StandardAero Inc. Common Stock (SARO)

FairStock Score: 54/100 — MIXED

Key Financials

AI Analysis

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

I approach StandardAero as a turnaround, not a bargain-bin treasure. The given Lynch category is TURNAROUND—returned to profit after a loss within three years—and the filings support it. In fiscal 2023, revenue was $4.6B, net income was -$35.1M, and diluted EPS was -$0.13. By fiscal 2024, revenue reached $5.2B, net income $11.0M, and diluted EPS $0.04. In fiscal 2025, revenue was $6.1B, net income $277.4M, and diluted EPS $0.83. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $1.6B, net income $97.3M, and diluted EPS $0.29—continued improvement. This is an aerospace aftermarket engine-services business, which can have sticky, repeat demand, but the returns are not yet elite: FairStock shows ROE 12.30%, ROCE 5.61%, and debt-to-equity 0.93. The balance sheet gives me pause; Altman Z 1.33 is not a fortress, though TTM free cash flow of $217.9M and a 3.3% FCF yield are real. At the 2026-10-13 close of $19.88, FairStock's P/E is 20.49, P/B is 2.39, and EV/EBITDA is 11.37. Its Graham Number of $13.48 and -47.48% margin of safety mean the price is well above that asset-based yardstick. Piotroski 6/9 and PEG 0.03 suggest improving momentum, but I want durable returns and less leverage before calling it wonderful. The turnaround is promising; the price already reflects much of it.

In plain English: StandardAero repairs and maintains aircraft engines and engine parts. The company has moved from losses to profits and is growing revenue, but it carries significant debt and earns modest returns on capital. Based on the provided numbers, the recent share price looks expensive relative to its asset value and earnings power.

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 Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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