DB:R1D

Stock Analysis Report

Executive Summary

AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in China, the United States, Ireland, and internationally.

Rewards

PE ratio (7.8x) is below the German market (20.7x)

Earnings have grown 1.9% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -3.9% per year for the next 3 years

Interest payments are not well covered by earnings



Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

How has AerCap Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: R1D has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.9%

R1D

1.1%

DE Trade Distributors

0.2%

DE Market


1 Year Return

28.5%

R1D

22.0%

DE Trade Distributors

13.6%

DE Market

Return vs Industry: R1D exceeded the German Trade Distributors industry which returned 22% over the past year.

Return vs Market: R1D exceeded the German Market which returned 13.6% over the past year.


Shareholder returns

R1DIndustryMarket
7 Day1.9%1.1%0.2%
30 Day0.9%0.9%-0.08%
90 Day6.9%3.0%6.0%
1 Year28.5%28.5%25.6%22.0%17.1%13.6%
3 Year34.3%34.3%-2.0%-9.1%19.6%9.0%
5 Year80.5%80.5%17.7%5.0%38.9%20.0%

Price Volatility Vs. Market

How volatile is AerCap Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is AerCap Holdings undervalued compared to its fair value and its price relative to the market?

7.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate R1D's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate R1D's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: R1D is good value based on its PE Ratio (7.8x) compared to the Trade Distributors industry average (15.6x).

PE vs Market: R1D is good value based on its PE Ratio (7.8x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: R1D's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: R1D is good value based on its PB Ratio (0.9x) compared to the DE Trade Distributors industry average (1.4x).


Next Steps

Future Growth

How is AerCap Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: R1D's earnings are forecast to decline over the next 3 years (-3.9% per year).

Earnings vs Market: R1D's earnings are forecast to decline over the next 3 years (-3.9% per year).

High Growth Earnings: R1D's earnings are forecast to decline over the next 3 years.

Revenue vs Market: R1D's revenue (0.3% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: R1D's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: R1D's Return on Equity is forecast to be low in 3 years time (10.6%).


Next Steps

Past Performance

How has AerCap Holdings performed over the past 5 years?

1.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: R1D has high quality earnings.

Growing Profit Margin: R1D's current net profit margins (21.8%) are lower than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: R1D's earnings have grown by 1.9% per year over the past 5 years.

Accelerating Growth: R1D's earnings growth over the past year (1.8%) is below its 5-year average (1.9% per year).

Earnings vs Industry: R1D earnings growth over the past year (1.8%) underperformed the Trade Distributors industry 8.4%.


Return on Equity

High ROE: R1D's Return on Equity (11.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AerCap Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: R1D's short term assets ($3.5B) exceed its short term liabilities ($2.9B).

Long Term Liabilities: R1D's short term assets ($3.5B) do not cover its long term liabilities ($31.4B).


Debt to Equity History and Analysis

Debt Level: R1D's debt to equity ratio (316.8%) is considered high.

Reducing Debt: R1D's debt to equity ratio has reduced from 403.1% to 316.8% over the past 5 years.

Debt Coverage: R1D's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: R1D's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

Inventory Level: R1D has a low level of unsold assets or inventory.

Debt Coverage by Assets: R1D's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is AerCap Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate R1D's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate R1D's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if R1D's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if R1D's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of R1D's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of AerCap Holdings's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Aengus Kelly (45yo)

8.6yrs

Tenure

0

Mr. Aengus Kelly, also known as Gus, has been the Chief Executive Officer of AerCap Holdings N.V. since May 18, 2011. Mr. Kelly served as the Chief Executive Officer of AerCap, Inc., a subsidiary of AerCap ...


Management Age and Tenure

3.2yrs

Average Tenure

49yo

Average Age

Experienced Management: R1D's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

8.6yrs

Average Tenure

52yo

Average Age

Experienced Board: R1D's board of directors are considered experienced (8.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$345,862,37205 Dec 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares7,213,397
Max PriceUS$53.81
SellUS$35,421,74803 Oct 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares826,178
Max PriceUS$44.80
SellUS$18,007,12603 Oct 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares528,616
Max PriceUS$45.11
SellUS$66,119,50917 Jun 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares1,520,880
Max PriceUS$43.47
SellUS$59,204,63803 Jun 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares1,479,120
Max PriceUS$45.34
SellUS$56,873,00421 Mar 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares1,517,850
Max PriceUS$39.34
SellUS$8,489,08007 Mar 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares207,727
Max PriceUS$42.20
SellUS$46,962,03907 Mar 19
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares1,274,423
Max PriceUS$42.20
SellUS$13,696,99027 Dec 18
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares332,467
Max PriceUS$42.26
SellUS$3,299,60527 Dec 18
Waha Capital PJSC, Asset Management Arm
EntityCompany
Shares80,688
Max PriceUS$42.07

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Joe Venuto (61yo)

    Chief Technical Officer

    • Tenure: 7.8yrs
  • Aengus Kelly (45yo)

    CEO & Executive Director

    • Tenure: 8.6yrs
  • Vincent Drouillard (43yo)

    General Counsel

    • Tenure: 1.5yrs
  • Peter Juhas (47yo)

    Chief Financial Officer

    • Tenure: 2.7yrs
  • Phil Scruggs (54yo)

    Chief Commercial Officer & President

    • Tenure: 5.6yrs
  • Joseph McGinley

    Head of Investor Relations

    • Tenure: 2yrs
  • Peter Anderson (43yo)

    Head of EMEA

    • Tenure: 0.8yrs
  • Gillian Culhane

    Vice President of Corporate Communications

    • Tenure: 0yrs
  • Theresa Murray (51yo)

    Head of Human Resources

    • Tenure: 3.2yrs
  • Jorg Koletzki (51yo)

    Chief Information Officer

    • Tenure: 4.3yrs

Board Members

  • Bob Warden (46yo)

    Non Executive Director

    • Tenure: 13.4yrs
  • Paul Dacier (61yo)

    Vice Chairman of the Board

    • Tenure: 0yrs
  • Jim Lawrence (67yo)

    Independent Director

    • Tenure: 2.6yrs
  • Pieter Korteweg (78yo)

    Non-Executive Chairman of the Board

    • Tenure: 0yrs
  • Michael Gradon (59yo)

    Independent Director

    • Tenure: 9.6yrs
  • Salem Rashid Ali Al Noaimi (43yo)

    Non-Executive Director

    • Tenure: 8.6yrs
  • Aengus Kelly (45yo)

    CEO & Executive Director

    • Tenure: 8.6yrs
  • Homaid Abdulla Al Shimmari (51yo)

    Non-Executive Director

    • Tenure: 8.6yrs
  • Michael Walsh (52yo)

    Non-Executive Director

    • Tenure: 2.6yrs
  • Brad Branch

    Non-Executive Director

    • Tenure: 1.7yrs

Company Information

AerCap Holdings N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AerCap Holdings N.V.
  • Ticker: R1D
  • Exchange: DB
  • Founded: 1995
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$7.989b
  • Listing Market Cap: US$7.201b
  • Shares outstanding: 131.64m
  • Website: https://www.aercap.com

Number of Employees


Location

  • AerCap Holdings N.V.
  • AerCap House
  • 65 St. Stephen’s Green
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AERNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDNov 2006
R1DDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2006

Biography

AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in China, the United States, Ireland, and internationally. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 21:06
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.