WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
USA - NASDAQ:WLFC - US9706461053 - Common Stock
130.68 USD
+1.8 (+1.4%)
130.68 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to WLFC. WLFC was compared to 50 industry peers in the Trading Companies & Distributors industry. While WLFC belongs to the best of the industry regarding profitability, there are concerns on its financial health. WLFC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
WLFC had positive earnings in the past year.
WLFC had a positive operating cash flow in the past year.
WLFC had positive earnings in 4 of the past 5 years.
In the past 5 years WLFC always reported a positive cash flow from operatings.
1.2 Ratios
WLFC has a Return On Assets (3.42%) which is in line with its industry peers.
WLFC's Return On Equity of 16.39% is fine compared to the rest of the industry. WLFC outperforms 68.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.88%, WLFC is in line with its industry, outperforming 52.94% of the companies in the same industry.
WLFC had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 9.31%.
The 3 year average ROIC (4.02%) for WLFC is below the current ROIC(5.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 16.39% | ||
| ROIC | 5.88% |
ROA(3y)1.59%
ROA(5y)1.01%
ROE(3y)8.59%
ROE(5y)5.46%
ROIC(3y)4.02%
ROIC(5y)3.49%
1.3 Margins
WLFC has a Profit Margin of 16.96%. This is amongst the best in the industry. WLFC outperforms 88.24% of its industry peers.
In the last couple of years the Profit Margin of WLFC has grown nicely.
WLFC's Operating Margin of 41.47% is amongst the best of the industry. WLFC outperforms 96.08% of its industry peers.
WLFC's Operating Margin has improved in the last couple of years.
The Gross Margin of WLFC (88.13%) is better than 98.04% of its industry peers.
WLFC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.47% | ||
| PM (TTM) | 16.96% | ||
| GM | 88.13% |
OM growth 3Y14.3%
OM growth 5Y2.48%
PM growth 3YN/A
PM growth 5Y3.36%
GM growth 3Y-1.03%
GM growth 5Y1.6%
2. Health
2.1 Basic Checks
WLFC 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, WLFC has more shares outstanding
Compared to 5 years ago, WLFC has more shares outstanding
Compared to 1 year ago, WLFC has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.91, we must say that WLFC is in the distress zone and has some risk of bankruptcy.
WLFC has a worse Altman-Z score (0.91) than 76.47% of its industry peers.
WLFC has a Debt/Equity ratio of 3.14. This is a high value indicating a heavy dependency on external financing.
WLFC's Debt to Equity ratio of 3.14 is on the low side compared to the rest of the industry. WLFC is outperformed by 82.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.91 |
ROIC/WACC0.82
WACC7.14%
2.3 Liquidity
A Current Ratio of 1.03 indicates that WLFC should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, WLFC is not doing good in the industry: 86.27% of the companies in the same industry are doing better.
A Quick Ratio of 0.52 indicates that WLFC may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.52, WLFC is doing worse than 76.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
WLFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.48%, which is quite good.
The Earnings Per Share has been growing by 8.04% on average over the past years. This is quite good.
Looking at the last year, WLFC shows a very strong growth in Revenue. The Revenue has grown by 29.91%.
The Revenue has been growing slightly by 6.82% on average over the past years.
EPS 1Y (TTM)18.48%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%9.2%
Revenue 1Y (TTM)29.91%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%25.42%
3.2 Future
WLFC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.67% yearly.
WLFC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.58% yearly.
EPS Next Y40.94%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue Next Year18.49%
Revenue Next 2Y11.48%
Revenue Next 3Y10.34%
Revenue Next 5Y6.58%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.95, which indicates a very decent valuation of WLFC.
Based on the Price/Earnings ratio, WLFC is valued cheaply inside the industry as 88.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.89, WLFC is valued rather cheaply.
WLFC is valuated reasonably with a Price/Forward Earnings ratio of 9.63.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WLFC indicates a rather cheap valuation: WLFC is cheaper than 96.08% of the companies listed in the same industry.
WLFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 9.63 |
4.2 Price Multiples
78.43% of the companies in the same industry are more expensive than WLFC, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.94 |
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.
The decent profitability rating of WLFC may justify a higher PE ratio.
PEG (NY)0.29
PEG (5Y)1.49
EPS Next 2Y5.41%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
WLFC has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 2.04, WLFC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, WLFC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
On average, the dividend of WLFC grows each year by 31.02%, which is quite nice.
WLFC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)31.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WLFC pays out 10.15% of its income as dividend. This is a sustainable payout ratio.
