AEROJET ROCKETDYNE HOLDINGS (AJRD) Stock Fundamental Analysis
NYSE:AJRD - New York Stock Exchange, Inc. - US0078001056 - Common Stock - Currency: USD
Overall AJRD gets a fundamental rating of 4 out of 10. We evaluated AJRD against 66 industry peers in the Aerospace & Defense industry. While AJRD is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, AJRD is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AJRD had positive earnings in the past year.
In the past year AJRD has reported a negative cash flow from operations.
AJRD had positive earnings in each of the past 5 years.
Of the past 5 years AJRD 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.19%, AJRD is in line with its industry, outperforming 57.14% of the companies in the same industry.
AJRD has a Return On Equity of 13.10%. This is in the better half of the industry: AJRD outperforms 79.37% of its industry peers.
AJRD has a better Return On Invested Capital (8.78%) than 79.37% of its industry peers.
AJRD had an Average Return On Invested Capital over the past 3 years of 11.45%. This is above the industry average of 7.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 13.1% | ||
| ROIC | 8.78% |
ROA(3y)4.56%
ROA(5y)4.84%
ROE(3y)33.06%
ROE(5y)31.01%
ROIC(3y)11.45%
ROIC(5y)11.1%
1.3 Margins
AJRD has a Profit Margin (3.21%) which is comparable to the rest of the industry.
AJRD's Profit Margin has declined in the last couple of years.
AJRD has a Operating Margin of 8.96%. This is in the better half of the industry: AJRD outperforms 68.25% of its industry peers.
AJRD's Operating Margin has been stable in the last couple of years.
AJRD has a worse Gross Margin (14.13%) than 68.25% of its industry peers.
AJRD's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.96% | ||
| PM (TTM) | 3.21% | ||
| GM | 14.13% |
OM growth 3Y-7%
OM growth 5Y-0.52%
PM growth 3Y-22.13%
PM growth 5YN/A
GM growth 3Y-7.26%
GM growth 5Y-2.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AJRD is still creating some value.
The number of shares outstanding for AJRD has been increased compared to 1 year ago.
The debt/assets ratio for AJRD has been reduced compared to a year ago.
2.2 Solvency
AJRD has an Altman-Z score of 3.19. This indicates that AJRD is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.19, AJRD perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that AJRD is somewhat dependend on debt financing.
The Debt to Equity ratio of AJRD (0.51) is worse than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.19 |
ROIC/WACC1.01
WACC8.67%
2.3 Liquidity
AJRD has a Current Ratio of 1.53. This is a normal value and indicates that AJRD is financially healthy and should not expect problems in meeting its short term obligations.
AJRD's Current ratio of 1.53 is on the low side compared to the rest of the industry. AJRD is outperformed by 66.67% of its industry peers.
AJRD has a Quick Ratio of 1.51. This is a normal value and indicates that AJRD is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AJRD (1.51) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
AJRD shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -31.86%.
The Earnings Per Share has been growing by 13.91% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.08% in the past year.
The Revenue has been growing slightly by 3.57% on average over the past years.
EPS 1Y (TTM)-31.86%
EPS 3Y-6.27%
EPS 5Y13.91%
EPS Q2Q%-2.27%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y4.13%
Revenue growth 5Y3.57%
Sales Q2Q%10.8%
3.2 Future
Based on estimates for the next years, AJRD will show a very strong growth in Earnings Per Share. The EPS will grow by 23.73% on average per year.
The Revenue is expected to grow by 6.01% on average over the next years.
EPS Next Y44.74%
EPS Next 2Y27.27%
EPS Next 3Y23.73%
EPS Next 5YN/A
Revenue Next Year8.54%
Revenue Next 2Y6.77%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 41.72 indicates a quite expensive valuation of AJRD.
AJRD's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.63. AJRD is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 25.57, which means the current valuation is very expensive for AJRD.
The rest of the industry has a similar Price/Forward Earnings ratio as AJRD.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AJRD is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.72 | ||
| Fwd PE | 25.57 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AJRD.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 17.91 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as AJRD's earnings are expected to grow with 23.73% in the coming years.
