AAR Corp. (AIR) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Aerospace & Defense
EV/EBITDA
↓
26.16
↑+81% vs avg
5yr avg: 14.49
30Y Low5.8·High20.5
P/FCF
↑
3812.53
↑+749% vs avg
5yr avg: 449.20
30Y Low5.8·High180.8
P/B Ratio
↑
3.99
↑+129% vs avg
5yr avg: 1.74
30Y Low0.5·High2.8
ROE
↓
1.0%
↑-79% vs avg
5yr avg: 5.0%
30Y Low-18%·High14%
Debt/EBITDA
↑
4.36
↑+43% vs avg
5yr avg: 3.06
30Y Low1.0·High10.1
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
AIR Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
AAR Corp. trades at 385.4x earnings, 513% above its 5-year average of 62.9x, sitting at the 100th percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a premium of 1407%. On a free-cash-flow basis, the stock trades at 3812.5x P/FCF, 749% above the 5-year average of 449.2x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.3B | $2.2B | $2.5B | $1.8B | $1.7B | $1.5B | $706M | $1.1B | $1.5B | $1.2B | $845M |
| Enterprise Value | $6.3B | $3.1B | $3.5B | $2.0B | $1.8B | $1.6B | $972M | $1.2B | $1.7B | $1.3B | $961M |
| P/E Ratio → | 385.37 | 175.46 | 55.03 | 19.81 | 22.32 | 41.75 | 28.41 | 143.29 | 99.31 | 21.30 | 17.82 |
| P/S Ratio | 1.92 | 0.79 | 1.08 | 0.88 | 0.95 | 0.89 | 0.34 | 0.51 | 0.88 | 0.68 | 0.51 |
| P/B Ratio | 3.99 | 1.81 | 2.11 | 1.60 | 1.68 | 1.51 | 0.78 | 1.16 | 1.65 | 1.31 | 0.98 |
| P/FCF | 3812.53 | 1570.34 | 180.79 | — | 29.98 | 15.70 | — | 21.00 | 36.55 | — | — |
| P/OCF | 147.85 | 60.90 | 57.64 | 75.49 | 23.08 | 14.01 | — | 15.58 | 24.05 | 54.97 | 26.31 |
P/E links to full P/E history page with 30-year chart
AIR EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
AAR Corp.'s enterprise value stands at 26.2x EBITDA, 81% above its 5-year average of 14.5x. The Industrials sector median is 13.8x, placing the stock at a 89% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.13 | 1.51 | 1.01 | 1.01 | 0.98 | 0.47 | 0.57 | 0.97 | 0.76 | 0.58 |
| EV / EBITDA | 26.16 | 13.10 | 20.50 | 12.41 | 13.13 | 13.30 | 11.44 | 8.30 | 13.38 | 11.64 | 8.22 |
| EV / EBIT | 33.96 | 27.56 | 34.41 | 15.06 | 16.55 | 43.90 | 22.25 | 11.75 | 19.79 | 16.31 | 14.95 |
| EV / FCF | — | 2249.70 | 251.29 | — | 31.76 | 17.21 | — | 23.41 | 40.01 | — | — |
AIR Profitability
Margins and return-on-capital ratios measuring operating efficiency
AAR Corp. earns an operating margin of 6.7%, above the Industrials sector average of 4.3%. ROE of 1.0% is modest, trailing the sector median of 8.2%. ROIC of 6.4% represents adequate returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 19.0% | 19.0% | 19.1% | 18.6% | 17.2% | 16.7% | 13.0% | 16.1% | 16.9% | 15.6% | 14.2% |
| Operating Margin | 6.7% | 6.7% | 5.6% | 6.7% | 5.9% | 5.2% | 2.0% | 4.8% | 4.9% | 4.5% | 4.0% |
| Net Profit Margin | 0.4% | 0.4% | 2.0% | 4.5% | 4.3% | 2.2% | 1.2% | 0.4% | 0.9% | 3.2% | 2.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.0% | 1.0% | 4.0% | 8.5% | 7.8% | 3.8% | 2.7% | 0.8% | 1.7% | 6.3% | 5.6% |
| ROA | 0.4% | 0.4% | 2.0% | 5.3% | 5.1% | 2.0% | 1.4% | 0.5% | 1.0% | 3.8% | 3.3% |
| ROIC | 6.4% | 6.4% | 5.5% | 8.1% | 7.1% | 5.6% | 2.8% | 7.0% | 6.0% | 5.9% | 5.1% |
| ROCE | 8.1% | 8.1% | 6.8% | 9.9% | 8.8% | 5.9% | 2.9% | 8.4% | 7.3% | 7.0% | 6.1% |
AIR Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
AAR Corp. carries a Debt/EBITDA ratio of 4.4x, which is highly leveraged (35% above the sector average of 3.2x). Net debt stands at $951M ($1.0B total debt minus $97M cash). Interest coverage of just 2.5x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.86 | 0.86 | 0.90 | 0.29 | 0.15 | 0.20 | 0.74 | 0.16 | 0.19 | 0.17 | 0.17 |
| Debt / EBITDA | 4.36 | 4.36 | 6.25 | 1.96 | 1.12 | 1.59 | 7.89 | 1.00 | 1.40 | 1.34 | 1.27 |
| Net Debt / Equity | — | 0.78 | 0.82 | 0.23 | 0.10 | 0.15 | 0.29 | 0.13 | 0.16 | 0.16 | 0.14 |