The dividend of WLFC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP10.15%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
130.68
+1.8 (+1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners48.88%
Inst Owner Change-1.58%
Ins Owners56.41%
Ins Owner Change-5.55%
Market Cap889.93M
Revenue(TTM)689.42M
Net Income(TTM)116.94M
Analysts82.86
Price Target193.8 (48.3%)
Short Float %13.75%
Short Ratio7.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Yearly Dividend2.02
Dividend Growth(5Y)31.02%
DP10.15%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.69%
Min EPS beat(2)-29.4%
Max EPS beat(2)8.02%
EPS beat(4)2
Avg EPS beat(4)-6.9%
Min EPS beat(4)-51.98%
Max EPS beat(4)45.76%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)24.64%
Min Revenue beat(2)15.25%
Max Revenue beat(2)34.03%
Revenue beat(4)4
Avg Revenue beat(4)19.62%
Min Revenue beat(4)3.78%
Max Revenue beat(4)34.03%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)-14.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.64%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.66%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.95 | ||
| Fwd PE | 9.63 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 3.21 | ||
| P/B | 1.25 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 7.94 |
EPS(TTM)10.94
EY8.37%
EPS(NY)13.57
Fwd EY10.38%
FCF(TTM)-60.45
FCFYN/A
OCF(TTM)40.68
OCFY31.13%
SpS101.24
BVpS104.78
TBVpS100.77
PEG (NY)0.29
PEG (5Y)1.49
Graham Number160.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.42% | ||
| ROE | 16.39% | ||
| ROCE | 8.62% | ||
| ROIC | 5.88% | ||
| ROICexc | 5.9% | ||
| ROICexgc | 6.09% | ||
| OM | 41.47% | ||
| PM (TTM) | 16.96% | ||
| GM | 88.13% | ||
| FCFM | N/A |
ROA(3y)1.59%
ROA(5y)1.01%
ROE(3y)8.59%
ROE(5y)5.46%
ROIC(3y)4.02%
ROIC(5y)3.49%
ROICexc(3y)4.03%
ROICexc(5y)3.51%
ROICexgc(3y)4.15%
ROICexgc(5y)3.62%
ROCE(3y)5.89%
ROCE(5y)5.12%
ROICexgc growth 3Y32.55%
ROICexgc growth 5Y-1.45%
ROICexc growth 3Y32.68%
ROICexc growth 5Y-1.63%
OM growth 3Y14.3%
OM growth 5Y2.48%
PM growth 3YN/A
PM growth 5Y3.36%
GM growth 3Y-1.03%
GM growth 5Y1.6%
F-Score6
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 5.7 | ||
| Cap/Depr | 645.85% | ||
| Cap/Sales | 99.9% | ||
| Interest Coverage | 2.23 | ||
| Cash Conversion | 70.57% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.52 | ||
| Altman-Z | 0.91 |
F-Score6
WACC7.14%
ROIC/WACC0.82
Cap/Depr(3y)468.71%
Cap/Depr(5y)414.41%
Cap/Sales(3y)94.3%
Cap/Sales(5y)100.3%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)18.48%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%9.2%
EPS Next Y40.94%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue 1Y (TTM)29.91%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%25.42%
Revenue Next Year18.49%
Revenue Next 2Y11.48%
Revenue Next 3Y10.34%
Revenue Next 5Y6.58%
EBIT growth 1Y23.08%
EBIT growth 3Y45.81%
EBIT growth 5Y9.47%
EBIT Next Year59.84%
EBIT Next 3Y23.51%
EBIT Next 5Y19.56%
FCF growth 1Y-2493.5%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y19.88%
OCF growth 3Y46.37%
OCF growth 5Y4.31%
WILLIS LEASE FINANCE CORP / WLFC FAQ
Can you provide the ChartMill fundamental rating for WILLIS LEASE FINANCE CORP?
ChartMill assigns a fundamental rating of 4 / 10 to WLFC.
Can you provide the valuation status for WILLIS LEASE FINANCE CORP?
ChartMill assigns a valuation rating of 6 / 10 to WILLIS LEASE FINANCE CORP (WLFC). This can be considered as Fairly Valued.
Can you provide the profitability details for WILLIS LEASE FINANCE CORP?
WILLIS LEASE FINANCE CORP (WLFC) has a profitability rating of 7 / 10.
What is the valuation of WILLIS LEASE FINANCE CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WILLIS LEASE FINANCE CORP (WLFC) is 11.95 and the Price/Book (PB) ratio is 1.25.
Is the dividend of WILLIS LEASE FINANCE CORP sustainable?
The dividend rating of WILLIS LEASE FINANCE CORP (WLFC) is 3 / 10 and the dividend payout ratio is 10.15%.