NYSE:WAIR

Stock Analysis Report

Executive Summary

Wesco Aircraft Holdings, Inc. distributes aerospace products; and provides supply chain management services to the aerospace industry in North America and internationally.

Rewards

Earnings are forecast to grow 31.24% per year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Profit margins (1.3%) are lower than last year (2.1%)



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Wesco Aircraft Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.09%

WAIR

-0.006%

US Aerospace & Defense

1.8%

US Market


1 Year Return

34.5%

WAIR

25.8%

US Aerospace & Defense

20.1%

US Market

Return vs Industry: WAIR underperformed the US Aerospace & Defense industry which returned 37.9% over the past year.

Return vs Market: WAIR exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

WAIRIndustryMarket
7 Day-0.09%-0.006%1.8%
30 Day0.3%1.8%1.4%
90 Day0.4%6.0%8.8%
1 Year34.5%34.5%28.1%25.8%22.7%20.1%
3 Year-27.8%-27.8%54.6%46.4%50.1%40.4%
5 Year-16.4%-16.4%92.0%73.7%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Wesco Aircraft Holdings undervalued compared to its fair value and its price relative to the market?

51.46x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WAIR ($11.04) is trading above our estimate of fair value ($6.64)

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


Price To Earnings Ratio

PE vs Industry: WAIR is poor value based on its PE Ratio (51.5x) compared to the Aerospace & Defense industry average (20.7x).

PE vs Market: WAIR is poor value based on its PE Ratio (51.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: WAIR is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: WAIR is good value based on its PB Ratio (1.5x) compared to the US Aerospace & Defense industry average (2.7x).


Next Steps

Future Growth

How is Wesco Aircraft Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

31.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WAIR's forecast earnings growth (31.2% per year) is above the savings rate (1.7%).

Earnings vs Market: WAIR's earnings (31.2% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: WAIR's revenue (3.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: WAIR's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WAIR's Return on Equity is forecast to be low in 3 years time (11.2%).


Next Steps

Past Performance

How has Wesco Aircraft Holdings performed over the past 5 years?

-9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAIR has a large one-off loss of $43.8M impacting its September 30 2019 financial results.

Growing Profit Margin: WAIR's current net profit margins (1.3%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: WAIR has become profitable over the past 5 years, growing earnings by -9% per year.

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

Earnings vs Industry: WAIR had negative earnings growth (-34.6%) over the past year, making it difficult to compare to the Aerospace & Defense industry average (13.9%).


Return on Equity

High ROE: WAIR's Return on Equity (3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Wesco Aircraft Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: WAIR's short term assets ($1.2B) exceed its short term liabilities ($344.2M).

Long Term Liabilities: WAIR's short term assets ($1.2B) exceed its long term liabilities ($737.2M).


Debt to Equity History and Analysis

Debt Level: WAIR's debt to equity ratio (110.4%) is considered high.

Reducing Debt: WAIR's debt to equity ratio has reduced from 111.1% to 110.4% over the past 5 years.


Balance Sheet

Inventory Level: WAIR has a high level of physical assets or inventory.

Debt Coverage by Assets: WAIR's debt is covered by short term assets (assets are 1.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: WAIR is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: WAIR is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Wesco Aircraft Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.7%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate WAIR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WAIR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WAIR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WAIR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WAIR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Todd Renehan (56yo)

2.8yrs

Tenure

US$2,350,703

Compensation

Mr. Thomas S. Renehan, also known as Todd, has been Chief Executive Officer of Wesco Aircraft Holdings, Inc. April 26, 2017. Mr. Renehan served as the Chief Commercial Officer and Executive Vice President  ...


