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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 0.03
AL's Cash to Debt is ranked lower than
62% of the 343 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.37 vs. AL: 0.03 )
AL' s 10-Year Cash to Debt Range
Min: 0.03   Max: N/A
Current: 0.03

Equity to Asset 0.25
AL's Equity to Asset is ranked lower than
53% of the 332 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.44 vs. AL: 0.25 )
AL' s 10-Year Equity to Asset Range
Min: 0.25   Max: 0.57
Current: 0.25

0.25
0.57
Interest Coverage 3.19
AL's Interest Coverage is ranked lower than
58% of the 230 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 17.72 vs. AL: 3.19 )
AL' s 10-Year Interest Coverage Range
Min: 2.69   Max: 3.19
Current: 3.19

2.69
3.19
F-Score: 4
Z-Score: 0.62
M-Score: -2.60
WACC vs ROIC
6.83%
4.07%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 52.00
AL's Operating margin (%) is ranked higher than
100% of the 346 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 7.64 vs. AL: 52.00 )
AL' s 10-Year Operating margin (%) Range
Min: 41.73   Max: 58.58
Current: 52

41.73
58.58
Net-margin (%) 19.76
AL's Net-margin (%) is ranked higher than
94% of the 346 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 4.75 vs. AL: 19.76 )
AL' s 10-Year Net-margin (%) Range
Min: 15.81   Max: 24.37
Current: 19.76

15.81
24.37
ROE (%) 7.94
AL's ROE (%) is ranked higher than
63% of the 339 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9.33 vs. AL: 7.94 )
AL' s 10-Year ROE (%) Range
Min: 5.85   Max: 9.67
Current: 7.94

5.85
9.67
ROA (%) 2.05
AL's ROA (%) is ranked higher than
59% of the 351 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 3.55 vs. AL: 2.05 )
AL' s 10-Year ROA (%) Range
Min: 2.11   Max: 2.55
Current: 2.05

2.11
2.55
ROC (Joel Greenblatt) (%) 6.48
AL's ROC (Joel Greenblatt) (%) is ranked higher than
58% of the 351 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 11.10 vs. AL: 6.48 )
AL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 7   Max: 11.21
Current: 6.48

7
11.21
» AL's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

AL Guru Trades in Q2 2014

Ron Baron 6,279,907 sh (+24.48%)
Paul Tudor Jones 46,717 sh (+24.17%)
John Keeley 1,809,972 sh (-9.49%)
Chuck Royce 1,553,060 sh (-28.28%)
Jim Simons 251,700 sh (-29.57%)
George Soros 250,000 sh (-37.50%)
Murray Stahl 22,168 sh (-95.04%)
» More
Q3 2014

AL Guru Trades in Q3 2014

Steven Cohen 124,400 sh (New)
Paul Tudor Jones 58,818 sh (+25.90%)
Murray Stahl 24,886 sh (+12.26%)
Ron Baron 6,398,370 sh (+1.89%)
George Soros Sold Out
Jim Simons Sold Out
John Keeley 1,784,512 sh (-1.41%)
Chuck Royce 1,440,760 sh (-7.23%)
» More
Q4 2014

AL Guru Trades in Q4 2014

Jim Simons 49,100 sh (New)
Ron Baron 7,304,124 sh (+14.16%)
Murray Stahl 25,333 sh (+1.80%)
Steven Cohen Sold Out
Chuck Royce 1,431,760 sh (-0.62%)
John Keeley 1,758,752 sh (-1.44%)
Paul Tudor Jones 24,500 sh (-58.35%)
» More
Q1 2015

AL Guru Trades in Q1 2015

Steven Cohen 28,100 sh (New)
Ron Baron 7,304,124 sh (unchged)
Jim Simons Sold Out
John Keeley 1,745,175 sh (-0.77%)
Chuck Royce 1,416,660 sh (-1.05%)
Murray Stahl 22,547 sh (-11.00%)
Ron Baron 6,391,133 sh (-12.50%)
Paul Tudor Jones 20,300 sh (-17.14%)
» More
» Details

Insider Trades

Latest Guru Trades with AL

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Guru Investment Theses on Air Lease Corp