| Net Debt / EBITDA | 3.96 | 3.96 | 5.75 | 1.54 | 0.73 | 1.17 | 3.13 | 0.85 | 1.15 | 1.25 | 1.00 |
| Debt / FCF | — | 679.36 | 70.50 | — | 1.78 | 1.51 | — | 2.41 | 3.45 | — | — |
| Interest Coverage | 2.46 | 2.46 | 2.99 | 10.98 | 44.54 | 17.04 | 4.44 | 10.35 | 10.75 | 15.02 | 10.28 |
AIR Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
AAR Corp.'s current ratio of 2.72x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.26x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 3.12x to 2.72x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.72 | 2.72 | 2.98 | 3.12 | 2.89 | 2.78 | 3.76 | 2.66 | 2.83 | 2.65 | 2.58 |
| Quick Ratio | 1.26 | 1.26 | 1.41 | 1.49 | 1.31 | 1.18 | 2.13 | 1.20 | 1.45 | 1.36 | 1.26 |
| Cash Ratio | 0.17 | 0.17 | 0.18 | 0.19 | 0.15 | 0.15 | 1.06 | 0.06 | 0.09 | 0.03 | 0.09 |
| Asset Turnover | — | 0.98 | 0.84 | 1.09 | 1.16 | 1.07 | 1.00 | 1.35 | 1.15 | 1.18 | 1.14 |
| Inventory Turnover | 2.78 | 2.78 | 2.56 | 2.82 | 2.74 | 2.55 | 2.89 | 3.29 | 3.16 | 3.44 | 3.15 |
| Days Sales Outstanding | — | 64.99 | 64.60 | 60.18 | 57.68 | 52.71 | 38.97 | 45.72 | 42.17 | 48.42 | 54.51 |
AIR Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
AAR Corp. returns 0.2% to shareholders annually primarily through share buybacks. The earnings yield of 0.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | 0.0% | 1.5% | 1.0% | 0.7% | 0.9% | 1.2% |
| Payout Ratio | — | — | — | — | — | 0.3% | 43.1% | 140.0% | 66.0% | 18.1% | 21.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.3% | 0.6% | 1.8% | 5.0% | 4.5% | 2.4% | 3.5% | 0.7% | 1.0% | 4.7% | 5.6% |
| FCF Yield | 0.0% | 0.1% | 0.6% | — | 3.3% | 6.4% | — | 4.8% | 2.7% | — | — |
| Buyback Yield | 0.2% | 0.5% | 0.2% | 2.8% | 2.4% | 0.0% | 0.6% | 1.0% | 0.8% | 1.7% | 2.2% |
| Total Shareholder Yield | 0.2% | 0.5% | 0.2% | 2.8% | 2.4% | 0.0% | 2.1% | 2.0% | 1.5% | 2.5% | 3.5% |
| Shares Outstanding | — | $36M | $35M | $35M | $36M | $35M | $35M | $35M | $35M | $34M | $35M |
Peer Comparison
Compare AIR with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 AIRYou | $5B | 385.4 | 26.2 | 3812.5 | 19.0% | 6.7% | 1.0% | 6.4% | 4.4 |
 HEI | $47B | 68.8 | 40.3 | 54.5 | 39.8% | 22.7% | 17.1% | 12.6% | 1.8 |
 KAI | $4B | 35.2 | 18.5 | 23.3 | 45.2% | 14.9% | 11.0% | 10.1% | 1.8 |
 HAYW | $3B | 22.1 | 10.0 | 14.4 | 45.6% | 21.1% | 10.0% | 10.2% | 0.0 |
 DRS | $12B | 44.7 | 27.5 | 54.2 | 23.2% | 9.5% | 10.5% | 10.5% | 1.1 |
 TDG | $75B | 41.4 | 22.6 | 41.3 | 60.1% | 47.2% | — | 20.9% | 6.6 |
 FTAI | $28B | 60.0 | 31.6 | — | 31.1% | 30.7% | 241.2% | 16.8% | 3.5 |
 AVAV | $8B | 109.4 | 103.8 | — | 39.4% | 5.0% | 5.1% | 3.6% | 0.8 |
 KTOS | $10B | 417.0 | 112.5 | — | 22.1% | 2.1% | 1.3% | 1.4% | 2.1 |
 GE | $374B | 43.8 | 38.2 | 51.4 | 36.8% | 19.1% | 45.3% | 24.7% | 2.1 |
 RTX | $250B | 37.4 | 21.9 | 31.5 | 20.1% | 10.0% | 10.4% | 6.7% | 3.1 |
| Industrials Median | — | 25.6 | 13.8 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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AIR — Frequently Asked Questions
Quick answers to the most common questions about buying AIR stock.
What is AAR Corp.'s P/E ratio?
AAR Corp.'s current P/E ratio is 385.4x. The historical average is 39.9x. This places it at the 100th percentile of its historical range.
What is AAR Corp.'s EV/EBITDA?
AAR Corp.'s current EV/EBITDA is 26.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.5x.
What is AAR Corp.'s ROE?
AAR Corp.'s return on equity (ROE) is 1.0%. The historical average is 5.7%.
Is AIR stock overvalued?
Based on historical data, AAR Corp. is trading at a P/E of 385.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are AAR Corp.'s profit margins?
AAR Corp. has 19.0% gross margin and 6.7% operating margin.
How much debt does AAR Corp. have?
AAR Corp.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.