AERCAP HOLDINGS NV (AER) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AER - NL0000687663 - Common Stock
142.64 USD
-1.22 (-0.85%)
142.64 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. AER has a medium profitability rating, but doesn't score so well on its financial health evaluation. AER is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AER was profitable.
- 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.
- Each year in the past 5 years AER had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.27%, AER is in line with its industry, outperforming 56.00% of the companies in the same industry.
- The Return On Equity of AER (20.88%) is better than 78.00% of its industry peers.
- AER's Return On Invested Capital of 5.13% is in line compared to the rest of the industry. AER outperforms 48.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AER is significantly below the industry average of 9.64%.
- 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
- AER has a better Profit Margin (50.40%) than 100.00% of its industry peers.
- AER's Profit Margin has improved in the last couple of years.
- The Operating Margin of AER (51.20%) is better than 100.00% of its industry peers.
- AER's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 93.59%, AER belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- AER's Gross Margin has been stable in the last couple of years.
| 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
- 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
- AER has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for AER has been reduced compared to a year ago.
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 82.00% of its industry peers.
- A Debt/Equity ratio of 2.43 is on the high side and indicates that AER has dependencies on debt financing.
- The Debt to Equity ratio of AER (2.43) is worse than 76.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACC0.75
WACC6.8%
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.
- With a Current ratio value of 1.28, AER is not doing good in the industry: 74.00% of the companies in the same industry are doing better.
- AER has a Quick Ratio of 1.26. 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 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
- AER shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.13%, which is quite impressive.
- Measured over the past 5 years, AER shows a small growth in Earnings Per Share. The EPS has been growing by 7.30% on average per year.
- The Revenue has been growing slightly by 2.47% in the past year.
- Measured over the past years, AER shows a quite strong growth in Revenue. The Revenue has been growing by 9.12% on average per year.
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
- The Earnings Per Share is expected to grow by 9.06% on average over the next years. This is quite good.
- AER is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.60% yearly.
EPS Next Y24.75%
EPS Next 2Y11.51%
EPS Next 3Y9.06%
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 accelerating: in the next years the growth will be better 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
- Based on the Price/Earnings ratio of 9.64, the valuation of AER can be described as reasonable.
- Based on the Price/Earnings ratio, AER is valued cheaper than 94.00% of the companies in the same industry.
- AER's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- The Price/Forward Earnings ratio is 9.54, which indicates a very decent valuation of AER.
- AER's Price/Forward Earnings ratio is rather cheap when compared to the industry. AER is cheaper than 96.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, AER is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.64 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
- 68.00% 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.
- AER has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.39
PEG (5Y)1.32
EPS Next 2Y11.51%
EPS Next 3Y9.06%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.75%, AER is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.31, AER has a dividend in line with its industry peers.
- With a Dividend Yield of 0.75, AER pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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
- 5.07% of the earnings are spent on dividend by AER. This is a low number and sustainable payout ratio.
DP5.07%
EPS Next 2Y11.51%
EPS Next 3Y9.06%
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 9.64 and the Price/Book (PB) ratio is 1.37.
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%.