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

Established 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

1.4%

NYSE:AYR

-1.5%

US Trade Distributors

-1.0%

US Market


1 Year Return

-0.3%

NYSE:AYR

-16.6%

US Trade Distributors

-0.4%

US Market

AYR outperformed the Trade Distributors industry which returned -16.6% over the past year.

AYR matched the United States of America Market (-0.4%) over the past year.


Share holder returns

AYRIndustryMarket
7 Day1.4%-1.5%-1.0%
30 Day1.5%-3.8%-3.3%
90 Day5.7%-4.7%0.4%
1 Year5.7%-0.3%-15.0%-16.6%1.8%-0.4%
3 Year12.0%-4.0%23.8%18.4%39.4%30.4%
5 Year39.0%9.4%9.9%2.2%54.2%37.1%

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?

7.72x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Aircastle's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Aircastle's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Aircastle is good value based on earnings compared to the US Trade Distributors industry average.

Aircastle is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Aircastle is good value based on expected growth next year.


Price Based on Value of Assets

Aircastle is good value based on assets compared to the US Trade Distributors industry average.


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

Aircastle's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).

Aircastle's earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).

Aircastle's revenue growth is positive but not above the United States of America market average.

Aircastle's earnings growth is positive but not above the United States of America market average.

Aircastle's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Aircastle is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Aircastle has delivered over 20% year on year earnings growth in the past 5 years.

Aircastle's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Aircastle's 1-year earnings growth is negative, it can't be compared to the US Trade Distributors industry average.


Return on Equity

Aircastle has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Aircastle used its assets less efficiently than the US Trade Distributors industry average last year based on Return on Assets.


Return on Capital Employed

Aircastle's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aircastle's financial position?


Financial Position Analysis

Aircastle is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Aircastle's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Aircastle's level of debt (271.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (232.8% vs 271.7% today).

Debt is not well covered by operating cash flow (9.4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

Low level of unsold assets.

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?

5.86%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Aircastle before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Aircastle's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Aircastle's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Mike Inglese (57yo)

2.6yrs

Tenure

US$18,763,437

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

Mike's remuneration is higher than average for companies of similar size in United States of America.

Mike's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

4.8yrs

Average Tenure

55yo

Average Age

The tenure for the Aircastle management team is about average.


Board Age and Tenure

7.1yrs

Average Tenure

66.5yo

Average Age

The tenure for the Aircastle board of directors is about average.


Insider Trading

Aircastle individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$200,62029 May 19
Ronald Merriman
EntityIndividual
Role
Member of the Board of Directors
Shares10,000
Max PriceUS$20.06
SellUS$310,72527 Feb 19
Christopher Beers
EntityIndividual
Role
Chief Legal Officer & Secretary
Shares15,000
Max PriceUS$20.72
SellUS$715,75026 Feb 19
Michael Kriedberg
EntityIndividual
Role
Senior Advisor
Shares35,000
Max PriceUS$20.45
SellUS$159,45031 Aug 18
Ronald Merriman
EntityIndividual
Role
Member of the Board of Directors
Shares7,500
Max PriceUS$21.26

Ownership Breakdown


Management Team

  • Joseph Schreiner (61yo)

    Executive Vice President of Technical

    • Tenure: 14.8yrs
    • Compensation: $624.81k
  • Mike Kriedberg (58yo)

    Senior Advisor

    • Tenure: 6.3yrs
    • Compensation: $3.53m
  • Aaron Dahlke (50yo)

    Chief Financial Officer

    • Tenure: 2.2yrs
    • Compensation: $2.06m
  • Roy Chandran (55yo)

    Executive Vice President of Corporate Finance & Strategy

    • Tenure: 2.2yrs
    • Compensation: $2.07m
  • Christopher Beers (54yo)

    Chief Legal Officer & Secretary

    • Tenure: 4.8yrs
    • Compensation: $3.13m
  • Mike Inglese (57yo)

    CEO & Director

    • Tenure: 2.6yrs
    • Compensation: $18.76m
  • Jim Connelly (46yo)

    Chief Accounting Officer

    • Tenure: 0.9yrs
  • Nigel Harwood (54yo)

    Executive Vice President of Asia-Pacific Operations

    • Tenure: 6.8yrs
  • Guy Bacigalupi

    Chief Risk Officer

    • Tenure: 7.6yrs
  • Frank Constantinople (63yo)

    Senior Vice President


Board Members

  • Mike Cave (58yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: $261.59k
  • Chuck Pollard (61yo)

    Independent Director

    • Tenure: 9.1yrs
    • Compensation: $276.59k
  • Agnes Mura (69yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: $251.59k
  • Ronald Merriman (74yo)

    Independent Director

    • Tenure: 13.0yrs
    • Compensation: $266.59k
  • Peter Ueberroth (81yo)

    Chairman of the Board

    • Tenure: 7.0yrs
    • Compensation: $477.83k
  • Mike Inglese (57yo)

    CEO & Director

    • Tenure: 2.2yrs
    • Compensation: $18.76m
  • Takayuki Sakakida (48yo)

    Director

    • Tenure: 2.2yrs
  • Doug Hacker (64yo)

    Independent Director

    • Tenure: 13.0yrs
    • Compensation: $286.59k
  • Giovanni Bisignani (73yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: $231.59k
  • Ron Allen (77yo)

    Independent Director

    • Tenure: 13.0yrs
    • Compensation: $241.59k

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$1.565b
  • Shares outstanding: 74.95m
  • Website: Click here

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 Analysis2019/08/18 00:10
End of Day Share Price2019/08/16 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.