NYSE:AYR

Stock Analysis Report

Executive Summary

Aircastle Limited, through its subsidiaries, leases, finances, sells, and manages commercial flight equipment to airlines worldwide.


Snowflake Analysis

Established dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AYR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

AYR

12.9%

US Trade Distributors

9.4%

US Market


1 Year Return

56.8%

AYR

-20.0%

US Trade Distributors

-6.8%

US Market

Return vs Industry: AYR exceeded the US Trade Distributors industry which returned -24.7% over the past year.

Return vs Market: AYR exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

AYRIndustryMarket
7 Day4.4%12.9%9.4%
30 Day0.5%-8.1%-3.9%
90 Day0%-28.0%-16.5%
1 Year64.7%56.8%-18.5%-20.0%-4.8%-6.8%
3 Year58.2%35.6%-4.8%-9.2%23.4%15.2%
5 Year81.4%42.3%6.9%-1.1%41.3%25.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

15.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AYR ($32.01) is trading above our estimate of fair value ($17.67)

Significantly Below Fair Value: AYR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AYR is poor value based on its PE Ratio (15.3x) compared to the Trade Distributors industry average (10.6x).

PE vs Market: AYR is poor value based on its PE Ratio (15.3x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: AYR is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: AYR is overvalued based on its PB Ratio (1.2x) compared to the US Trade Distributors industry average (0.9x).


Next Steps

Future Growth

How is Aircastle forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AYR's forecast earnings growth (7.4% per year) is above the savings rate (1.7%).

Earnings vs Market: AYR's earnings (7.4% per year) are forecast to grow slower than the US market (12.2% per year).

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

Revenue vs Market: AYR's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: AYR's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Aircastle performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AYR has high quality earnings.

Growing Profit Margin: AYR's current net profit margins (16.9%) are lower than last year (27.8%).


Past Earnings Growth Analysis

Earnings Trend: AYR's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: AYR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AYR had negative earnings growth (-36.9%) over the past year, making it difficult to compare to the Trade Distributors industry average (5.1%).


Return on Equity

High ROE: AYR's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Aircastle's financial position?


Financial Position Analysis

Short Term Liabilities: AYR's short term assets ($593.3M) exceed its short term liabilities ($91.9M).

Long Term Liabilities: AYR's short term assets ($593.3M) do not cover its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: AYR's debt to equity ratio (246.6%) is considered high.

Reducing Debt: AYR's debt to equity ratio has increased from 221.8% to 246.6% over the past 5 years.

Debt Coverage: AYR's debt is not well covered by operating cash flow (10.6%).

Interest Coverage: AYR's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AYR's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: AYR's dividend (4%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: AYR's dividends per share have been stable in the past 10 years.

Growing Dividend: AYR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.4%), AYR's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AYR's dividends in 3 years are forecast to be well covered by earnings (43.4% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Mike Inglese (57yo)

3.17s

Tenure

US$6,254,479

Compensation

Mr. Michael J. Inglese, also known as Mike, serves as the Chief Financial Officer at Aircastle Advisor (International) Limited. Mr. Inglese has been the Chief Executive Officer of Aircastle Limited since J ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.25M) is about average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Inglese
CEO & Director3.17yrsUS$6.25mno data
Aaron Dahlke
Chief Financial Officer2.67yrsUS$2.06mno data
Roy Chandran
Executive Vice President of Corporate Finance & Strategy2.67yrsUS$2.07mno data
Christopher Beers
Chief Legal Officer & Secretary5.25yrsUS$3.13mno data
James Connelly
Chief Accounting Officer1.42yrsno datano data
Joseph Schreiner
Executive Vice President of Technical15.42yrsUS$624.81kno data
Frank Constantinople
Senior Vice Presidentno datano datano data
Nigel Harwood
Executive Vice President of Asia-Pacific Operations7.25yrsno datano data
Guy Bacigalupi
Chief Risk Officer8.17yrsno datano data
Douglas Winter
Chief Commercial Officer0.83yrno datano data

3.2yrs

Average Tenure

55yo

Average Age

Experienced Management: AYR's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Inglese
CEO & Director3.17yrsUS$6.25mno data
Douglas Hacker
Independent Director13.58yrsUS$286.59kno data
Peter Ueberroth
Independent Chairman of the Board7.58yrsUS$477.83kno data
Ronald Allen
Independent Director13.58yrsUS$241.59kno data
Charles Pollard
Independent Director9.67yrsUS$276.59kno data
Ronald Merriman
Independent Director13.58yrsUS$266.59kno data
Michael Cave
Independent Director5.83yrsUS$261.59kno data
Giovanni Bisignani
Independent Director7.83yrsUS$231.59kno data
Agnes Mura
Independent Director7yrsUS$251.59kno data
Takayuki Sakakida
Director2.67yrsno datano data

7.7yrs

Average Tenure

66.5yo

Average Age

Experienced Board: AYR's board of directors are considered experienced (7.7 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

Aircastle Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aircastle Limited
  • Ticker: AYR
  • Exchange: NYSE
  • Founded: 2004
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$2.404b
  • Shares outstanding: 75.11m
  • Website: https://www.aircastle.com

Number of Employees


Location

  • Aircastle Limited
  • 201 Tresser Boulevard
  • Suite 400
  • Stamford
  • Connecticut
  • 6901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AYRNYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 2006

Biography

Aircastle Limited, through its subsidiaries, leases, finances, sells, and manages commercial flight equipment to airlines worldwide. As of December 31, 2019, its aircraft portfolio comprised 287 aircraft leased to 85 lessees located in 49 countries. Aircastle Limited was founded in 2004 and is based in Stamford, Connecticut. As of March 27, 2020, Aircastle Limited operates as a subsidiary of Marubeni Corporation.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:22
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.