WILLIS LEASE FINANCE CORP (WLFC) Stock Fundamental Analysis
NASDAQ:WLFC - Nasdaq - US9706461053 - Common Stock - Currency: USD
Overall WLFC gets a fundamental rating of 4 out of 10. We evaluated WLFC against 49 industry peers in the Trading Companies & Distributors industry. There are concerns on the financial health of WLFC while its profitability can be described as average. WLFC is growing strongly while it is still valued neutral. 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.
Each year in the past 5 years WLFC had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 3.11%, WLFC perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
The Return On Equity of WLFC (16.32%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 4.82%, WLFC is not doing good in the industry: 64.58% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for WLFC is significantly below the industry average of 9.86%.
The 3 year average ROIC (2.61%) for WLFC is below the current ROIC(4.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 16.32% | ||
| ROIC | 4.82% |
ROA(3y)0.53%
ROA(5y)1.03%
ROE(3y)2.91%
ROE(5y)5.23%
ROIC(3y)2.61%
ROIC(5y)3.16%
1.3 Margins
With an excellent Profit Margin value of 17.86%, WLFC belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
WLFC's Profit Margin has declined in the last couple of years.
WLFC's Operating Margin of 43.77% is amongst the best of the industry. WLFC outperforms 95.83% of its industry peers.
In the last couple of years the Operating Margin of WLFC has remained more or less at the same level.
With an excellent Gross Margin value of 92.41%, WLFC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Gross Margin of WLFC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.77% | ||
| PM (TTM) | 17.86% | ||
| GM | 92.41% |
OM growth 3Y-0.4%
OM growth 5Y-0.75%
PM growth 3Y63.25%
PM growth 5Y-3.38%
GM growth 3Y0.77%
GM growth 5Y3.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WLFC is destroying value.
The number of shares outstanding for WLFC has been increased compared to 1 year ago.
The number of shares outstanding for WLFC has been increased compared to 5 years ago.
The debt/assets ratio for WLFC has been reduced compared to a year ago.
2.2 Solvency
WLFC has an Altman-Z score of 0.93. This is a bad value and indicates that WLFC is not financially healthy and even has some risk of bankruptcy.
WLFC has a Altman-Z score of 0.93. This is amonst the worse of the industry: WLFC underperforms 83.33% of its industry peers.
A Debt/Equity ratio of 3.43 is on the high side and indicates that WLFC has dependencies on debt financing.
WLFC's Debt to Equity ratio of 3.43 is on the low side compared to the rest of the industry. WLFC is outperformed by 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.93 |
ROIC/WACC0.61
WACC7.94%
2.3 Liquidity
A Current Ratio of 0.80 indicates that WLFC may have some problems paying its short term obligations.
WLFC's Current ratio of 0.80 is on the low side compared to the rest of the industry. WLFC is outperformed by 93.75% of its industry peers.
A Quick Ratio of 0.29 indicates that WLFC may have some problems paying its short term obligations.
WLFC has a worse Quick ratio (0.29) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 112.74% over the past year.
Measured over the past years, WLFC shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.30% on average per year.
Looking at the last year, WLFC shows a very strong growth in Revenue. The Revenue has grown by 35.28%.
Measured over the past years, WLFC shows a small growth in Revenue. The Revenue has been growing by 3.74% on average per year.
EPS 1Y (TTM)112.74%
EPS 3Y81.03%
EPS 5Y-1.3%
EPS Q2Q%58.34%
Revenue 1Y (TTM)35.28%
Revenue growth 3Y13.18%
Revenue growth 5Y3.74%
Sales Q2Q%38.33%
3.2 Future
The Earnings Per Share is expected to grow by 41.00% on average over the next years. This is a very strong growth
WLFC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.00% yearly.
EPS Next Y96%
EPS Next 2Y46.18%
EPS Next 3Y41%
EPS Next 5YN/A
Revenue Next Year30.59%
Revenue Next 2Y16.39%
Revenue Next 3Y15.43%
Revenue Next 5Y11%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.12, WLFC is valued correctly.
