StandardAero, Inc. (SARO) AI Stock Analysis

• Market Cap: $8.88B
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 48.1
• Beta (1Y): 1.30
• 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: 1,120,182
• 30 Day Avg. Volume: 1,547,320
• 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: 1.30
• Enterprise Value/Revenue: 1.97
• Enterprise Value/Gross Profit: 13.56
• Enterprise Value/Ebitda: 17.56
• 1Y Price Target: $33.57
• Price Target Upside: 26.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.84
• Revenue Forecast (FY): $6.02B

• Rating: 63 Neutral
• Price Target: $26.00 ▼(-2.26% Downside)

StandardAero, Inc. shows strong financial performance and a positive outlook from its latest earnings call, which are the most significant factors in its score. However, technical indicators suggest bearish momentum, and the stock appears overvalued, which weigh down the overall score. Addressing cash flow and leverage issues will be crucial for future stability.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates robust demand across its markets, supporting long-term business expansion and market position.

Strategic Expansion

The expansion enhances capacity for key engine models, supporting future growth in regional and military aviation sectors.

Improved Leverage

Reduced leverage indicates stronger financial health, enhancing the company's ability to invest in growth and manage economic fluctuations.

Negative Factors

High Debt Levels

While leverage has improved, high debt levels can limit financial flexibility and pose risks to long-term stability if not managed properly.

Negative Free Cash Flow

Ongoing negative free cash flow indicates challenges in cash generation, which could impact the company's ability to fund operations and growth.

Supply Chain Challenges

Supply chain issues can disrupt operations and increase costs, potentially affecting profitability and customer satisfaction in the long term.

StandardAero, Inc. Business Overview & Revenue Model

Company Description

StandardAero, Inc. (SARO) is a leading independent provider of aircraft maintenance, repair, and overhaul (MRO) services, catering primarily to the aviation industry. The company specializes in servicing both commercial and military aircraft, offering a wide range of solutions including engine services, airframe maintenance, and component repair. StandardAero operates across various sectors such as business aviation, commercial aviation, and defense, ensuring an extensive portfolio of services tailored to meet the diverse needs of its clients worldwide.

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: Neutral
• Last Price: 26.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 26.6 is above the 20-day moving average (MA) of 25.70, below the 50-day MA of 26.89, and below the 200-day MA of 27.75, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 53.47 is Neutral, neither overbought nor oversold. The STOCH value of 90.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SARO.

StandardAero, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERJ	73 Outperform	―	―	12.21%	0.08%	22.29%	51.90%
MOG.A	73 Outperform	$7.53B	32.42	12.09%	0.49%	7.11%	13.43%
ATRO	66 Neutral	$1.83B	―	-1.72%	―	6.19%	52.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SARO	63 Neutral	$8.88B	48.14	9.86%	―	17.79%	815.80%
MRCY	55 Neutral	$4.24B	―	-2.24%	―	8.63%	72.72%
SPR	47 Neutral	$4.23B	-1.63	―	―	-1.31%	-78.19%

StandardAero, Inc. Corporate Events

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.