WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
NASDAQ:WLFC - US9706461053 - Common Stock
152.07 USD
-0.99 (-0.65%)
152.067 USD
0 (0%)
Overall WLFC gets a fundamental rating of 4 out of 10. We evaluated WLFC against 48 industry peers in the Trading Companies & Distributors industry. While WLFC has a great profitability rating, there are quite some concerns on its financial health. WLFC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
WLFC had positive earnings in the past year.
WLFC had a positive operating cash flow in the past year.
WLFC had positive earnings in 4 of the past 5 years.
In the past 5 years WLFC always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.97%, WLFC perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
WLFC has a better Return On Equity (17.20%) than 68.75% of its industry peers.
WLFC has a Return On Invested Capital (4.67%) which is comparable to the rest of the industry.
WLFC had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 9.70%.
The last Return On Invested Capital (4.67%) for WLFC is above the 3 year average (4.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 17.2% | ||
| ROIC | 4.67% |
ROA(3y)1.59%
ROA(5y)1.01%
ROE(3y)8.59%
ROE(5y)5.46%
ROIC(3y)4.02%
ROIC(5y)3.49%
1.3 Margins
With an excellent Profit Margin value of 17.97%, WLFC belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
In the last couple of years the Profit Margin of WLFC has grown nicely.
The Operating Margin of WLFC (40.27%) is better than 95.83% of its industry peers.
In the last couple of years the Operating Margin of WLFC has grown nicely.
With an excellent Gross Margin value of 86.92%, WLFC belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
WLFC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.27% | ||
| PM (TTM) | 17.97% | ||
| GM | 86.92% |
OM growth 3Y14.3%
OM growth 5Y2.48%
PM growth 3YN/A
PM growth 5Y3.36%
GM growth 3Y-1.03%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WLFC is destroying value.
The number of shares outstanding for WLFC has been increased compared to 1 year ago.
Compared to 5 years ago, WLFC has more shares outstanding
The debt/assets ratio for WLFC is higher compared to a year ago.
2.2 Solvency
WLFC has an Altman-Z score of 0.78. This is a bad value and indicates that WLFC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.78, WLFC is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
A Debt/Equity ratio of 4.11 is on the high side and indicates that WLFC has dependencies on debt financing.
WLFC's Debt to Equity ratio of 4.11 is on the low side compared to the rest of the industry. WLFC is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.62
WACC7.59%
2.3 Liquidity
A Current Ratio of 1.25 indicates that WLFC should not have too much problems paying its short term obligations.
WLFC has a Current ratio of 1.25. This is amonst the worse of the industry: WLFC underperforms 83.33% of its industry peers.
A Quick Ratio of 0.68 indicates that WLFC may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, WLFC is not doing good in the industry: 81.25% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.84% over the past year.
Measured over the past years, WLFC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.04% on average per year.
The Revenue has grown by 33.06% in the past year. This is a very strong growth!
Measured over the past years, WLFC shows a small growth in Revenue. The Revenue has been growing by 6.82% on average per year.
EPS 1Y (TTM)30.84%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-63.12%
Revenue 1Y (TTM)33.06%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%29.37%
3.2 Future
Based on estimates for the next years, WLFC will show a small growth in Earnings Per Share. The EPS will grow by 7.67% on average per year.
The Revenue is expected to grow by 6.58% on average over the next years.
EPS Next Y40.94%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue Next Year18.49%
Revenue Next 2Y11.48%
Revenue Next 3Y10.34%
Revenue Next 5Y6.58%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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 14.31, which indicates a correct valuation of WLFC.
Based on the Price/Earnings ratio, WLFC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.08, WLFC is valued a bit cheaper.
WLFC is valuated reasonably with a Price/Forward Earnings ratio of 11.21.
Based on the Price/Forward Earnings ratio, WLFC is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, WLFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 11.21 |
4.2 Price Multiples
WLFC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. WLFC is cheaper than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.41 |
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.
WLFC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.35
PEG (5Y)1.78
EPS Next 2Y5.41%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, WLFC is not a good candidate for dividend investing.
WLFC's Dividend Yield is comparable with the industry average which is at 2.69.
Compared to an average S&P500 Dividend Yield of 2.34, WLFC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
On average, the dividend of WLFC grows each year by 31.02%, which is quite nice.
WLFC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)31.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
10.19% of the earnings are spent on dividend by WLFC. This is a low number and sustainable payout ratio.
WLFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.19%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
152.07
-0.99 (-0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners41.97%
Inst Owner Change18.8%
Ins Owners56.37%
Ins Owner Change6.85%
Market Cap1.04B
Analysts82.86
Price Target193.8 (27.44%)
Short Float %15.18%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend2.02
Dividend Growth(5Y)31.02%
DP10.19%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.69%
Min EPS beat(2)-51.98%
Max EPS beat(2)-29.4%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)18.91%
Min Revenue beat(2)3.78%
Max Revenue beat(2)34.03%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-14.8%
PT rev (3m)-14.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-13.81%
Revenue NQ rev (3m)-11.67%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.31 | ||
| Fwd PE | 11.21 | ||
| P/S | 1.59 | ||
| P/FCF | N/A | ||
| P/OCF | 3.45 | ||
| P/B | 1.52 | ||
| P/tB | 1.6 | ||
| EV/EBITDA | 10.41 |
EPS(TTM)10.63
EY6.99%
EPS(NY)13.57
Fwd EY8.92%
FCF(TTM)-57.99
FCFYN/A
OCF(TTM)44.04
OCFY28.96%
SpS95.78
BVpS100.03
TBVpS94.89
PEG (NY)0.35
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 17.2% | ||
| ROCE | 6.85% | ||
| ROIC | 4.67% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.84% | ||
| OM | 40.27% | ||
| PM (TTM) | 17.97% | ||
| GM | 86.92% | ||
| FCFM | N/A |
ROA(3y)1.59%
ROA(5y)1.01%
ROE(3y)8.59%
ROE(5y)5.46%
ROIC(3y)4.02%
ROIC(5y)3.49%
ROICexc(3y)4.03%
ROICexc(5y)3.51%
ROICexgc(3y)4.15%
ROICexgc(5y)3.62%
ROCE(3y)5.89%
ROCE(5y)5.12%
ROICexcg growth 3Y32.55%
ROICexcg growth 5Y-1.45%
ROICexc growth 3Y32.68%
ROICexc growth 5Y-1.63%
OM growth 3Y14.3%
OM growth 5Y2.48%
PM growth 3YN/A
PM growth 5Y3.36%
GM growth 3Y-1.03%
GM growth 5Y1.6%
F-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.66 | ||
| Cap/Depr | 675.49% | ||
| Cap/Sales | 106.54% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 82.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.78 |
F-Score5
WACC7.59%
ROIC/WACC0.62
Cap/Depr(3y)468.71%
Cap/Depr(5y)414.41%
Cap/Sales(3y)94.3%
Cap/Sales(5y)100.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)30.84%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-63.12%
EPS Next Y40.94%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue 1Y (TTM)33.06%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%29.37%
Revenue Next Year18.49%
Revenue Next 2Y11.48%
Revenue Next 3Y10.34%
Revenue Next 5Y6.58%
EBIT growth 1Y25.15%
EBIT growth 3Y45.81%
EBIT growth 5Y9.47%
EBIT Next Year59.84%
EBIT Next 3Y23.51%
EBIT Next 5Y19.56%
FCF growth 1Y-184.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.04%
OCF growth 3Y46.37%
OCF growth 5Y4.31%