BOC Aviation
Market Cap
HK$44.7b
Last Updated
2021/01/26 10:19 UTC
Data Sources
Company Financials +
Executive Summary
BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value with acceptable track record.
Similar Companies
Share Price & News
How has BOC Aviation's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 2588 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: 2588's weekly volatility (8%) has been stable over the past year.
Market Performance
7 Day Return
-3.4%
2588
1.8%
HK Trade Distributors
4.1%
HK Market
1 Year Return
-13.1%
2588
4.7%
HK Trade Distributors
16.9%
HK Market
Return vs Industry: 2588 underperformed the Hong Kong Trade Distributors industry which returned 4.2% over the past year.
Return vs Market: 2588 underperformed the Hong Kong Market which returned 15.8% over the past year.
Shareholder returns
| 2588 | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.4% | 1.8% | 4.1% |
| 30 Day | -1.8% | 11.9% | 14.8% |
| 90 Day | 19.8% | 29.0% | 21.4% |
| 1 Year | -7.9%-13.1% | 8.5%4.7% | 21.6%16.9% |
| 3 Year | 57.9%36.9% | -47.7%-50.4% | -3.4%-13.7% |
| 5 Year | n/a | -26.0%-30.8% | 67.8%39.1% |
Long-Term Price Volatility Vs. Market
How volatile is BOC Aviation's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Can BOC Aviation Limited (HKG:2588) Maintain Its Strong Returns?2 weeks ago | Simply Wall St
Estimating The Intrinsic Value Of BOC Aviation Limited (HKG:2588)4 weeks ago | Simply Wall St
Is It Time To Consider Buying BOC Aviation Limited (HKG:2588)?Valuation
Is BOC Aviation undervalued compared to its fair value and its price relative to the market?
18.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 2588 (HK$64.4) is trading below our estimate of fair value (HK$76.92)
Significantly Below Fair Value: 2588 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 2588 is good value based on its PE Ratio (8.2x) compared to the HK Trade Distributors industry average (9.9x).
PE vs Market: 2588 is good value based on its PE Ratio (8.2x) compared to the Hong Kong market (11.9x).
Price to Earnings Growth Ratio
PEG Ratio: 2588 is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: 2588 is overvalued based on its PB Ratio (1.2x) compared to the HK Trade Distributors industry average (0.5x).
Next Steps
Future Growth
How is BOC Aviation forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
20.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2588's forecast earnings growth (19% per year) is above the savings rate (1.5%).
Earnings vs Market: 2588's earnings (19% per year) are forecast to grow slower than the Hong Kong market (21.9% per year).
High Growth Earnings: 2588's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2588's revenue (14.1% per year) is forecast to grow slower than the Hong Kong market (14.6% per year).
High Growth Revenue: 2588's revenue (14.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 2588's Return on Equity is forecast to be low in 3 years time (15.1%).
Next Steps
Past Performance
How has BOC Aviation performed over the past 5 years?
16.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2588 has a high level of non-cash earnings.
Growing Profit Margin: 2588's current net profit margins (37.4%) are higher than last year (37.3%).
Past Earnings Growth Analysis
Earnings Trend: 2588's earnings have grown by 16.6% per year over the past 5 years.
Accelerating Growth: 2588's earnings growth over the past year (9.3%) is below its 5-year average (16.6% per year).
Earnings vs Industry: 2588 earnings growth over the past year (9.3%) exceeded the Trade Distributors industry -7.7%.
Return on Equity
High ROE: 2588's Return on Equity (15.2%) is considered low.
Next Steps
Financial Health
How is BOC Aviation's financial position?
Financial Position Analysis
Short Term Liabilities: 2588's short term assets ($792.6M) do not cover its short term liabilities ($2.1B).
Long Term Liabilities: 2588's short term assets ($792.6M) do not cover its long term liabilities ($15.9B).
Debt to Equity History and Analysis
Debt Level: 2588's debt to equity ratio (348.6%) is considered high.
Reducing Debt: 2588's debt to equity ratio has reduced from 374.1% to 348.6% over the past 5 years.
Debt Coverage: 2588's debt is not well covered by operating cash flow (9.8%).
Interest Coverage: 2588's interest payments on its debt are not well covered by EBIT (2.5x coverage).
Balance Sheet
Next Steps
Dividend
What is BOC Aviation current dividend yield, its reliability and sustainability?
4.37%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 2588's dividend (4.27%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.08%).
High Dividend: 2588's dividend (4.27%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.55%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 2588 has been paying a dividend for less than 10 years.
Growing Dividend: 2588's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (35%), 2588's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 2588's dividends in 3 years are forecast to be well covered by earnings (34.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.5yrs
Average management tenure
CEO
Robert Martin (55 yo)
17yrs
Tenure
US$8,838,000
Compensation
Mr. Robert James Martin has been the Chief Executive Officer and Managing Director of BOC Aviation Pte. Ltd since 2004 and July 5, 1998 respectively. Mr. Martin has been an Executive Director of BOC Aviati...
CEO Compensation Analysis
Compensation vs Market: Robert's total compensation ($USD8.84M) is above average for companies of similar size in the Hong Kong market ($USD494.17K).
Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 17yrs | US$8.84m | 0.029% $ 12.8m | |
| Deputy MD & Vice Chairman | 1yr | no data | no data | |
| Deputy MD & CFO | 0.25yr | no data | no data | |
| Deputy Managing Director & COO | 6.17yrs | no data | no data | |
| Chief Accounting Officer | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel | 18.42yrs | no data | no data | |
| Head of Risk Management | no data | no data | no data | |
| Head of Airline Leasing & Sales - Asia Pacific Middle East | no data | no data | no data | |
| Head of Strategy & Market Research | 12.5yrs | no data | no data | |
| Head of Procurement | 18yrs | no data | no data | |
| Head of Treasury | 12.5yrs | no data | no data |
12.5yrs
Average Tenure
53yo
Average Age
Experienced Management: 2588's management team is seasoned and experienced (12.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD, CEO & Executive Director | 17yrs | US$8.84m | 0.029% $ 12.8m | |
| Deputy MD & Vice Chairman | 1yr | no data | no data | |
| Independent Non-Executive Director | 4.67yrs | US$179.00k | no data | |
| Independent Non-Executive Director | 9.92yrs | US$77.00k | no data | |
| Non-Executive Director | 7yrs | no data | no data | |
| Non-Executive Director | 5.08yrs | no data | no data | |
| Independent Non-Executive Director | 4.67yrs | US$77.00k | no data | |
| Non-Executive Director | 4.33yrs | no data | no data | |
| Independent Non-Executive Director | 4.08yrs | US$45.00k | no data | |
| Non-Executive Director | 2.25yrs | no data | no data |
4.7yrs
Average Tenure
53.5yo
Average Age
Experienced Board: 2588's board of directors are considered experienced (4.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
BOC Aviation Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: BOC Aviation Limited
- Ticker: 2588
- Exchange: SEHK
- Founded: 1993
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: HK$44.694b
- Shares outstanding: 694.01m
- Website: https://www.bocaviation.com
Number of Employees
Location
- BOC Aviation Limited
- No. 18-01, 8 Shenton Way
- Singapore
- 68811
- Singapore
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 2588 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Ordinary Shares | HK | HKD | Jun 2016 |
| 8BO | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 2016 |
| 2588 | SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2016 |
| 2588 | SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect) | Yes | Ordinary Shares | HK | HKD | Jun 2016 |
| BCVV.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 2016 |
Biography
BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. It offers a range of services to airlines and aircraft owners, including direct operating ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/26 10:19 |
| End of Day Share Price | 2021/01/26 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.