FTAI AVIATION LTD (FTAI)
KYG3730V1059 - Common Stock
We assign a fundamental rating of 5 out of 10 to FTAI. FTAI was compared to 51 industry peers in the Trading Companies & Distributors industry. While FTAI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. FTAI is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year FTAI was profitable.
In the past year FTAI had a positive cash flow from operations.
In multiple years FTAI reported negative net income over the last 5 years.
In multiple years FTAI reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.15%, FTAI is in the better half of the industry, outperforming 64.71% of the companies in the same industry.
The Return On Equity of FTAI (120.90%) is better than 92.16% of its industry peers.
FTAI has a Return On Invested Capital of 10.04%. This is comparable to the rest of the industry: FTAI outperforms 58.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FTAI is significantly below the industry average of 11.28%.
The last Return On Invested Capital (10.04%) for FTAI is above the 3 year average (5.42%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 120.9% | ||
| ROIC | 10.04% |
ROA(3y)-1.52%
ROA(5y)-0.15%
ROE(3y)-352.23%
ROE(5y)-209.86%
ROIC(3y)5.42%
ROIC(5y)3.86%
1.3 Margins
FTAI's Profit Margin of 18.11% is amongst the best of the industry. FTAI outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of FTAI has grown nicely.
FTAI has a Operating Margin of 30.50%. This is amongst the best in the industry. FTAI outperforms 86.27% of its industry peers.
FTAI's Operating Margin has improved in the last couple of years.
The Gross Margin of FTAI (55.59%) is better than 82.35% of its industry peers.
FTAI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.5% | ||
| PM (TTM) | 18.11% | ||
| GM | 55.59% |
OM growth 3Y32.62%
OM growth 5Y25.35%
PM growth 3YN/A
PM growth 5Y60.04%
GM growth 3Y-16.35%
GM growth 5Y-10.25%
2. Health
2.1 Basic Checks
FTAI has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for FTAI has been increased compared to 1 year ago.
The number of shares outstanding for FTAI has been increased compared to 5 years ago.
The debt/assets ratio for FTAI has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.66 indicates that FTAI is not a great score, but indicates only limited risk for bankruptcy at the moment.
FTAI has a Altman-Z score (2.66) which is comparable to the rest of the industry.
A Debt/Equity ratio of 14.36 is on the high side and indicates that FTAI has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 14.36, FTAI is doing worse than 98.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.36 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.66 |
ROIC/WACC1.08
WACC9.32%
2.3 Liquidity
A Current Ratio of 3.39 indicates that FTAI has no problem at all paying its short term obligations.
FTAI's Current ratio of 3.39 is fine compared to the rest of the industry. FTAI outperforms 78.43% of its industry peers.
FTAI has a Quick Ratio of 1.34. This is a normal value and indicates that FTAI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.34, FTAI is in the better half of the industry, outperforming 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 630.00% over the past year.
Measured over the past years, FTAI shows a very strong growth in Earnings Per Share. The EPS has been growing by 77.26% on average per year.
Looking at the last year, FTAI shows a very strong growth in Revenue. The Revenue has grown by 65.29%.
The Revenue has been growing by 27.90% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)630%
EPS 3YN/A
EPS 5Y77.26%
EPS Q2Q%40.91%
Revenue 1Y (TTM)65.29%
Revenue growth 3Y47.28%
Revenue growth 5Y27.9%
Sales Q2Q%11.61%
3.2 Future
Based on estimates for the next years, FTAI will show a very strong growth in Earnings Per Share. The EPS will grow by 29.97% on average per year.
Based on estimates for the next years, FTAI will show a very strong growth in Revenue. The Revenue will grow by 27.94% on average per year.
EPS Next Y-24.14%
EPS Next 2Y21.74%
EPS Next 3Y29.97%
EPS Next 5YN/A
Revenue Next Year24.96%
Revenue Next 2Y29.1%
Revenue Next 3Y21.78%
Revenue Next 5Y27.94%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 38.50, which means the current valuation is very expensive for FTAI.
Compared to the rest of the industry, the Price/Earnings ratio of FTAI indicates a slightly more expensive valuation: FTAI is more expensive than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FTAI to the average of the S&P500 Index (28.05), we can say FTAI is valued slightly more expensively.
The Price/Forward Earnings ratio is 27.09, which means the current valuation is very expensive for FTAI.
FTAI's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. FTAI is more expensive than 68.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FTAI to the average of the S&P500 Index (20.07), we can say FTAI is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.5 | ||
| Fwd PE | 27.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTAI is valued a bit more expensive than 70.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 18.53 |
4.3 Compensation for Growth
The decent profitability rating of FTAI may justify a higher PE ratio.
FTAI's earnings are expected to grow with 29.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.5
EPS Next 2Y21.74%
EPS Next 3Y29.97%
5. Dividend
5.1 Amount
FTAI has a Yearly Dividend Yield of 1.49%.
FTAI's Dividend Yield is a higher than the industry average which is at 1.74.
Compared to the average S&P500 Dividend Yield of 2.38, FTAI is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
FTAI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
FTAI pays out 71.53% of its income as dividend. This is not a sustainable payout ratio.
DP71.53%
EPS Next 2Y21.74%
EPS Next 3Y29.97%
FTAI AVIATION LTD
NASDAQ:FTAI (5/31/2024, 7:00:00 PM)
After market: 84.32 0 (0%)84.32
+3.04 (+3.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap8.45B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.5 | ||
| Fwd PE | 27.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.15% | ||
| ROE | 120.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 30.5% | ||
| PM (TTM) | 18.11% | ||
| GM | 55.59% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 14.36 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.39 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)630%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-24.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)65.29%
Revenue growth 3Y47.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y