AERCAP HOLDINGS NV (AER) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AER - NL0000687663 - Common Stock
143.26 USD
+0.69 (+0.48%)
142.57 USD
-0.69 (-0.48%)
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.
- AER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AER has a Return On Assets (5.27%) which is comparable to the rest of the industry.
- AER has a better Return On Equity (20.88%) than 78.00% of its industry peers.
- The Return On Invested Capital of AER (5.13%) is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for AER is significantly below the industry average of 9.63%.
- The 3 year average ROIC (4.47%) for AER is below the current ROIC(5.13%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 20.88% | ||
| ROIC | 5.13% |
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
- Looking at the Profit Margin, with a value of 50.40%, AER belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of AER has grown nicely.
- With an excellent Operating Margin value of 51.20%, AER belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of AER has declined.
- The Gross Margin of AER (93.59%) is better than 100.00% of its industry peers.
- 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 | 51.2% | ||
| PM (TTM) | 50.4% | ||
| GM | 93.59% |
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
- AER has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for AER has been reduced compared to 1 year ago.
- 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
- AER has an Altman-Z score of 0.89. This is a bad value and indicates that AER is not financially healthy and even has some risk of bankruptcy.
- AER has a worse Altman-Z score (0.89) than 84.00% of its industry peers.
- AER has a Debt/Equity ratio of 2.43. This is a high value indicating a heavy dependency on external financing.
- AER has a Debt to Equity ratio of 2.43. This is in the lower half of the industry: AER underperforms 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.77
WACC6.65%
2.3 Liquidity
- AER has a Current Ratio of 1.28. 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 worse Current ratio (1.28) than 74.00% of its industry peers.
- A Quick Ratio of 1.26 indicates that AER should not have too much problems paying its short term obligations.
- AER's Quick ratio of 1.26 is in line compared to the rest of the industry. AER outperforms 52.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.26 |
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 2.47% 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)2.47%
Revenue growth 3Y12.68%
Revenue growth 5Y9.12%
Sales Q2Q%18.5%
3.2 Future
- AER is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.70% yearly.
- The Revenue is expected to grow by 1.60% on average over the next years.
EPS Next Y24.28%
EPS Next 2Y11.3%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue Next Year5.58%
Revenue Next 2Y2.35%
Revenue Next 3Y1.6%
Revenue Next 5YN/A
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 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 9.69, the valuation of AER can be described as very reasonable.
- AER's Price/Earnings ratio is rather cheap when compared to the industry. AER is cheaper than 94.00% of the companies in the same industry.
- AER is valuated cheaply when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 9.62, which indicates a very decent valuation of AER.
- 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.
- AER's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 9.62 |
4.2 Price Multiples
- 70.00% of the companies in the same industry are more expensive than AER, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.32 |
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.
- The decent profitability rating of AER may justify a higher PE ratio.
PEG (NY)0.4
PEG (5Y)1.33
EPS Next 2Y11.3%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.75%, AER is not a good candidate for dividend investing.
- AER's Dividend Yield is comparable with the industry average which is at 1.48.
- Compared to an average S&P500 Dividend Yield of 1.86, AER's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
- 5.07% of the earnings are spent on dividend by AER. This is a low number and sustainable payout ratio.
DP5.07%
EPS Next 2Y11.3%
EPS Next 3Y8.7%
143.26
+0.69 (+0.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-06 2026-02-06/bmo
Inst Owners90.64%
Inst Owner Change-0.54%
Ins Owners3.14%
Ins Owner Change0%
Market Cap24.96B
Revenue(TTM)7.52B
Net Income(TTM)3.79B
Analysts80
Price Target155.38 (8.46%)
Short Float %1.82%
Short Ratio2.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Yearly Dividend0.72
Dividend Growth(5Y)N/A
DP5.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)31.34%
Min EPS beat(2)3.01%
Max EPS beat(2)59.68%
EPS beat(4)4
Avg EPS beat(4)30.69%
Min EPS beat(4)3.01%
Max EPS beat(4)59.68%
EPS beat(8)7
Avg EPS beat(8)26.05%
EPS beat(12)11
Avg EPS beat(12)29.5%
EPS beat(16)14
Avg EPS beat(16)26.41%
Revenue beat(2)1
Avg Revenue beat(2)4.02%
Min Revenue beat(2)-7.51%
Max Revenue beat(2)15.54%
Revenue beat(4)3
Avg Revenue beat(4)3.69%
Min Revenue beat(4)-7.51%
Max Revenue beat(4)15.54%
Revenue beat(8)6
Avg Revenue beat(8)2.33%
Revenue beat(12)8
Avg Revenue beat(12)2%
Revenue beat(16)9
Avg Revenue beat(16)1.08%
PT rev (1m)2.93%
PT rev (3m)15.4%
EPS NQ rev (1m)1.76%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)0.04%
EPS NY rev (3m)12.9%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)2.65%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 9.62 | ||
| P/S | 3.32 | ||
| P/FCF | N/A | ||
| P/OCF | 4.57 | ||
| P/B | 1.38 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 10.32 |
EPS(TTM)14.79
EY10.32%
EPS(NY)14.89
Fwd EY10.39%
FCF(TTM)-0.94
FCFYN/A
OCF(TTM)31.32
OCFY21.86%
SpS43.15
BVpS104.15
TBVpS93.31
PEG (NY)0.4
PEG (5Y)1.33
Graham Number186.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.27% | ||
| ROE | 20.88% | ||
| ROCE | 5.8% | ||
| ROIC | 5.13% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 5.45% | ||
| OM | 51.2% | ||
| PM (TTM) | 50.4% | ||
| GM | 93.59% | ||
| 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-Score8
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.77 | ||
| Cap/Depr | 211.98% | ||
| Cap/Sales | 74.75% | ||
| Interest Coverage | 1.97 | ||
| Cash Conversion | 83.94% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 0.89 |
F-Score8
WACC6.65%
ROIC/WACC0.77
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 Y24.28%
EPS Next 2Y11.3%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue 1Y (TTM)2.47%
Revenue growth 3Y12.68%
Revenue growth 5Y9.12%
Sales Q2Q%18.5%
Revenue Next Year5.58%
Revenue Next 2Y2.35%
Revenue Next 3Y1.6%
Revenue Next 5YN/A
EBIT growth 1Y8.01%
EBIT growth 3Y7.89%
EBIT growth 5Y6.61%
EBIT Next Year88.18%
EBIT Next 3Y18.29%
EBIT Next 5YN/A
FCF growth 1Y11.54%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y0.82%
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.
What is the valuation status of AERCAP HOLDINGS NV (AER) stock?
ChartMill assigns a valuation rating of 6 / 10 to AERCAP HOLDINGS NV (AER). This can be considered as Fairly Valued.
How profitable is AERCAP HOLDINGS NV (AER) stock?
AERCAP HOLDINGS NV (AER) has a profitability rating of 6 / 10.
What is the valuation of AERCAP HOLDINGS NV based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AERCAP HOLDINGS NV (AER) is 9.69 and the Price/Book (PB) ratio is 1.38.
How sustainable is the dividend of AERCAP HOLDINGS NV (AER) stock?
The dividend rating of AERCAP HOLDINGS NV (AER) is 2 / 10 and the dividend payout ratio is 5.07%.