StandardAero Inc SARO

Morningstar Rating
$21.05 −0.12 (0.57%)
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Company Report

StandardAero Maintains a Lucrative Position in the Aircraft Engine Repair Value Chain

StandardAero is a maintenance, repair, and overhaul provider focused on aircraft engines. It is authorized to work on more than 40 engine platforms in service today, including the ubiquitous CFM56 engine and its successor LEAP engine. It provides much-needed capacity in a mission-critical segment of the aerospace supply chain, allowing aircraft operators to avoid unwanted plane downtime. Turnaround time is paramount in the MRO business, and StandardAero’s experience and access to replacement parts give it a competitive edge over smaller independent shops. Around 60% of the firm’s revenue comes from servicing engines for commercial jets, with the rest split between military aircraft and business jets.

Price vs Fair Value

SARO is trading at a LOCK|JX?!T! premium.
Price
$21.17
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Supply chain disruptions and delivery delays caused a shortage in commercial aircraft that have vastly increased demand for MRO services in order to extend fleets’ useful lives.

Bears

Independent MROs depend on OEM intellectual property licenses to compete in the aftermarket, and the contracts governing these can be canceled without compensation.

News

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Trading Information

Previous Close Price
$21.17
Day Range
$20.84–21.49
52-Week Range
$20.79–34.48
Bid/Ask
$20.75 / $21.66
Shares Outstanding
330.92M
Market Cap
$6.97B
Volume/Avg
4M / 4M

Key Statistics

Price/Earnings (Normalized)
17.37
Price/Sales
1.12
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Dividend Payment Schedule
—
Total Yield
—

Company Profile

StandardAero is one of the largest independent providers of maintenance, repair, and overhaul services for aircraft engines. It supports leading engine platforms in the commercial, military, and business jet end markets, securing licenses from original equipment manufacturers to perform work on their respective engine families. The company organizes itself into two reportable segments: engine services and component repair Services. As a go-to MRO partner for both engine manufacturers and aircraft operators, StandardAero operates a global network of service facilities, with most of its revenue generated in North America and Europe.
Sector
Industrials
Industry
Aerospace & Defense
Stock Style Box
Small Growth
Total Number of Employees
8,000

Competitors

Valuation

Metric
SARO
MTX
S63
Price/Earnings (Normalized)
17.3721.3633.59
Price/Book Value
2.544.3713.55
Price/Sales
1.122.182.65
Price/Cash Flow
13.3611.1022.31
Price/Earnings
SARO
MTX
S63

Financial Strength

Metric
SARO
MTX
S63
Quick Ratio
1.571.040.67
Current Ratio
2.131.420.95
Interest Coverage
3.6010.955.46
Quick Ratio
SARO
MTX
S63

Profitability

Metric
SARO
MTX
S63
Return on Assets (Normalized)
5.05%7.85%4.41%
Return on Equity (Normalized)
12.72%23.41%27.38%
Return on Invested Capital (Normalized)
8.93%16.71%10.54%
Return on Assets
SARO
MTX
S63

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