{
  "docId": "019dd923-622c-750b-8b98-9d969fe4e5f7",
  "docSlug": "cd566ab57f86",
  "documentTitle": "Aerojet Rocketdyne Holdings, Inc. (AJRD)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-04-09 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 54,
  "pageCount": 57,
  "prevPage": 53,
  "nextPage": 55,
  "slideType": "peer_benchmark",
  "function": "compare_peers",
  "density": "dense",
  "nDataPoints": 100,
  "notes": "The slide uses a red box to highlight the 'Small Cap Peers' group and a blue line to strike through the comparison, indicating Spruce Point's disagreement with the market's valuation methodology.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "callout_box",
    "comparison_table"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b98-9d969fe4e5f7/54",
  "deckHref": "/decks/019dd923-622c-750b-8b98-9d969fe4e5f7",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b98-9d969fe4e5f7.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b98-9d969fe4e5f7#slide-54",
  "components": [
    {
      "bbox": {
        "h": 0.15,
        "w": 0.35,
        "x": 0.62,
        "y": 0.35
      },
      "kind": "callout",
      "text": "Spruce Point's Documented Concerns About All Of These Over-Valued Small Cap Peers: Mercury (April 2018 / Oct 2018), Aerovironment (Nov 2017), Kratos (March 2018 / May 2018)",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "321d1367-5bfd-43d4-ad9e-9650ba103777",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "callout",
      "text": "In our opinion, analysts incorrectly believe Aerojet is cheap by comparing it with overvalued “small cap” A&D peers, none of which even compete within its rocket propulsion or missile defense market segments.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b32f-ba6f385e05e4",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EV/EBITDA: 42%",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-3f3d-76db-b32f-bf70f22f14ec",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.9,
        "x": 0.05,
        "y": 0.19
      },
      "kind": "paragraph",
      "text": "In our opinion, analysts incorrectly believe Aerojet is cheap by comparing it with overvalued “small cap” A&D peers, none of which even compete within its rocket propulsion or missile defense market segments.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "8acb2c09-af79-4a6c-ade6-4898184366a9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.2,
        "x": 0.05,
        "y": 0.91
      },
      "kind": "source-note",
      "text": "Source: Jefferies, March 25, 2019",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4d450631-c1ae-4d3b-990f-18e967a96c00",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.35,
        "w": 0.9,
        "x": 0.05,
        "y": 0.52
      },
      "kind": "table",
      "text": "Exhibit 3 - Valuation Relative to Peers table showing P/E, EV/Sales, EV/EBITDA, and Yield for Large Cap and Small Cap peers compared to AJRD.",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b3a77ab6-10a3-4b47-a8fa-10a584c74f11",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.65,
        "x": 0.31,
        "y": 0.02
      },
      "kind": "title",
      "text": "Whereas Creative Analysts Claim AJRD Trades At A Discount....",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "67037a3b-64cd-4408-8201-77886f655255",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "comparison_frame",
      "slug": null,
      "matchId": "b7efaa38-9cc3-4354-96d5-4bfebb72c2d0",
      "evidence": "Comparing AJRD valuation metrics against peer groups to challenge market consensus.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [
    {
      "to": 57,
      "from": 41,
      "beatId": "a1453c5b-aabf-4b66-ad63-b9f8d5065052",
      "arcName": "Overcoming the Monster",
      "arcSlug": "overcoming-monster",
      "beatName": "The Victory",
      "beatSlug": "overcoming-monster-the-victory",
      "evidence": "The deck concludes with a strong sell recommendation and a detailed valuation analysis, presenting a 'victory' for investors who take action",
      "position": 3,
      "confidence": 0.8,
      "parentBeatName": "Turn",
      "parentBeatSlug": "turn"
    }
  ],
  "loops": [
    {
      "to": 56,
      "from": 46,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "3dfbf3e0-cb40-43ce-8e4b-a2b506819833",
      "evidence": "The deck emphasizes the potential downside risk for investors who do not take action",
      "position": 1,
      "objective": "The cost of inaction: potential 40-60% downside risk",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.7,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}