CEO Compensation Analysis

Compensation vs Market: Todd's total compensation ($USD2.35M) is about average for companies of similar size in the US market ($USD2.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Renehan
CEO & Director2.8yrsUS$2.35m0.12% $1.4m
Alex Murray
President & COO2.8yrsUS$1.50m0.17% $1.9m
Kerry Shiba
Executive VP & CFO2.3yrsUS$1.46m0.046% $504.7k
Declan Grant
Executive VP & Chief Commercial Officer2.8yrsUS$892.86k0.11% $1.3m
Howard Rosen
VP & Corporate Controller1.3yrsno data0.0028% $30.7k
Ryan Worobel
Executive VP & Chief Information Officer1.7yrsno datano data
Jeffrey Misakian
Vice President of Investor Relations0yrsno datano data
John Holland
Executive VP2.3yrsno datano data
K. Mackison
Vice President of Global Sales Operations3.2yrsUS$585.37kno data
Paul Fanelli
Executive VP & GM of Americas2.7yrsno datano data

2.7yrs

Average Tenure

56yo

Average Age

Experienced Management: WAIR's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Thomas Renehan
CEO & Director2.8yrsUS$2.35m0.12% $1.4m
Robert Paulson
Independent Director14yrsUS$165.00k0.099% $1.1m
Paul Fulchino
Independent Director12yrsUS$158.00k0.15% $1.7m
Adam Palmer
Independent Director14yrsno datano data
Jay Haberland
Independent Director8.3yrsUS$166.00k0.043% $479.0k
Scott Kuechle
Independent Director7.5yrsUS$170.00k0.073% $802.6k
Dayne Baird
Independent Director10yrsno datano data
Jennifer Pollino
Independent Director5.1yrsUS$158.00k0.030% $333.8k
Randy Snyder
Chairman14yrsUS$200.00k0.15% $1.6m
Norton Schwartz
Independent Director6.7yrsUS$156.00k0.037% $408.2k

9.1yrs

Average Tenure

63yo

Average Age

Experienced Board: WAIR's board of directors are considered experienced (9.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Wesco Aircraft Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wesco Aircraft Holdings, Inc.
  • Ticker: WAIR
  • Exchange: NYSE
  • Founded: 1953
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Market Cap: US$1.104b
  • Shares outstanding: 100.03m
  • Website: https://www.wescoair.com

Number of Employees


Location

  • Wesco Aircraft Holdings, Inc.
  • 24911 Avenue Stanford
  • Valencia
  • California
  • 91355
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WAIRNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2011

Biography

Wesco Aircraft Holdings, Inc. distributes aerospace products; and provides supply chain management services to the aerospace industry in North America and internationally. Its services include distribution, supplier relationships management, quality assurance, kitting, just-in-time delivery, chemical management, third-party or fourth-party logistics program, and point-of-use inventory management. The company supplies approximately 550,000 active stock-keeping units, including hardware, chemicals, electronic components, bearings, tools, and machined parts. Its hardware products comprise blind and panel fasteners, bolts and screws, clamps, hi lok pins and collars, hydraulic fittings, inserts, lockbolts and collars, nuts, rivets, springs, valves, and washers; and chemicals include adhesives, sealants and tapes, lubricants, oil and grease, paints and coatings, industrial gases, coolants and metalworking fluids, and cleaners and cleaning solvents. The company’s electronic components include connectors, relays, switches, circuit breakers, lighted products, wires and cables, and interconnect accessories; bearings consist of airframe control bearings, rod ends, spherical and ball bearings, needle roller bearings, bushings, and precision bearings; and machined parts and tooling comprise brackets, milled parts, shims, stampings, turned parts, welded assemblies, and installation/removal tooling products. It also provides a range of tools for installation of various products, including air and hydraulic tools, as well as drill motors; and maintenance and repair services for tools, as well as rents or leases tools. The company serves airline-affiliated and independent maintenance, repair, and overhaul providers; and original equipment manufacturers and their subcontractors, as well as customers in the automotive, energy, health care, industrial, pharmaceutical, and space sectors. Wesco Aircraft Holdings, Inc. was founded in 1953 and is headquartered in Valencia, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/10 00:07
End of Day Share Price2020/01/08 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.