Jan. 28 at 11:19 PM
$AIR AAR Corp.
- Aircraft parts business, which I expect to grow long term as the airline fleets grow. Also like exposure to DOD. High barriers to entry in this biz hence margins generally stay robust.
- Market Cap at
$4.17BN, Cash flow from Operations for 2026 exp. to be at
$235MM. Approx. 17x multiple
- Most major banks have buy or hold recommendation
- Acquistory with 2 acquisitions last year
- CEO is ex PE hence knows what it takes to create value
- BoD are folks from other major Aerospace/Defense companies or DoD
- A good run up in stock from
$65 median trading to
$105 more lately
- Co is not cash starved, and seems managed well.
- Last acquisition financed with stock at
$83/share, hence avoided a leveraging transaction
- Stock is held mostly by institutions hence little liquidity but if co continues to perform, expect value to go up absent any surprises.
Bottomline, I expect stock to continue to grow at a rate of around 20-25% each year if not more. Can potentially be an M&A target.
