OTCPK:BCVV.F

Stock Analysis Report

Executive Summary

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide.

Rewards

PE ratio (10.5x) is below the US market (18.3x)

Earnings are forecast to grow 8.81% per year

Earnings have grown 18.8% per year over the past 5 years

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record



Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

BCVV.F

-0.6%

US Trade Distributors

0.5%

US Market


1 Year Return

13.1%

BCVV.F

10.0%

US Trade Distributors

20.3%

US Market

Return vs Industry: BCVV.F exceeded the US Trade Distributors industry which returned 10% over the past year.

Return vs Market: BCVV.F underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

BCVV.FIndustryMarket
7 Day0%-0.6%0.5%
30 Day0%-0.8%2.0%
90 Day-0.7%1.2%9.4%
1 Year13.1%13.1%12.0%10.0%22.8%20.3%
3 Yearn/a22.0%16.4%50.1%40.4%
5 Yearn/a42.7%32.0%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BCVV.F ($9.75) is trading above our estimate of fair value ($4.93)

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


Price To Earnings Ratio

PE vs Industry: BCVV.F is good value based on its PE Ratio (10.5x) compared to the Trade Distributors industry average (16.6x).

PE vs Market: BCVV.F is good value based on its PE Ratio (10.5x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: BCVV.F is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: BCVV.F is good value based on its PB Ratio (1.6x) compared to the US Trade Distributors industry average (1.7x).


Next Steps

Future Growth

How is BOC Aviation forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCVV.F's forecast earnings growth (8.8% per year) is above the savings rate (1.7%).

Earnings vs Market: BCVV.F's earnings (8.8% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: BCVV.F's revenue (11.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: BCVV.F's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BCVV.F's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has BOC Aviation performed over the past 5 years?

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCVV.F has high quality earnings.

Growing Profit Margin: BCVV.F's current net profit margins (37.2%) are lower than last year (43.6%).


Past Earnings Growth Analysis

Earnings Trend: BCVV.F's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: BCVV.F's earnings growth over the past year (0.2%) is below its 5-year average (18.8% per year).

Earnings vs Industry: BCVV.F earnings growth over the past year (0.2%) underperformed the Trade Distributors industry 5.1%.


Return on Equity

High ROE: BCVV.F's Return on Equity (15%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BOC Aviation's financial position?


Financial Position Analysis

Short Term Liabilities: BCVV.F's short term assets ($375.4M) do not cover its short term liabilities ($2.1B).

Long Term Liabilities: BCVV.F's short term assets ($375.4M) do not cover its long term liabilities ($12.7B).


Debt to Equity History and Analysis

Debt Level: BCVV.F's debt to equity ratio (306%) is considered high.

Reducing Debt: BCVV.F's debt to equity ratio has reduced from 398.7% to 306% over the past 5 years.

Debt Coverage: BCVV.F's debt is not well covered by operating cash flow (13.3%).

Interest Coverage: BCVV.F's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: BCVV.F's debt is not covered by short term assets (assets are 0x debt).


Next Steps

Dividend

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

3.30%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: BCVV.F's dividend (3.3%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: BCVV.F's dividend (3.3%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BCVV.F has been paying a dividend for less than 10 years.

Growing Dividend: BCVV.F's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (34.8%), BCVV.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BCVV.F's dividends in 3 years are forecast to be well covered by earnings (35.2% payout ratio).


Next Steps

Management

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

15.8yrs

Average management tenure


CEO

Robert Martin (54yo)

16.1yrs

Tenure

US$7,479,000

Compensation

Mr. Robert James Martin has been the Chief Executive Officer and Managing Director of BOC Aviation Pte. Ltd since 2004 and July 5, 1998 respectively. Mr. Martin has been an Executive Director of BOC Aviati ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD7.48M) is about average for companies of similar size in the US market ($USD6.27M).

Compensation vs Earnings: Robert's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Martin
MD, CEO & Executive Director16.1yrsUS$7.48mno data
Xiaolu Zhang
Deputy MD & Vice Chairman0.08yrsno datano data
Thim Fatt Phang
Deputy MD & CFO24.1yrsno datano data
David Walton
Chief Operating Officer5.3yrsno datano data
Ng Felicia
Chief Accounting Officer0yrsno datano data
Timothy Ross
Head of Investor Relations0yrsno datano data
Jonathan Mahony
General Counsel17.5yrsno datano data
Steven Matthew Townend
Deputy MD and Chief Commercial Officer of Europe15.6yrsno datano data
David Farrell
Head of Risk Management0yrsno datano data
John Bloemen
Head of Airline Leasing & Sales - Asia Pacific Middle East0yrsno datano data

15.8yrs

Average Tenure

53yo

Average Age

Experienced Management: BCVV.F's management team is seasoned and experienced (15.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Martin
MD, CEO & Executive Director16.1yrsUS$7.48mno data
Xiaolu Zhang
Deputy MD & Vice Chairman0.08yrsno datano data
Antony Nigel Tyler
Independent Non-Executive Director3.8yrsUS$180.00kno data
Shula Fu
Independent Non-Executive Director9yrsUS$77.00kno data
Lin Zhu
Non-Executive Director6.1yrsno datano data
Mang Li
Non-Executive Director4.2yrsno datano data
Deming Dai
Independent Non-Executive Director3.8yrsUS$77.00kno data
Chenggang Liu
Non-Executive Director3.4yrsno datano data
Yin Yeung
Independent Non-Executive Director3.2yrsUS$45.00kno data
Yu Sun
Non-Executive Chairman1yrsno datano data

3.8yrs

Average Tenure

52.5yo

Average Age

Experienced Board: BCVV.F's board of directors are considered experienced (3.8 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

BOC Aviation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BOC Aviation Limited
  • Ticker: BCVV.F
  • Exchange: OTCPK
  • Founded: 1993
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: HK$52.814b
  • Listing Market Cap: HK$6.796b
  • Shares outstanding: 694.01m
  • Website: https://www.bocaviation.com

Number of Employees


Location

  • BOC Aviation Limited
  • No. 18-01, 8 Shenton Way
  • Singapore
  • 68811
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
2588SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2016
8BODB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2016
2588SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2016
2588SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2016
BCVV.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2016

Biography

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. The company offers a range of services to airlines and aircraft owners, including direct operating leases, sale and leaseback facilities, and third party asset management. It also provides aircraft remarketing, structured finance, and technical management services to airlines, banks, and other investors. In addition, the company arranges debt financing and other financial services for airlines; and sells aircrafts. As of September 30, 2019, it had a fleet of 509 owned, managed, or on order aircraft. The company was founded in 1993 and is headquartered in Singapore. BOC Aviation Limited is a subsidiary of Sky Splendor Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 03:01
End of Day Share Price2020/01/15 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.