NYSE:AER

Stock Analysis Report

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Executive Summary

AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in China, the United States, Ireland, and internationally.


Snowflake Analysis

Proven track record and fair value.


Similar Companies

Share Price & News

How has AerCap Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AER's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.4%

AER

-1.8%

US Trade Distributors

2.3%

US Market


1 Year Return

-43.6%

AER

-1.8%

US Trade Distributors

6.7%

US Market

Return vs Industry: AER underperformed the US Trade Distributors industry which returned -1.8% over the past year.

Return vs Market: AER underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

AERIndustryMarket
7 Day-2.4%-1.8%2.3%
30 Day-8.6%1.5%7.4%
90 Day11.5%20.8%17.9%
1 Year-43.6%-43.6%0.2%-1.8%9.0%6.7%
3 Year-39.7%-39.7%18.8%13.3%36.6%27.7%
5 Year-39.1%-39.1%27.0%17.7%64.2%46.1%

Price Volatility Vs. Market

How volatile is AerCap Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AerCap Holdings undervalued compared to its fair value and its price relative to the market?

3.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: AER is good value based on its PE Ratio (3.2x) compared to the US Trade Distributors industry average (14.7x).

PE vs Market: AER is good value based on its PE Ratio (3.2x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: AER's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AER is good value based on its PB Ratio (0.4x) compared to the US Trade Distributors industry average (1.3x).


Next Steps

Future Growth

How is AerCap Holdings forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-2.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AER's earnings are forecast to decline over the next 3 years (-2.9% per year).

Earnings vs Market: AER's earnings are forecast to decline over the next 3 years (-2.9% per year).

High Growth Earnings: AER's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AER's revenue is expected to decline over the next 3 years (-1.1% per year).

High Growth Revenue: AER's revenue is forecast to decline over the next 3 years (-1.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AER's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AerCap Holdings performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AER has high quality earnings.

Growing Profit Margin: AER's current net profit margins (23.9%) are higher than last year (20.6%).


Past Earnings Growth Analysis

Earnings Trend: AER's earnings have declined by -0.9% per year over the past 5 years.

Accelerating Growth: AER's earnings growth over the past year (20.6%) exceeds its 5-year average (-0.9% per year).

Earnings vs Industry: AER earnings growth over the past year (20.6%) exceeded the Trade Distributors industry -9.9%.


Return on Equity

High ROE: AER's Return on Equity (12.7%) is considered low.


Next Steps

Financial Health

How is AerCap Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AER's short term assets ($6.8B) exceed its short term liabilities ($2.8B).

Long Term Liabilities: AER's short term assets ($6.8B) do not cover its long term liabilities ($34.8B).


Debt to Equity History and Analysis

Debt Level: AER's debt to equity ratio (348.4%) is considered high.

Reducing Debt: AER's debt to equity ratio has reduced from 366.5% to 348.4% over the past 5 years.

Debt Coverage: AER's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: AER's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Next Steps

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?

3.8yrs

Average management tenure


CEO

Aengus Kelly (46yo)

9.17yrs

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

NamePositionTenureCompensationOwnership
Aengus Kelly
CEO & Executive Director9.17yrsno data2.57% $94.0m
Philip Scruggs
Chief Commercial Officer & President6.17yrsno data0.33% $12.1m
Peter Juhas
Chief Financial Officer3.25yrsno data0.18% $6.8m
Joseph Venuto
Chief Technical Officer8.42yrsno datano data
Jorg Koletzki
Chief Information Officer4.83yrsno datano data
Joseph McGinley
Head of Investor Relations2.58yrsno datano data
Vincent Drouillard
General Counsel2.08yrsno datano data
Risteard Sheridan
Company Secretary & Chief Compliance Officer1.5yrsno datano data
Gillian Culhane
Vice President of Corporate Communicationsno datano datano data
Theresa Murray
Head of Human Resources3.75yrsno datano data

3.8yrs

Average Tenure

52yo

Average Age

Experienced Management: AER's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Aengus Kelly
CEO & Executive Director9.17yrsno data2.57% $94.0m
Robert Warden
Independent Non Executive Director14yrsUS$267.00k0.0085% $310.0k
Paul Dacier
Independent Chairman of the Board0.25yrUS$314.00k0.0044% $160.9k
James Lawrence
Independent Non-Executive Director3.17yrsUS$332.00k0.16% $5.7m
Richard Gradon
Independent Non-Executive Director10.17yrsUS$301.00kno data
Stacey Cartwright
Independent Non-Executive Director1.25yrsUS$99.00kno data
Rita Forst
Independent Non-Executive Director1.25yrsUS$99.00kno data
Michael Walsh
Independent Non-Executive Director3.17yrsUS$323.00k0.00039% $14.3k
Julian Branch
Independent Non-Executive Director2.25yrsUS$247.00k0.0031% $114.8k

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: AER's board of directors are considered experienced (3.2 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

AerCap Holdings N.V.'s company bio, 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$3.656b
  • Shares outstanding: 127.34m
  • Website: https://www.aercap.com

Number of Employees


Location

  • AerCap Holdings N.V.
  • AerCap House
  • 65 St. Stephen’s Green
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AERNYSE (New York Stock Exchange)YesOrdinary SharesUSUSDNov 2006
R1DDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2006

Biography

AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in China, the United States, Ireland, and internationally. The company offers aircraft asset management services, including 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 comprise 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. The company also provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. As of December 31, 2018, it had a portfolio of 1,421 owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 23:55
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.