LSE:AIR

Stock Analysis Report

Executive Summary

Air Partner plc provides aviation charter, consulting, and training services worldwide.

Rewards

Trading at 46.1% below its fair value

Earnings are forecast to grow 17.46% per year

Earnings grew by 11% over the past year

Risk Analysis

Has a high level of debt

Dividend of 5.93% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Solid track record with high growth potential.


Similar Companies

Share Price & News

How has Air Partner's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AIR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-19.5%

AIR

-3.9%

GB Airlines

-1.1%

GB Market


1 Year Return

-20.0%

AIR

11.2%

GB Airlines

12.7%

GB Market

Return vs Industry: AIR underperformed the UK Airlines industry which returned 22.3% over the past year.

Return vs Market: AIR underperformed the UK Market which returned 12.7% over the past year.


Shareholder returns

AIRIndustryMarket
7 Day-19.5%-3.9%-1.1%
30 Day-18.2%2.0%0.07%
90 Day-17.8%20.4%6.2%
1 Year-15.1%-20.0%19.9%11.2%18.6%12.7%
3 Year-14.6%-26.8%68.2%46.5%21.8%6.3%
5 Year65.9%26.9%36.2%11.1%42.5%9.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Air Partner undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIR (£0.95) is trading below our estimate of fair value (£1.75)

Significantly Below Fair Value: AIR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AIR is poor value based on its PE Ratio (15.6x) compared to the Airlines industry average (11.7x).

PE vs Market: AIR is good value based on its PE Ratio (15.6x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: AIR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: AIR is overvalued based on its PB Ratio (4.1x) compared to the GB Airlines industry average (2.2x).


Next Steps

Future Growth

How is Air Partner forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIR's forecast earnings growth (17.5% per year) is above the savings rate (0.5%).

Earnings vs Market: AIR's earnings (17.5% per year) are forecast to grow faster than the UK market (11.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AIR's revenue (8.8% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: AIR's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIR's Return on Equity is forecast to be high in 3 years time (36.7%)


Next Steps

Past Performance

How has Air Partner performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIR has a large one-off loss of £1.4M impacting its July 31 2019 financial results.

Growing Profit Margin: AIR's current net profit margins (4.3%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: AIR's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: AIR's earnings growth over the past year (11%) exceeds its 5-year average (7.4% per year).

Earnings vs Industry: AIR earnings growth over the past year (11%) exceeded the Airlines industry -9.8%.


Return on Equity

High ROE: AIR's Return on Equity (26.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Air Partner's financial position?


Financial Position Analysis

Short Term Liabilities: AIR's short term assets (£54.2M) exceed its short term liabilities (£54.1M).

Long Term Liabilities: AIR's short term assets (£54.2M) exceed its long term liabilities (£9.8M).


Debt to Equity History and Analysis

Debt Level: AIR's debt to equity ratio (45.7%) is considered high.

Reducing Debt: Insufficient data to determine if AIR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AIR's debt is well covered by operating cash flow (117.7%).

Interest Coverage: AIR's interest payments on its debt are well covered by EBIT (13.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: AIR's debt is covered by short term assets (assets are 9.9x debt).


Next Steps

Dividend

What is Air Partner's current dividend yield, its reliability and sustainability?

7.36%

Current Dividend Yield


Dividend Yield vs Market

company7.4%marketbottom25%1.8%markettop25%5.0%industryaverage3.4%forecastin3Years7.6%

Current dividend yield vs market & industry

Notable Dividend: AIR's dividend (5.93%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: AIR's dividend (5.93%) is in the top 25% of dividend payers in the UK market (4.95%)


Stability and Growth of Payments

Stable Dividend: AIR's dividend payments have been volatile in the past 10 years.

Growing Dividend: AIR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (93.1%), AIR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIR's dividends in 3 years are forecast to be covered by earnings (59.4% payout ratio).


