NYSE:AL

Stock Analysis Report

Executive Summary

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines worldwide.

Snowflake

Fundamentals

High growth potential and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.5%

AL

3.9%

US Trade Distributors

1.0%

US Market


1 Year Return

9.5%

AL

11.2%

US Trade Distributors

8.0%

US Market

Return vs Industry: AL underperformed the US Trade Distributors industry which returned 11.2% over the past year.

Return vs Market: AL exceeded the US Market which returned 8% over the past year.


Shareholder returns

ALIndustryMarket
7 Day3.5%3.9%1.0%
30 Day1.7%4.8%-0.07%
90 Day1.9%6.2%-1.0%
1 Year11.1%9.5%13.2%11.2%10.4%8.0%
3 Year50.0%45.4%47.5%41.2%46.2%36.7%
5 Year24.8%19.7%32.9%23.4%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AL ($43.4) is trading above our estimate of fair value ($5.99)

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 (8.6x) compared to the Trade Distributors industry average (16.8x).

PE vs Market: AL is good value based on its PE Ratio (8.6x) compared to the US market (17.6x).


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 (0.9x) compared to the US Trade Distributors industry average (1.6x).


Next Steps

Future Growth

How is Air Lease forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AL's forecast earnings growth (21.9% per year) is above the savings rate (2.7%).

Earnings vs Market: AL's earnings (21.9% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AL's revenue (22.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: AL's revenue (22.2% per year) is forecast to grow faster 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 (12.9%).


Next Steps

Past Performance

How has Air Lease performed over the past 5 years?

25.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AL's earnings have grown significantly by 25.1% 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 (-31.3%) over the past year, making it difficult to compare to the Trade Distributors industry average (0.9%).


Return on Equity

High ROE: AL's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: AL's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: AL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Air Lease's financial position?


Financial Position Analysis

Short Term Liabilities: AL's short term assets ($288.1M) do not cover its short term liabilities ($389.1M)

Long Term Liabilities: AL's short term assets (288.1M) do not cover its long term liabilities (14.8B)


Debt to Equity History and Analysis

Debt Level: AL's debt to equity ratio (242.6%) is considered high

Reducing Debt: AL's debt to equity ratio has increased from 238.9% to 242.6% over the past 5 years.

Debt Coverage: AL's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: AL's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: AL's debt is not covered by short term assets (assets are 0x debt).


Next Steps

Dividend

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

1.20%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years1.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AL's dividend (1.2%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: AL's dividend (1.2%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.3%), AL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AL's dividends in 3 years are forecast to be thoroughly covered by earnings (7.2% payout ratio).


Next Steps

Management

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

8.4yrs

Average management tenure


CEO

John Plueger (65yo)

3.3yrs

Tenure

US$7,672,190

Compensation

Mr. John L. Plueger has been Chief Executive Officer and President of Air Lease Corporation since July 2016 and March 2010 respectively and serves its Director since March 2010. Mr. Plueger served as Chief ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD7.67M) is about average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.4yrs

Average Tenure

56yo

Average Age

Experienced Management: AL's management team is seasoned and experienced (8.4 years average tenure).


Board Age and Tenure

9.4yrs

Average Tenure

66yo

Average Age

Experienced Board: AL's board of directors are considered experienced (9.4 years average tenure).


Insider Trading

Insider Buying: AL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$447,03312 Sep 19
Grant Levy
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Marketing & Commercial Affairs
Shares10,000
Max PriceUS$44.70
SellUS$221,70211 Sep 19
Marc Baer
EntityIndividual
Role
Head of Marketing
Executive Vice President of Marketing
Shares5,000
Max PriceUS$44.34
SellUS$856,08210 Sep 19
Kishore Korde
EntityIndividual
Shares20,000
Max PriceUS$42.80
SellUS$419,52330 Aug 19
Kishore Korde
EntityIndividual
Shares10,106
Max PriceUS$41.51
SellUS$405,37130 Aug 19
Alex Khatibi
EntityIndividual
Role
Senior Key Executive
Executive Vice President
Shares10,000
Max PriceUS$41.07
SellUS$390,00021 Aug 19
Marc Baer
EntityIndividual
Role
Head of Marketing
Executive Vice President of Marketing
Shares10,000
Max PriceUS$39.00
SellUS$8,095,14020 Aug 19
Steven Udvar-Házy
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares209,773
Max PriceUS$38.59
SellUS$5,650,45115 Aug 19
Steven Udvar-Házy
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares148,923
Max PriceUS$37.94
BuyUS$102,87014 Dec 18
Steven Udvar-Házy
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares3,000
Max PriceUS$34.29
BuyUS$71,54013 Dec 18
Steven Udvar-Házy
EntityIndividual
Role
Chairman of the Board
Executive Chairman of the Board
Shares2,000
Max PriceUS$35.77

Ownership Breakdown


Management Team

  • Steve Udvar-Házy (73yo)

    Executive Chairman of the Board

    • Tenure: 9.7yrs
    • Compensation: US$8.08m
  • John Plueger (65yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$7.67m
  • Grant Levy (56yo)

    Executive Vice President of Marketing & Commercial Affairs

    • Tenure: 0yrs
    • Compensation: US$3.05m
  • Marc Baer (54yo)

    Executive Vice President of Marketing

    • Tenure: 9.5yrs
    • Compensation: US$2.69m
  • Alex Khatibi (58yo)

    Executive Vice President

    • Tenure: 9.5yrs
  • Greg Willis (40yo)

    Executive VP & CFO

    • Tenure: 7.6yrs
    • Compensation: US$2.34m
  • Carol Forsyte (56yo)

    Executive VP

    • Tenure: 7.1yrs
  • Jie Chen (55yo)

    Executive VP & MD of Asia

    • Tenure: 9.2yrs
    • Compensation: US$3.52m
  • Courtney McKeown

    Vice President of Human Resources

    • Tenure: 0yrs
  • Mary Liz DePalma

    Assistant Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Matt Hart (67yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$245.00k
  • Marshall Larsen (71yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$210.00k
  • Ron Sugar (70yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$230.00k
  • Robert Milton (58yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$295.00k
  • Steve Udvar-Házy (73yo)

    Executive Chairman of the Board

    • Tenure: 9.7yrs
    • Compensation: US$8.08m
  • John Plueger (65yo)

    CEO, President & Director

    • Tenure: 3.3yrs
    • Compensation: US$7.67m
  • Cheryl Krongard (63yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$210.00k
  • Ian Saines (56yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$215.00k

Company Information

Air Lease Corporation's company bio, 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$4.847b
  • Shares outstanding: 111.68m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALNYSE (New York Stock Exchange)YesClass A Common StockUSUSDApr 2011
AVLADB (Deutsche Boerse AG)YesClass A Common StockDEEURApr 2011
AL.PRANYSE (New York Stock Exchange)6.150 NON CUM AUSUSDFeb 2019

Biography

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines worldwide. The company also sells aircraft from its operating lease  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:31
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.