Understanding how Fly Leasing Limited (NYSE:FLY) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Fly Leasing is doing by comparing its latest earnings with its long-term trend as well as the performance of its trade distributors industry peers.
Have FLY’s earnings improved against past performances and the industry?FLY’s trailing twelve-month earnings (from 31 March 2018) of US$7.18m has In terms of returns from investment, Fly Leasing has not invested its equity funds well, leading to a 1.29% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 3.71% is below the US Trade Distributors industry of 6.24%, indicating Fly Leasing’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Fly Leasing’s debt level, has declined over the past 3 years from 2.21% to 1.79%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 358.46% to 476.05% over the past 5 years.
What does this mean?
Though Fly Leasing’s past data is helpful, it is only one aspect of my investment thesis. You should continue to research Fly Leasing to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for FLY’s future growth? Take a look at our free research report of analyst consensus for FLY’s outlook.
- Financial Health: Are FLY’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.