AERCAP HOLDINGS NV (AER) Stock Fundamental Analysis
NYSE:AER - NL0000687663 - Common Stock
122.93 USD
-0.76 (-0.61%)
123 USD
+0.07 (+0.06%)
Taking everything into account, AER scores 4 out of 10 in our fundamental rating. AER was compared to 48 industry peers in the Trading Companies & Distributors industry. AER has a medium profitability rating, but doesn't score so well on its financial health evaluation. AER has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AER was profitable.
AER had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AER reported negative net income in multiple years.
AER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AER has a Return On Assets (4.00%) which is comparable to the rest of the industry.
AER has a Return On Equity of 16.43%. This is in the better half of the industry: AER outperforms 66.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.62%, AER is doing worse than 60.42% of the companies in the same industry.
AER had an Average Return On Invested Capital over the past 3 years of 4.47%. This is significantly below the industry average of 9.70%.
The 3 year average ROIC (4.47%) for AER is below the current ROIC(4.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 16.43% | ||
| ROIC | 4.62% |
ROA(3y)2.1%
ROA(5y)1.39%
ROE(3y)8.87%
ROE(5y)5.86%
ROIC(3y)4.47%
ROIC(5y)4.4%
1.3 Margins
With an excellent Profit Margin value of 39.91%, AER belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of AER has grown nicely.
AER has a Operating Margin of 48.14%. This is amongst the best in the industry. AER outperforms 97.92% of its industry peers.
In the last couple of years the Operating Margin of AER has declined.
AER has a Gross Margin of 91.01%. This is amongst the best in the industry. AER outperforms 100.00% of its industry peers.
AER's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.14% | ||
| PM (TTM) | 39.91% | ||
| GM | 91.01% |
OM growth 3Y-4.25%
OM growth 5Y-2.3%
PM growth 3Y13.61%
PM growth 5Y3.44%
GM growth 3Y-1.74%
GM growth 5Y-1.08%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AER is destroying value.
Compared to 1 year ago, AER has less shares outstanding
Compared to 5 years ago, AER has more shares outstanding
AER has a better debt/assets ratio than last year.
2.2 Solvency
AER has an Altman-Z score of 0.81. This is a bad value and indicates that AER is not financially healthy and even has some risk of bankruptcy.
AER's Altman-Z score of 0.81 is on the low side compared to the rest of the industry. AER is outperformed by 85.42% of its industry peers.
AER has a Debt/Equity ratio of 2.57. This is a high value indicating a heavy dependency on external financing.
AER has a Debt to Equity ratio of 2.57. This is amonst the worse of the industry: AER underperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.81 |
ROIC/WACC0.83
WACC5.6%
2.3 Liquidity
A Current Ratio of 1.50 indicates that AER should not have too much problems paying its short term obligations.
AER has a Current ratio of 1.50. This is in the lower half of the industry: AER underperforms 64.58% of its industry peers.
A Quick Ratio of 1.48 indicates that AER should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.48, AER is doing good in the industry, outperforming 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
AER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.30%.
The Earnings Per Share has been growing slightly by 7.30% on average over the past years.
The Revenue has been growing slightly by 1.86% in the past year.
Measured over the past years, AER shows a quite strong growth in Revenue. The Revenue has been growing by 9.12% on average per year.
EPS 1Y (TTM)-14.3%
EPS 3Y13.18%
EPS 5Y7.3%
EPS Q2Q%-5.98%
Revenue 1Y (TTM)1.86%
Revenue growth 3Y12.68%
Revenue growth 5Y9.12%
Sales Q2Q%-3.65%
3.2 Future
AER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.95% yearly.
AER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.35% yearly.
EPS Next Y10.08%
EPS Next 2Y6.27%
EPS Next 3Y5.95%
EPS Next 5YN/A
Revenue Next Year1.78%
Revenue Next 2Y2.21%
Revenue Next 3Y1.35%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.05, the valuation of AER can be described as very reasonable.
Based on the Price/Earnings ratio, AER is valued cheaper than 91.67% of the companies in the same industry.
AER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.14.
The Price/Forward Earnings ratio is 9.06, which indicates a very decent valuation of AER.
Based on the Price/Forward Earnings ratio, AER is valued cheaper than 91.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AER to the average of the S&P500 Index (22.80), we can say AER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 9.06 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than AER, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.49 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AER has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1
PEG (5Y)1.38
EPS Next 2Y6.27%
EPS Next 3Y5.95%
5. Dividend
5.1 Amount
AER has a yearly dividend return of 0.90%, which is pretty low.
AER's Dividend Yield is a higher than the industry average which is at 2.69.
