A Look At AAR Corp (AIR) Valuation After Strong Fiscal Third Quarter Results

Simply Wall St.05-27

AAR (AIR) is back in focus after fiscal third quarter revenue, earnings, and profitability came in ahead of expectations, helped by solid parts supply performance and firm demand from commercial and ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2638528020?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/3021000-choice2-main-header/1585186565541","is_english":true,"pubTime":"2026-05-27 03:31","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2638528020","market":"sg","top_or_hot":-1,"title":"A Look At AAR Corp (AIR) Valuation After Strong Fiscal Third Quarter Results","media":"Simply Wall St.","content":"<div>\n<p>AAR (AIR) is back in focus after fiscal third quarter revenue, earnings, and profitability came in ahead of expectations, helped by solid parts supply performance and firm demand from commercial and ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-air/aar/news/a-look-at-aar-corp-air-valuation-after-strong-fiscal-third-q\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>A Look At AAR Corp (AIR) Valuation After Strong Fiscal Third Quarter Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nA Look At AAR Corp (AIR) Valuation After Strong Fiscal Third Quarter Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-05-27 03:31 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-air/aar/news/a-look-at-aar-corp-air-valuation-after-strong-fiscal-third-q><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AAR (AIR) is back in focus after fiscal third quarter revenue, earnings, and profitability came in ahead of expectations, helped by solid parts supply performance and firm demand from commercial and ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-air/aar/news/a-look-at-aar-corp-air-valuation-after-strong-fiscal-third-q\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4572","symbol_name":"航空租赁","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-air/aar/news/a-look-at-aar-corp-air-valuation-after-strong-fiscal-third-q","article_id":"2638528020","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3021000-choice2-main-header/1585186565541"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-air/aar/news/a-look-at-aar-corp-air-valuation-after-strong-fiscal-third-q","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2638528020","pubTimestamp":1779823897,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"AAR (AIR) is back in focus after fiscal third quarter revenue, earnings, and profitability came in ahead of expectations, helped by solid parts supply performance and firm demand from commercial and defense customers.\nSee our latest analysis for AAR.\nThe stock has pulled back over the past three months with a 90 day share price return of a 7.39% decline. However, its year to date share price return of 28.37% and 1 year total shareholder return of 75.56% point to stronger underlying momentum...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4572":"航空租赁","BK4187":"航天航空与国防","AIR.AU":"Astivita Ltd","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK7031":"贸易公司与经销商","IE00B66KJ199.SGD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY  \" A\" (SGD) ACC","IE00B19Z4B17.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) ACC","AIR":"AAR公司","IE0031619046.USD":"LEGG MASON ROYCE US SMALL CAP OPPORTUNITY \"A\" (USD) INC","IE00B7SZL793.SGD":"Legg Mason Royce - US Small Cap Opportunity A Acc SGD-H"},"translate_title":"第三财季业绩强劲后AAR Corp(AIR)估值一览","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AIR.AU":1.5,"AIR":1.5,"DCF":1},"content_text":"AAR (AIR) is back in focus after fiscal third quarter revenue, earnings, and profitability came in ahead of expectations, helped by solid parts supply performance and firm demand from commercial and defense customers. See our latest analysis for AAR. The stock has pulled back over the past three months with a 90 day share price return of a 7.39% decline. However, its year to date share price return of 28.37% and 1 year total shareholder return of 75.56% point to stronger underlying momentum as investors react to earnings beats, M&A commentary, and sector tailwinds. If AAR's move has you thinking about other potential compounders, now is a good time to broaden your watchlist and check out 20 top founder-led companies With AIR trading at US$108.41 and sitting about 21% below the average analyst price target of US$131.67, but flagged by some models as overvalued, should you see room for upside here, or has the market already priced in the growth story? AdvertisementMost Popular Narrative: 18% Undervalued The most followed narrative pegs AAR's fair value at about $131.67 per share, compared with the last close at $108.41. This frames a material upside gap driven by growth and margin assumptions underpinned by a specific discount rate of 8.39%.  The commercialization of additional MRO capacity in Oklahoma City and Miami, both already sold out before opening, positions AAR to capitalize on the expected long-term rise in global air travel and the need for ongoing maintenance of aging aircraft fleets, supporting robust revenue growth and improved earnings visibility. AAR's strong growth in new parts Distribution (25%+ organic, significantly above market) directly aligns with increasing demand for resilient supply chains and more diversified inventory management from both commercial and government customers, indicating sustained future revenue expansion and potential for higher margins.  Read the complete narrative. Want to see what is baked into that premium fair value? The narrative leans on compounding revenue, thicker margins, and a richer future earnings multiple. Curious which assumptions really move the needle on that 8.39% discount rate and the long term earnings bridge to $131.67? Result: Fair Value of $131.67 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this upbeat narrative could be challenged if commercial aviation demand weakens or if growing competition from aircraft manufacturers compresses margins in parts and MRO services. Find out about the key risks to this AAR narrative. Another View: Cash Flows Flash a Caution Signal While analyst targets suggest AAR is about 18% undervalued around $131.67, the Simply Wall St DCF model tells a different story. On that framework, AIR at $108.41 is trading well above an estimated future cash flow value of about $59.49, which raises the question of how much optimism is already in the price. Look into how the SWS DCF model arrives at its fair value. AIR Discounted Cash Flow as at May 2026Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out AAR for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 48 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Next Steps Mixed signals on value and cash flows can make any stock feel uncertain, so move quickly and review both the risks and rewards to decide for yourself using our breakdown of 5 key rewards and 1 important warning sign Looking for more investment ideas? If AAR has sharpened your interest, do not stop here. Broaden your watchlist now and give yourself more options before the next opportunity moves.  Target potential bargains by scanning companies that look mispriced on quality and value using the 48 high quality undervalued stocks. Strengthen your defense by focusing on resilient businesses with cleaner finances through the solid balance sheet and fundamentals stocks screener (46 results). Get ahead of the crowd by tracking a screener containing 21 high quality undiscovered gems.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.43.0","shortVersion":"4.43.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2638528020","isCrawlerRequest":true}