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STANDARDAERO INC (SARO) Stock Fundamental Analysis

NYSE:SARO - New York Stock Exchange, Inc. - US85423L1035 - Common Stock - Currency: USD

24.675  +0.46 (+1.88%)

Fundamental Rating

3

Taking everything into account, SARO scores 3 out of 10 in our fundamental rating. SARO was compared to 65 industry peers in the Aerospace & Defense industry. SARO has a bad profitability rating. Also its financial health evaluation is rather negative. SARO is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

SARO had positive earnings in the past year.
In the past year SARO had a positive cash flow from operations.
SARO Yearly Net Income VS EBIT VS OCF VS FCFSARO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2021 2022 2023 2024 0 100M 200M 300M 400M

1.2 Ratios

SARO has a worse Return On Assets (0.18%) than 61.54% of its industry peers.
SARO has a Return On Equity (0.46%) which is in line with its industry peers.
The Return On Invested Capital of SARO (6.47%) is better than 63.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SARO is below the industry average of 7.87%.
The 3 year average ROIC (5.55%) for SARO is below the current ROIC(6.47%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 0.18%
ROE 0.46%
ROIC 6.47%
ROA(3y)-0.27%
ROA(5y)N/A
ROE(3y)-1.45%
ROE(5y)N/A
ROIC(3y)5.55%
ROIC(5y)N/A
SARO Yearly ROA, ROE, ROICSARO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2021 2022 2023 2024 0 2 -2 4 6

1.3 Margins

SARO has a Profit Margin of 0.21%. This is in the lower half of the industry: SARO underperforms 60.00% of its industry peers.
SARO has a Operating Margin (7.73%) which is comparable to the rest of the industry.
SARO's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 14.41%, SARO is not doing good in the industry: 78.46% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of SARO has grown nicely.
Industry RankSector Rank
OM 7.73%
PM (TTM) 0.21%
GM 14.41%
OM growth 3Y17.41%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.43%
GM growth 5YN/A
SARO Yearly Profit, Operating, Gross MarginsSARO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2021 2022 2023 2024 0 5 10

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SARO is destroying value.
Compared to 1 year ago, SARO has about the same amount of shares outstanding.
The debt/assets ratio for SARO has been reduced compared to a year ago.
SARO Yearly Shares OutstandingSARO Yearly Shares OutstandingYearly Shares Outstanding 2022 2023 2024 100M 200M 300M
SARO Yearly Total Debt VS Total AssetsSARO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2022 2023 2024 2B 4B 6B

2.2 Solvency

SARO has an Altman-Z score of 2.21. This is not the best score and indicates that SARO is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.21, SARO is not doing good in the industry: 63.08% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.93 indicates that SARO is somewhat dependend on debt financing.
SARO has a worse Debt to Equity ratio (0.93) than 72.31% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.93
Debt/FCF N/A
Altman-Z 2.21
ROIC/WACC0.61
WACC10.54%
SARO Yearly LT Debt VS Equity VS FCFSARO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.95 indicates that SARO should not have too much problems paying its short term obligations.
SARO's Current ratio of 1.95 is in line compared to the rest of the industry. SARO outperforms 46.15% of its industry peers.
SARO has a Quick Ratio of 1.29. This is a normal value and indicates that SARO is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SARO (1.29) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.95
Quick Ratio 1.29
SARO Yearly Current Assets VS Current LiabilitesSARO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2022 2023 2024 500M 1B 1.5B 2B

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6

3. Growth

3.1 Past

SARO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 149.67%, which is quite impressive.
The Revenue has grown by 14.77% in the past year. This is quite good.
The Revenue has been growing by 14.60% on average over the past years. This is quite good.
EPS 1Y (TTM)149.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-353%
Revenue 1Y (TTM)14.77%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%21.75%

3.2 Future

The Earnings Per Share is expected to grow by 65.47% on average over the next years. This is a very strong growth
Based on estimates for the next years, SARO will show a quite strong growth in Revenue. The Revenue will grow by 11.48% on average per year.
EPS Next Y162.88%
EPS Next 2Y88.71%
EPS Next 3Y65.47%
EPS Next 5YN/A
Revenue Next Year13.4%
Revenue Next 2Y12.29%
Revenue Next 3Y11.48%
Revenue Next 5YN/A

3.3 Evolution

Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
SARO Yearly Revenue VS EstimatesSARO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B
SARO Yearly EPS VS EstimatesSARO Yearly EPS VS EstimatesYearly EPS VS Estimates 2024 2025 2026 2027 0.5 1 1.5

