NYSE:AL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Good value with acceptable track record.


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

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


Market Performance


7 Day Return

-5.5%

AL

-0.4%

US Trade Distributors

1.7%

US Market


1 Year Return

-32.6%

AL

0.8%

US Trade Distributors

6.0%

US Market

Return vs Industry: AL underperformed the US Trade Distributors industry which returned 2.1% over the past year.

Return vs Market: AL underperformed the US Market which returned 7.4% over the past year.


Shareholder returns

ALIndustryMarket
7 Day-5.5%-0.4%1.7%
30 Day-20.6%-5.2%-0.5%
90 Day12.5%24.9%17.8%
1 Year-30.9%-32.6%2.7%0.8%8.2%6.0%
3 Year-24.8%-28.2%20.2%14.4%36.3%27.4%
5 Year-14.3%-19.2%29.0%19.5%63.0%45.0%

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?

5.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AL ($27.69) is trading above our estimate of fair value ($6.05)

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 (5.5x) compared to the Trade Distributors industry average (15.7x).

PE vs Market: AL is good value based on its PE Ratio (5.5x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: AL is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: AL is good value based on its PB Ratio (0.5x) compared to the US Trade Distributors industry average (1.3x).


Next Steps

Future Growth

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

15.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AL's forecast earnings growth (15.8% per year) is above the savings rate (2.2%).

Earnings vs Market: AL's earnings (15.8% per year) are forecast to grow slower than the US market (22.8% per year).

High Growth Earnings: AL's earnings are forecast to grow, but not significantly.

Revenue vs Market: AL's revenue (15.9% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: AL's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Air Lease performed over the past 5 years?

19.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AL has high quality earnings.

Growing Profit Margin: AL's current net profit margins (27.7%) are lower than last year (30.5%).


Past Earnings Growth Analysis

Earnings Trend: AL's earnings have grown by 19.5% per year over the past 5 years.

Accelerating Growth: AL's earnings growth over the past year (5.9%) is below its 5-year average (19.5% per year).

Earnings vs Industry: AL earnings growth over the past year (5.9%) exceeded the Trade Distributors industry -9.9%.


Return on Equity

High ROE: AL's Return on Equity (10.2%) is considered low.


Next Steps

Financial Health

How is Air Lease's financial position?


Financial Position Analysis

Short Term Liabilities: AL's short term assets ($928.5M) exceed its short term liabilities ($433.7M).

Long Term Liabilities: AL's short term assets ($928.5M) do not cover its long term liabilities ($16.5B).


Debt to Equity History and Analysis

Debt Level: AL's debt to equity ratio (251.3%) is considered high.

Reducing Debt: AL's debt to equity ratio has increased from 249.8% to 251.3% over the past 5 years.

Debt Coverage: AL's debt is not well covered by operating cash flow (9.5%).

Interest Coverage: AL's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AL's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: AL's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (4.49%).


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 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.4%), 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 (8.5% payout ratio).


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

John Plueger (66yo)

4yrs

Tenure

US$7,895,939

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 April 2010. Mr. Plueger served as Chief ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD7.90M) is above average for companies of similar size in the US market ($USD5.84M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Udvar-Házy
Executive Chairman of the Board4yrsUS$8.12m4.91% $154.5m
John Plueger
CEO, President & Director4yrsUS$7.90m0.74% $23.3m
Gregory Willis
Executive VP & CFO8.33yrsUS$2.58m0.056% $1.8m
Grant Levy
Executive Vice President of Marketing & Commercial Affairsno dataUS$3.02m0.14% $4.3m
Jie Chen
Executive VP1.08yrsUS$3.74m0.22% $7.0m
Mary Liz DePalma
Vice President of Investor Relationsno datano datano data
Carol Forsyte
Executive VP7.83yrsno data0.045% $1.4m
Courtney McKeown
Vice President of Human Resourcesno datano datano data
Alex Khatibi
Executive Vice President10.25yrsno data0.13% $4.0m
John Poerschke
Executive Vice President of Aircraft Procurement & Specification10.33yrsno data0.058% $1.8m

8.1yrs

Average Tenure

57.5yo

Average Age

Experienced Management: AL's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steven Udvar-Házy
Executive Chairman of the Board4yrsUS$8.12m4.91% $154.5m
John Plueger
CEO, President & Director4yrsUS$7.90m0.74% $23.3m
Matthew Hart
Independent Director10.17yrsUS$255.00k0.032% $1.0m
Marshall Larsen
Independent Director6.17yrsUS$220.00k0.026% $820.7k
Robert Milton
Lead Independent Directorno dataUS$305.00k0.032% $1.0m
Cheryl Krongard
Independent Director6.58yrsUS$220.00k0.030% $928.6k
Ian Saines
Independent Director10.08yrsUS$225.00k0.013% $420.7k
Susan McCaw
Independent Director0.67yrUS$190.52k0.0082% $258.4k

6.6yrs

Average Tenure

65yo

Average Age

Experienced Board: AL's board of directors are considered experienced (6.6 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

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$3.147b
  • Shares outstanding: 113.64m
  • 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 portfolio to third parties, including other leasing companies, financial services companies, and airlines. In addition, it provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2019, the company owned a fleet of 275 aircraft, including 203 narrowbody jet aircraft and 89 widebody jet aircraft. Air Lease Corporation was founded in 2010 and is headquartered in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 23:54
End of Day Share Price2020/07/07 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.