StandardAero, Inc.
$24.91
+2.3%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.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is elevated (P/E 29.6).
Valuation inputs: P/E 29.6, earnings yield +3.4%, momentum +2.3%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +10.4%, ROIC +7.7%).
Profitability stack: net margin +4.6%, ROE +10.4%, ROIC +7.7%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +59.3%, momentum +2.3%, net margin +4.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
StandardAero, Inc. Market vs Earnings Trajectory
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StandardAero, Inc. Fair Value Envelope
StandardAero, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Thin margins leave little room for error. Cost management and pricing strategy are critical.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.
Effective Tax Rate
Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.
Profitability Insight
Efficient profit conversion: Minimal margin compression from gross to net indicates lean operations and favorable tax/interest environment.
StandardAero, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extension—monitor closely.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
StandardAero, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Debt-to-Equity Ratio
Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Balanced asset mix between current and non-current assets, typical of many stable businesses.
StandardAero, Inc. Street Expectations Map
Wall Street analysts project that SARO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 35.50, with estimates ranging from a low of 30.00 to a high of 39.00.
The consensus 1-year price target stands at 35.50, with estimates ranging from a low of 30.00 to a high of 39.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.
Market Sentiment Insight
Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.
StandardAero, Inc. Insider Positioning
During the last 12 months, insiders have purchased $984K and sold $2.42B worth of SARO shares, resulting in $2.42B of net selling activity.
3 Months
37.2K
983.61K
20.4K
558.99K
+425K
+$425K
3-6 Months
0
0.00
77.8M
2.41B
-2.4B
-$2.41B
6-9 Months
0
0.00
110.6K
3.09M
-3.1M
-$3.09M
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
Mcelhinney Paul
Director
$984K
Top Sellers
Carlyle Group Inc.
10 Percent Owner
$2.12B
Gic Private Ltd
10 Percent Owner
$282.55M
Ford Russell Wayne
Director, Officer: Chief Executive Officer
$12.44M
Trapp Alex
Officer: Chief Strategy Officer
$2.57M
Drobny Marc
Officer: See Remarks
$1.02M
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $2.42B net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Positive recent trend with net buying activity. Insiders have been accumulating shares in recent months.
Insider Participation
5 insider sellers vs. 1 buyers. Widespread selling across multiple insiders may signal concerns.
No Dividend Yield Data
SARO has not reported any dividend yield values in the available annual periods.
saro Dividend History
Learning Layer
Related Guides
Build conviction on SARO by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.