WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
USA - NASDAQ:WLFC - US9706461053 - Common Stock
145.81 USD
-4.06 (-2.71%)
145.81 USD
0 (0%)
Overall WLFC gets a fundamental rating of 4 out of 10. We evaluated WLFC against 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 is not valued too expensively and it also shows a decent 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
The Return On Assets of WLFC (2.97%) is comparable to the rest of the industry.
WLFC has a better Return On Equity (17.20%) than 68.00% of its industry peers.
WLFC's Return On Invested Capital of 4.67% is in line compared to the rest of the industry. WLFC outperforms 48.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WLFC is significantly below the industry average of 10.22%.
The 3 year average ROIC (4.02%) for WLFC is below the current ROIC(4.67%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 17.2% | ||
| ROIC | 4.67% |
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
The Profit Margin of WLFC (17.97%) is better than 86.00% of its industry peers.
In the last couple of years the Profit Margin of WLFC has grown nicely.
The Operating Margin of WLFC (40.27%) is better than 96.00% of its industry peers.
In the last couple of years the Operating Margin of WLFC has grown nicely.
WLFC has a better Gross Margin (86.92%) than 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 | 40.27% | ||
| PM (TTM) | 17.97% | ||
| GM | 86.92% |
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
The number of shares outstanding for WLFC has been increased compared to 5 years ago.
WLFC has a worse debt/assets ratio than last year.
2.2 Solvency
WLFC has an Altman-Z score of 0.78. This is a bad value and indicates that WLFC is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of WLFC (0.78) is worse than 86.00% of its industry peers.
A Debt/Equity ratio of 4.11 is on the high side and indicates that WLFC has dependencies on debt financing.
With a Debt to Equity ratio value of 4.11, WLFC is not doing good in the industry: 86.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.63
WACC7.42%
2.3 Liquidity
A Current Ratio of 1.25 indicates that WLFC should not have too much problems paying its short term obligations.
WLFC has a Current ratio of 1.25. This is amonst the worse of the industry: WLFC underperforms 82.00% of its industry peers.
A Quick Ratio of 0.68 indicates that WLFC may have some problems paying its short term obligations.
WLFC has a worse Quick ratio (0.68) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 30.84% 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 33.06%.
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)30.84%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-63.12%
Revenue 1Y (TTM)33.06%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%29.37%
3.2 Future
The Earnings Per Share is expected to grow by 7.67% on average over the next years.
Based on estimates for the next years, WLFC will show a small growth in Revenue. The Revenue will grow by 6.58% on average per year.
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
A Price/Earnings ratio of 13.72 indicates a correct valuation of WLFC.
WLFC's Price/Earnings ratio is rather cheap when compared to the industry. WLFC is cheaper than 84.00% of the companies in the same industry.
WLFC is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.75, which indicates a very decent valuation of WLFC.
WLFC's Price/Forward Earnings ratio is rather cheap when compared to the industry. WLFC is cheaper than 92.00% of the companies in the same industry.
WLFC is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 10.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WLFC is valued a bit cheaper than the industry average as 74.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.35 |
4.3 Compensation for Growth
WLFC's 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)0.34
PEG (5Y)1.71
EPS Next 2Y5.41%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, WLFC is not a good candidate for dividend investing.
WLFC's Dividend Yield is comparable with the industry average which is at 2.75.
Compared to an average S&P500 Dividend Yield of 2.38, WLFC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of WLFC is nicely growing with an annual growth rate of 31.02%!
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
10.19% 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.
DP10.19%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
145.81
-4.06 (-2.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners41.97%
Inst Owner Change18.8%
Ins Owners56.37%
Ins Owner Change6.87%
Market Cap992.97M
Analysts82.86
Price Target193.8 (32.91%)
Short Float %14.75%
Short Ratio5.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend2.02
Dividend Growth(5Y)31.02%
DP10.19%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-40.69%
Min EPS beat(2)-51.98%
Max EPS beat(2)-29.4%
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)18.91%
Min Revenue beat(2)3.78%
Max Revenue beat(2)34.03%
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)-14.8%
PT rev (3m)-14.8%
EPS NQ rev (1m)-35.89%
EPS NQ rev (3m)-34.64%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.67%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.72 | ||
| Fwd PE | 10.75 | ||
| P/S | 1.52 | ||
| P/FCF | N/A | ||
| P/OCF | 3.31 | ||
| P/B | 1.46 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 10.35 |
EPS(TTM)10.63
EY7.29%
EPS(NY)13.57
Fwd EY9.3%
FCF(TTM)-57.99
FCFYN/A
OCF(TTM)44.04
OCFY30.21%
SpS95.78
BVpS100.03
TBVpS94.89
PEG (NY)0.34
PEG (5Y)1.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 17.2% | ||
| ROCE | 6.85% | ||
| ROIC | 4.67% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 4.84% | ||
| OM | 40.27% | ||
| PM (TTM) | 17.97% | ||
| GM | 86.92% | ||
| 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-Score5
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 7.66 | ||
| Cap/Depr | 675.49% | ||
| Cap/Sales | 106.54% | ||
| Interest Coverage | 2.25 | ||
| Cash Conversion | 82.06% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 0.78 |
F-Score5
WACC7.42%
ROIC/WACC0.63
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)30.84%
EPS 3YN/A
EPS 5Y8.04%
EPS Q2Q%-63.12%
EPS Next Y40.94%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
EPS Next 5YN/A
Revenue 1Y (TTM)33.06%
Revenue growth 3Y27.57%
Revenue growth 5Y6.82%
Sales Q2Q%29.37%
Revenue Next Year18.49%
Revenue Next 2Y11.48%
Revenue Next 3Y10.34%
Revenue Next 5Y6.58%
EBIT growth 1Y25.15%
EBIT growth 3Y45.81%
EBIT growth 5Y9.47%
EBIT Next Year59.84%
EBIT Next 3Y23.51%
EBIT Next 5Y19.56%
FCF growth 1Y-184.34%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.04%
OCF growth 3Y46.37%
OCF growth 5Y4.31%