AAR Corp. Common Stock (AIR)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, throw off cash, and sell at a sensible price. AAR is a decent aviation aftermarket and government-services operator, but it is not a classic Buffett compounder yet. The reported numbers show a sharp rebound: fiscal 2026, the year ended 2026-05-31, revenue was $3.3B and net income $187.7M, or $4.86 per diluted share, versus fiscal 2025 revenue of $2.8B and net income of $12.5M, or $0.35 per diluted share. In fiscal Q1 2027, the quarter ended 2026-08-31, revenue was $918.0M and net income $40.1M. FairStock labels it a FAST GROWER because profit grew 39.3% a year over five years and revenue 14.9%. The moat is modest—scale in parts supply and MRO, plus government relationships—but FairStock's ROCE of 5.47% and FCF yield of 0.8% show capital efficiency and cash conversion are weak. FairStock's debt-to-equity of 0.59 and Altman Z-Score of 2.69 leave little room for error. At the 2026-10-13 close of $99.35, FairStock's P/E of 20.44 and PEG of 0.42 look reasonable if growth persists, but FairStock's Graham Number of $68.35 gives a negative 45.35% margin of safety, so price is not cheap on assets. FairStock Score is 59/100. I would want sustained free cash flow and better ROCE before calling this a bargain.

In plain English: AAR Corp. supplies and repairs aircraft parts and provides services to airlines and government defense customers. Recent reported sales and profits have risen, but cash flow is thin and debt is moderate, so the business looks decent rather than exceptional. At the 2026-10-13 close of $99.35, the price looks roughly fair compared with earnings, though less attractive compared with assets and cash generation.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-08-31) · fiscal Q3 2026 10-Q (period ended 2026-02-28) · fiscal Q2 2026 10-Q (period ended 2025-11-30) · fiscal Q1 2026 10-Q (period ended 2025-08-31) · FY2026 10-K (period ended 2026-05-31) · FY2025 10-K (period ended 2025-05-31) · FY2024 10-K (period ended 2024-05-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer