176.68 USD
-5.61 (-3.08%)
176.68 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 has a great profitability rating, there are quite some concerns on its financial health. WLFC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- WLFC had positive earnings in the past year.
- In the past year WLFC had a positive cash flow from operations.
- Of the past 5 years WLFC 4 years were profitable.
- 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.
- Looking at the Return On Equity, with a value of 16.39%, WLFC is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
- WLFC has a Return On Invested Capital of 5.88%. This is comparable to the rest of the industry: WLFC outperforms 50.00% of its industry peers.
- WLFC had an Average Return On Invested Capital over the past 3 years of 4.02%. This is significantly below the industry average of 9.64%.
- The last Return On Invested Capital (5.88%) for WLFC is above the 3 year average (4.02%), which is a sign of increasing profitability.
| 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 88.00% of its industry peers.
- WLFC's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 41.47%, WLFC belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
- WLFC's Operating Margin has improved in the last couple of years.
- WLFC's Gross Margin of 88.13% is amongst the best of the industry. WLFC outperforms 98.00% of its industry peers.
- In the last couple of years the Gross Margin of WLFC has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WLFC is destroying value.
- Compared to 1 year ago, WLFC has more shares outstanding
- The number of shares outstanding for WLFC has been increased compared to 5 years ago.
- The debt/assets ratio for WLFC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 0.98, we must say that WLFC is in the distress zone and has some risk of bankruptcy.
- WLFC has a Altman-Z score of 0.98. This is amonst the worse of the industry: WLFC underperforms 80.00% of its industry peers.
- A Debt/Equity ratio of 3.14 is on the high side and indicates that WLFC has dependencies on debt 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 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.98 |
ROIC/WACC0.73
WACC8.01%
2.3 Liquidity
- WLFC has a Current Ratio of 1.03. This is a normal value and indicates that WLFC is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.03, WLFC is doing worse than 84.00% of the companies in the same industry.
- WLFC has a Quick Ratio of 1.03. This is a bad value and indicates that WLFC is not financially healthy enough and could expect problems in meeting its short term obligations.
- WLFC has a Quick ratio of 0.52. This is in the lower half of the industry: WLFC underperforms 74.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.52 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 18.48% over the past year.
- Measured over the past years, WLFC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.04% on average per year.
- Looking at the last year, WLFC shows a very strong growth in Revenue. The Revenue has grown by 29.91%.
- Measured over the past years, WLFC shows a small growth in Revenue. The Revenue has been growing by 6.82% on average per year.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.08% yearly.
- The Revenue is expected to grow by 6.58% on average over the next years.
EPS Next Y40.94%
EPS Next 2Y10.86%
EPS Next 3Y13.08%
EPS Next 5YN/A
Revenue Next Year18.49%
Revenue Next 2Y9.54%
Revenue Next 3Y9.83%
Revenue Next 5Y6.58%
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 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 16.15, which indicates a correct valuation of WLFC.
- Based on the Price/Earnings ratio, WLFC is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of WLFC to the average of the S&P500 Index (28.60), we can say WLFC is valued slightly cheaper.
- The Price/Forward Earnings ratio is 11.78, which indicates a very decent valuation of WLFC.
- Based on the Price/Forward Earnings ratio, WLFC is valued cheaply inside the industry as 94.00% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. WLFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 11.78 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, WLFC is valued a bit cheaper than 78.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.74 |
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.
- WLFC's earnings are expected to grow with 13.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)2.01
EPS Next 2Y10.86%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.69%, WLFC is not a good candidate for dividend investing.
- WLFC's Dividend Yield is comparable with the industry average which is at 1.31.
- With a Dividend Yield of 0.69, WLFC pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
- The dividend of WLFC is nicely growing with an annual growth rate of 31.02%!
- 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
- 10.15% of the earnings are spent on dividend by WLFC. This is a low number and 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 2Y10.86%
EPS Next 3Y13.08%
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.
What is the valuation status of WILLIS LEASE FINANCE CORP (WLFC) stock?
ChartMill assigns a valuation rating of 6 / 10 to WILLIS LEASE FINANCE CORP (WLFC). This can be considered as Fairly Valued.
How profitable is WILLIS LEASE FINANCE CORP (WLFC) stock?
WILLIS LEASE FINANCE CORP (WLFC) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for WLFC stock?
The Earnings per Share (EPS) of WILLIS LEASE FINANCE CORP (WLFC) is expected to grow by 40.94% in the next year.
Can you provide the dividend sustainability for WLFC stock?
The dividend rating of WILLIS LEASE FINANCE CORP (WLFC) is 3 / 10 and the dividend payout ratio is 10.15%.