StandardAero, Inc. Fundamental Analysis (NYSE: SARO)
StandardAero, Inc. (NYSE: SARO) shows moderate financial fundamentals with a PE ratio of 25.47, profit margin of 5.12%, and ROE of 12.12%. The company generates $6.4B in annual revenue with strong year-over-year growth of 15.76%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
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
ExcellentSARO delivers strong and consistent growth momentum.
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 25.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SARO's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values StandardAero, Inc. at 2.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.19 times EBITDA. This is generally considered low.
How Well Does SARO Make Money?
Net Profit Margin
For every $100 in sales, StandardAero, Inc. keeps $5.12 as profit after all expenses.
Operating Margin
Core operations generate 9.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.12 in profit for every $100 of shareholder equity.
ROA
StandardAero, Inc. generates $4.73 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 $296.11M, signaling weaker underlying cash strength.
Free Cash Flow
StandardAero, Inc. produces free cash flow of $222.55M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.67 in free cash annually.
FCF Yield
SARO converts 2.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.33
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.13
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How SARO Stacks Against Its Sector Peers
| Metric | SARO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.47 | 30.00 | Better (Cheaper) |
| ROE | 12.12% | 1114.00% | Weak |
| Net Margin | 5.12% | -25183.00% (disorted) | Weak |
| Debt/Equity | 0.93 | 0.94 | Neutral |
| Current Ratio | 2.13 | 21.63 | Strong Liquidity |
| ROA | 4.73% | -1320911.00% (disorted) | Weak |
SARO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
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
77.40%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
1019.81%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
146.66%
Industry Style: Cyclical, Value, Infrastructure
High Growth