Quality Investor
About 

StandardAero, Inc.

Rank #420Op. Leverage

SARO · NYSE · Industrials

StandardAero, Inc. (SARO) — Rank #420 by gross profitability (GP/assets 0.13) · ROE 10.1% · Piotroski F-Score 8 / 9.

As-of 2026-09-15 · CIK 0002025410 · all metrics point-in-time as of the filing date.

About

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.

Show more

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. StandardAero, Inc. was formerly known as Dynasty Parent Co., Inc. and changed its name to StandardAero, Inc. in September 2024.

The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

Industry
Aerospace & Defense
Sector
Industrials
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Price History

SARO-26.6% · -14.8% CAGRSPY+37.1% · +17.7% CAGR

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

$7.65B

P/E (annual)

27.9

P/S (annual)

1.3

P/B

2.8

P/OCF (annual)

24.2

Shareholder Yield

-15.4%

Employees

8,000

Industry

Aerospace & Defense

Exchange

NYSE

Signal Flags

4 green2 yellow
Revenue growth acceleratingGrowth rate increasing year over year
Operating leverage expandingOperating income growing faster than revenue
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Dilution above 2%Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation
Disclosure regressionA previously-disclosed line item is no longer reported — worth checking the filing for why

Quality Profile

Profitability

1/1 pass
GP / assets
0.13
Return on equity
10.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.49
Current ratio
2.13×
Net cash
-$2.15B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
0.2%

Growth

1/2 pass
Revenue growth
15.8%
Piotroski F-Score
8 / 9
Share dilution
15.4%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

What Growth Is Priced In

Implied revenue growth (10Y)

14.5%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 15.4% — per-share value needs a total required return of 29.9% once share-count change is priced in.

vs. own 6-year median revenue growth: 14.8%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

9.8%

r = 10% (base)

14.5%

r = 12%

18.6%

Net debt / market cap: 27.8%

Base FCF: $234.3M3Y mean FCF: $60.4M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

1.8xFair
1.6xmed 1.7x1.9x

P / B

Price / book value per share

4.0xFair
3.4xmed 5.2x6.7x

P / GP

Price / gross profit per share

11.9xFair
10.8xmed 12.0x14.1x

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.13

Primary signal (Novy-Marx).

10th pctl of 22 SIC 37 peers

Return on equity

10.1%

Gross margin

14.8%

14th pctl of 22 SIC 37 peers

Revenue growth (YoY)

15.8%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

13.5%

Revenue CAGR (5Y)

—

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

—

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.49

15th pctl of 21 SIC 37 peers (best = lowest)

Current ratio

2.13×

52nd pctl of 22 SIC 37 peers

Quick ratio

0.70×

Net cash

-$2.15B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$234.30M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.16

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.2%

Stock-based comp intensity.

Piotroski F-Score

F-Score

8 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20222025
Op. Leverage
View full financial statements →