AERCAP HOLDINGS NV (AER) Stock Fundamental Analysis
NYSE:AER - New York Stock Exchange, Inc. - NL0000687663 - Common Stock - Currency: USD
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. There are concerns on the financial health of AER while its profitability can be described as average. AER is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AER had positive earnings in the past year.
In the past year AER had a positive cash flow from operations.
In multiple years AER reported negative net income over the last 5 years.
In the past 5 years AER always reported a positive cash flow from operatings.
1.2 Ratios
AER has a Return On Assets (3.43%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 15.12%, AER is in line with its industry, outperforming 51.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.73%, AER is doing worse than 70.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AER is significantly below the industry average of 9.69%.
The last Return On Invested Capital (4.73%) for AER is above the 3 year average (4.22%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 15.12% | ||
| ROIC | 4.73% |
ROA(3y)1.57%
ROA(5y)1.32%
ROE(3y)6.81%
ROE(5y)5.87%
ROIC(3y)4.22%
ROIC(5y)4.72%
1.3 Margins
With an excellent Profit Margin value of 34.52%, AER belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
AER's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 48.57%, AER belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
In the last couple of years the Operating Margin of AER has remained more or less at the same level.
With an excellent Gross Margin value of 90.03%, AER belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
In the last couple of years the Gross Margin of AER has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 48.57% | ||
| PM (TTM) | 34.52% | ||
| GM | 90.03% |
OM growth 3Y-2.09%
OM growth 5Y0.28%
PM growth 3YN/A
PM growth 5Y14.9%
GM growth 3Y-1.61%
GM growth 5Y-0.21%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AER is creating some value.
Compared to 1 year ago, AER has less shares outstanding
AER has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AER has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.74, we must say that AER is in the distress zone and has some risk of bankruptcy.
AER's Altman-Z score of 0.74 is on the low side compared to the rest of the industry. AER is outperformed by 93.62% of its industry peers.
AER has a Debt/Equity ratio of 2.89. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of AER (2.89) is worse than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.74 |
ROIC/WACC1.03
WACC4.57%
2.3 Liquidity
AER has a Current Ratio of 1.71. This is a normal value and indicates that AER is financially healthy and should not expect problems in meeting its short term obligations.
AER has a Current ratio of 1.71. This is in the lower half of the industry: AER underperforms 61.70% of its industry peers.
A Quick Ratio of 1.69 indicates that AER should not have too much problems paying its short term obligations.
AER has a Quick ratio of 1.69. This is in the better half of the industry: AER outperforms 78.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.69 |
3. Growth
3.1 Past
The earnings per share for AER have decreased by -4.83% in the last year.
Measured over the past years, AER shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.48% on average per year.
The Revenue has been growing slightly by 4.91% in the past year.
The Revenue has been growing by 9.05% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.83%
EPS 3YN/A
EPS 5Y13.48%
EPS Q2Q%-50.41%
Revenue 1Y (TTM)4.91%
Revenue growth 3Y17.21%
Revenue growth 5Y9.05%
Sales Q2Q%2.98%
3.2 Future
AER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.86% yearly.
The Revenue is expected to grow by 2.53% on average over the next years.
EPS Next Y-11.61%
EPS Next 2Y-2.53%
EPS Next 3Y0.86%
EPS Next 5YN/A
Revenue Next Year3.12%
Revenue Next 2Y2.77%
Revenue Next 3Y2.53%
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.06, the valuation of AER can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of AER indicates a rather cheap valuation: AER is cheaper than 97.87% of the companies listed in the same industry.
AER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.42.
Based on the Price/Forward Earnings ratio of 7.79, the valuation of AER can be described as very cheap.
Based on the Price/Forward Earnings ratio, AER is valued cheaper than 91.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AER to the average of the S&P500 Index (24.39), we can say AER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AER.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.25 |
4.3 Compensation for Growth
The decent profitability rating of AER may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.6
EPS Next 2Y-2.53%
EPS Next 3Y0.86%
5. Dividend
5.1 Amount
AER has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.83, AER has a dividend in line with its industry peers.
