AMEX:ACY

Stock Analysis Report

Executive Summary

AeroCentury Corp., together with its subsidiaries, provides leasing and finance services to regional airlines worldwide.

Snowflake

Fundamentals

Overvalued with worrying balance sheet.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

ACY

6.9%

US Trade Distributors

1.8%

US Market


1 Year Return

-63.3%

ACY

7.9%

US Trade Distributors

7.3%

US Market

Return vs Industry: ACY underperformed the US Trade Distributors industry which returned 7.9% over the past year.

Return vs Market: ACY underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

ACYIndustryMarket
7 Day1.2%6.9%1.8%
30 Day-17.4%1.1%-0.7%
90 Day-33.5%8.5%0.06%
1 Year-63.3%-63.3%9.9%7.9%9.7%7.3%
3 Year-39.8%-39.8%44.9%38.7%46.3%36.9%
5 Year-51.7%-51.7%32.0%22.6%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.22x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate ACY's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate ACY's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ACY is unprofitable, so we can't compare its PE Ratio to the Trade Distributors industry average.

PE vs Market: ACY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate ACY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ACY is good value based on its PB Ratio (0.2x) compared to the US Trade Distributors industry average (1.4x).


Next Steps

Future Growth

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

167.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ACY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ACY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ACY's revenue (0.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ACY's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has AeroCentury performed over the past 5 years?

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ACY is unprofitable, but has reduced losses over the past 5 years at a rate of 10.4% per year.

Accelerating Growth: Unable to compare ACY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ACY is unprofitable, making it difficult to compare its past year earnings growth to the Trade Distributors industry (0.9%).


Return on Equity

High ROE: ACY has a negative Return on Equity (-25.23%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ACY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ACY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is AeroCentury's financial position?


Financial Position Analysis

Short Term Liabilities: ACY's short term assets ($35.5M) exceeds its short term liabilities ($3.1M)

Long Term Liabilities: ACY's short term assets (35.5M) do not cover its long term liabilities (164.1M)


Debt to Equity History and Analysis

Debt Level: ACY's debt to equity ratio (326.7%) is considered high

Reducing Debt: ACY's debt to equity ratio has increased from 238.9% to 326.7% over the past 5 years.

Debt Coverage: ACY's debt is not well covered by operating cash flow (10.5%).

Interest Coverage: ACY is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: ACY's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if ACY'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 ACY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

18.8yrs

Average management tenure


CEO

Michael Magnusson (62yo)

3.1yrs

Tenure

US$353,720

Compensation

Mr. Michael Gerhard Magnusson has been Managing Director of JetFleet Management Corporation since September 6, 2016. Mr. Magnusson also has been the Chief Executive Officer and President at AeroCentury Cor ...


CEO Compensation Analysis

Compensation vs. Market: Michael's total compensation ($USD353.72K) is about average for companies of similar size in the US market ($USD491.38K).

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


Management Age and Tenure

18.8yrs

Average Tenure

59yo

Average Age

Experienced Management: ACY's management team is seasoned and experienced (18.8 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

64yo

Average Age

Experienced Board: ACY's board of directors are considered experienced (4.7 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.


Ownership Breakdown


Management Team

  • Brian Ginna (50yo)

    Vice President of Corporate Development

    • Tenure: 18.8yrs
  • Toni Perazzo (72yo)

    Senior VP-Finance

    • Tenure: 22.8yrs
    • Compensation: US$278.36k
  • Christopher Tigno (57yo)

    General Counsel

    • Tenure: 0yrs
  • Jack Humphreys (71yo)

    Vice President of Maintenance

    • Tenure: 0yrs
  • Glenn Roberts (54yo)

    VP & Controller

    • Tenure: 0yrs
    • Compensation: US$101.00k
  • Frank Pegueros (59yo)

    Senior Vice President of Operations

    • Tenure: 0yrs
  • Michael Magnusson (62yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$353.72k
  • Tom Cunningham

    Vice President of Technical Services

    • Tenure: 0yrs

Board Members

  • Toni Perazzo (72yo)

    Senior VP-Finance

    • Tenure: 22.8yrs
    • Compensation: US$278.36k
  • Evan Wallach (64yo)

    Chairman of the Board

    • Tenure: 3.4yrs
    • Compensation: US$57.00k
  • Roy Hahn (67yo)

    Director

    • Tenure: 12yrs
    • Compensation: US$41.38k
  • Dave Wilson (64yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$41.38k
  • Michael Magnusson (62yo)

    President

    • Tenure: 3.1yrs
    • Compensation: US$353.72k

Company Information

AeroCentury Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AeroCentury Corp.
  • Ticker: ACY
  • Exchange: AMEX
  • Founded: 1997
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: US$8.373m
  • Shares outstanding: 1.55m
  • Website: https://www.aerocentury.com

Number of Employees


Location

  • AeroCentury Corp.
  • 1440 Chapin Avenue
  • Suite 310
  • Burlingame
  • California
  • 94010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACYAMEX (NYSE MKT LLC)YesCommon SharesUSUSDJan 1998

Biography

AeroCentury Corp., together with its subsidiaries, provides leasing and finance services to regional airlines worldwide. The company principally engages in leasing its aircraft portfolio consisting of mid- ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:31
End of Day Share Price2019/10/16 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.