Taking everything into account, AJRD scores 3 out of 10 in our fundamental rating. AJRD was compared to 73 industry peers in the Aerospace & Defense industry. AJRD has a bad profitability rating. Also its financial health evaluation is rather negative. AJRD is valied quite expensively at the moment, while it does show a decent growth rate.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

AJRD had positive earnings in the past year.
AJRD had a negative operating cash flow in the past year.

1.2 Ratios

AJRD has a Return On Assets of 3.19%. This is comparable to the rest of the industry: AJRD outperforms 57.14% of its industry peers.
With a decent Return On Equity value of 13.10%, AJRD is doing good in the industry, outperforming 79.37% of the companies in the same industry.
The Return On Invested Capital of AJRD (8.78%) is better 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 8.56%.

		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 of 3.21%. This is comparable to the rest of the industry: AJRD outperforms 50.79% of its industry peers.
In the last couple of years the Profit Margin of AJRD has declined.
AJRD's Operating Margin of 8.96% is fine compared to the rest of the industry. AJRD outperforms 68.25% of its industry peers.
AJRD's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 14.13%, AJRD is doing worse than 68.25% of the companies in the same industry.
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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

AJRD has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AJRD has been increased compared to 1 year ago.
AJRD has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 3.19 indicates that AJRD is not in any danger for bankruptcy at the moment.
AJRD has a Altman-Z score (3.19) which is in line with its industry peers.
AJRD has a Debt/Equity ratio of 0.51. This is a neutral value indicating AJRD is somewhat dependend on debt financing.
AJRD's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. AJRD is outperformed by 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 has a Current ratio of 1.53. This is in the lower half of the industry: AJRD underperforms 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.
AJRD has a Quick ratio (1.51) which is in line with its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.53
Quick Ratio	1.51

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for AJRD have decreased strongly by -31.86% in the last year.
Measured over the past years, AJRD shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.91% on average per year.
AJRD shows a small growth in Revenue. In the last year, the Revenue has grown by 4.08%.
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.
AJRD is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.01% yearly.

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 41.72, the valuation of AJRD can be described as expensive.
AJRD's Price/Earnings ratio is in line with the industry average.
AJRD's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
With a Price/Forward Earnings ratio of 25.57, AJRD can be considered very expensive at the moment.
AJRD's Price/Forward Earnings ratio is in line with the industry average.
AJRD's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.

		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%

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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 0.34, AJRD pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.06, AJRD pays less dividend than the S&P500 average, which is at 1.82.

		Industry Rank	Sector Rank
Dividend Yield	0.06%

5.2 History

The dividend of AJRD decreases each year by -10.86%.
AJRD is new to the dividend game and has less than 3 years of track record.

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%

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AEROJET ROCKETDYNE HOLDINGS / AJRD FAQ

What is the fundamental rating for AJRD stock?

ChartMill assigns a fundamental rating of 4 / 10 to AJRD.

What is the valuation status of AEROJET ROCKETDYNE HOLDINGS (AJRD) stock?

ChartMill assigns a valuation rating of 2 / 10 to AEROJET ROCKETDYNE HOLDINGS (AJRD). This can be considered as Overvalued.

Can you provide the profitability details for AEROJET ROCKETDYNE HOLDINGS?

AEROJET ROCKETDYNE HOLDINGS (AJRD) has a profitability rating of 4 / 10.

What is the earnings growth outlook for AEROJET ROCKETDYNE HOLDINGS?

The Earnings per Share (EPS) of AEROJET ROCKETDYNE HOLDINGS (AJRD) is expected to grow by 44.74% in the next year.

How sustainable is the dividend of AEROJET ROCKETDYNE HOLDINGS (AJRD) stock?

The dividend rating of AEROJET ROCKETDYNE HOLDINGS (AJRD) is 3 / 10 and the dividend payout ratio is 2.71%.