Grade My Investments

AAR Corp. (AIR) Stock Grade

AIR · Industrials

A
Grade updated: July 18, 2026
Computed by the GradeMyInvestments scoring model from revenue growth, profitability, balance-sheet strength, and analyst targets.
Market Cap
$2.2B
P/E Ratio
174.9
Revenue Growth (YoY)
+19.9%
Net Margin
0.5%
Return on Equity
1.0%
Dividend Yield
None

About AAR Corp.'s fundamentals

AAR Corp. is an industrials company in the aerospace and defense sector with a $2.2 billion market capitalization that has demonstrated strong revenue growth of 19.9% year-over-year. However, the company operates on thin margins with a net margin of just 0.5%, and generates minimal returns on shareholder equity at 1.0%, suggesting profitability remains challenged despite top-line expansion. The valuation reflects these profitability constraints, with a P/E ratio of 174.9 indicating investors are pricing in significantly higher future earnings. The company does not currently pay a dividend.

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