Baron Funds Comments on Air Lease Corp - Mar 23, 2015

Air Lease Corp. (AL) leases commercial aircraft to airlines around the world. Air Lease owns 221 planes, with 372 new planes worth about $29 billion on order. This is in anticipation of increased demand from U.S. and European airlines for more fuel-efficient models to replace their aging fleets, and the need for more lift in emerging markets. Aircraft demand remains strong, led by passenger traffic growth (up 5.8% through November 2014) and healthy customer profit margins. Revenues (+24% through the third quarter of 2014) and EPS (+41%) are growing as its fleet builds. Air Lease has greater than 65% of leases placed through 2016, providing predictable cash flows, and a well-capitalized balance sheet to generate a long “runway” of profitable growth. We believe Air Lease is trading cheaply compared to its potential earnings power. (David Goldsmith)

From Ron Baron (Trades, Portfolio)'s Baron Partners Fund Fourth Quarter 2014 Commentary.

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Baron Funds Comments on Air Lease Corp - Oct 24, 2014

Air Lease Corp. (AL) is an aircraft leasing company with a young, fuel-efficient fleet, addressing demand for replacement of older aircraft and more lift in emerging markets, namely Asia. It has strong growth and predictable cash flows, as evidenced by a 23% rise in sales and 42% rise in earnings-per- share in the second quarter. Deliveries are 100% booked through 2015 and 50% placed for 2016.We believe the stock fell in the third quarter due more to general market weakness than reported results, and that Air Lease is well positioned for a long “runway” of profitable growth. (David Goldsmith)

From Ron Baron (Trades, Portfolio)’s Baron Partners Fund Q3 2014 Report.

Check out Ron Baron latest stock trades

Ron Baron Comments on Air Lease Corp - Jul 28, 2014

Air Lease Corp. (AL) purchases commercial aircraft to lease to airlines around the world. AL currently owns 196 modern aircraft, with 331 new airplanes (worth $23 billion) on order to satisfy U.S. and European carriers’ demand for more fuel-efficient models to replace their aging fleet and emerging markets’ need for more lift. Passenger traffic growth remains strong, up 6.2% (IATA data) through May, consistent with historical trends of outpacing GDP growth. AL’s revenues (+28% in the first quarter of 2014) and earnings per share (+50%) are growing impressively as its fleet builds. An investment grade rating and strengthening credit profile should enable AL to continue to get favorable financing in the capital markets and de-risk its balance sheet with more unsecured, fixed rate debt. AL has approximately 91% of leases placed through 2016 and is well capitalized for a long “runway” of profitable growth. (David Goldsmith)

From Ron Baron (Trades, Portfolio)’s Baron Funds Second Quarter 2014 Report.

Check out Ron Baron latest stock trades

Baron Funds Comments on Air Lease Corp - May 21, 2014

Air Lease Corp. (AL) is an aircraft leasing company led by Steve Udvar-Hazy, who co-founded the aircraft leasing business in 1973. The company offers a young, fuel-efficient fleet to meet strong demand for replacement of aging aircrafts and more lift capacity in Asia. Historically, global airline traffic has doubled every 15 years and is projected to grow 5% annually over the next four years. Lessors' share of the market is growing too. Air Lease provides its customers favor able delivery slots, as w ell as fleet and balance sheet flexibility. Air Lease is well-capitalized, and recently secured an investment grade rating that should help keep financing costs low. The company has placed all deliveries through 2015, as part of a $27 billion order book (vs. its current $7.6 billion fleet). We believe Air Lease is well positioned for a long "runway" of profitable growth. (David Goldsmith





From Baron Funds' first quarter 2014 letter to shareholders.



Check out Ron Baron latest stock trades

Baron Funds Comments on Air Lease Corp - May 21, 2014

Shares of Air Lease Corp. (AL), an aircraft leasing company, were up in the first quarter on reports of strong sales and earnings in the fourth quarter. Air Lease offers a young, fuel-efficient fleet to satisfy strong demand for replacement of older aircraft and more lift capacity in emerging markets, particularly Asia. The company has secured an investment grade rating to keep financing costs low and as part of a $27 billion order book, has placed all deliveries through 2015.We believe Air Lease is well positioned for a long "runway" of profitable growth. (David Goldsmith)





From Baron Funds' first quarter 2014 letter to shareholders.



