StandardAero, Inc.
StandardAero, Inc. Fundamental Analysis
StandardAero, Inc. (SARO) shows weak financial fundamentals with a PE ratio of 55.76, profit margin of 3.15%, and ROE of 7.46%. The company generates $6.0B in annual revenue with strong year-over-year growth of 14.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SARO's fundamental strength across five key dimensions:
Efficiency Score
WeakSARO struggles to generate sufficient returns from assets.
Valuation Score
ModerateSARO shows balanced valuation metrics.
Growth Score
ModerateSARO shows steady but slowing expansion.
Financial Health Score
ExcellentSARO maintains a strong and stable balance sheet.
Profitability Score
WeakSARO struggles to sustain strong margins.
Key Financial Metrics
Is SARO Expensive or Cheap?
P/E Ratio
SARO trades at 55.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SARO's PEG of 1.43 indicates fair valuation.
Price to Book
The market values StandardAero, Inc. at 3.98 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.16 times EBITDA. This signals the market has high growth expectations.
How Well Does SARO Make Money?
Net Profit Margin
For every $100 in sales, StandardAero, Inc. keeps $3.15 as profit after all expenses.
Operating Margin
Core operations generate 8.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.46 in profit for every $100 of shareholder equity.
ROA
StandardAero, Inc. generates $2.78 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
StandardAero, Inc. generates limited operating cash flow of $103.91M, signaling weaker underlying cash strength.
Free Cash Flow
StandardAero, Inc. generates weak or negative free cash flow of $-48.10M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.14 in free cash annually.
FCF Yield
SARO converts -0.45% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
55.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.98
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.79
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.99
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.18
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How SARO Stacks Against Its Sector Peers
| Metric | SARO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 55.76 | 26.49 | Worse (Expensive) |
| ROE | 7.46% | 1307.00% | Weak |
| Net Margin | 3.15% | -5131.00% (disorted) | Weak |
| Debt/Equity | 0.99 | 0.81 | Weak (High Leverage) |
| Current Ratio | 2.18 | 10.48 | Strong Liquidity |
| ROA | 2.78% | -1549793.00% (disorted) | Weak |
SARO 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 StandardAero, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.53%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
141.44%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-32.30%
Industry Style: Cyclical, Value, Infrastructure
Declining