Based on the Price/Earnings ratio, WLFC is valued a bit cheaper than the industry average as 79.17% of the companies are valued more expensively.
WLFC is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 13.90, the valuation of WLFC can be described as correct.
Based on the Price/Forward Earnings ratio, WLFC is valued a bit cheaper than 72.92% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, WLFC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 13.9 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as WLFC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.93 |
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.
A more expensive valuation may be justified as WLFC's earnings are expected to grow with 41.00% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y46.18%
EPS Next 3Y41%
5. Dividend
5.1 Amount
WLFC has a yearly dividend return of 0.52%, which is pretty low.
WLFC's Dividend Yield is comparable with the industry average which is at 1.87.
With a Dividend Yield of 0.52, WLFC pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of WLFC decreases each year by -1.65%.
WLFC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)-1.65%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
13.88% of the earnings are spent on dividend by WLFC. This is a low number and sustainable payout ratio.
DP13.88%
EPS Next 2Y46.18%
EPS Next 3Y41%
185
-0.99 (-0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners36.72%
Inst Owner Change9.23%
Ins Owners59.18%
Ins Owner Change-8.95%
Market Cap1.22B
Analysts43.33
Price Target222.36 (20.19%)
Short Float %7.08%
Short Ratio5.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.48
Dividend Growth(5Y)-1.65%
DP13.88%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 13.9 | ||
| P/S | 2.3 | ||
| P/FCF | N/A | ||
| P/OCF | 4.41 | ||
| P/B | 2.1 | ||
| P/tB | 2.24 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)14.1
EY7.62%
EPS(NY)13.31
Fwd EY7.2%
FCF(TTM)-35.77
FCFYN/A
OCF(TTM)42
OCFY22.7%
SpS80.41
BVpS88
TBVpS82.6
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.11% | ||
| ROE | 16.32% | ||
| ROCE | 8.02% | ||
| ROIC | 4.82% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 4.99% | ||
| OM | 43.77% | ||
| PM (TTM) | 17.86% | ||
| GM | 92.41% | ||
| FCFM | N/A |
ROA(3y)0.53%
ROA(5y)1.03%
ROE(3y)2.91%
ROE(5y)5.23%
ROIC(3y)2.61%
ROIC(5y)3.16%
ROICexc(3y)2.62%
ROICexc(5y)3.18%
ROICexgc(3y)2.7%
ROICexgc(5y)3.27%
ROCE(3y)4.34%
ROCE(5y)5.26%
ROICexcg growth 3Y8.23%
ROICexcg growth 5Y-3.38%
ROICexc growth 3Y8.28%
ROICexc growth 5Y-3.56%
OM growth 3Y-0.4%
OM growth 5Y-0.75%
PM growth 3Y63.25%
PM growth 5Y-3.38%
GM growth 3Y0.77%
GM growth 5Y3.16%
F-Score6
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.43 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.15 | ||
| Cap/Depr | 563.24% | ||
| Cap/Sales | 96.71% | ||
| Interest Coverage | 2.45 | ||
| Cash Conversion | 85.7% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.93 |
F-Score6
WACC7.94%
ROIC/WACC0.61
Cap/Depr(3y)249.06%
Cap/Depr(5y)305.28%
Cap/Sales(3y)70.03%
Cap/Sales(5y)85.03%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)112.74%
EPS 3Y81.03%
EPS 5Y-1.3%
EPS Q2Q%58.34%
EPS Next Y96%
EPS Next 2Y46.18%
EPS Next 3Y41%
EPS Next 5YN/A
Revenue 1Y (TTM)35.28%
Revenue growth 3Y13.18%
Revenue growth 5Y3.74%
Sales Q2Q%38.33%
Revenue Next Year30.59%
Revenue Next 2Y16.39%
Revenue Next 3Y15.43%
Revenue Next 5Y11%
EBIT growth 1Y68.22%
EBIT growth 3Y12.73%
EBIT growth 5Y2.96%
EBIT Next Year103.85%
EBIT Next 3Y37.44%
EBIT Next 5Y23.24%
FCF growth 1Y-49.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y165.5%
OCF growth 3Y34.99%
OCF growth 5Y4.01%