PEG (NY)0.93
PEG (5Y)3
EPS Next 2Y27.27%
EPS Next 3Y23.73%
5. Dividend
5.1 Amount
With a yearly dividend of 0.06%, AJRD is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.44, AJRD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.27, AJRD's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
5.2 History
The dividend of AJRD decreases each year by -10.86%.
AJRD does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-10.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AJRD pays out 2.71% of its income as dividend. This is a sustainable payout ratio.
DP2.71%
EPS Next 2Y27.27%
EPS Next 3Y23.73%
57.99
+0.81 (+1.42%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change0%
Ins Owners1.45%
Ins Owner Change0%
Market Cap4.68B
Analysts43.33
Price Target57.12 (-1.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.06% |
Yearly Dividend0.03
Dividend Growth(5Y)-10.86%
DP2.71%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-25.97%
Min EPS beat(2)-48.49%
Max EPS beat(2)-3.46%
EPS beat(4)0
Avg EPS beat(4)-27.9%
Min EPS beat(4)-59.15%
Max EPS beat(4)-0.49%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)2.98%
Min Revenue beat(2)2.75%
Max Revenue beat(2)3.21%
Revenue beat(4)2
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-8.89%
Max Revenue beat(4)3.21%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-1.75%
PT rev (3m)-1.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.36%
Revenue NY rev (1m)3.08%
Revenue NY rev (3m)3.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.72 | ||
| Fwd PE | 25.57 | ||
| P/S | 2.04 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 8.32 | ||
| P/tB | 12.5 | ||
| EV/EBITDA | 17.91 |
EPS(TTM)1.39
EY2.4%
EPS(NY)2.27
Fwd EY3.91%
FCF(TTM)-0.58
FCFYN/A
OCF(TTM)-0.08
OCFYN/A
SpS28.39
BVpS6.97
TBVpS4.64
PEG (NY)0.93
PEG (5Y)3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.19% | ||
| ROE | 13.1% | ||
| ROCE | N/A | ||
| ROIC | 8.78% | ||
| ROICexc | 10.58% | ||
| ROICexgc | 12.25% | ||
| OM | 8.96% | ||
| PM (TTM) | 3.21% | ||
| GM | 14.13% | ||
| FCFM | N/A |
ROA(3y)4.56%
ROA(5y)4.84%
ROE(3y)33.06%
ROE(5y)31.01%
ROIC(3y)11.45%
ROIC(5y)11.1%
ROICexc(3y)32.24%
ROICexc(5y)27.47%
ROICexgc(3y)87.08%
ROICexgc(5y)63.17%
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y-17.33%
ROICexcg growth 5Y-1.91%
ROICexc growth 3Y-13.99%
ROICexc growth 5Y-0.07%
OM growth 3Y-7%
OM growth 5Y-0.52%
PM growth 3Y-22.13%
PM growth 5YN/A
GM growth 3Y-7.26%
GM growth 5Y-2.47%
F-Score4
Asset Turnover0.99
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.15 | ||
| Cap/Depr | 71.35% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.19 |
F-Score4
WACC8.67%
ROIC/WACC1.01
Cap/Depr(3y)71.8%
Cap/Depr(5y)66.55%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-31.86%
EPS 3Y-6.27%
EPS 5Y13.91%
EPS Q2Q%-2.27%
EPS Next Y44.74%
EPS Next 2Y27.27%
EPS Next 3Y23.73%
EPS Next 5YN/A
Revenue 1Y (TTM)4.08%
Revenue growth 3Y4.13%
Revenue growth 5Y3.57%
Sales Q2Q%10.8%
Revenue Next Year8.54%
Revenue Next 2Y6.77%
Revenue Next 3Y6.01%
Revenue Next 5YN/A
EBIT growth 1Y-27.62%
EBIT growth 3Y-3.16%
EBIT growth 5Y3.04%
EBIT Next Year59.1%
EBIT Next 3Y21.59%
EBIT Next 5YN/A
FCF growth 1Y-118.2%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-102.09%
OCF growth 3YN/A
OCF growth 5YN/A