| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 2/6 |
| Dividends | 3/6 |
AL Overview
Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of new commercial jet aircraft to airlines worldwide.
Air Lease Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$42.30 |
| 52 Week High | US$26.65 |
| 52 Week Low | US$52.96 |
| Beta | 2.08 |
| 1 Month Change | 9.05% |
| 3 Month Change | 0.64% |
| 1 Year Change | 44.71% |
| 3 Year Change | 12.17% |
| 5 Year Change | 39.24% |
| Change since IPO | 51.34% |
Recent News & Updates
Ciao, ITA! Air Lease Corporation Wins With New Airline
Successor of Alitialia signed a lease agreement with Air Lease Corporation. Airline also signed a MoU with Airbus. Whether ITA becomes a success remains to be seen, but the introduction of new aircraft should help all parties involved.
How To Deal With Air Lease
Air Lease is one of the youngest and strongest players in the global aerospace leasing industry. Unfortunately, because of its cyclical business model and dependency on high leverage, investors are better off buying stocks in other parts of the aerospace supply chain. Nonetheless, the company is doing a great job managing financial risks, and its valuation is very fair.
Air Lease (NYSE:AL) Is Reinvesting At Lower Rates Of Return
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Amongst other things...
Shareholder Returns
| AL | US Trade Distributors | US Market | |
|---|---|---|---|
| 7D | 2.2% | 0.8% | 0.9% |
| 1Y | 44.7% | 58.2% | 33.4% |
Return vs Industry: AL underperformed the US Trade Distributors industry which returned 58.2% over the past year.
Return vs Market: AL exceeded the US Market which returned 33.4% over the past year.
Price Volatility
| AL volatility | |
|---|---|
| AL Beta | 2.08 |
| Industry Beta | 1.57 |
| Market Beta | 1 |
Stable Share Price: AL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AL's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2010 | 120 | John Plueger | https://www.airleasecorp.com |
Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of new commercial jet aircraft to airlines worldwide. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, airlines, and other investors. In addition, it provides fleet management services to investors and owners of aircraft portfolios.
Air Lease Fundamentals Summary
| AL fundamental statistics | |
|---|---|
| Market Cap | US$4.83b |
| Earnings (TTM) | US$389.64m |
| Revenue (TTM) | US$1.95b |
12.4x
P/E Ratio2.5x
P/S RatioIs AL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AL income statement (TTM) | |
|---|---|
| Revenue | US$1.95b |
| Cost of Revenue | US$824.56m |
| Gross Profit | US$1.12b |
| Expenses | US$735.21m |
| Earnings | US$389.64m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 04, 2021
| Earnings per share (EPS) | 3.41 |
| Gross Margin | 57.70% |
| Net Profit Margin | 19.99% |
| Debt/Equity Ratio | 254.4% |
How did AL perform over the long term?
See historical performance and comparisonDividends
1.5%
Current Dividend Yield19%
Payout RatioValuation
Is Air Lease undervalued compared to its fair value and its price relative to the market?
12.39x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AL ($42.3) is trading above our estimate of fair value ($6.38)
Significantly Below Fair Value: AL is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AL is good value based on its PE Ratio (12.4x) compared to the US Trade Distributors industry average (22.5x).
PE vs Market: AL is good value based on its PE Ratio (12.4x) compared to the US market (18.1x).
Price to Earnings Growth Ratio
PEG Ratio: AL is good value based on its PEG Ratio (0.4x)
Price to Book Ratio
PB vs Industry: AL is good value based on its PB Ratio (0.7x) compared to the US Trade Distributors industry average (2.4x).
Future Growth
How is Air Lease forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
33.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AL's forecast earnings growth (33.7% per year) is above the savings rate (2%).
Earnings vs Market: AL's earnings (33.7% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AL's revenue (18.1% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: AL's revenue (18.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AL's Return on Equity is forecast to be low in 3 years time (9%).
Past Performance
How has Air Lease performed over the past 5 years?
3.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AL has high quality earnings.
Growing Profit Margin: AL's current net profit margins (20%) are lower than last year (27.9%).
Past Earnings Growth Analysis
Earnings Trend: AL's earnings have grown by 3.5% per year over the past 5 years.
Accelerating Growth: AL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AL had negative earnings growth (-34%) over the past year, making it difficult to compare to the Trade Distributors industry average (52.8%).
Return on Equity
High ROE: AL's Return on Equity (6.3%) is considered low.
Financial Health
How is Air Lease's financial position?
Financial Position Analysis
Short Term Liabilities: AL's short term assets ($1.2B) exceed its short term liabilities ($479.2M).
Long Term Liabilities: AL's short term assets ($1.2B) do not cover its long term liabilities ($18.8B).
Debt to Equity History and Analysis
Debt Level: AL's debt to equity ratio (254.4%) is considered high.
Reducing Debt: AL's debt to equity ratio has reduced from 262.5% to 254.4% over the past 5 years.
Debt Coverage: AL's debt is not well covered by operating cash flow (7.4%).
Interest Coverage: AL's interest payments on its debt are not well covered by EBIT (2x coverage).
Balance Sheet
Dividend
What is Air Lease current dividend yield, its reliability and sustainability?
1.51%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AL's dividend (1.51%) is higher than the bottom 25% of dividend payers in the US market (1.28%).
High Dividend: AL's dividend (1.51%) is low compared to the top 25% of dividend payers in the US market (3.48%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, AL has been paying a dividend for less than 10 years.
Growing Dividend: AL's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (18.7%), AL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AL's dividends in 3 years are forecast to be thoroughly covered by earnings (5.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
9.6yrs
Average management tenure
CEO
John Plueger (67 yo)
5.25yrs
Tenure
US$5,993,815
Compensation
Mr. John L. Plueger has been Chief Executive Officer of Air Lease Corporation since July 2016 and as its President and Director since March 2010. Mr. Plueger served as Chief Operating Officer at Air Lease...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD5.99M) is about average for companies of similar size in the US market ($USD6.35M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AL's management team is seasoned and experienced (9.6 years average tenure).
Board Members
Experienced Board: AL's board of directors are seasoned and experienced ( 10.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AL 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
Air Lease Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Air Lease Corporation
- Ticker: AL
- Exchange: NYSE
- Founded: 2010
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: US$4.828b
- Shares outstanding: 114.14m
- Website: https://www.airleasecorp.com
Number of Employees
Location
- Air Lease Corporation
- 2000 Avenue of the Stars
- Suite 1000N
- Los Angeles
- California
- 90067
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/10/26 22:40 |
| End of Day Share Price | 2021/10/26 00:00 |
| Earnings | 2021/06/30 |
| 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.