AAR Corp.
NYSE: AIR • Aerospace, Defense & Commercial Aviation Aftermarket • USA
📊 12-Point Fundamental Moat Audit
| Audit Dimension | Observed Value | MoatPicks Benchmark | Audit Result |
|---|---|---|---|
| 1. Forward Valuation (PER) | 17.2x | < 25.0x | ✅ PASS |
| 2. Peter Lynch PEG Ratio | 1.15x | < 1.50x | ✅ PASS |
| 3. Enterprise Value / EBITDA | 10.5x | < 14.0x | ✅ PASS |
| 4. Regulatory & Safety Moat | FAA & EASA certified facilities | High Barriers to Entry | ✅ PASS |
| 5. Operating Cash Flow Quality | $160M+ Annual Cash Generation | Positive & Compounding | ✅ PASS |
| 6. Fleet Aging Tailwinds | Commercial jet delivery delays benefit MRO | Secular Growth Driver | ✅ PASS |
💡 Institutional Investment Thesis
AAR Corp. (NYSE: AIR) represents a quintessential "picks and shovels" compounder in the aerospace and defense industry. Rather than bearing the manufacturing and design risks of original equipment manufacturers (OEMs), AAR Corp provides independent maintenance, repair, and overhaul (MRO) services alongside parts logistics for airlines and military fleets globally.
With Boeing and Airbus facing extended backlogs and delivery delays, airlines around the world are forced to operate older aircraft longer—directly boosting maintenance hours and aftermarket parts demand for AAR Corp. Backed by long-term U.S. Department of Defense support contracts and strong return on capital, AIR trades at an attractive multiple with resilient multi-year cash flow visibility.