Air Lease Corporation
Air Lease Corporation Fundamental Analysis
Air Lease Corporation (AL-PA) shows moderate financial fundamentals with a PE ratio of 6.66, profit margin of 36.09%, and ROE of 13.23%. The company generates $4.6B in annual revenue with weak year-over-year growth of 1.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 11.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AL-PA's fundamental strength across five key dimensions:
Efficiency Score
WeakAL-PA struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAL-PA trades at attractive valuation levels.
Growth Score
WeakAL-PA faces weak or negative growth trends.
Financial Health Score
WeakAL-PA carries high financial risk with limited liquidity.
Profitability Score
WeakAL-PA struggles to sustain strong margins.
Key Financial Metrics
Is AL-PA Expensive or Cheap?
P/E Ratio
AL-PA trades at 6.66 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AL-PA's PEG of 0.84 indicates potential undervaluation.
Price to Book
The market values Air Lease Corporation at 0.86 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -4.21 times EBITDA. This is generally considered low.
How Well Does AL-PA Make Money?
Net Profit Margin
For every $100 in sales, Air Lease Corporation keeps $36.09 as profit after all expenses.
Operating Margin
Core operations generate 29.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.23 in profit for every $100 of shareholder equity.
ROA
Air Lease Corporation generates $3.31 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Air Lease Corporation generates strong operating cash flow of $2.62B, reflecting robust business health.
Free Cash Flow
Air Lease Corporation generates weak or negative free cash flow of $-2.62B, restricting financial flexibility.
FCF Per Share
Each share generates $-15.49 in free cash annually.
FCF Yield
AL-PA converts -23.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AL-PA Stacks Against Its Sector Peers
| Metric | AL-PA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.66 | 26.76 | Better (Cheaper) |
| ROE | 13.23% | 1300.00% | Weak |
| Net Margin | 36.09% | -29570.00% (disorted) | Strong |
| Debt/Equity | 2.33 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.93 | 10.68 | Weak Liquidity |
| ROA | 3.31% | -1545134.00% (disorted) | Weak |
AL-PA 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 Air Lease Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.23%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-36.30%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
21.05%
Industry Style: Cyclical, Value, Infrastructure
High Growth