Check out Ron Baron latest stock trades

Top Ranked Articles about Air Lease Corp

Baron Funds Comments on Air Lease Corp
Air Lease Corp. (AL) leases commercial aircraft to airlines around the world. Air Lease owns 221 planes, with 372 new planes worth about $29 billion on order. This is in anticipation of increased demand from U.S. and European airlines for more fuel-efficient models to replace their aging fleets, and the need for more lift in emerging markets. Aircraft demand remains strong, led by passenger traffic growth (up 5.8% through November 2014) and healthy customer profit margins. Revenues (+24% through the third quarter of 2014) and EPS (+41%) are growing as its fleet builds. Air Lease has greater than 65% of leases placed through 2016, providing predictable cash flows, and a well-capitalized balance sheet to generate a long “runway” of profitable growth. We believe Air Lease is trading cheaply compared to its potential earnings power. (David Goldsmith) Read more...
Baron Funds Comments on Air Lease Corp
Air Lease Corp. (AL) is an aircraft leasing company with a young, fuel-efficient fleet, addressing demand for replacement of older aircraft and more lift in emerging markets, namely Asia. It has strong growth and predictable cash flows, as evidenced by a 23% rise in sales and 42% rise in earnings-per- share in the second quarter. Deliveries are 100% booked through 2015 and 50% placed for 2016.We believe the stock fell in the third quarter due more to general market weakness than reported results, and that Air Lease is well positioned for a long “runway” of profitable growth. (David Goldsmith) Read more...
Ron Baron Comments on Air Lease Corp
Air Lease Corp. (AL) purchases commercial aircraft to lease to airlines around the world. AL currently owns 196 modern aircraft, with 331 new airplanes (worth $23 billion) on order to satisfy U.S. and European carriers’ demand for more fuel-efficient models to replace their aging fleet and emerging markets’ need for more lift. Passenger traffic growth remains strong, up 6.2% (IATA data) through May, consistent with historical trends of outpacing GDP growth. AL’s revenues (+28% in the first quarter of 2014) and earnings per share (+50%) are growing impressively as its fleet builds. An investment grade rating and strengthening credit profile should enable AL to continue to get favorable financing in the capital markets and de-risk its balance sheet with more unsecured, fixed rate debt. AL has approximately 91% of leases placed through 2016 and is well capitalized for a long “runway” of profitable growth. (David Goldsmith) Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 19.80
AL's P/E(ttm) is ranked higher than
72% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 27.00 vs. AL: 19.80 )
AL' s 10-Year P/E(ttm) Range
Min: 13.79   Max: 2637
Current: 19.8

13.79
2637
Forward P/E 11.75
AL's Forward P/E is ranked higher than
88% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.00 vs. AL: 11.75 )
N/A
PE(NRI) 20.80
AL's PE(NRI) is ranked higher than
71% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 27.10 vs. AL: 20.80 )
AL' s 10-Year PE(NRI) Range
Min: 14.05   Max: 2637
Current: 20.8

14.05
2637
P/B 1.40
AL's P/B is ranked higher than
75% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.44 vs. AL: 1.40 )
AL' s 10-Year P/B Range
Min: 0.86   Max: 1.65
Current: 1.4

0.86
1.65
P/S 3.91
AL's P/S is ranked lower than
60% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.53 vs. AL: 3.91 )
AL' s 10-Year P/S Range
Min: 3.42   Max: 13.45
Current: 3.91

3.42
13.45
POCF 5.55
AL's POCF is ranked higher than
86% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 23.69 vs. AL: 5.55 )
AL' s 10-Year POCF Range
Min: 4.59   Max: 23.54
Current: 5.55

4.59
23.54
EV-to-EBIT 19.12
AL's EV-to-EBIT is ranked higher than
72% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 22.89 vs. AL: 19.12 )
AL' s 10-Year EV-to-EBIT Range
Min: -124.4   Max: 67
Current: 19.12

-124.4
67
Current Ratio 0.91
AL's Current Ratio is ranked lower than
57% of the 332 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.61 vs. AL: 0.91 )
AL' s 10-Year Current Ratio Range
Min: 0.91   Max: 17.73
Current: 0.91

0.91
17.73
Quick Ratio 0.91
AL's Quick Ratio is ranked lower than
51% of the 332 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.33 vs. AL: 0.91 )
AL' s 10-Year Quick Ratio Range
Min: 0.91   Max: 17.73
Current: 0.91

0.91
17.73

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.37
AL's Dividend Yield is ranked lower than
93% of the 222 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.17 vs. AL: 0.37 )
AL' s 10-Year Dividend Yield Range
Min: 0.08   Max: 0.4
Current: 0.37

