WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
NASDAQ:WLFC - Nasdaq - US9706461053 - Common Stock - Currency: USD
WLFC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Trading Companies & Distributors industry. WLFC has an excellent profitability rating, but there are 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
In the past year WLFC was profitable.
WLFC had a positive operating cash flow in the past year.
WLFC had positive earnings in 4 of the past 5 years.
Each year in the past 5 years WLFC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.05%, WLFC perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
WLFC has a better Return On Equity (15.89%) than 68.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.72%, WLFC is in line with its industry, outperforming 45.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WLFC is significantly below the industry average of 9.61%.
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 has a better Profit Margin (16.43%) than 91.67% of its industry peers.
WLFC's Profit Margin has improved in the last couple of years.
The Operating Margin of WLFC (44.09%) is better than 95.83% of its industry peers.
In the last couple of years the Operating Margin of WLFC has grown nicely.
WLFC's Gross Margin of 90.18% is amongst the best of the industry. WLFC outperforms 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WLFC is destroying value.
WLFC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, WLFC has more shares outstanding
Compared to 1 year ago, WLFC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that WLFC is in the distress zone and has some risk of bankruptcy.
WLFC has a worse Altman-Z score (0.92) than 87.50% of its industry peers.
WLFC has a Debt/Equity ratio of 3.55. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 3.55, WLFC is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.76
WACC7.51%
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.
WLFC has a Current ratio of 1.74. This is comparable to the rest of the industry: WLFC outperforms 41.67% of its industry peers.
A Quick Ratio of 0.91 indicates that WLFC may have some problems paying its short term obligations.
WLFC's Quick ratio of 0.91 is on the low side compared to the rest of the industry. WLFC is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
WLFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 68.27%, which is quite impressive.
The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
WLFC shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.67%.
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)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
Based on estimates for the next years, WLFC will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.54% on average per year.
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 9.87, the valuation of WLFC can be described as very reasonable.
WLFC's Price/Earnings ratio is rather cheap when compared to the industry. WLFC is cheaper than 91.67% of the companies in the same industry.
WLFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.05.
The Price/Forward Earnings ratio is 7.31, which indicates a rather cheap valuation of WLFC.
WLFC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WLFC is cheaper than 93.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.67. WLFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
83.33% 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 | 8.72 |
4.3 Compensation for Growth
WLFC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WLFC 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)0.24
PEG (5Y)1.23
EPS Next 2Y26.78%
EPS Next 3Y18.54%
5. Dividend
5.1 Amount
With a yearly dividend of 0.71%, WLFC is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, WLFC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, WLFC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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.
The dividend of WLFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.74%
EPS Next 2Y26.78%
EPS Next 3Y18.54%
143.55
+2.29 (+1.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners41.69%
Inst Owner Change-0.12%
Ins Owners56.52%
Ins Owner Change9.22%
Market Cap990.50M
Analysts82.86
Price Target227.46 (58.45%)
Short Float %12.05%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
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)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.87 | ||
| Fwd PE | 7.31 | ||
| P/S | 1.63 | ||
| P/FCF | N/A | ||
| P/OCF | 3.73 | ||
| P/B | 1.58 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 8.72 |
EPS(TTM)14.55
EY10.14%
EPS(NY)19.62
Fwd EY13.67%
FCF(TTM)-80.31
FCFYN/A
OCF(TTM)38.49
OCFY26.81%
SpS88.1
BVpS91.11
TBVpS87.23
PEG (NY)0.24
PEG (5Y)1.23
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 | 0.92 |
F-Score6
WACC7.51%
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%