Stock analysis · Bull Rankings model

SARO analysis

StandardAero, Inc.Aerospace & Defense. Scored on the same transparent 7-signal model behind the daily rankings.

SARO
StandardAero, Inc. · Aerospace & Defense
FCF$148mC
Rev+15.0%B+
D/E0.91C+
P/E30.4xB
PEG0.79A-
70.1Score
$26.73$8.9B
1Y Target$35.46Analyst consensus · 14 analysts
5Y Target$51.92Compound horizon
10Y Target$77.02Long-dated conviction
FCF$148mTTM
C
FCF $148m — modest; watch for margin expansion
Rev+15.0%TTM YoY
B+
Revenue +15.0% — above sector median, healthy trajectory
D/E0.91
C+
D/E 0.91 — above the Industrials debt median (≈75th pctile)
P/E30.4x
B
P/E 30.4 — near the Industrials median (≈60th pctile)
PEG0.79
A-
PEG 0.79 — strong; Lynch's preferred zone

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 70.1
Quality0.55
Growth0.91
Value0.69
Why this score
  • Short track record
Entry · Margin of safety
52-week rangeNear 52-week low
22% off the 12-month high
vs DCF fair value185% aboveest. fair value ~$9
What the price assumes: free cash flow compounding at ~40% a year for the next decade — vs the ~19% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability14% · C+gross profit ÷ total assets (Novy-Marx)
ROIC9.1% · Breturn on invested capital — not score-weighted
Why now
StandardAero’s Engine Services segment is capitalizing on a booming commercial aerospace and military aftermarket, delivering 15% revenue growth YoY while generating $148 m of free cash flow and trading at a sub‑1.0 PEG of 0.79, meaning the market is pricing in less growth than the business can sustain. The compounding engine‑service contracts will keep cash flowing and earnings expanding, making the growth story the core of the investment case.
Moat
The company’s moat lies in its deep‑rooted aftermarket service contracts and asset‑management platform for fixed‑ and rotary‑wing engines, which lock in long‑term spend from commercial airlines, military fleets and business‑jet operators. Switching costs are high because customers rely on certified MRO expertise and on‑wing support that competitors cannot replicate quickly, preserving pricing power and recurring revenue.
Risk
The primary risk is financial leverage and valuation pressure: a debt‑to‑equity of 0.91 combined with a lofty P/E of 30.4 suggests the stock may be over‑priced if revenue growth stalls, and the Bull Rankings model flags a short track record as a cautionary signal. A slowdown in aerospace demand or a margin squeeze would validate the bearish view, and a breach of the 52‑week low at $23.83 would be a clear red flag.
Horizon
1-3 yr $35.46 (14-analyst consensus) — fundamentals + valuation re-rating. 5 yr $51.92 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $77.02 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
+0.6 over 22 daily scores
From 69.5 (Jun 22) → 70.1 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
74
Position size
$1,978
4.0% of portfolio
Stop price
$20.05
25% below $26.73
$ at risk if stopped
$494.50
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

StandardAero, Inc. (SARO): score, valuation & FAQ

StandardAero, Inc. (SARO) is a Aerospace & Defense company that scores 70.1 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are PEG (A-) and Rev (B+). On valuation, SARO sits about 185% above our discounted-cash-flow fair value — the current price implies roughly 40% annual free-cash-flow growth over the next decade.

Is SARO a good stock to buy?

Bull Rankings scores SARO 70.1 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by PEG (A-) and Rev (B+). A score is a quantitative screen of StandardAero, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SARO score 70.1 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SARO earns its highest marks on PEG (A-) and Rev (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SARO overvalued or undervalued?

Based on $26.73, SARO sits about 185% above our discounted-cash-flow fair value — the current price implies roughly 40% annual free-cash-flow growth over the next decade. It trades at a 30.4x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SARO?

The primary risk is financial leverage and valuation pressure: a debt‑to‑equity of 0.91 combined with a lofty P/E of 30.4 suggests the stock may be over‑priced if revenue growth stalls, and the Bull Rankings model flags a short track record as a cautionary signal. A slowdown in aerospace demand or a margin squeeze would validate the bearish view, and a breach of the 52‑week low at $23.83 would be a clear red flag.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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