NasdaqGM:WLFC

Stock Analysis Report

Executive Summary

Willis Lease Finance Corporation, together with its subsidiaries, leases and services commercial aircraft and aircraft engines worldwide.


Snowflake Analysis

Fair value with acceptable track record.

Share Price & News

How has Willis Lease Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.2%

WLFC

0.9%

US Trade Distributors

2.0%

US Market


1 Year Return

51.7%

WLFC

17.9%

US Trade Distributors

23.5%

US Market

Return vs Industry: WLFC exceeded the US Trade Distributors industry which returned 22.3% over the past year.

Return vs Market: WLFC exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

WLFCIndustryMarket
7 Day-2.2%0.9%2.0%
30 Day-3.0%0.3%4.3%
90 Day7.8%10.0%12.2%
1 Year51.7%51.7%19.8%17.9%26.1%23.5%
3 Year126.8%126.8%29.4%23.8%53.1%43.2%
5 Year179.2%179.2%50.5%39.3%75.5%56.1%

Price Volatility Vs. Market

How volatile is Willis Lease Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Willis Lease Finance undervalued compared to its fair value and its price relative to the market?

4.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: WLFC is good value based on its PE Ratio (4.4x) compared to the Trade Distributors industry average (17x).

PE vs Market: WLFC is good value based on its PE Ratio (4.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WLFC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WLFC is good value based on its PB Ratio (1.1x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is Willis Lease Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Willis Lease Finance has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Willis Lease Finance performed over the past 5 years?

48.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLFC has high quality earnings.

Growing Profit Margin: WLFC's current net profit margins (17.6%) are lower than last year (22.1%).


Past Earnings Growth Analysis

Earnings Trend: WLFC's earnings have grown significantly by 48.8% per year over the past 5 years.

Accelerating Growth: WLFC's earnings growth over the past year (18.9%) is below its 5-year average (48.8% per year).

Earnings vs Industry: WLFC earnings growth over the past year (18.9%) exceeded the Trade Distributors industry -7.3%.


Return on Equity

High ROE: Whilst WLFC's Return on Equity (20.26%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Willis Lease Finance's financial position?


Financial Position Analysis

Short Term Liabilities: WLFC's short term assets ($198.8M) exceed its short term liabilities ($139.5M).

Long Term Liabilities: WLFC's short term assets ($198.8M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: WLFC's debt to equity ratio (318.6%) is considered high.

Reducing Debt: WLFC's debt to equity ratio has reduced from 350.5% to 318.6% over the past 5 years.

Debt Coverage: WLFC's debt is not well covered by operating cash flow (19.4%).

Interest Coverage: WLFC's interest payments on its debt are not well covered by EBIT (2.7x coverage).


Balance Sheet

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

Debt Coverage by Assets: WLFC's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Willis Lease Finance's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate WLFC'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 WLFC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WLFC'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 WLFC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Willis Lease Finance's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Charlie Willis (70yo)

35yrs

Tenure

US$8,031,934

Compensation

Mr. Charles F. Willis, IV, also known as Charli, is the Founder of Willis Lease Finance Corp and has been its Chief Executive Officer since 1985. Mr. Willis has 40 years of experience in the aviation indus ...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD8.03M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Charlie's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.4yrs

Average Tenure

50yo

Average Age

Experienced Management: WLFC's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

13.3yrs

Average Tenure

69yo

Average Age

Experienced Board: WLFC's board of directors are seasoned and experienced ( 13.3 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

