WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
NASDAQ:WLFC - Nasdaq - US9706461053 - Common Stock - Currency: USD
Taking everything into account, WLFC scores 5 out of 10 in our fundamental rating. WLFC was compared to 49 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
WLFC had positive earnings in 4 of the past 5 years.
WLFC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WLFC's Return On Assets of 3.05% is in line compared to the rest of the industry. WLFC outperforms 53.06% of its industry peers.
WLFC has a Return On Equity of 15.89%. This is in the better half of the industry: WLFC outperforms 67.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.72%, WLFC is in line with its industry, outperforming 46.94% 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 9.84%.
The last Return On Invested Capital (5.72%) for WLFC is above the 3 year average (4.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 15.89% | ||
| ROIC | 5.72% |
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
Looking at the Profit Margin, with a value of 16.43%, WLFC belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
In the last couple of years the Profit Margin of WLFC has grown nicely.
WLFC's Operating Margin of 44.09% is amongst the best of the industry. WLFC outperforms 95.92% of its industry peers.
In the last couple of years the Operating Margin of WLFC has grown nicely.
WLFC has a better Gross Margin (90.18%) than 100.00% of its industry peers.
WLFC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.09% | ||
| PM (TTM) | 16.43% | ||
| GM | 90.18% |
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
WLFC has more shares outstanding than it did 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 0.92, we must say that WLFC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of WLFC (0.92) is worse than 85.71% of its industry peers.
A Debt/Equity ratio of 3.55 is on the high side and indicates that WLFC has dependencies on debt financing.
The Debt to Equity ratio of WLFC (3.55) is worse than 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.92 |
ROIC/WACC0.76
WACC7.57%
2.3 Liquidity
A Current Ratio of 1.74 indicates that WLFC should not have too much problems paying its short term obligations.
The Current ratio of WLFC (1.74) is comparable to the rest of the industry.
WLFC has a Quick Ratio of 1.74. This is a bad value and indicates that WLFC is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, WLFC is doing worse than 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 68.27% over the past year.
WLFC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
Looking at the last year, WLFC shows a very strong growth in Revenue. The Revenue has grown by 35.67%.
WLFC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.82% yearly.
EPS 1Y (TTM)68.27%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-26.23%
Revenue 1Y (TTM)35.67%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%32.46%
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 18.54% 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 2Y26.78%
EPS Next 3Y18.54%
EPS Next 5YN/A
Revenue Next Year18.68%
Revenue Next 2Y14.54%
Revenue Next 3Y11.11%
Revenue Next 5Y6.58%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.81, which indicates a very decent valuation of WLFC.
Based on the Price/Earnings ratio, WLFC is valued cheaply inside the industry as 91.84% of the companies are valued more expensively.
WLFC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
WLFC is valuated cheaply with a Price/Forward Earnings ratio of 7.28.
Based on the Price/Forward Earnings ratio, WLFC is valued cheaper than 91.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. WLFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLFC is valued cheaper than 83.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.71 |
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.
WLFC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as WLFC's earnings are expected to grow with 18.54% in the coming years.
PEG (NY)0.24
PEG (5Y)1.22
EPS Next 2Y26.78%
EPS Next 3Y18.54%
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 3.00.
With a Dividend Yield of 0.69, WLFC pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of WLFC grows each year by 31.02%, which is quite nice.
WLFC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)31.02%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WLFC pays out 16.74% of its income as dividend. This is a sustainable payout ratio.
WLFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.74%
EPS Next 2Y26.78%
EPS Next 3Y18.54%
142.78
-6.06 (-4.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners41.69%
Inst Owner Change3.91%
Ins Owners56.52%
Ins Owner Change9.54%
Market Cap985.18M
Analysts82.86
Price Target227.46 (59.31%)
Short Float %6.12%
Short Ratio1.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.02
Dividend Growth(5Y)31.02%
DP16.74%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.11%
Min EPS beat(2)-51.98%
Max EPS beat(2)45.76%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)14.59%
Min Revenue beat(2)3.78%
Max Revenue beat(2)25.4%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1887.5%
EPS NY rev (1m)0%
EPS NY rev (3m)29.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)14.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 7.28 | ||
| P/S | 1.62 | ||
| P/FCF | N/A | ||
| P/OCF | 3.71 | ||
| P/B | 1.57 | ||
| P/tB | 1.64 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)14.55
EY10.19%
EPS(NY)19.62
Fwd EY13.74%
FCF(TTM)-80.31
FCFYN/A
OCF(TTM)38.49
OCFY26.96%
SpS88.1
BVpS91.11
TBVpS87.23
PEG (NY)0.24
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.05% | ||
| ROE | 15.89% | ||
| ROCE | 8.39% | ||
| ROIC | 5.72% | ||
| ROICexc | 5.78% | ||
| ROICexgc | 5.94% | ||
| OM | 44.09% | ||
| PM (TTM) | 16.43% | ||
| GM | 90.18% | ||
| 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%
ROICexcg growth 3Y32.55%
ROICexcg 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 Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.55 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.1 | ||
| Cap/Depr | 838.61% | ||
| Cap/Sales | 134.85% | ||
| Interest Coverage | 2.46 | ||
| Cash Conversion | 72.61% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 0.92 |
F-Score6
WACC7.57%
ROIC/WACC0.76
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)68.27%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-26.23%
EPS Next Y40.94%
EPS Next 2Y26.78%
EPS Next 3Y18.54%
EPS Next 5YN/A
Revenue 1Y (TTM)35.67%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%32.46%
Revenue Next Year18.68%
Revenue Next 2Y14.54%
Revenue Next 3Y11.11%
Revenue Next 5Y6.58%
EBIT growth 1Y56.24%
EBIT growth 3Y45.81%
EBIT growth 5Y9.47%
EBIT Next Year59.84%
EBIT Next 3Y23.51%
EBIT Next 5Y19.56%
FCF growth 1Y-251.83%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y58.09%
OCF growth 3Y46.37%
OCF growth 5Y4.31%