WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
USA - NASDAQ:WLFC - US9706461053 - Common Stock
131.51 USD
+2.24 (+1.73%)
131.51 USD
0 (0%)
Taking everything into account, WLFC scores 4 out of 10 in our fundamental rating. WLFC was compared to 49 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 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.
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 of 2.97%. This is comparable to the rest of the industry: WLFC outperforms 46.94% of its industry peers.
With a decent Return On Equity value of 17.20%, WLFC is doing good in the industry, outperforming 69.39% of the companies in the same industry.
WLFC's Return On Invested Capital of 4.67% is in line compared to the rest of the industry. WLFC outperforms 48.98% 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 10.04%.
The last Return On Invested Capital (4.67%) for WLFC is above the 3 year average (4.02%), which is a sign of increasing profitability.
| 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
WLFC has a better Profit Margin (17.97%) than 85.71% 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 95.92% of its industry peers.
In the last couple of years the Operating Margin of WLFC has grown nicely.
The Gross Margin of WLFC (86.92%) is better than 97.96% of its industry peers.
WLFC's Gross Margin has improved in the last couple of years.
| 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
WLFC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, WLFC has a worse debt to assets ratio.
2.2 Solvency
WLFC has an Altman-Z score of 0.75. This is a bad value and indicates that WLFC is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.75, WLFC is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Debt/Equity ratio of 4.11 is on the high side and indicates that WLFC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.11, WLFC is doing worse than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.11 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.75 |
ROIC/WACC0.66
WACC7.12%
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 worse Current ratio (1.25) than 79.59% 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 Quick ratio of 0.68. This is in the lower half of the industry: WLFC underperforms 77.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
WLFC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.84%, which is quite impressive.
WLFC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.04% yearly.
The Revenue has grown by 33.06% in the past year. This is a very strong growth!
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
Based on estimates for the next years, WLFC will show a small growth in Earnings Per Share. The EPS will grow by 7.67% on average per year.
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.
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
With a Price/Earnings ratio of 12.37, WLFC is valued correctly.
Based on the Price/Earnings ratio, WLFC is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.91. WLFC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.69, the valuation of WLFC can be described as very reasonable.
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 22.92. WLFC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 9.69 |
4.2 Price Multiples
75.51% 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 | 9.97 |
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)0.3
PEG (5Y)1.54
EPS Next 2Y5.41%
EPS Next 3Y7.67%
5. Dividend
5.1 Amount
WLFC has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 1.81, WLFC pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.76, WLFC pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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
10.19% of the earnings are spent on dividend by WLFC. This is a low number and sustainable payout ratio.
WLFC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP10.19%
EPS Next 2Y5.41%
EPS Next 3Y7.67%
131.51
+2.24 (+1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners48.88%
Inst Owner Change0%
Ins Owners56.41%
Ins Owner Change-6.14%
Market Cap895.58M
Revenue(TTM)652.25M
Net Income(TTM)117.19M
Analysts82.86
Price Target193.8 (47.37%)
Short Float %13.02%
Short Ratio6.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
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)0%
PT rev (3m)-14.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-35.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-13.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.37 | ||
| Fwd PE | 9.69 | ||
| P/S | 1.37 | ||
| P/FCF | N/A | ||
| P/OCF | 2.99 | ||
| P/B | 1.31 | ||
| P/tB | 1.39 | ||
| EV/EBITDA | 9.97 |
EPS(TTM)10.63
EY8.08%
EPS(NY)13.57
Fwd EY10.32%
FCF(TTM)-57.99
FCFYN/A
OCF(TTM)44.04
OCFY33.49%
SpS95.78
BVpS100.03
TBVpS94.89
PEG (NY)0.3
PEG (5Y)1.54
Graham Number154.68
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%
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-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 | 0.75 |
F-Score5
WACC7.12%
ROIC/WACC0.66
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%
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 12.37 and the Price/Book (PB) ratio is 1.31.
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 10.19%.