BuyUS$10,73501 Aug 19
Scott Flaherty
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares500
Max PriceUS$21.47
BuyUS$11,70001 Aug 19
Brian Hole
EntityIndividual
Role
President
President
Shares500
Max PriceUS$23.40
SellUS$424,24313 Jun 19
Austin Willis
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Corporate Development & Director
Shares7,865
Max PriceUS$53.94
SellUS$10,56812 Jun 19
Robert Keady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200
Max PriceUS$52.84
SellUS$316,88912 Jun 19
Austin Willis
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Corporate Development & Director
Shares6,000
Max PriceUS$52.81
SellUS$272,17310 Jun 19
Austin Willis
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Corporate Development & Director
Shares5,435
Max PriceUS$50.08
SellUS$341,99506 Jun 19
Austin Willis
EntityIndividual
Role
Member of the Board of Directors
Senior VP of Corporate Development & Director
Shares6,700
Max PriceUS$52.16
SellUS$10,35005 Jun 19
Robert Keady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200
Max PriceUS$51.75
SellUS$5,03404 Jun 19
Robert Keady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100
Max PriceUS$50.34
SellUS$19,95403 Jun 19
Robert Keady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares400
Max PriceUS$49.89
SellUS$6,05530 May 19
Robert Keady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares118
Max PriceUS$51.31
SellUS$34,13323 May 19
Brian Hole
EntityIndividual
Role
President
President
Shares638
Max PriceUS$53.50
SellUS$23,10721 May 19
Hans Hunziker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares409
Max PriceUS$56.50
SellUS$111,97421 May 19
Robert Keady
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,982
Max PriceUS$56.50
SellUS$15,26120 May 19
Hans Hunziker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares265
Max PriceUS$57.59
SellUS$27,65817 May 19
Robert Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares484
Max PriceUS$57.14
SellUS$75,77217 May 19
Hans Hunziker
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,326
Max PriceUS$57.14
SellUS$23,40015 May 19
Robert Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares416
Max PriceUS$56.25
SellUS$60,64815 May 19
Robert Morris
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,100
Max PriceUS$55.13
BuyUS$10,73601 Feb 19
Scott Flaherty
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares500
Max PriceUS$21.47
BuyUS$11,70001 Feb 19
Brian Hole
EntityIndividual
Role
President
President
Shares500
Max PriceUS$23.40

Ownership Breakdown

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


Management Team

  • Charlie Willis (70yo)

    Chairman & CEO

    • Tenure: 35yrs
    • Compensation: US$8.03m
  • Dean Poulakidas (50yo)

    Senior VP

    • Tenure: 7yrs
    • Compensation: US$1.43m
  • Austin Willis (38yo)

    Senior VP of Corporate Development & Director

    • Tenure: 11.1yrs
    • Compensation: US$1.30m
  • Scott Flaherty (53yo)

    Senior VP & CFO

    • Tenure: 3.6yrs
    • Compensation: US$2.15m
  • Brian Hole (41yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$2.15m

Board Members

  • Charlie Willis (70yo)

    Chairman & CEO

    • Tenure: 35yrs
    • Compensation: US$8.03m
  • Hans Hunziker (69yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$231.12k
  • Bob Morris (70yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$187.66k
  • Austin Willis (38yo)

    Senior VP of Corporate Development & Director

    • Tenure: 11.1yrs
    • Compensation: US$1.30m
  • Robert Keady (68yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$187.66k

Company Information

Willis Lease Finance Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Willis Lease Finance Corporation
  • Ticker: WLFC
  • Exchange: NasdaqGM
  • Founded: 1985
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$372.266m
  • Shares outstanding: 6.36m
  • Website: https://www.willislease.com

Number of Employees


Location

  • Willis Lease Finance Corporation
  • 4700 Lyons Technology Parkway
  • Coconut Creek
  • Florida
  • 33073
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WLFCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDSep 1996

Biography

Willis Lease Finance Corporation, together with its subsidiaries, leases and services commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. It also purchases and resells commercial aircraft engines; and sells aircraft engine parts and materials. The company offers noise-compliant Stage IV commercial jet engines. It serves airlines and aircraft engine manufacturers, as well as maintenance, repair, and overhaul providers. As of December 31, 2018, the company had a total lease portfolio of 244 engines and related equipment, 17 aircraft, and 10 other leased parts and equipment with 81 lessees in 47 countries; and managed a total lease portfolio of 440 engines and related equipment on behalf of other parties. Willis Lease Finance Corporation was founded in 1985 and is headquartered in Coconut Creek, Florida. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/17 23:44
End of Day Share Price2020/01/17 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.