NasdaqGM:WLFC

Stock Analysis Report

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Executive Summary

Willis Lease Finance Corporation engages in acquiring and leasing commercial aircraft, aircraft engines, and related aircraft equipment for air carriers, manufacturers, and overhaul/repair facilities worldwide. More Details


Snowflake Analysis

Fair value with imperfect balance sheet.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.3%

WLFC

3.6%

US Trade Distributors

2.3%

US Market


1 Year Return

-65.1%

WLFC

13.8%

US Trade Distributors

17.2%

US Market

Return vs Industry: WLFC underperformed the US Trade Distributors industry which returned 11% over the past year.

Return vs Market: WLFC underperformed the US Market which returned 15.8% over the past year.


Shareholder returns

WLFCIndustryMarket
7 Day-0.3%3.6%2.3%
30 Day-14.7%-4.6%-4.6%
90 Day-19.1%10.7%7.4%
1 Year-65.1%-65.1%16.1%13.8%19.8%17.2%
3 Year-24.9%-24.9%22.0%16.3%37.4%28.3%
5 Year21.2%21.2%56.2%44.2%83.8%63.0%

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?

3.16x

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 (3.2x) compared to the US Trade Distributors industry average (16.7x).

PE vs Market: WLFC is good value based on its PE Ratio (3.2x) compared to the US market (18x).


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 (0.3x) compared to the US Trade Distributors industry average (1.4x).


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?

14.9%

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?

37.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WLFC has a large one-off loss of $27.7M impacting its June 30 2020 financial results.

Growing Profit Margin: WLFC's current net profit margins (9.7%) are lower than last year (15.7%).


Past Earnings Growth Analysis

Earnings Trend: WLFC's earnings have grown significantly by 37% per year over the past 5 years.

Accelerating Growth: WLFC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WLFC had negative earnings growth (-43.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (-3.8%).


Return on Equity

High ROE: WLFC's Return on Equity (9.5%) is considered low.


Next Steps

Financial Health

How is Willis Lease Finance's financial position?


Financial Position Analysis

Short Term Liabilities: WLFC's short term assets ($434.2M) exceed its short term liabilities ($129.5M).

Long Term Liabilities: WLFC's short term assets ($434.2M) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: WLFC's debt to equity ratio (373%) is considered high.

Reducing Debt: WLFC's debt to equity ratio has reduced from 394.9% to 373% over the past 5 years.

Debt Coverage: WLFC's debt is not well covered by operating cash flow (12%).

Interest Coverage: WLFC's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Charlie Willis (71 yo)

35.67yrs

Tenure

US$10,684,138

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 many years of experience in the aviation ind ...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD10.68M) is above average for companies of similar size in the US market ($USD601.03K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Willis
Chairman & CEO35.67yrsUS$10.68m13.69%
$ 15.5m
Brian Hole
President4.42yrsUS$2.79m1.55%
$ 1.8m
Scott Flaherty
Senior VP & CFO4.25yrsUS$1.98m1.49%
$ 1.7m
Dean Poulakidas
Senior VP7.67yrsUS$1.43m1.46%
$ 1.7m
Austin Willis
Senior VP of Corporate Development & Director11.75yrsUS$1.30m5.92%
$ 6.7m

6.0yrs

Average Tenure

51yo

Average Age

Experienced Management: WLFC's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Willis
Chairman & CEO35.67yrsUS$10.68m13.69%
$ 15.5m
Austin Willis
Senior VP of Corporate Development & Director11.75yrsUS$1.30m5.92%
$ 6.7m
Hans Hunziker
Independent Director14.67yrsUS$363.03k0.34%
$ 387.4k
Rae McKeating
Independent Director0.17yrno datano data
Robert Keady
Independent Director5.5yrsUS$306.56k0.39%
$ 445.9k

11.8yrs

Average Tenure

69yo

Average Age

Experienced Board: WLFC's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WLFC insiders have sold more shares than they have bought 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

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$113.228m
  • Shares outstanding: 5.98m
  • 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 engages in acquiring and leasing commercial aircraft, aircraft engines, and related aircraft equipment for air carriers, manufacturers, and overhaul/repair facilities world ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 23:39
End of Day Share Price2020/09/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.