Is AAR Corp. (AIR) Overvalued?
We dive into why AAR Corp. (AIR) could be considered overvalued on 2026-07-28, based on AAII’s Value Score and Grade.Michael Rose
A+ Stock Grade Summary:
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COMPANY SUMMARY
AAR Corp. provides products and services to commercial aviation, government, and defense markets in North America, Europe, Africa, Asia, and internationally. It operates through four segments: Parts Supply; Repair, Engineering, and Software; Government Solutions; and Legacy Commercial Programs. The company sells and leases used serviceable material and aftermarket distribution of new, and original equipment manufacturers supplied replacement parts. It also provides airframe maintenance, repair, and overhaul (MRO) services, such as airframe inspection, painting services, line maintenance, airframe modifications, structural repairs, avionics service and installation, exterior and interior refurbishment and engineering services, and support for various commercial and military aircraft; component MRO services, including repair and overhaul services, engine and airframe accessories, and interior refurbishment; software solutions comprising cloud-based, mobile, and AI-enabled aviation aftermarket software; develops PMA parts for aftermarket applications; and designs proprietary designated engineering representative repairs. In addition, the company designs, manufactures, and repairs transportation pallets; offers fleet management and operations of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and engineering, design, and system integration services for specialized command and control systems. Further, it provides asset-heavy flight hour-based component pool and repair programs for commercial airlines and distribution of consumables and expendables inventory. Additionally, it offers containers and shelters for military and humanitarian tactical deployment activities; and shelters, such as stationary and vehicle-mounted applications. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.
Commentary & Analysis
Why AAR Corp.’s (AIR) Stock Is Down 8.82%
As of Wednesday, July 22, AAR Corp.’s AIR share price has dipped by 8.82%, which has investors questioning if this is right time to buy.Jenna Brashear
Why AAR Corp.’s (AIR) Stock Is Down 10.44%
As of Wednesday, July 22, AAR Corp.’s AIR share price has dipped by 10.44%, which has investors questioning if this is right time to buy.Tudor Pop
What You Need to Know About AAR Corp.'s Q1 Earnings
AAR Corp.'s fiscal Q1 earnings report was released on Tuesday, July 21. Let's dive in to see if (AIR) missed or beat analyst's expectations.Jenna Brashear
Why AAR Corp.’s (AIR) Stock Is Down 5.42%
As of Tuesday, July 07, AAR Corp.’s AIR share price has dipped by 5.42%, which has investors questioning if this is right time to buy.Michael Rose
Financial Summary
| Share Statistics | AIR | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $5,493.6 | $3,507.1 | 69% |
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| Shares Out (Mil) | 39.6 | 74.6 | 43% |
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| Institutional Ownership | 97.3% | 87.4% | 73% |
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| Float (Mil) | 38.3 | 63.5 | 41% |
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| Beta | 1.09 | 0.94 | 65% |
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| Avg Daily Volume (000s) | 598 | 636 | 62% |
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| Price Change (52-week) |
83.3% | 69.2% | 89% |
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| Growth | AIR | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 14.9% | 9.9% | 73% |
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| Net Income (5yr) | 39.3% | 17.1% | 90% |
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| EPS (5yr) | 37.1% | 16.8% | 86 |
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| Dividends (5yr) | 0.0% | 0.0% | 0% |
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| Cash Flow (5yr) | 67.1% | 1.8% | 96% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 7 | 7 | 6 | |
| Current EPS | $1.317 | $5.709 | $6.540 | |
| Month Ago EPS | $1.277 | $5.649 | $6.574 | |
| # Rev Up | 0 | 3 | 1 | |
| # Rev Down | 1 | 0 | 0 | |
| Three Months Ago EPS | $1.283 | $5.661 | $6.603 | |
| Year/Year Chg | 3.9% | 17.5% | 54.6% | |
| Financials | AIR | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $3,308 | $887 | 68% |
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| Net Income (TTM) (Mil) | $188 | $32 | 68% |
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| EPS (TTM) | $4.901 | $0.500 | 86% |
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| Operating Cash Flow (TTM) (Mil) | $99 | $24 | 52% |
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| Net Cash Flow (TTM) (Mil) | ($1) | $48 | 39% |
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| Long-Term Debt (Q1) (Mil) | $995 | $320 | 66% |
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| Enterprise Value (Q1) (Mil) | $6,027 | $4,124 | 66% |
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| Valuation | AIR | Industry Median |
Percentile (All Stocks) |
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| P/B | 3.22 | 3.76 | 67% |
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| P/E | 28.7 | 42.2 | 66% |
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| Dividend Yield | 0.0% | 0.0% | 0% |
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| PEG (5yr hist) | 1.0 | 1.7 | 43% |
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| Ratios | AIR | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 18.8% | 27.3% | 19% |
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| Net Margin | 5.7% | 5.6% | 51% |
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| ROA | 6.1% | 3.1% | 77% |
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| ROE | 12.9% | 10.3% | 66% |
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| Liabilities to Assets | 49.2% | 53.0% | 41% |
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| F-Score | 6 | 4 | na |
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Passing Stock Screens
As of 7/30/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Lakonishok Screen
Factors: Value, Momentum
Identifying stocks trading at a discount to their industry norms but showing recent price strength and upward earnings revisions.
| Performance Since Inception: | 13.4% |
| +/- S&P 500: | +5.9 |
FACTOR STRATEGY
Value on the Move--PEG With Hist Growth Screen
Factors: Value, Quality, Momentum, Growth
Using PEG ratios and price strength to find growth stocks trading at a reasonable price.
| Performance Since Inception: | 14.0% |
| +/- S&P 500: | +6.5 |
