to a current price of €122.80 — trading 68% above its estimated fair value. The current OCF Yield % is 1.67, which is 45% below median its 10-year median of 3.03 and 9.2% above the Aerospace & Defense industry median of 1.53. 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 OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For AAR (FRA:ARZ), the current OCF Yield % is 1.67 as of Jul. 02, 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 €122.80 is trading 68% above its estimated GF Value™ of €73.08.
GuruFocus considers AAR to be Significantly Overvalued.
Key valuation signals for FRA:ARZ:
OCF Yield %: 1.67 (45% below median its 10-year median of 3.03)
GF Value™: €73.08 vs. price of €122.80 (68% above fair value)
Industry Position: 9.2% above the Aerospace & Defense median (#176 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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OCF Yield % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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