With a Dividend Yield of 0.90, AER pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
AER does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AER pays out 6.56% of its income as dividend. This is a sustainable payout ratio.
DP6.56%
EPS Next 2Y6.27%
EPS Next 3Y5.95%
122.93
-0.76 (-0.61%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners91.97%
Inst Owner Change-6.23%
Ins Owners3.02%
Ins Owner Change0%
Market Cap21.42B
Analysts81.43
Price Target134 (9.01%)
Short Float %1.22%
Short Ratio1.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.72
Dividend Growth(5Y)N/A
DP6.56%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.85%
Min EPS beat(2)3.01%
Max EPS beat(2)32.7%
EPS beat(4)3
Avg EPS beat(4)15.53%
Min EPS beat(4)-0.94%
Max EPS beat(4)32.7%
EPS beat(8)7
Avg EPS beat(8)27.6%
EPS beat(12)11
Avg EPS beat(12)29.37%
EPS beat(16)14
Avg EPS beat(16)25.17%
Revenue beat(2)1
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-7.51%
Max Revenue beat(2)2.17%
Revenue beat(4)3
Avg Revenue beat(4)-0.07%
Min Revenue beat(4)-7.51%
Max Revenue beat(4)4.56%
Revenue beat(8)5
Avg Revenue beat(8)0.28%
Revenue beat(12)7
Avg Revenue beat(12)0.67%
Revenue beat(16)9
Avg Revenue beat(16)1.13%
PT rev (1m)2.84%
PT rev (3m)6.05%
EPS NQ rev (1m)4.77%
EPS NQ rev (3m)-1.92%
EPS NY rev (1m)4.43%
EPS NY rev (3m)4.66%
Revenue NQ rev (1m)-3.47%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)-1.71%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.05 | ||
| Fwd PE | 9.06 | ||
| P/S | 2.9 | ||
| P/FCF | N/A | ||
| P/OCF | 4.03 | ||
| P/B | 1.19 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 10.49 |
EPS(TTM)12.23
EY9.95%
EPS(NY)13.57
Fwd EY11.04%
FCF(TTM)-5.82
FCFYN/A
OCF(TTM)30.52
OCFY24.83%
SpS42.4
BVpS102.99
TBVpS91.34
PEG (NY)1
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4% | ||
| ROE | 16.43% | ||
| ROCE | 5.23% | ||
| ROIC | 4.62% | ||
| ROICexc | 4.81% | ||
| ROICexgc | 4.98% | ||
| OM | 48.14% | ||
| PM (TTM) | 39.91% | ||
| GM | 91.01% | ||
| FCFM | N/A |
ROA(3y)2.1%
ROA(5y)1.39%
ROE(3y)8.87%
ROE(5y)5.86%
ROIC(3y)4.47%
ROIC(5y)4.4%
ROICexc(3y)4.58%
ROICexc(5y)4.51%
ROICexgc(3y)4.81%
ROICexgc(5y)4.74%
ROCE(3y)5.06%
ROCE(5y)4.98%
ROICexcg growth 3Y8.2%
ROICexcg growth 5Y-3.59%
ROICexc growth 3Y9.48%
ROICexc growth 5Y-3.64%
OM growth 3Y-4.25%
OM growth 5Y-2.3%
PM growth 3Y13.61%
PM growth 5Y3.44%
GM growth 3Y-1.74%
GM growth 5Y-1.08%
F-Score6
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.44 | ||
| Cap/Depr | 239.97% | ||
| Cap/Sales | 85.71% | ||
| Interest Coverage | 1.87 | ||
| Cash Conversion | 85.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z | 0.81 |
F-Score6
WACC5.6%
ROIC/WACC0.83
Cap/Depr(3y)223.23%
Cap/Depr(5y)168.93%
Cap/Sales(3y)78.34%
Cap/Sales(5y)59.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.3%
EPS 3Y13.18%
EPS 5Y7.3%
EPS Q2Q%-5.98%
EPS Next Y10.08%
EPS Next 2Y6.27%
EPS Next 3Y5.95%
EPS Next 5YN/A
Revenue 1Y (TTM)1.86%
Revenue growth 3Y12.68%
Revenue growth 5Y9.12%
Sales Q2Q%-3.65%
Revenue Next Year1.78%
Revenue Next 2Y2.21%
Revenue Next 3Y1.35%
Revenue Next 5YN/A
EBIT growth 1Y-1.96%
EBIT growth 3Y7.89%
EBIT growth 5Y6.61%
EBIT Next Year70.74%
EBIT Next 3Y19.22%
EBIT Next 5YN/A
FCF growth 1Y-8765.45%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.91%
OCF growth 3Y13.75%
OCF growth 5Y11.85%