AAR (FRA:ARZ) ROCE %: 16.42% (As of Feb. 2026)

What is AAR ROCE %?

AAR FRA:ARZ +0.52% 83 ROCE % is 16.42% as of Feb. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. AAR's annualized ROCE % for the quarter that ended in Feb. 2026 was 16.42%.

AAR (FRA:ARZ) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

AAR ROCE % Related Terms

AAR ROCE % Historical Data

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The historical data trend for AAR's ROCE % 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.

AAR ROCE % Chart

AAR Annual Data

Trend

May16

May17

May18

May19

May20

May21

May22

May23

May24

May25

ROCE %

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4.49

9.46

9.73

5.38

4.87

AAR Quarterly Data
	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24	Feb25	May25	Aug25	Nov25	Feb26
ROCE %	Get a 7-Day Free Trial															1.30	11.08	11.07	10.70	16.42

83GF Score

AAR Corp FRA:ARZ

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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AAR ROCE % Calculation

AAR's annualized ROCE % for the fiscal year that ended in May. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2025 )		(A: May. 2024 )		(A: May. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2025 )		(A: May. 2024 )		(A: May. 2025 )
	=	101.384	/	( ( (2562.25 - 431.882)	+	(2523.16 - 492.019) )	/ 2 )
	=	101.384	/	( (2130.368	+	2031.141)	/ 2 )
	=	101.384	/	2080.7545
	=	4.87 %

AAR's ROCE % of for the quarter that ended in Feb. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2026 )		(Q: Nov. 2025 )		(Q: Feb. 2026 )
	=	374.272	/	( ( (2804.762 - 513.983)	+	(2819.295 - 552.438) )	/ 2 )
	=	374.272	/	( ( 2290.779	+	2266.857 )	/ 2 )
	=	374.272	/	2278.818
	=	16.42 %

(1) Note: The EBIT data used here is four times the quarterly (Feb. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 16.42% mean?

AAR (FRA:ARZ) has a ROCE % of 16.42% as of Feb. 2026.

Is AAR's ROCE % too high?

AAR's current ROCE % is 16.42%. The Aerospace & Defense industry median ROCE % is 6.29. AAR's value of 16.42% is 161% above this industry median. 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 ROCE % compare to YSS and BETA?

AAR's ROCE % of 16.42% can be compared against companies in the Aerospace & Defense industry. The industry median ROCE % is 6.29. AAR's value of 16.42% is 161% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Aerospace & Defense company?

The median ROCE % among Aerospace & Defense companies is 6.29, based on 350 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAR's current ROCE % of 16.42% is 161% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median ROCE % is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current ROCE % is 16.42%. 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 €120.20 — trading 69.7% above its estimated fair value. The current ROCE % is 16.42% and 161% above the Aerospace & Defense industry median of 6.29. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For AAR (FRA:ARZ), the current ROCE % is 16.42% 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 €120.20 is trading 69.7% above its estimated GF Value™ of €70.82. GuruFocus considers AAR to be Significantly Overvalued.

Key valuation signals for FRA:ARZ:

ROCE %: 16.42%
GF Value™: €70.82 vs. price of €120.20 (69.7% above fair value)
GF Score™: 83/100 with 7 warning signs
Industry Position: 161% above the Aerospace & Defense median

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 Business Description

Industry Industrials Aerospace & Defense

Comparable Companies YSS BETA RDW VSEC ACHR ATRO HAWK VOYG LOAR VVX GE RTX BA XPAR:AIR LSE:RR.XPAR:SAF LMT HWM GD RKLB

Other Exchanges AIR:USA

Address 1100 N. Wood Dale Road, One AAR Place, Wood Dale, IL, USA, 60191

Website https://www.aarcorp.com

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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€120.20

Price

€70.82

GF Value

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