AERCAP HOLDINGS NV (AER) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AER - NL0000687663 - Common Stock
144.78 USD
-0.46 (-0.32%)
144.66 USD
-0.12 (-0.08%)
AER gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 50 industry peers in the Trading Companies & Distributors industry. While AER is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years AER always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AER (5.27%) is comparable to the rest of the industry.
With a decent Return On Equity value of 20.88%, AER is doing good in the industry, outperforming 78.00% of the companies in the same industry.
AER has a Return On Invested Capital (5.13%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years 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.
Looking at the Operating Margin, with a value of 51.20%, 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 Operating Margin of AER has declined.
AER's Gross Margin of 93.59% is amongst the best of the industry. AER outperforms 100.00% of its industry peers.
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
AER has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying 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
AER has an Altman-Z score of 0.90. This is a bad value and indicates that AER is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AER (0.90) is worse 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's Debt to Equity ratio of 2.43 is on the low side compared to the rest of the industry. AER is outperformed by 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.9 |
ROIC/WACC0.75
WACC6.85%
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 Current ratio of 1.28. This is in the lower half of the industry: AER underperforms 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.
With a Quick ratio value of 1.26, AER perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
| 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.
Looking at the last year, AER shows a small growth in Revenue. The Revenue has grown by 2.47% in the last year.
The Revenue has been growing by 9.12% on average over the past years. This is quite good.
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 8.70% on average over the next years. This is quite good.
Based on estimates for the next years, AER will show a small growth in Revenue. The Revenue will grow by 1.32% on average per year.
EPS Next Y24.28%
EPS Next 2Y11.3%
EPS Next 3Y8.7%
EPS Next 5YN/A
Revenue Next Year5.43%
Revenue Next 2Y2.28%
Revenue Next 3Y1.32%
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
A Price/Earnings ratio of 9.79 indicates a reasonable valuation of AER.
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 26.92. AER is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.72, 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 94.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.46. AER is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 9.72 |
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 | 10.37 |
4.3 Compensation for Growth
The 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)0.4
PEG (5Y)1.34
EPS Next 2Y11.3%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
With a yearly dividend of 0.74%, AER is not a good candidate for dividend investing.
AER's Dividend Yield is comparable with the industry average which is at 0.98.
With a Dividend Yield of 0.74, AER pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
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 2Y11.3%
EPS Next 3Y8.7%
144.78
-0.46 (-0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners89.14%
Inst Owner Change3.98%
Ins Owners3.14%
Ins Owner Change0%
Market Cap25.23B
Revenue(TTM)7.52B
Net Income(TTM)3.79B
Analysts80
Price Target152.21 (5.13%)
Short Float %1.76%
Short Ratio2.16
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.74% |
Yearly Dividend0.72
Dividend Growth(5Y)N/A
DP5.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)0.83%
PT rev (3m)13.05%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-1.59%
EPS NY rev (1m)4.29%
EPS NY rev (3m)12.9%
Revenue NQ rev (1m)0.39%
Revenue NQ rev (3m)1.72%
Revenue NY rev (1m)1.08%
Revenue NY rev (3m)3.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 9.72 | ||
| P/S | 3.36 | ||
| P/FCF | N/A | ||
| P/OCF | 4.62 | ||
| P/B | 1.39 | ||
| P/tB | 1.55 | ||
| EV/EBITDA | 10.37 |
EPS(TTM)14.79
EY10.22%
EPS(NY)14.89
Fwd EY10.28%
FCF(TTM)-0.94
FCFYN/A
OCF(TTM)31.32
OCFY21.63%
SpS43.15
BVpS104.15
TBVpS93.31
PEG (NY)0.4
PEG (5Y)1.34
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 | 0.9 |
F-Score8
WACC6.85%
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 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 Year5.43%
Revenue Next 2Y2.28%
Revenue Next 3Y1.32%
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.
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 9.79 and the Price/Book (PB) ratio is 1.39.
Can you provide the financial health for AER stock?
The financial health rating of AERCAP HOLDINGS NV (AER) is 2 / 10.