With a Dividend Yield of 1.05, AER pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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
DPN/A
EPS Next 2Y-2.53%
EPS Next 3Y0.86%
AERCAP HOLDINGS NV
NYSE:AER (1/28/2025, 8:21:30 PM)
After market: 95.28 0 (0%)95.28
-0.35 (-0.37%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners94.77%
Inst Owner Change0.19%
Ins Owners3.3%
Ins Owner Change0%
Market Cap18.08B
Analysts82.67
Price Target115.37 (21.09%)
Short Float %1.35%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.48%
Min EPS beat(2)-0.94%
Max EPS beat(2)25.91%
EPS beat(4)3
Avg EPS beat(4)21.41%
Min EPS beat(4)-0.94%
Max EPS beat(4)35.2%
EPS beat(8)7
Avg EPS beat(8)28.91%
EPS beat(12)10
Avg EPS beat(12)24.99%
EPS beat(16)13
Avg EPS beat(16)26.48%
Revenue beat(2)2
Avg Revenue beat(2)1.58%
Min Revenue beat(2)0.52%
Max Revenue beat(2)2.63%
Revenue beat(4)3
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-2.43%
Max Revenue beat(4)3.17%
Revenue beat(8)5
Avg Revenue beat(8)1.15%
Revenue beat(12)6
Avg Revenue beat(12)0.22%
Revenue beat(16)9
Avg Revenue beat(16)2.63%
PT rev (1m)0%
PT rev (3m)5.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.23%
EPS NY rev (1m)0%
EPS NY rev (3m)0.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.92%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.06 | ||
| Fwd PE | 7.79 | ||
| P/S | 2.46 | ||
| P/FCF | N/A | ||
| P/OCF | 3.26 | ||
| P/B | 1.08 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 10.25 |
EPS(TTM)11.82
EY12.41%
EPS(NY)12.23
Fwd EY12.83%
FCF(TTM)-5.36
FCFYN/A
OCF(TTM)29.26
OCFY30.71%
SpS38.67
BVpS88.3
TBVpS75.5
PEG (NY)N/A
PEG (5Y)0.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.43% | ||
| ROE | 15.12% | ||
| ROCE | 5.19% | ||
| ROIC | 4.73% | ||
| ROICexc | 5% | ||
| ROICexgc | 5.21% | ||
| OM | 48.57% | ||
| PM (TTM) | 34.52% | ||
| GM | 90.03% | ||
| FCFM | N/A |
ROA(3y)1.57%
ROA(5y)1.32%
ROE(3y)6.81%
ROE(5y)5.87%
ROIC(3y)4.22%
ROIC(5y)4.72%
ROICexc(3y)4.33%
ROICexc(5y)4.85%
ROICexgc(3y)4.61%
ROICexgc(5y)5.09%
ROCE(3y)4.64%
ROCE(5y)5.18%
ROICexcg growth 3Y-3.38%
ROICexcg growth 5Y-3.79%
ROICexc growth 3Y-4.07%
ROICexc growth 5Y-3.72%
OM growth 3Y-2.09%
OM growth 5Y0.28%
PM growth 3YN/A
PM growth 5Y14.9%
GM growth 3Y-1.61%
GM growth 5Y-0.21%
F-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.89 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.9 | ||
| Cap/Depr | 257.16% | ||
| Cap/Sales | 89.52% | ||
| Interest Coverage | 2.01 | ||
| Cash Conversion | 90.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.71 | ||
| Quick Ratio | 1.69 | ||
| Altman-Z | 0.74 |
F-Score8
WACC4.57%
ROIC/WACC1.03
Cap/Depr(3y)172.08%
Cap/Depr(5y)174.06%
Cap/Sales(3y)59.94%
Cap/Sales(5y)61.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.83%
EPS 3YN/A
EPS 5Y13.48%
EPS Q2Q%-50.41%
EPS Next Y-11.61%
EPS Next 2Y-2.53%
EPS Next 3Y0.86%
EPS Next 5YN/A
Revenue 1Y (TTM)4.91%
Revenue growth 3Y17.21%
Revenue growth 5Y9.05%
Sales Q2Q%2.98%
Revenue Next Year3.12%
Revenue Next 2Y2.77%
Revenue Next 3Y2.53%
Revenue Next 5YN/A
EBIT growth 1Y10.17%
EBIT growth 3Y14.75%
EBIT growth 5Y9.35%
EBIT Next Year63.02%
EBIT Next 3Y20.25%
EBIT Next 5YN/A
FCF growth 1Y-170.02%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y3.68%
OCF growth 3Y35.17%
OCF growth 5Y13.12%