AerCap Holdings N.V.
AerCap Holdings N.V. Fundamental Analysis
AerCap Holdings N.V. (AER) shows strong financial fundamentals with a PE ratio of 6.62, profit margin of 46.75%, and ROE of 20.95%. The company generates $8.3B in annual revenue with moderate year-over-year growth of 5.49%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AER's fundamental strength across five key dimensions:
Efficiency Score
WeakAER struggles to generate sufficient returns from assets.
Valuation Score
ModerateAER shows balanced valuation metrics.
Growth Score
ModerateAER shows steady but slowing expansion.
Financial Health Score
WeakAER carries high financial risk with limited liquidity.
Profitability Score
ModerateAER maintains healthy but balanced margins.
Key Financial Metrics
Is AER Expensive or Cheap?
P/E Ratio
AER trades at 6.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AER's PEG of 8.41 indicates potential overvaluation.
Price to Book
The market values AerCap Holdings N.V. at 1.35 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.71 times EBITDA. This is generally considered low.
How Well Does AER Make Money?
Net Profit Margin
For every $100 in sales, AerCap Holdings N.V. keeps $46.75 as profit after all expenses.
Operating Margin
Core operations generate 45.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.95 in profit for every $100 of shareholder equity.
ROA
AerCap Holdings N.V. generates $5.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AerCap Holdings N.V. generates strong operating cash flow of $5.67B, reflecting robust business health.
Free Cash Flow
AerCap Holdings N.V. generates weak or negative free cash flow of $-717.22M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.21 in free cash annually.
FCF Yield
AER converts -2.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.35
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.61
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How AER Stacks Against Its Sector Peers
| Metric | AER Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.62 | 26.76 | Better (Cheaper) |
| ROE | 20.95% | 1300.00% | Weak |
| Net Margin | 46.75% | -29570.00% (disorted) | Strong |
| Debt/Equity | 2.38 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.61 | 10.68 | Weak Liquidity |
| ROA | 5.23% | -1545134.00% (disorted) | Weak |
AER outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AerCap Holdings N.V.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.81%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
29.85%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
24.10%
Industry Style: Cyclical, Value, Infrastructure
High Growth