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AARFRA:ARZ +2.16%83 Return-on-Tangible-Asset is 8.18% as of May. 2026, which is 247% above its 10-year median of 2.36. GuruFocus rates FRA:ARZ with a GF Score™ of 83/100 and a GF Value™ of €75.15 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 361 Aerospace & Defense companies, AAR ranks better than 77.01% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. AAR's annualizedNet Income for the quarter that ended in May. 2026 was €174 Mil. AAR's average total tangible assets for the quarter that ended in May. 2026 was €2,121 Mil. Therefore, AAR's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 8.18%.
The historical rank and industry rank for AAR's Return-on-Tangible-Asset or its related term are showing as below:
FRA:ARZ'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.26 Med: 2.36 Max: 8.18
Current: 8.07
During the past 13 years, AAR's highest Return-on-Tangible-Asset was 8.18%. The lowest was 0.26%. And the median was 2.36%.
FRA:ARZ's Return-on-Tangible-Asset is ranked better than 77.01% of 361
companies
in the Aerospace & Defense industry
Industry Median: 3.03
vs FRA:ARZ: 8.07
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
AAR Return-on-Tangible-Asset Related Terms
AAR Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for AAR's Return-on-Tangible-Asset 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 VSEC, BETA, MRCY: Return-on-Tangible-Asset Comparison
For the Aerospace & Defense subindustry, AAR's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where AAR's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (May. 2026) net income data.
What does a Return-on-Tangible-Asset of 8.18% mean?
AAR (FRA:ARZ) has a Return-on-Tangible-Asset of 8.18% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on AAR and its competitors. This is 247% above median its historical median of 2.36. Over the past decade, AAR's Return-on-Tangible-Asset has ranged from 0.26 to 8.18. According to the industry distribution chart, AAR ranks #83 out of 361 companies in the Aerospace & Defense industry, placing it in the top 23%.
Is AAR's Return-on-Tangible-Asset too high?
AAR's current Return-on-Tangible-Asset of 8.18% is 247% above median its 10-year median of 2.36. Over the past 10 years, this metric has ranged from a low of 0.26 to a high of 8.18. The Aerospace & Defense industry median Return-on-Tangible-Asset is 3.03. AAR's value of 8.18% is 170% above this industry median. Based on the distribution chart, AAR ranks #83 out of 361 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. 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 Return-on-Tangible-Asset compare to VSEC and BETA?
According to the Aerospace & Defense industry distribution chart, AAR ranks #83 out of 361 companies for Return-on-Tangible-Asset. This places AAR in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.03. AAR's value of 8.18% is 170% above this benchmark. Historically, AAR's own Return-on-Tangible-Asset has ranged from 0.26 to 8.18 over the past decade. While the company's 10-year median is 2.36 vs. the industry median of 3.03, 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 Return-on-Tangible-Asset for an Aerospace & Defense company?
The median Return-on-Tangible-Asset among Aerospace & Defense companies is 3.03, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current Return-on-Tangible-Asset of 8.18% is 170% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Asset is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current Return-on-Tangible-Asset is 8.18%, which is 247% above median its own 10-year median of 2.36. 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 €75.15, compared to a current price of €118.40 — trading 57.6% above its estimated fair value. The current Return-on-Tangible-Asset is 8.18%, which is 247% above median its 10-year median of 2.36 and 170% above the Aerospace & Defense industry median of 3.03. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For AAR (FRA:ARZ), the current Return-on-Tangible-Asset is 8.18% as of May. 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 €118.40 is trading 57.6% above its estimated GF Value™ of €75.15.
GuruFocus considers AAR to be Significantly Overvalued.
Key valuation signals for FRA:ARZ:
Return-on-Tangible-Asset: 8.18% (247% above median its 10-year median of 2.36)
GF Value™: €75.15 vs. price of €118.40 (57.6% above fair value)
Industry Position: 170% above the Aerospace & Defense median (#83 of 361)
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
Get the complete analysis for FRA:ARZ
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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