One-Hour Analysis of AAR Corp.

From Value Line

  • Stock had a big run 2002-6, miserable ever since
  • Under book and about 10x earnings
  • Added too much debt in 2012, almost enough to be totally disqualifying
  • Interest coverage of about 3x, not encouraging
  • Over 50% commercial aerospace, a positive
  • Some insider buying
  • Big capx in last few years, needs to be investigated

From Footnotes

  • Large exposure to troop transport and logistics
  • Own aircraft fleet and leases others, some in joint ventures, very complex
  • Very complex financing transactions
  • The recent acquisitions were primarily international [Read more…]