0.08
0.4
Dividend Payout 0.07
AL's Dividend Payout is ranked higher than
98% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.00 vs. AL: 0.07 )
AL' s 10-Year Dividend Payout Range
Min: 0.05   Max: 0.21
Current: 0.07

0.05
0.21
Yield on cost (5-Year) 0.40
AL's Yield on cost (5-Year) is ranked lower than
91% of the 224 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.68 vs. AL: 0.40 )
AL' s 10-Year Yield on cost (5-Year) Range
Min: 0.08   Max: 0.4
Current: 0.4

0.08
0.4

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.40
AL's Price/Tangible Book is ranked higher than
79% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 4.00 vs. AL: 1.40 )
AL' s 10-Year Price/Tangible Book Range
Min: 0.88   Max: 1.5
Current: 1.4

0.88
1.5
Price/Median PS Value 0.90
AL's Price/Median PS Value is ranked higher than
80% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.30 vs. AL: 0.90 )
AL' s 10-Year Price/Median PS Value Range
Min: 0.84   Max: 2.96
Current: 0.9

0.84
2.96
Price/Graham Number 1.10
AL's Price/Graham Number is ranked higher than
82% of the 400 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.10 vs. AL: 1.10 )
AL' s 10-Year Price/Graham Number Range
Min: 0.83   Max: 1.93
Current: 1.1

0.83
1.93
Earnings Yield (Greenblatt) 5.30
AL's Earnings Yield (Greenblatt) is ranked higher than
67% of the 340 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.00 vs. AL: 5.30 )
AL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.5   Max: 6.1
Current: 5.3

1.5
6.1

Business Description

Industry: Consulting & Outsourcing » Rental & Leasing Services
Compare: » details
Traded in other countries:AVLA.Germany,
Air Lease Corp was incorporated in Delaware and launched in February 2010. It is an aircraft leasing company. The Company is engaged in purchasing new commercial jet transport aircraft directly from the manufacturers, such as The Boeing Company ("Boeing") and Airbus S.A.S. ("Airbus"), and leasing those aircraft to airlines throughout the world to generate attractive returns on equity. The Company sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies and airlines. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee. The Company has relationships with approximately over 200 airlines across 70 countries. It operates its business on a global basis, providing aircraft to airline customers in geographical region, including markets such as Asia, the Pacific Rim, Latin America, the Middle East and Eastern Europe. As of December 31, 2013, the Company owned 193 aircraft in operating lease portfolio and leased the aircraft to a globally diversified customer base comprised of 79 airlines in 47 countries. As on 2013 Company entered into commitments to purchase up to 73 additional aircraft from Airbus and Boeing. From Airbus, it agreed to purchase up to 30 A350 XWB family aircraft, five of which are subject to reconfirmation. From Boeing, it agreed to purchase an additional 10 Boeing 777-300ER aircraft, 30 787-10 aircraft and three additional 787-9 aircraft. The Company's fleet is principally comprised of fuel-efficient and newer technology aircraft, consisting of narrowbody aircraft, such as the Boeing 737-700/800, the Airbus A320/321 and the Embraer E190, select widebody aircraft, such as the Boeing 777-300ER and the Airbus A330-200/300, and the ATR 72-600 turboprop aircraft. The Company faces competition from aircraft manufacturers, banks, financial institutions, other leasing companies, aircraft brokers and airlines. The Company is subject to the regulatory authority of the DOS and the U.S. Department of Commerce. The Company also requires its lessees to comply with the standards of either the U.S. Federal Aviation Administration ("FAA") or its equivalent in foreign jurisdictions.
» More Articles for AL

Headlines

Articles On GuruFocus.com
Air Lease's Outlook Remains Positive May 11 2015 
Boeing Might Need to Consider a 757 Replacement to Stand up Against Airbus A321neo Mar 30 2015 
Baron Funds Comments on Air Lease Corp Mar 23 2015 
Air Lease Has More Upside Potential Mar 09 2015 
Ron Baron keeps buying BNFT Feb 19 2015 
Boeing 757 Replacement Is A Must to Battle Airbus in the Narrow Body Market Feb 13 2015 
W.W. Grainger Should Be a Profitable Investment Dec 18 2014 
82 Shareholder Friendly Stocks of the Week Nov 10 2014 
Baron Funds Comments on Air Lease Corp Oct 24 2014 
Ron Baron Q3 2014 Review and Outlook Oct 24 2014 

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