AERCAP HOLDINGS NV (AER) Stock Fundamental Analysis
USA - NYSE:AER - NL0000687663 - Common Stock
130.38 USD
-1.25 (-0.95%)
130.38 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AER. AER was compared to 50 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 has a correct valuation and a medium 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.
The reported net income has been mixed in the past 5 years: AER reported negative net income in multiple years.
Each year in the past 5 years AER had a positive operating cash flow.
1.2 Ratios
AER has a Return On Assets (4.00%) which is in line with its industry peers.
AER's Return On Equity of 16.43% is fine compared to the rest of the industry. AER outperforms 66.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.62%, AER is in line with its industry, outperforming 44.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AER is significantly below the industry average of 10.21%.
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
AER's Profit Margin of 39.91% is amongst the best of the industry. AER outperforms 100.00% of its industry peers.
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 98.00% of its industry peers.
AER's Operating Margin has declined in the last couple of years.
AER has a better Gross Margin (91.01%) than 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
Compared to 1 year ago, AER has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.83, we must say that AER is in the distress zone and has some risk of bankruptcy.
AER has a worse Altman-Z score (0.83) than 80.00% of its industry peers.
A Debt/Equity ratio of 2.57 is on the high side and indicates that AER has dependencies on debt financing.
AER has a worse Debt to Equity ratio (2.57) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.83 |
ROIC/WACC0.75
WACC6.15%
2.3 Liquidity
AER has a Current Ratio of 1.50. This is a normal value and indicates that AER is financially healthy and should not expect problems in meeting its short term obligations.
AER's Current ratio of 1.50 is on the low side compared to the rest of the industry. AER is outperformed by 62.00% of its industry peers.
AER has a Quick Ratio of 1.48. This is a normal value and indicates that AER is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of AER (1.48) is better than 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 25.13% over the past year.
The Earnings Per Share has been growing slightly by 7.30% on average over the past years.
The Revenue has been growing slightly by 3.59% in the past year.
AER shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.12% yearly.
EPS 1Y (TTM)25.13%
EPS 3Y13.18%
EPS 5Y7.3%
EPS Q2Q%106.22%
Revenue 1Y (TTM)3.59%
Revenue growth 3Y12.68%
Revenue growth 5Y9.12%
Sales Q2Q%18.5%
3.2 Future
AER is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.06% yearly.
AER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.39% yearly.
EPS Next Y10.1%
EPS Next 2Y6.29%
EPS Next 3Y6.06%
EPS Next 5YN/A
Revenue Next Year1.4%
Revenue Next 2Y2.02%
Revenue Next 3Y1.39%
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.
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
AER is valuated reasonably with a Price/Earnings ratio of 8.82.
Compared to the rest of the industry, the Price/Earnings ratio of AER indicates a rather cheap valuation: AER is cheaper than 94.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. AER is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.60, the valuation of AER can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AER indicates a rather cheap valuation: AER is cheaper than 96.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.50, AER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AER is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.67 |
4.3 Compensation for Growth
AER's 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)0.87
PEG (5Y)1.21
EPS Next 2Y6.29%
EPS Next 3Y6.06%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, AER is not a good candidate for dividend investing.
AER's Dividend Yield is a higher than the industry average which is at 1.87.
Compared to an average S&P500 Dividend Yield of 2.33, AER's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
AER is new to the dividend game and has less than 3 years of track record.
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 2Y6.29%
EPS Next 3Y6.06%
130.38
-1.25 (-0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners92.94%
Inst Owner Change-0.55%
Ins Owners3.14%
Ins Owner Change0%
Market Cap22.72B
Revenue(TTM)7.35B
Net Income(TTM)2.95B
Analysts80
Price Target135.95 (4.27%)
Short Float %1.75%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)0%
PT rev (3m)3.33%
EPS NQ rev (1m)-0.43%
EPS NQ rev (3m)4.31%
EPS NY rev (1m)0.02%
EPS NY rev (3m)4.45%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.82 | ||
| Fwd PE | 9.6 | ||
| P/S | 3.08 | ||
| P/FCF | N/A | ||
| P/OCF | 4.27 | ||
| P/B | 1.27 | ||
| P/tB | 1.43 | ||
| EV/EBITDA | 10.67 |
EPS(TTM)14.79
EY11.34%
EPS(NY)13.58
Fwd EY10.42%
FCF(TTM)-5.82
FCFYN/A
OCF(TTM)30.52
OCFY23.41%
SpS42.4
BVpS102.99
TBVpS91.34
PEG (NY)0.87
PEG (5Y)1.21
Graham Number185.13
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%
ROICexgc growth 3Y8.2%
ROICexgc 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 | 0.83 |
F-Score6
WACC6.15%
ROIC/WACC0.75
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)25.13%
EPS 3Y13.18%
EPS 5Y7.3%
EPS Q2Q%106.22%
EPS Next Y10.1%
EPS Next 2Y6.29%
EPS Next 3Y6.06%
EPS Next 5YN/A
Revenue 1Y (TTM)3.59%
Revenue growth 3Y12.68%
Revenue growth 5Y9.12%
Sales Q2Q%18.5%
Revenue Next Year1.4%
Revenue Next 2Y2.02%
Revenue Next 3Y1.39%
Revenue Next 5YN/A
EBIT growth 1Y-1.96%
EBIT growth 3Y7.89%
EBIT growth 5Y6.61%
EBIT Next Year79.4%
EBIT Next 3Y18.4%
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%
AERCAP HOLDINGS NV / AER FAQ
What is the fundamental rating for AER stock?
ChartMill assigns a fundamental rating of 4 / 10 to AER.
Can you provide the valuation status for AERCAP HOLDINGS NV?
ChartMill assigns a valuation rating of 6 / 10 to AERCAP HOLDINGS NV (AER). This can be considered as Fairly Valued.
Can you provide the profitability details for AERCAP HOLDINGS NV?
AERCAP HOLDINGS NV (AER) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for AER stock?
The Price/Earnings (PE) ratio for AERCAP HOLDINGS NV (AER) is 8.82 and the Price/Book (PB) ratio is 1.27.
Can you provide the financial health for AER stock?
The financial health rating of AERCAP HOLDINGS NV (AER) is 2 / 10.