NYSE:AYR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

6 star dividend payer and good value.


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


Market Performance


7 Day Return

2.0%

AYR

5.2%

US Trade Distributors

1.0%

US Market


1 Year Return

10.4%

AYR

-0.002%

US Trade Distributors

6.7%

US Market

Return vs Industry: AYR exceeded the US Trade Distributors industry which returned -0% over the past year.

Return vs Market: AYR exceeded the US Market which returned 6.7% over the past year.


Share holder returns

AYRIndustryMarket
7 Day2.0%5.2%1.0%
30 Day-3.3%-2.0%-1.8%
90 Day4.8%1.8%-1.8%
1 Year17.1%10.4%1.8%-0.002%9.1%6.7%
3 Year33.7%14.4%42.1%36.0%46.1%36.6%
5 Year65.0%29.5%34.5%24.8%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

8.24x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: AYR ($22.28) is trading above our estimate of fair value ($14.56)

Significantly Undervalued: AYR is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: AYR is good value based on its PE Ratio (8.2x) compared to the Trade Distributors industry average (16.1x).

PE vs Market: AYR is good value based on its PE Ratio (8.2x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: AYR is good value based on its PEG Ratio (0.6x)


Price Based on Value of Assets

PB vs Industry: AYR is good value based on its PB Ratio (0.8x) compared to the US Trade Distributors industry average (1.5x).


Next Steps

Future Growth

How is Aircastle expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

13.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: AYR's forecast earnings growth (13.8% per year) is above the savings rate (2.7%).

Earnings vs Market: AYR's earnings (13.8% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: AYR's revenue (6.1% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: AYR's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: AYR's Return on Equity is forecast to be low in 3 years time (9.5%).


Next Steps

Past Performance

How has Aircastle performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AYR has become profitable over the past 5 years, growing earnings by 20.5% per year.

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 (-6.4%) over the past year, making it difficult to compare to the Trade Distributors industry average (0.9%).


Return on Equity

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


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Aircastle's financial position?


Financial Position Analysis

Short Term Liabilities: AYR's short term assets ($1.0B) exceeds its short term liabilities ($94.4M)

Long Term Liabilities: AYR's short term assets (1.0B) do not cover its long term liabilities (6.5B)


Debt to Equity History and Analysis

Debt Level: AYR's debt to equity ratio (271.7%) is considered high

Reducing Debt: AYR's debt to equity ratio has increased from 232.8% to 271.7% over the past 5 years.

Debt Coverage: AYR's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: AYR's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet

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

Debt Coverage by Assets: AYR's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

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

5.49%

Expected Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.5%markettop25%3.8%industryaverage2.4%forecastin3Years5.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: AYR's dividend (5.39%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: AYR's dividend (5.39%) is in the top 25% of dividend payers in the US market (3.77%)

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 reasonably low payout ratio (43.6%), AYR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AYR's dividends in 3 years are forecast to be well covered by earnings (42.1% payout ratio).


Next Steps

Management

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

4.9yrs

Average management tenure


CEO

Mike Inglese (57yo)

2.8yrs

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 ($USD6.25M) is about average for companies of similar size in the US market ($USD4.08M).

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


Management Age and Tenure

4.9yrs

Average Tenure

55yo

Average Age

Experienced Management: AYR's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

7.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: AYR's board of directors are considered experienced (7.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$200,62029 May 19
Ronald Merriman
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$20.06
SellUS$310,72527 Feb 19
Christopher Beers
EntityIndividual
Role
Chief Legal Officer
Chief Legal Officer & Secretary
Shares15,000
Max PriceUS$20.72
SellUS$715,75026 Feb 19
Michael Kriedberg
EntityIndividual
Role
Senior Key Executive
Senior Advisor
Shares35,000
Max PriceUS$20.45

Ownership Breakdown


Management Team

  • Mike Inglese (57yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$6.25m
  • Joseph Schreiner (61yo)

    Executive Vice President of Technical

    • Tenure: 15yrs
    • Compensation: US$624.81k
  • Aaron Dahlke (50yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$2.06m
  • Mike Kriedberg (58yo)

    Senior Advisor

    • Tenure: 6.5yrs
    • Compensation: US$3.53m
  • Nigel Harwood (54yo)

    Executive Vice President of Asia-Pacific Operations

    • Tenure: 6.9yrs
  • Guy Bacigalupi

    Chief Risk Officer

    • Tenure: 7.8yrs
  • Christopher Beers (54yo)

    Chief Legal Officer & Secretary

    • Tenure: 4.9yrs
    • Compensation: US$3.13m
  • Roy Chandran (55yo)

    Executive Vice President of Corporate Finance & Strategy

    • Tenure: 2.3yrs
    • Compensation: US$2.07m
  • Frank Constantinople (63yo)

    Senior Vice President

    • Tenure: 0yrs
  • Jim Connelly (46yo)

    Chief Accounting Officer

    • Tenure: 1.1yrs

Board Members

  • Doug Hacker (64yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$286.59k
  • Peter Ueberroth (81yo)

    Independent Chairman of the Board

    • Tenure: 7.2yrs
    • Compensation: US$477.83k
  • Mike Inglese (57yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: US$6.25m
  • Ron Allen (77yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$241.59k
  • Chuck Pollard (61yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$276.59k
  • Ronald Merriman (74yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$266.59k
  • Mike Cave (58yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$261.59k
  • Giovanni Bisignani (73yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$231.59k
  • Agnes Mura (69yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$251.59k
  • Takayuki Sakakida (48yo)

    Director

    • Tenure: 2.3yrs

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$1.670b
  • Shares outstanding: 74.95m
  • 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
G7VDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2006

Biography

Aircastle Limited, through its subsidiaries, leases, finances, sells, and manages commercial flight equipment to airlines worldwide. As of December 31, 2018, its aircraft portfolio comprised 261 aircraft l ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:53
End of Day Share Price2019/10/11 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.

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