WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
NASDAQ:WLFC - Nasdaq - US9706461053 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to WLFC. WLFC was compared to 49 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
WLFC had positive earnings in the past year.
In the past year WLFC had a positive cash flow from operations.
WLFC had positive earnings in 4 of the past 5 years.
WLFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLFC has a Return On Assets of 3.05%. This is comparable to the rest of the industry: WLFC outperforms 53.06% of its industry peers.
With a decent Return On Equity value of 15.89%, WLFC is doing good in the industry, outperforming 67.35% of the companies in the same industry.
WLFC has a Return On Invested Capital of 5.72%. This is comparable to the rest of the industry: WLFC outperforms 46.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WLFC is significantly below the industry average of 9.84%.
The 3 year average ROIC (4.02%) for WLFC is below the current ROIC(5.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 15.89% | ||
| ROIC | 5.72% |
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
WLFC's Profit Margin of 16.43% is amongst the best of the industry. WLFC outperforms 91.84% of its industry peers.
WLFC's Profit Margin has improved in the last couple of years.
WLFC has a Operating Margin of 44.09%. This is amongst the best in the industry. WLFC outperforms 95.92% of its industry peers.
WLFC's Operating Margin has improved in the last couple of years.
WLFC has a better Gross Margin (90.18%) than 100.00% of its industry peers.
WLFC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.09% | ||
| PM (TTM) | 16.43% | ||
| GM | 90.18% |
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.
Compared to 1 year ago, WLFC has more shares outstanding
The number of shares outstanding for WLFC has been increased compared to 5 years ago.
Compared to 1 year ago, WLFC has a worse debt to assets ratio.
2.2 Solvency
WLFC has an Altman-Z score of 0.90. 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 0.90, WLFC is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Debt/Equity ratio of 3.55 is on the high side and indicates that WLFC has dependencies on debt financing.
The Debt to Equity ratio of WLFC (3.55) is worse than 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.76
WACC7.57%
2.3 Liquidity
WLFC has a Current Ratio of 1.74. This is a normal value and indicates that WLFC is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of WLFC (1.74) is comparable to the rest of the industry.
A Quick Ratio of 0.91 indicates that WLFC may have some problems paying its short term obligations.
With a Quick ratio value of 0.91, WLFC is not doing good in the industry: 65.31% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.27% over the past year.
WLFC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
The Revenue has grown by 35.67% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.82% on average over the past years.
EPS 1Y (TTM)68.27%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-26.23%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%32.46%
3.2 Future
The Earnings Per Share is expected to grow by 18.54% on average over the next years. This is quite good.
WLFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.58% yearly.
EPS Next Y40.94%
EPS Next 2Y26.78%
EPS Next 3Y18.54%
EPS Next 5YN/A
Revenue Next Year18.68%
Revenue Next 2Y14.54%
Revenue Next 3Y11.11%
Revenue Next 5Y6.58%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
With a Price/Earnings ratio of 9.18, the valuation of WLFC can be described as very reasonable.
Based on the Price/Earnings ratio, WLFC is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
WLFC is valuated cheaply when we compare the Price/Earnings ratio to 27.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.81, the valuation of WLFC can be described as very cheap.
Based on the Price/Forward Earnings ratio, WLFC is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, WLFC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 6.81 |
4.2 Price Multiples
83.67% of the companies in the same industry are more expensive than WLFC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.53 |
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.
WLFC's earnings are expected to grow with 18.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)1.14
EPS Next 2Y26.78%
EPS Next 3Y18.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, WLFC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.00, WLFC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, WLFC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of WLFC grows each year by 31.02%, which is quite nice.
WLFC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)31.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
16.74% 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.
DP16.74%
EPS Next 2Y26.78%
EPS Next 3Y18.54%
133.6
-3.76 (-2.74%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners41.69%
Inst Owner Change3.91%
Ins Owners56.52%
Ins Owner Change9.54%
Market Cap921.84M
Analysts82.86
Price Target227.46 (70.25%)
Short Float %7.88%
Short Ratio1.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.02
Dividend Growth(5Y)31.02%
DP16.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.11%
Min EPS beat(2)-51.98%
Max EPS beat(2)45.76%
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)14.59%
Min Revenue beat(2)3.78%
Max Revenue beat(2)25.4%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1887.5%
EPS NY rev (1m)0%
EPS NY rev (3m)29.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)14.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 6.81 | ||
| P/S | 1.52 | ||
| P/FCF | N/A | ||
| P/OCF | 3.47 | ||
| P/B | 1.47 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 8.53 |
EPS(TTM)14.55
EY10.89%
EPS(NY)19.62
Fwd EY14.69%
FCF(TTM)-80.31
FCFYN/A
OCF(TTM)38.49
OCFY28.81%
SpS88.1
BVpS91.11
TBVpS87.23
PEG (NY)0.22
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 15.89% | ||
| ROCE | 8.39% | ||
| ROIC | 5.72% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 5.94% | ||
| OM | 44.09% | ||
| PM (TTM) | 16.43% | ||
| GM | 90.18% | ||
| 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-Score6
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 838.61% | ||
| Cap/Sales | 134.85% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 72.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.9 |
F-Score6
WACC7.57%
ROIC/WACC0.76
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)68.27%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-26.23%
EPS Next Y40.94%
EPS Next 2Y26.78%
EPS Next 3Y18.54%
EPS Next 5YN/A
Revenue 1Y (TTM)35.67%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%32.46%
Revenue Next Year18.68%
Revenue Next 2Y14.54%
Revenue Next 3Y11.11%
Revenue Next 5Y6.58%
EBIT growth 1Y56.24%
EBIT growth 3Y45.81%
EBIT growth 5Y9.47%
EBIT Next Year59.84%
EBIT Next 3Y23.51%
EBIT Next 5Y19.56%
FCF growth 1Y-251.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.09%
OCF growth 3Y46.37%
OCF growth 5Y4.31%