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2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 616.88, SARO can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SARO indicates a slightly more expensive valuation: SARO is more expensive than 67.69% of the companies listed in the same industry.
SARO is valuated expensively when we compare the Price/Earnings ratio to 27.63, which is the current average of the S&P500 Index.
SARO is valuated quite expensively with a Price/Forward Earnings ratio of 28.17.
64.62% of the companies in the same industry are more expensive than SARO, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.85, SARO is valued a bit more expensive.
Industry RankSector Rank
PE 616.88
Fwd PE 28.17
SARO Price Earnings VS Forward Price EarningsSARO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 200 400 600

4.2 Price Multiples

SARO's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 17.29
SARO Per share dataSARO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as SARO's earnings are expected to grow with 65.47% in the coming years.
PEG (NY)3.79
PEG (5Y)N/A
EPS Next 2Y88.71%
EPS Next 3Y65.47%

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0

5. Dividend

5.1 Amount

No dividends for SARO!.
Industry RankSector Rank
Dividend Yield N/A

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STANDARDAERO INC

NYSE:SARO (4/22/2025, 12:25:31 PM)

24.675

+0.46 (+1.88%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)03-10 2025-03-10/amc
Earnings (Next)N/A N/A
Inst Owners40.9%
Inst Owner Change0.02%
Ins Owners0.45%
Ins Owner Change0.27%
Market Cap8.25B
Analysts82.86
Price Target34.45 (39.61%)
Short Float %2.17%
Short Ratio5.17
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)48.13%
Min EPS beat(2)8.71%
Max EPS beat(2)87.55%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)1
Avg Revenue beat(2)0.27%
Min Revenue beat(2)-0.43%
Max Revenue beat(2)0.98%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)0%
PT rev (3m)-4.7%
EPS NQ rev (1m)-6.25%
EPS NQ rev (3m)-10%
EPS NY rev (1m)4.57%
EPS NY rev (3m)3.93%
Revenue NQ rev (1m)-4.2%
Revenue NQ rev (3m)-3.87%
Revenue NY rev (1m)0.92%
Revenue NY rev (3m)0.96%
Valuation
Industry RankSector Rank
PE 616.88
Fwd PE 28.17
P/S 1.58
P/FCF N/A
P/OCF 108.12
P/B 3.48
P/tB N/A
EV/EBITDA 17.29
EPS(TTM)0.04
EY0.16%
EPS(NY)0.88
Fwd EY3.55%
FCF(TTM)-0.14
FCFYN/A
OCF(TTM)0.23
OCFY0.92%
SpS15.66
BVpS7.1
TBVpS-1.82
PEG (NY)3.79
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.18%
ROE 0.46%
ROCE 8.19%
ROIC 6.47%
ROICexc 6.61%
ROICexgc 17.23%
OM 7.73%
PM (TTM) 0.21%
GM 14.41%
FCFM N/A
ROA(3y)-0.27%
ROA(5y)N/A
ROE(3y)-1.45%
ROE(5y)N/A
ROIC(3y)5.55%
ROIC(5y)N/A
ROICexc(3y)5.66%
ROICexc(5y)N/A
ROICexgc(3y)15.32%
ROICexgc(5y)N/A
ROCE(3y)7.03%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y17.41%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.43%
GM growth 5YN/A
F-Score7
Asset Turnover0.84
Health
Industry RankSector Rank
Debt/Equity 0.93
Debt/FCF N/A
Debt/EBITDA 3.73
Cap/Depr 65.85%
Cap/Sales 2.35%
Interest Coverage 1.39
Cash Conversion 12.9%
Profit Quality N/A
Current Ratio 1.95
Quick Ratio 1.29
Altman-Z 2.21
F-Score7
WACC10.54%
ROIC/WACC0.61
Cap/Depr(3y)43.93%
Cap/Depr(5y)N/A
Cap/Sales(3y)1.76%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)149.67%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-353%
EPS Next Y162.88%
EPS Next 2Y88.71%
EPS Next 3Y65.47%
EPS Next 5YN/A
Revenue 1Y (TTM)14.77%
Revenue growth 3Y14.6%
Revenue growth 5YN/A
Sales Q2Q%21.75%
Revenue Next Year13.4%
Revenue Next 2Y12.29%
Revenue Next 3Y11.48%
Revenue Next 5YN/A
EBIT growth 1Y19.44%
EBIT growth 3Y34.55%
EBIT growth 5YN/A
EBIT Next Year83.65%
EBIT Next 3Y33.97%
EBIT Next 5YN/A
FCF growth 1Y-169.03%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y12.43%
OCF growth 3Y-16.42%
OCF growth 5YN/A