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Mark Briffa (54yo)

9.8yrs

Tenure

UK£805,000

Compensation

Mr. Mark A. Briffa has been the Chief Executive Officer of Air Partner PLC since April 01, 2010. Mr. Briffa served as the Managing Director of UK Board at Air Partner PLC since 2006. He served as the Chief ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.05M) is above average for companies of similar size in the UK market ($USD326.78K).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: AIR's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: AIR's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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

BuyUK£18,25004 Jul 19
Edmond Warner
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares25,000
Max PriceUK£0.73
BuyUK£23,00017 May 19
Edmond Warner
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares25,000
Max PriceUK£0.92

Ownership Breakdown

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


Management Team

  • Mark Briffa (54yo)

    CEO & Executive Director

    • Tenure: 9.8yrs
    • Compensation: UK£805.00k
  • Joanne Estell (48yo)

    CFO & Director

    • Tenure: 1.3yrs
    • Compensation: UK£203.48k
  • Vincent Kavanagh

    Senior Vice President of Sales

    • Tony Whitty

      Senior Director of Remarketing and ACMI

      • Ian Holder

        Managing Director of Baines Simmons

        • Tenure: 1.8yrs
      • Pyle Lee

        Group Head of Technology

        • Julia Timms

          Chief Marketing Officer

          • Tenure: 3.6yrs
        • Kevin Macnaughton

          Managing Director of Charter

          • Tenure: 0.8yrs
        • Craig Pattison

          Group HR Director

          • Tenure: 1.2yrs
        • Judith Banks

          General Counsel & Company Secretary


          Board Members

          • Mark Briffa (54yo)

            CEO & Executive Director

            • Tenure: 9.8yrs
            • Compensation: UK£805.00k
          • Paul Dollman (62yo)

            Non-Executive Director

            • Tenure: 0.7yrs
          • Ed Warner (55yo)

            Non-Executive Chairman

            • Tenure: 0.8yrs
          • Amanda Wills (57yo)

            Independent Non-Executive Director

            • Tenure: 3.8yrs
            • Compensation: UK£35.00k
          • Joanne Estell (48yo)

            CFO & Director

            • Tenure: 1.3yrs
            • Compensation: UK£203.48k
          • Richard Jackson

            Senior Independent Director

            • Tenure: 2.6yrs
            • Compensation: UK£43.00k

          Company Information

          Air Partner plc's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Air Partner plc
          • Ticker: AIR
          • Exchange: LSE
          • Founded: 1961
          • Industry: Airlines
          • Sector: Transportation
          • Market Cap: UK£40.621m
          • Shares outstanding: 53.38m
          • Website: https://www.airpartner.com

          Number of Employees


          Location

          • Air Partner plc
          • 2 City Place
          • Beehive Ring Road
          • Gatwick
          • West Sussex
          • RH6 0PA
          • United Kingdom

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          AIRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992

          Biography

          Air Partner plc provides aviation charter, consulting, and training services worldwide. It operates through four segments: Commercial Jets, Private Jets, Freight, and Consulting & Training. The company provides commercial jet charter services for more than 20 passengers for governments, corporates, sports and entertainment teams, industrial, manufacturing customers, and tour operators; and private jet charter services for up to 19 passengers for business and leisure corporates, high net worth individuals, and governments. It also offers charter of cargo transport aircraft and part-charter services for regular and bespoke requirements, including emergency aid drops, door-to-door freight delivery, and on-board couriers; aviation safety consulting and training services in regulation, compliance, and safety management for civil and defense aviation organizations; and risk management consulting services for aviation customers, and oil and gas and mining sectors. In addition, the company provides wildlife hazard management and bird control services to civil and military airports; air traffic control (ATC) services, including ATC engineering and training, and survival training for fast jet pilots. Further, it is involved in the e remarketing, acquisition, and leasing of commercial aircraft and private jets; emergency planning comprising planning, executing, and managing air support and air evacuations activities; and travel agency business. The company was founded in 1961 and is headquartered in Gatwick, the United Kingdom. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/25 20:39
          End of Day Share Price2020/01/24 00:00
          Earnings2019/07/31
          Annual Earnings2019/01/31


          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.