BOC Aviation
Market Cap
HK$49.7b
Last Updated
2021/04/15 10:31 UTC
Data Sources
Company Financials +
Executive Summary
BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. More Details
Snowflake Analysis
Second-rate dividend payer and slightly overvalued.
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 less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: 2588's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.5%
2588
-1.7%
HK Trade Distributors
-0.7%
HK Market
1 Year Return
49.7%
2588
26.3%
HK Trade Distributors
28.8%
HK Market
Return vs Industry: 2588 exceeded the Hong Kong Trade Distributors industry which returned 26.3% over the past year.
Return vs Market: 2588 exceeded the Hong Kong Market which returned 28.8% over the past year.
Shareholder returns
| 2588 | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.5% | -1.7% | -0.7% |
| 30 Day | -8.4% | 2.4% | -0.3% |
| 90 Day | 12.3% | 4.5% | 1.3% |
| 1 Year | 58.6%49.7% | 30.6%26.3% | 33.7%28.8% |
| 3 Year | 79.0%55.2% | -45.4%-48.0% | 6.7%-4.5% |
| 5 Year | n/a | -50.9%-49.4% | 50.3%24.9% |
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
1 week ago | Simply Wall St
Why BOC Aviation Limited (HKG:2588) Could Be Worth Watching3 weeks ago | Simply Wall St
Is BOC Aviation (HKG:2588) Using Too Much Debt?1 month ago | Simply Wall St
Should You Or Shouldn't You: A Dividend Analysis on BOC Aviation Limited (HKG:2588)Valuation
Is BOC Aviation undervalued compared to its fair value and its price relative to the market?
12.54x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 2588 (HK$71.55) is trading above our estimate of fair value (HK$39.54)
Significantly Below Fair Value: 2588 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 2588 is good value based on its PE Ratio (12.5x) compared to the HK Trade Distributors industry average (12.8x).
PE vs Market: 2588 is poor value based on its PE Ratio (12.5x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 2588 is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: 2588 is overvalued based on its PB Ratio (1.3x) compared to the HK Trade Distributors industry average (0.5x).
Future Growth
How is BOC Aviation forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
19.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 2588's forecast earnings growth (19.7% per year) is above the savings rate (1.5%).
Earnings vs Market: 2588's earnings (19.7% per year) are forecast to grow faster than the Hong Kong market (18.4% per year).
High Growth Earnings: 2588's earnings are forecast to grow, but not significantly.
Revenue vs Market: 2588's revenue (12.3% per year) is forecast to grow slower than the Hong Kong market (13% per year).
High Growth Revenue: 2588's revenue (12.3% 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 (15.4%).
Past Performance
How has BOC Aviation performed over the past 5 years?
11.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 2588 has high quality earnings.
Growing Profit Margin: 2588's current net profit margins (26%) are lower than last year (38.9%).
Past Earnings Growth Analysis
Earnings Trend: 2588's earnings have grown by 11.9% per year over the past 5 years.
Accelerating Growth: 2588's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 2588 had negative earnings growth (-27.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (5.5%).
Return on Equity
High ROE: 2588's Return on Equity (10.7%) is considered low.
Financial Health
How is BOC Aviation's financial position?
Financial Position Analysis
Short Term Liabilities: 2588's short term assets ($655.8M) do not cover its short term liabilities ($2.2B).
Long Term Liabilities: 2588's short term assets ($655.8M) do not cover its long term liabilities ($16.6B).
Debt to Equity History and Analysis
Debt Level: 2588's debt to equity ratio (354.1%) is considered high.
Reducing Debt: 2588's debt to equity ratio has reduced from 356.9% to 354.1% over the past 5 years.
Debt Coverage: 2588's debt is not well covered by operating cash flow (10.8%).
Interest Coverage: 2588's interest payments on its debt are not well covered by EBIT (2.6x coverage).
Balance Sheet
Dividend
What is BOC Aviation current dividend yield, its reliability and sustainability?
2.79%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 2588's dividend (2.79%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.96%).
High Dividend: 2588's dividend (2.79%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.99%).
Stability and Growth of Payments
Stable Dividend: 2588 has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: 2588's dividend payments have increased, but the company has only paid a dividend for 5 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 (33.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
12.8yrs
Average management tenure
CEO
Robert Martin (55 yo)
17.25yrs
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 ($USD554.63K).
Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: 2588's management team is seasoned and experienced (12.8 years average tenure).
Board Members
Experienced Board: 2588's board of directors are considered experienced (4.9 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$49.656b
- 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
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 | 2021/04/15 10:31 |
| End of Day Share Price | 2021/04/15 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.