Willis Lease Finance Corp (WLFC) stock analysis

P/E above its 5-year median

Willis Lease Finance's P/E of 11.6 is above its own 5-year median of 10.2.

P/E below the industry

Willis Lease Finance's P/E of 11.6 is below the Wholesale Trade-durable Goods median of 20.3.

EV/EBITDA above its 5-year median

Willis Lease Finance's EV/EBITDA of 4.1 is above its 5-year median of 2.4.

P/B below the industry

Willis Lease Finance's price-to-book of 1.39 is below the Wholesale Trade-durable Goods median of 2.15.

Trading below fair value

The share price of $46.47 is below our fair value estimate of $83.70.

Margin of safety over 20%

The price is 44.5% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 32.8% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 260% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -25.0% over the last twelve months, against a 5-year average of 63.5% a year.

Growing faster than the industry

Revenue grew 17.3% over the last twelve months; the Wholesale Trade-durable Goods median is 7.5%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

This company does not report gross profit.

Return on equity under 15%

Return on equity was 13.8% over the last twelve months and averaged 10.7% over five years; we look for 15% on both.

Return on capital over 10%

Return on invested capital was 30.4%, above the 10% that usually covers the cost of capital.

Return on equity below the industry

Willis Lease Finance's return on equity of 13.8% is below the Wholesale Trade-durable Goods median of 17.2%.

Earnings grew over 5 years

Net income grew 63.5% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 12.0% over the last twelve months, against a 5-year average of 9.6%.

Net margin above the industry

Willis Lease Finance's net margin of 12.0% is above the Wholesale Trade-durable Goods median of 5.0%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense 0.9 times; we look for at least 5.

Short-term liquidity

The balance sheet is not split into current and non-current items.

Elevated bankruptcy risk

The Altman Z-score is 0.77; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Willis Lease Finance paid dividends worth 1.1% of the share price over the last twelve months.

Yield below Treasuries

The 1.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Willis Lease Finance yields 1.1%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 12.1% of net income.

Covered by free cash flow

Dividends take 4.4% of free cash flow.