StandardAero, Inc. (SARO) stock analysis
Close on Nov 12, 2026Market cap $9.12BP/E 26.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak8 of 30 checks passed
StandardAero passes 8 of the 30 checks behind our score; 10 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 3/6
- Growth
- 2/6
- Past performance
- 2/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
Trading below fair value
The share price of $28.74 is below our fair value estimate of $31.18.
Revenue growing 10%+ a year
Revenue grew 13.5% a year over the last three fiscal years.
P/E below the industry
StandardAero's P/E of 27.4 is below the Aircraft and Parts median of 27.6.
EV/EBITDA below its 5-year median
StandardAero's EV/EBITDA of 14.4 is below its 5-year median of 17.4.
What to watch
Margin of safety under 20%
The price is 7.8% below fair value, less than the 20% cushion we look for.
Return on equity under 15%
Return on equity was 12.9% over the last twelve months and averaged 1.7% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.5%, below the 10% that usually covers the cost of capital.
High debt
Debt is 88.2% of shareholders' equity, above the 40% we consider low.
Valuation3/6
P/E against its history
Not enough price and earnings history to compare.
P/E below the industry
StandardAero's P/E of 27.4 is below the Aircraft and Parts median of 27.6.
EV/EBITDA below its 5-year median
StandardAero's EV/EBITDA of 14.4 is below its 5-year median of 17.4.
P/B above the industry
StandardAero's price-to-book of 3.40 is above the Aircraft and Parts median of 2.88.
Trading below fair value
The share price of $28.74 is below our fair value estimate of $31.18.
Margin of safety under 20%
The price is 7.8% below fair value, less than the 20% cushion we look for.
Growth2/6
Revenue growing 10%+ a year
Revenue grew 13.5% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing slower than the industry
Revenue grew 8.7% over the last twelve months; the Aircraft and Parts median is 16.9%.
Guidance lowered
StandardAero lowered its Full Year 2026 Component Repair Services outlook on Aug 6, 2026.
Gross margin improving
Gross margin was 15.5% over the last twelve months, against 15.0% a year earlier.
Past performance2/6
Return on equity under 15%
Return on equity was 12.9% over the last twelve months and averaged 1.7% over five years; we look for 15% on both.
Return on capital under 10%
Return on invested capital was 9.5%, below the 10% that usually covers the cost of capital.
Return on equity above the industry
StandardAero's return on equity of 12.9% is above the Aircraft and Parts median of 9.1%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 5.5% over the last twelve months, against a 5-year average of 0.9%.
Net margin below the industry
StandardAero's net margin of 5.5% is below the Aircraft and Parts median of 5.5%.
Financial health1/6
High debt
Debt is 88.2% of shareholders' equity, above the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 16.4% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense 3.8 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 2.26 times current liabilities.
Bankruptcy risk in the grey zone
The Altman Z-score is 2.64; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
StandardAero has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$31.18
The share price is 8% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 27.6× | – | 27.6× | $29.01 | 47% |
| EV/EBITDA | 17.0× | 17.4× | 16.8× | $35.03 | 41% |
| P/B | 3.1× | 3.7× | 2.9× | $26.42 | 12% |
| Earnings powerleft out, too far from the others | 10.2% cost of equity | – | – | $2.18 | – |
| Fair value | $31.18 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Aircraft and Parts median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $91.32M
- Value traded per 1% price move
- $50.90M
Downside
Medium risk
- Typical loss in a bad month
- 18.6%
- Volatility (annualized)
- 38%
- Sharpe ratio, 1 year
- -0.00
- Beta to the S&P 500 (5Y)
- 1.06
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2021 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +15.8% | +13.5% | – | – | |
| Gross profit | +19.0% | +18.0% | – | – | |
| Operating income | +36.7% | +28.0% | – | – | |
| Net income | +2427.9% | – | – | – | |
| EPS, diluted | +1975.0% | – | – | – |
Returns and balance sheet
5 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2021 | FY2021 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 11.0% | |
| Return on assets | – | – | 4.3% | |
| Current ratio | – | – | 2.20 | |
| Debt to equity | – | – | 0.83 | |
| Net debt to EBITDA | – | – | 2.58× | |
| Interest coverage | – | – | 3.2× | |
| Inventory turnover | – | – | 6.2× | |
| Capex to revenue | – | – | 1.4% | |
| Diluted shares | – | – | 334M |
Cash use needs five years of cash flow figures
StandardAero does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 4.6% | 0.95× | 2.53× | 11.0% |
| FY2024 | 0.2% | 0.87× | 3.40× | 0.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$277.42M
- Cash generatingOperating cash flow above zero$316.71M
- Return on assets improvedROA up on the prior year0.2% → 4.5%
- Earnings backed by cashOperating cash flow above net income$316.71M vs $277.42M
- Less leverageLong-term debt to assets fell35.5% → 33.4%
- Better liquidityCurrent ratio rose1.95 → 2.20
- No dilutionShare count did not rise290M → 334M
- Gross margin improvedGross margin up on the prior year14.40% → 14.80%
- More efficientAsset turnover rose0.91 → 0.98
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