Willis Lease Finance Corporation Fundamental Analysis (NASDAQ: WLFC)
Willis Lease Finance Corporation Fundamental Analysis (NASDAQ: WLFC)
Willis Lease Finance Corporation (NASDAQ: WLFC) shows moderate financial fundamentals with a PE ratio of 23.72, profit margin of 12.04%, and ROE of 12.63%. The company generates $2.6B in annual revenue with strong year-over-year growth of 18.73%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WLFC's fundamental strength across five key dimensions:
Efficiency Score
WeakWLFC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWLFC trades at attractive valuation levels.
Growth Score
ModerateWLFC shows steady but slowing expansion.
Financial Health Score
ModerateWLFC shows balanced financial health with some risks.
Profitability Score
WeakWLFC struggles to sustain strong margins.
Key Financial Metrics
Is WLFC Expensive or Cheap?
P/E Ratio
WLFC trades at 23.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WLFC's PEG of 1.28 indicates fair valuation.
Price to Book
The market values Willis Lease Finance Corporation at 1.49 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.13 times EBITDA. This is generally considered low.
How Well Does WLFC Make Money?
Net Profit Margin
For every $100 in sales, Willis Lease Finance Corporation keeps $12.04 as profit after all expenses.
Operating Margin
Core operations generate 26.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.63 in profit for every $100 of shareholder equity.
ROA
Willis Lease Finance Corporation generates $2.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Willis Lease Finance Corporation generates strong operating cash flow of $923.92M, reflecting robust business health.
Free Cash Flow
Willis Lease Finance Corporation generates weak or negative free cash flow of $-377.92M, restricting financial flexibility.
FCF Per Share
Each share generates $-5.27 in free cash annually.
FCF Yield
WLFC converts -2.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.006
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.31
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
0.06
vs 25 benchmark
How WLFC Stacks Against Its Sector Peers
| Metric | WLFC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.72 | 29.88 | Better (Cheaper) |
| ROE | 12.63% | 1106.00% | Weak |
| Net Margin | 12.04% | -23408.00% (disorted) | Strong |
| Debt/Equity | 3.01 | 0.94 | Weak (High Leverage) |
| Current Ratio | 3.31 | 21.64 | Strong Liquidity |
| ROA | 2.51% | -1320888.00% (disorted) | Weak |
WLFC outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Willis Lease Finance Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.69%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
930.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
167.61%
Industry Style: Cyclical, Value, Infrastructure
High Growth