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AARFRA:ARZ +2.16%83 5-Year Yield-on-Cost % is 0.00 as of Jul. 29, 2026. 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 172 Aerospace & Defense companies, AAR ranks worse than 581394.77% on this metric.
AAR's yield on cost for the quarter that ended in May. 2026 was 0.00.
The historical rank and industry rank for AAR's 5-Year Yield-on-Cost % or its related term are showing as below:
During the past 13 years, AAR's highest Yield on Cost was 2.24. The lowest was 0.17. And the median was 0.79.
FRA:ARZ's 5-Year Yield-on-Cost % is not ranked *
in the Aerospace & Defense industry.
Industry Median: 1.025 * Ranked among companies with meaningful 5-Year Yield-on-Cost % only.
AAR (FRA:ARZ) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
AAR 5-Year Yield-on-Cost % Related Terms
FRA:ARZ vs VSEC, BETA, MRCY: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, AAR's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, AAR's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where AAR's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
AAR (FRA:ARZ) has a 5-Year Yield-on-Cost % of 0.00 as of Jul. 29, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on AAR and its competitors. Over the past decade, AAR's 5-Year Yield-on-Cost % has ranged from 0.17 to 2.24. According to the industry distribution chart, AAR ranks #999999 out of 172 companies in the Aerospace & Defense industry.
Is AAR's 5-Year Yield-on-Cost % too high?
AAR's current 5-Year Yield-on-Cost % is 0.00. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 2.24. Based on the distribution chart, AAR ranks #999999 out of 172 companies in the Aerospace & Defense industry, which is in the bottom quartile 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 5-Year Yield-on-Cost % compare to VSEC and BETA?
According to the Aerospace & Defense industry distribution chart, AAR ranks #999999 out of 172 companies for 5-Year Yield-on-Cost %. This places AAR in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.03. Historically, AAR's own 5-Year Yield-on-Cost % has ranged from 0.17 to 2.24 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.03, based on 172 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on AAR and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAR's current 5-Year Yield-on-Cost % is 0.00. 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 5-Year Yield-on-Cost % is 0.00. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For AAR (FRA:ARZ), the current 5-Year Yield-on-Cost % is 0.00 as of Jul. 29, 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:
5-Year Yield-on-Cost %: 0.00
GF Value™: €75.15 vs. price of €118.40 (57.6% above fair value)
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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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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