StandardAero, Inc. (SARO) AI Stock Analysis

• Market Cap: $9.75B
• Dividend Yield: N/A
• Average Volume (3M): 1.34M
• Price to Earnings (P/E): 52.9
• Beta (1Y): 1.28
• Revenue Growth: 17.79%
• EPS Growth: 815.80%
• Country: US
• Employees: 7,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.20
• Shares Outstanding: 334,470,280
• 10 Day Avg. Volume: 1,190,061
• 30 Day Avg. Volume: 1,338,403
• PEG Ratio: -4.72
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 1.36
• P/FCF Ratio: -152.41
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 13.56
• Enterprise Value/Ebitda: 17.56
• 1Y Price Target: $34.43
• Price Target Upside: 18.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): $6.02B

• Rating: 67 Neutral
• Price Target: $29.00 ▼(-0.55% Downside)

StandardAero, Inc. shows strong financial performance with significant revenue growth and improved profitability. The positive earnings call and stock buyback plan further enhance its outlook. However, high valuation, cash flow challenges, and technical resistance are notable concerns. The overall score reflects a balanced view of these factors.

Positive Factors

Revenue Growth

The 20% YoY revenue growth indicates strong demand across multiple segments, showcasing the company's ability to capture market opportunities and expand its service offerings.

Stock Buyback Plan

The $450M stock buyback plan reflects management's confidence in the company's financial health and commitment to enhancing shareholder value over the long term.

Improved Leverage

Reduced leverage indicates stronger financial health, providing the company with more flexibility for strategic investments and growth initiatives.

Negative Factors

High Debt Levels

Despite improvements, high debt levels can strain financial resources and limit the company's ability to invest in growth or weather economic downturns.

Negative Free Cash Flow

Negative free cash flow indicates challenges in generating sufficient cash from operations, potentially impacting the company's ability to fund future growth and meet financial obligations.

Supply Chain Challenges

Ongoing supply chain issues can disrupt operations, delay service delivery, and increase costs, affecting profitability and customer satisfaction.

StandardAero, Inc. Business Overview & Revenue Model

Company Description

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

How the Company Makes Money

StandardAero generates revenue primarily through its comprehensive MRO services for aircraft engines and airframes. Key revenue streams include engine overhauls, routine maintenance, and repair services, as well as parts sales and component repairs. The company also benefits from long-term service agreements with various airline operators and military contracts, providing a steady income source. Strategic partnerships with aircraft manufacturers and leasing companies further enhance StandardAero's market position and contribute to its earnings by ensuring a strong client base and consistent business opportunities.

StandardAero, Inc. Financial Statement Overview

Summary

StandardAero, Inc. demonstrates strong revenue growth and improving profitability margins. While the balance sheet shows a decrease in leverage, high debt levels remain a concern. Cash flow management needs improvement, as free cash flow is still negative despite better operating cash flows. The company is on a positive trajectory, but must address cash flow and leverage challenges to achieve financial stability.

Income Statement

StandardAero, Inc. shows strong revenue growth with a 14.8% increase from 2023 to 2024, and a 10% increase from 2022 to 2023. The gross profit margin improved to 14.4% in 2024 from 13.9% in 2023, indicating better cost management. The net profit margin turned positive at 0.2% in 2024, recovering from a net loss in previous years. However, EBIT and EBITDA margins, while positive, indicate room for improvement at 7.7% and 10.5%, respectively.

Balance Sheet

The company's debt-to-equity ratio improved to 1.02 in 2024 from 2.94 in 2023, showing a reduction in leverage. Return on equity increased to 0.5% in 2024 from negative figures previously, but remains relatively low. The equity ratio improved to 38.2% from 19.9% in 2023, indicating stronger equity compared to total assets. Despite these improvements, high debt levels pose a potential risk.

Cash Flow

Operating cash flow increased slightly to $76.3M in 2024, and the free cash flow improved, though still negative at -$46.9M. The free cash flow to net income ratio remains negative, reflecting ongoing challenges in generating free cash flow. The operating cash flow to net income ratio is positive, indicating some efficiency in converting profits into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022
Income Statement
Total Revenue	5.87B	5.24B	4.56B	4.15B
Gross Profit	854.37M	754.16M	635.28M	545.68M
EBITDA	659.87M	551.34M	511.87M	459.14M
Net Income	184.72M	10.97M	-35.06M	-21.00M
Balance Sheet
Total Assets	6.65B	6.21B	5.76B	5.73B
Cash, Cash Equivalents and Short-Term Investments	97.50M	102.58M	57.98M	120.06M
Total Debt	2.56B	2.41B	3.38B	3.37B
Total Liabilities	4.06B	3.84B	4.61B	4.53B
Stockholders Equity	2.58B	2.37B	1.15B	1.20B
Cash Flow
Free Cash Flow	-42.56M	-46.85M	-17.42M	-16.95M
Operating Cash Flow	87.25M	76.33M	67.89M	27.26M
Investing Cash Flow	-123.68M	-235.45M	-112.86M	-60.75M
Financing Cash Flow	76.36M	203.76M	-14.69M	-25.78M

StandardAero, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SARO, the sentiment is Positive. The current price of 29.16 is above the 20-day moving average (MA) of 27.40, above the 50-day MA of 27.14, and above the 200-day MA of 27.80, indicating a bullish trend. The MACD of 0.76 indicates Negative momentum. The RSI at 65.90 is Neutral, neither overbought nor oversold. The STOCH value of 88.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SARO.

StandardAero, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOG.A	73 Outperform	$8.41B	34.31	12.09%	0.46%	7.11%	13.43%
ATRO	68 Neutral	$1.97B	-408.33	-1.72%	―	6.19%	52.10%
SARO	67 Neutral	$9.75B	52.85	9.86%	―	17.79%	815.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MRCY	57 Neutral	$4.46B	-131.83	-2.24%	―	8.63%	72.72%

StandardAero, Inc. Corporate Events

StandardAero Announces $450 Million Stock Buyback Plan

On December 9, 2025, StandardAero, Inc. announced that its Board of Directors approved a stock repurchase program, allowing the company to buy back up to $450 million of its common stock. This initiative aims to enhance shareholder value and offers flexibility as repurchases will depend on market conditions and corporate needs, with the possibility of modification or discontinuation at the company’s discretion.

StandardAero Appoints New President for Component Repair

StandardAero, Inc. announced on September 22, 2025, the appointment of Gregory Krekeler as President of Component Repair Services, succeeding Kimberly Ashmun, who will assist with the transition until the end of the year. The company also reaffirmed its full-year 2025 guidance, initially released on August 13, 2025, indicating stability in its operational outlook.