AAR is one of the provider services and products to the commercial aviation and government and defense markets. The Company is operating in two segments. One is aviation services, which consists of supply chain and maintenance, repair and overhaul (MRO) activities. Another one is expeditionary services, which include airlift and mobility activities. It is helping commercial, defense and governmental aircraft fleet operators, original equipment manufacturers and independent service providers around the world. Its landing gear overhaul facility is in Miami and Florida. These are including repairs and overhauls landing gear, brakes, and actuators for various types of commercial and military aircraft.If you want to the latest stock news like nasdaq admp, you can check at https://www.webull.com/quote/nasdaq-admp .
AAR’s P/E Ratio Compare To Its Peers
- AAR’s P/E of 11.51 is indicating relatively low sentiment towards the stock. If you look at the image below, you can see AAR has a lower P/E than the average (15.6) in the aerospace & defense industry classification.
- Its relatively low P/E ratio indicates that AAR shareholders think it will struggle to do as well as other companies in its industry classification. Since the market seems unimpressed with NYSE AIR, surprise on the upside. You should delve deeper. You can check if company insiders have been buying or selling.
Debt and Cash In The Bank
- One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. So it does not reflect the advantage of cash, or disadvantage of debt. This company can lower its future P/E ratio in growth.
- Spending on growth might be good or bad a few years later, but the point is that the P/E ratio does not account for the option.
AAR’s Debt Impact It’s P/E Ratio
AAR has net debt worth 15% of its market capitalization. This is showing some additional risk. This is also reduced the number of investment options for management and worth. If you are compared to its P/E to businesses without debt.
The Verdict On AAR’s P/E Ratio
- The EPS growth last year was strong, and debt levels are quite reasonable. If the company can be continued to grow earnings, then the current P/E may be unjustifiably low.
- The market has become significantly less optimistic about AIR stock or AIr stock news at https://www.webull.com/quote/nyse-air over the last month, with the P/E ratio falling from 16.9 back then to 11.5 today. It could be a warning sign, but a contrarian investor might want to take a closer look.