QualityDipStocks / Industrials · Aerospace
StandardAero SARO
Outside our quality screen, so we don’t track its dips. It’s 29% below its 52-week high.
Outside our quality screen, trading above our fair value estimate.
- Fair value est.
- $18.68−20%
- Market Value
- $23.38at the price
- Off 52-wk high
- −29%
- Risk vs market
- Above marketbeta 1.27
4 bullish · 5 bearish See why
Key levels
Every level vs today’s $23.38
- Fair value est.base case$18.68−20.1%
- 52-wk lowlowest close, 1 year$19.76−15.5%
- PriceFri Oct 30 close$23.38you are here
- Market Valueavg paid since Aug 7$23.38at the price
- 52-wk highhighest close, 1 year$33.12+41.7%
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 13.5% ±2 points. Bear = 10.5% and 11.5%; bull = 8.5% and 15.5% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, SARO’s free cash flow would need to grow about 18% a year for five years; our estimate uses 13%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much SARO moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 2.8× the S&P 500’s.
- Beta vs S&P 500
- 1.27
- Volatility
- 36% vs 13% SPY
- Correlation SPY
- 0.45
- Correlation QQQ
- 0.33
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
Balance sheetPaid down debt: $2.2B at FY2025, 31% less than at FY2023.
GrowthSales grew 13% to $6.3B over the last 12 months vs the 12 months before (SEC filings).
GrowthSales grew 13% a year over the last three fiscal years, above the 4.5% median for the 146 Industrials companies we cover.
ValuationEV/EBITDA of 12.6×, below the 16.6× median for the 96 Industrials companies we cover.
Top bearish points 5 of 5
ValuationOur DCF fair value estimate is $18.68, 20% below the price.
ProfitabilityGross margin of 15%, below the 35% median for the 114 Industrials companies we cover.
Balance sheetDebt / equity of 0.8×, above the 0.5× median for the 116 Industrials companies we cover.
QualityDoesn’t pass our quality screen: net debt 3.0× EBITDA (limit 3×).
RiskReports earnings Nov 5 (consensus EPS $0.37): results can move the price sharply and reset Market Value.
Who’s talking about it
Notable investors, executives, analysts and public figures on StandardAero in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Aerospace
All fundamentals
P/E 24.0 · FCF yield 2.8% · ROE 12%
Valuation
- P/E
- 24.0×Industrials median 27.5×
- Price / FCF
- 35.5×
- FCF yield
- 2.8%
- EV / EBITDA
- 12.6×
- Price / sales
- 1.23×
- Price / book
- 2.82×
- Market cap
- $7.8Bprice × diluted shares
- Enterprise value
- $9.9B
Growth
- Revenue, 12 months
- $6.3B
- Sales growth, 12 months
- +12.6%vs the 12 months before
- Sales growth, 3 yrs
- +13.5%/yrfrom FY2022
- Diluted EPS, 12 months
- $0.97
- EPS growth, last FY
- n/an/m: EPS a year ago near zero
- Net income, 12 months
- $324M
- Net income growth
- +144%12 months vs before
Profitability
- Gross margin
- 15.0%
- Operating margin
- 9.5%
- Net margin
- 5.1%
- FCF margin
- 3.5%
- Return on equity
- 12%
- Return on invested capital
- 9%
Balance sheet
- Cash & short-term inv.
- $179M
- Total debt
- $2.3B
- Net cash
- −$2.1B
- Debt / equity
- 0.84×
- Interest coverage
- 3.6×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $219M
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- −0.6%diluted shares vs a year ago
- Stock-based comp
- $17M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From StandardAero’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $18.68 · MV $23.38 · FCF value $16.28
Assumes 13.5% growth for 5 years (revenue grew 13.5% a year FY22–FY25), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $0.66 a share (trailing 12 months to Jun 30, 2026), from the 10-Q filed Aug 7, 2026. Net debt $2.1B, not deducted.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 63 · 5 days +7.3%
The business
FCF $0.2B · Sales +5%
- Free cash flow, 12 months$0.2B
- Free-cash-flow yield2.8%
- Gross margin15%
- Operating margin10%
- Return on invested capital10%
- Return on equity12%
- Sales growth (latest quarter vs year-ago quarter)+5%
- Net debt / EBITDA3.0×
Next report
Nov 5
- DateThu Nov 5, after the close
- Consensus EPS$0.37
- Year-ago EPS$0.20
- QuarterSep/2026
From Nasdaq’s earnings calendar. A report resets Market Value.
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
SARO is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.