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AIR AAR Corp. - Fundamental Analysis

BEARISH
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AIR Stock | Fundamental Analysis & Investment Insights
NYSE Industrials Aerospace & Defense
Current Price Live
$105.66
Analyst Target
$108.6
+2.8% Upside
52W High
$107.82
52W Low
$46.51

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AI Analysis

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Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard reveals significant concerns, with a weak Piotroski F-Score of 3/9 indicating poor financial health, and no Altman Z-Score available to confirm safety from distress. Despite strong recent earnings growth (YoY EPS +31.1%) and revenue momentum (15.90%), the stock trades at a steep valuation (P/E 42.10 vs. sector avg 50.40) far above its Graham Number of $47.52, suggesting substantial overvaluation. Insider activity is decisively bearish, with $14.56M in CEO and officer sales over the past six months, while the technical trend is deeply negative at 10/100. Analysts maintain a 'strong_buy' recommendation, but this contrasts sharply with deteriorating insider sentiment and stretched valuation metrics.

Key Strengths

Strong year-over-year EPS growth of 31.1% and consistent earnings beat rate (3 out of last 4 quarters)
Robust revenue growth of 15.90% YoY, in line with sector average of 16.58%
Healthy balance sheet with a current ratio of 2.85, indicating solid short-term liquidity
Low debt/equity ratio of 0.67, below sector average of 1.56, suggesting conservative capital structure
Operating margin expansion to 8.51%, reflecting improving cost discipline

Key Risks

Very low Piotroski F-Score of 3/9 signals weak financial health and potential deterioration in fundamentals
Current price of $105.66 is more than double the Graham Number ($47.52), indicating extreme overvaluation by defensive standards
Insiders have sold $14.56M in shares recently, including multiple sales by the CEO, signaling lack of confidence
Technical trend score of 10/100 suggests strong bearish momentum near-term
Dividend strength is 0/100 with no payout history, reducing investor appeal during volatility
AI Fair Value Estimate
Based on comprehensive analysis
$58.5
-44.6% below current price

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