📊 SARO Key Takeaways
Is StandardAero, Inc. (SARO) a Good Investment?
StandardAero faces critical cash flow challenges with negative operating cash flow of -$119.6M despite positive net income, indicating earnings quality concerns. Combined with flat revenue growth (0% YoY), deteriorating returns on capital (ROE 3%, ROA 1.2%), and an interest coverage ratio of 3.8x that leaves limited room for adverse conditions, the company exhibits operational stress and sustainability risks in a capital-intensive industry.
StandardAero, Inc. Key Strengths (SARO)
- Adequate liquidity position with current ratio of 2.12x and quick ratio of 1.59x
- Moderate leverage at debt-to-equity of 0.81x provides some financial flexibility
- Positive net income of $79.9M and operating income of $143.1M show operational profitability
SARO Stock Risks: StandardAero, Inc. Investment Risks
- Severely negative free cash flow of -$135.1M indicates the company is burning cash despite reported profitability, raising concerns about earnings quality and sustainability
- Flat year-over-year revenue growth (0%) combined with deteriorating returns (ROE 3%, ROA 1.2%) suggests stagnation and poor capital efficiency
- Interest coverage ratio of 3.8x is borderline concerning and leaves limited cushion for operational disruptions or debt servicing challenges
Key Metrics to Watch
- Operating cash flow trend - critical to return to positive territory
- Revenue growth acceleration and gross margin expansion
- Return on equity and return on assets improvement trajectories
StandardAero, Inc. (SARO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.12x current ratio provides a solid financial cushion.
SARO Profit Margin, ROE & Profitability Analysis
SARO vs Automotive Sector: How StandardAero, Inc. Compares
How StandardAero, Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is StandardAero, Inc. Stock Overvalued? SARO Valuation Analysis 2026
Based on fundamental analysis, StandardAero, Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
StandardAero, Inc. Balance Sheet: SARO Debt, Cash & Liquidity
SARO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: StandardAero, Inc.'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.13 indicates the company is currently unprofitable.
SARO Revenue Growth, EPS Growth & YoY Performance
SARO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.4B | $62.9M | $0.19 |
| Q3 2025 | $1.2B | $3.2M | $0.06 |
| Q2 2025 | $1.3B | $3.2M | $0.02 |
| Q1 2025 | $1.2B | $3.2M | $0.01 |
| Q3 2024 | $1.1B | -$838.0K | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
StandardAero, Inc. Dividends, Buybacks & Capital Allocation
SARO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for StandardAero, Inc. (CIK: 0002025410)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SARO
What is the AI rating for SARO?
StandardAero, Inc. (SARO) has an AI grade of C with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SARO's key strengths?
Claude: Adequate liquidity position with current ratio of 2.12x and quick ratio of 1.59x. Moderate leverage at debt-to-equity of 0.81x provides some financial flexibility.
What are the risks of investing in SARO?
Claude: Severely negative free cash flow of -$135.1M indicates the company is burning cash despite reported profitability, raising concerns about earnings quality and sustainability. Flat year-over-year revenue growth (0%) combined with deteriorating returns (ROE 3%, ROA 1.2%) suggests stagnation and poor capital efficiency.
What is SARO's revenue and growth?
StandardAero, Inc. reported revenue of $1.6B.
Does SARO pay dividends?
StandardAero, Inc. does not currently pay dividends.
Where can I find SARO SEC filings?
Official SEC filings for StandardAero, Inc. (CIK: 0002025410) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SARO's EPS?
StandardAero, Inc. has a diluted EPS of $0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is SARO's fundamental grade?
Based on our AI fundamental analysis in May 2026, StandardAero, Inc. has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is SARO stock overvalued or undervalued?
Valuation metrics for SARO: ROE of 3.0% (sector avg: 12%), net margin of 4.9% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
What is SARO's AI grade for 2026?
Our dual AI analysis gives StandardAero, Inc. a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SARO's free cash flow?
StandardAero, Inc.'s operating cash flow is $-119.6M, with capital expenditures of $15.6M. FCF margin is -8.3%.
How does SARO compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 4.9% (avg: 6%), ROE 3.0% (avg: 12%), current ratio 2.12 (avg: 1.2).