Aerojet Rocketdyne Holdings, Inc.
Aerojet Rocketdyne Holdings, Inc. Fundamental Analysis
Aerojet Rocketdyne Holdings, Inc. (AJRD) shows weak financial fundamentals with a PE ratio of 62.93, profit margin of 3.31%, and ROE of 13.77%. The company generates $2.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.1/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AJRD's fundamental strength across five key dimensions:
Efficiency Score
WeakAJRD struggles to generate sufficient returns from assets.
Valuation Score
ModerateAJRD shows balanced valuation metrics.
Growth Score
ModerateAJRD shows steady but slowing expansion.
Financial Health Score
ExcellentAJRD maintains a strong and stable balance sheet.
Profitability Score
WeakAJRD struggles to sustain strong margins.
Key Financial Metrics
Is AJRD Expensive or Cheap?
P/E Ratio
AJRD trades at 62.93 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AJRD's PEG of 0.63 indicates potential undervaluation.
Price to Book
The market values Aerojet Rocketdyne Holdings, Inc. at 8.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 18.59 times EBITDA. This signals the market has high growth expectations.
How Well Does AJRD Make Money?
Net Profit Margin
For every $100 in sales, Aerojet Rocketdyne Holdings, Inc. keeps $3.31 as profit after all expenses.
Operating Margin
Core operations generate 6.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.77 in profit for every $100 of shareholder equity.
ROA
Aerojet Rocketdyne Holdings, Inc. generates $3.12 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aerojet Rocketdyne Holdings, Inc. generates limited operating cash flow of $-48.98M, signaling weaker underlying cash strength.
Free Cash Flow
Aerojet Rocketdyne Holdings, Inc. generates weak or negative free cash flow of $-89.91M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.11 in free cash annually.
FCF Yield
AJRD converts -1.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.63
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.65
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.43
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AJRD Stacks Against Its Sector Peers
| Metric | AJRD Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.93 | 26.49 | Worse (Expensive) |
| ROE | 13.77% | 1307.00% | Weak |
| Net Margin | 3.31% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.65 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.43 | 10.48 | Neutral |
| ROA | 3.12% | -1549793.00% (disorted) | Weak |
AJRD outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aerojet Rocketdyne Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure