AER

AerCap HoldingsNYSE:AER Stock Report

Market Cap

US$6.8b

7D

-1.5%

1Y

122.8%

Updated

22 Sep, 2021

Data

Company Financials +
AER fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health2/6
Dividends0/6

AER Overview

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial aircraft and engines in Mainland China, Hong Kong, Macau, the United States, Ireland, and internationally.

AerCap Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AerCap Holdings
Historical stock prices
Current Share PriceUS$53.42
52 Week HighUS$21.99
52 Week LowUS$63.49
Beta2.42
1 Month Change2.16%
3 Month Change-1.33%
1 Year Change122.77%
3 Year Change-6.74%
5 Year Change44.30%
Change since IPO132.06%

Recent News & Updates

Sep 20
Is AerCap Holdings (NYSE:AER) Using Too Much Debt?

Is AerCap Holdings (NYSE:AER) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 22

AerCap: A Reopening Investment But In The Meantime Profitable

Low-quality competitors are greatly affected by COVID, which puts AerCap in a better position. Effects from the merger between AerCap and GECAS may result in a higher net spread for the company and, thus, higher return on equity. The airlines' balance sheet will need to be deleveraged, and lessors are their best position to take advantage.

Aug 11

AerCap Stock: A High Altitude Buy On Cash Flow Growth

Revenues increased by 3% supported by sales of unsecured claims. Revenues are expected to grow, driven by new leases on existing aircraft as well as new aircraft. Cash flow will climb further as balances due are paid, new leases on existing aircraft take effect and more new aircraft are leased.

Jun 21

EU antitrust regulator sets July 26 decision for AerCap's $30B GE deal

hapabapa/iStock Editorial via Getty Images AerCap ([[AER]] +4.1%) surges after getting a July 26 deadline from the European Union for approval of its planned $30B purchase of GE Capital's ([[GE]] +2.3%) jet leasing business, according to a filing from the European Commission. The EU competition enforcer can approve the deal with or without concessions or open a four-month investigation if antitrust concerns are identified. Analysts have said the scale of the combined company, which would controlling 3x the number of

Jun 14

AerCap: Buy On High Hopes For Summer?

Winter months slowed down cash collection improvement, but further improvement is expected in the remainder of the year. Maintenance reserves are shielding revenues. AerCap remains in a strong liquidity position.

Shareholder Returns

AERUS Trade DistributorsUS Market
7D-1.5%-0.8%-1.8%
1Y122.8%47.4%31.5%

Return vs Industry: AER exceeded the US Trade Distributors industry which returned 50% over the past year.

Return vs Market: AER exceeded the US Market which returned 33% over the past year.

Price Volatility

Is AER's price volatile compared to industry and market?
AER volatility
AER Beta2.42
Industry Beta1.57
Market Beta1

Stable Share Price: AER is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AER's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1995377Gus Kellyhttps://www.aercap.com

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial aircraft and engines in Mainland China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and aircraft engine valuations; and providing market research services.

Valuation

Is AerCap Holdings 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: AER ($53.42) is trading below our estimate of fair value ($360.35)

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


Price To Earnings Ratio

PE vs Industry: AER is unprofitable, so we can't compare its PE Ratio to the US Trade Distributors industry average.

PE vs Market: AER is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: AER is good value based on its PB Ratio (0.7x) compared to the US Trade Distributors industry average (2.2x).


Future Growth

How is AerCap Holdings forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

39.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AER is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: AER is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AER's is expected to become profitable in the next 3 years.

Revenue vs Market: AER's revenue (23.3% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: AER's revenue (23.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AER's Return on Equity is forecast to be low in 3 years time (10.8%).


Past Performance

How has AerCap Holdings performed over the past 5 years?

-24.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AER is currently unprofitable.

Growing Profit Margin: AER is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AER is unprofitable, and losses have increased over the past 5 years at a rate of 24.8% per year.

Accelerating Growth: Unable to compare AER's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AER is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (49.2%).


Return on Equity

High ROE: AER has a negative Return on Equity (-3.64%), as it is currently unprofitable.


Financial Health

How is AerCap Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AER's short term assets ($3.8B) exceed its short term liabilities ($2.3B).

Long Term Liabilities: AER's short term assets ($3.8B) do not cover its long term liabilities ($30.0B).


Debt to Equity History and Analysis

Debt Level: AER's debt to equity ratio (298.6%) is considered high.

Reducing Debt: AER's debt to equity ratio has reduced from 346.2% to 298.6% over the past 5 years.

Debt Coverage: AER's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: AER's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

What is AerCap Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if AER'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 AER'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?

4.9yrs

Average management tenure


CEO

Gus Kelly (47 yo)

10.33yrs

Tenure

Mr. Aengus Kelly, also known as Gus, has been the Chief Executive Officer of AerCap Holdings N.V. since May 18, 2011. Mr. Kelly served as the Chief Executive Officer of AerCap, Inc., a subsidiary of AerCap...


Leadership Team

Experienced Management: AER's management team is considered experienced (4.9 years average tenure).


Board Members

Experienced Board: AER's board of directors are considered experienced (4.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

AerCap Holdings N.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: AerCap Holdings N.V.
  • Ticker: AER
  • Exchange: NYSE
  • Founded: 1995
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$6.844b
  • Shares outstanding: 128.12m
  • Website: https://www.aercap.com

Number of Employees


Location

  • AerCap Holdings N.V.
  • AerCap House
  • 65 St. Stephen’s Green
  • Dublin
  • Co. Dublin
  • D02 YX20
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 00:15
End of Day Share Price2021/09/21 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.