FTAI AVIATION LTD (FTAI)
KYG3730V1059 - Common Stock
We assign a fundamental rating of 4 out of 10 to FTAI. FTAI was compared to 51 industry peers in the Trading Companies & Distributors industry. The financial health of FTAI is average, but there are quite some concerns on its profitability. FTAI is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
In the past year FTAI was profitable.
In the past year FTAI has reported a negative cash flow from operations.
In multiple years FTAI reported negative net income over the last 5 years.
In multiple years FTAI reported negative operating cash flow during the last 5 years.
1.2 Ratios
FTAI has a Return On Assets of -1.56%. This is amonst the worse of the industry: FTAI underperforms 82.35% of its industry peers.
FTAI has a worse Return On Equity (-77.51%) than 96.08% of its industry peers.
With a Return On Invested Capital value of 3.09%, FTAI is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for FTAI is below the industry average of 9.29%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.56% | ||
| ROE | -77.51% | ||
| ROIC | 3.09% |
ROA(3y)-1.52%
ROA(5y)-0.15%
ROE(3y)-352.23%
ROE(5y)-209.86%
ROIC(3y)5.42%
ROIC(5y)3.86%
1.3 Margins
FTAI's Profit Margin has improved in the last couple of years.
The Operating Margin of FTAI (9.33%) is better than 62.75% of its industry peers.
In the last couple of years the Operating Margin of FTAI has grown nicely.
The Gross Margin of FTAI (54.99%) is better than 84.31% of its industry peers.
In the last couple of years the Gross Margin of FTAI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.33% | ||
| PM (TTM) | N/A | ||
| GM | 54.99% |
OM growth 3Y32.62%
OM growth 5Y25.35%
PM growth 3YN/A
PM growth 5Y60.04%
GM growth 3Y-16.35%
GM growth 5Y-10.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FTAI is destroying value.
The number of shares outstanding for FTAI has been increased compared to 1 year ago.
Compared to 5 years ago, FTAI has more shares outstanding
Compared to 1 year ago, FTAI has an improved debt to assets ratio.
2.2 Solvency
FTAI has an Altman-Z score of 3.71. This indicates that FTAI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FTAI (3.71) is better than 70.59% of its industry peers.
A Debt/Equity ratio of 44.24 is on the high side and indicates that FTAI has dependencies on debt financing.
FTAI's Debt to Equity ratio of 44.24 is on the low side compared to the rest of the industry. FTAI is outperformed by 98.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 44.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.71 |
ROIC/WACC0.27
WACC11.52%
2.3 Liquidity
A Current Ratio of 4.09 indicates that FTAI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.09, FTAI belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
A Quick Ratio of 1.90 indicates that FTAI should not have too much problems paying its short term obligations.
The Quick ratio of FTAI (1.90) is better than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.09 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
FTAI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 121.49%, which is quite impressive.
Measured over the past years, FTAI shows a very strong growth in Earnings Per Share. The EPS has been growing by 77.26% on average per year.
The Revenue has grown by 36.77% in the past year. This is a very strong growth!
Measured over the past years, FTAI shows a very strong growth in Revenue. The Revenue has been growing by 27.90% on average per year.
EPS 1Y (TTM)121.49%
EPS 3YN/A
EPS 5Y77.26%
EPS Q2Q%130.3%
Revenue 1Y (TTM)36.77%
Revenue growth 3Y47.28%
Revenue growth 5Y27.9%
Sales Q2Q%60.01%
3.2 Future
Based on estimates for the next years, FTAI will show a very strong growth in Earnings Per Share. The EPS will grow by 45.17% on average per year.
The Revenue is expected to grow by 18.96% on average over the next years. This is quite good.
EPS Next Y-114.04%
EPS Next 2Y54.5%
EPS Next 3Y45.17%
EPS Next 5YN/A
Revenue Next Year47.32%
Revenue Next 2Y34.49%
Revenue Next 3Y29.9%
Revenue Next 5Y18.96%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 65.28, which means the current valuation is very expensive for FTAI.
Based on the Price/Earnings ratio, FTAI is valued a bit more expensive than the industry average as 78.43% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of FTAI to the average of the S&P500 Index (28.96), we can say FTAI is valued expensively.
A Price/Forward Earnings ratio of 34.90 indicates a quite expensive valuation of FTAI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FTAI indicates a slightly more expensive valuation: FTAI is more expensive than 62.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, FTAI is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.28 | ||
| Fwd PE | 34.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTAI indicates a slightly more expensive valuation: FTAI is more expensive than 78.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 55.45 |
4.3 Compensation for Growth
FTAI's earnings are expected to grow with 45.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y54.5%
EPS Next 3Y45.17%
5. Dividend
5.1 Amount
FTAI has a yearly dividend return of 0.76%, which is pretty low.
FTAI's Dividend Yield is a higher than the industry average which is at 1.73.
Compared to an average S&P500 Dividend Yield of 2.23, FTAI's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
The dividend of FTAI has a limited annual growth rate of 1.86%.
FTAI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)1.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of FTAI are negative and hence is the payout ratio. FTAI will probably not be able to sustain this dividend level.
FTAI's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-284.6%
EPS Next 2Y54.5%
EPS Next 3Y45.17%
FTAI AVIATION LTD
NASDAQ:FTAI (11/21/2024, 6:22:04 PM)
After market: 174.96 0 (0%)174.96
+3.75 (+2.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.28 | ||
| Fwd PE | 34.9 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.56% | ||
| ROE | -77.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.33% | ||
| PM (TTM) | N/A | ||
| GM | 54.99% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 44.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.09 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)121.49%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-114.04%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)36.77%
Revenue growth 3Y47.28%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y