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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 0.04
AL's Cash to Debt is ranked lower than
64% of the 240 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.72 vs. AL: 0.04 )
AL' s 10-Year Cash to Debt Range
Min: 0.04   Max: No Debt
Current: 0.04

Equity to Asset 0.27
AL's Equity to Asset is ranked lower than
54% of the 235 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 0.44 vs. AL: 0.27 )
AL' s 10-Year Equity to Asset Range
Min: 0.27   Max: 0.57
Current: 0.27

0.27
0.57
Interest Coverage 2.88
AL's Interest Coverage is ranked lower than
59% of the 151 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 10.99 vs. AL: 2.88 )
AL' s 10-Year Interest Coverage Range
Min: 1.85   Max: 2.88
Current: 2.88

1.85
2.88
F-Score: 5
Z-Score: 0.55
M-Score: -2.37
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 : 7/10

vs
industry
vs
history
Operating margin (%) 56.58
AL's Operating margin (%) is ranked higher than
96% of the 226 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 8.23 vs. AL: 56.58 )
AL' s 10-Year Operating margin (%) Range
Min: 24.6   Max: 56.58
Current: 56.58

24.6
56.58
Net-margin (%) 22.17
AL's Net-margin (%) is ranked higher than
93% of the 226 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 5.18 vs. AL: 22.17 )
AL' s 10-Year Net-margin (%) Range
Min: 15.81   Max: 22.17
Current: 22.17

15.81
22.17
ROE (%) 7.55
AL's ROE (%) is ranked higher than
62% of the 226 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9.33 vs. AL: 7.55 )
AL' s 10-Year ROE (%) Range
Min: 2.45   Max: 7.55
Current: 7.55

2.45
7.55
ROA (%) 2.04
AL's ROA (%) is ranked higher than
57% of the 230 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 3.31 vs. AL: 2.04 )
AL' s 10-Year ROA (%) Range
Min: 1.03   Max: 2.04
Current: 2.04

1.03
2.04
ROC (Joel Greenblatt) (%) 6.38
AL's ROC (Joel Greenblatt) (%) is ranked higher than
56% of the 226 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9.98 vs. AL: 6.38 )
AL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 1.94   Max: 6.38
Current: 6.38

1.94
6.38
» AL's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2013

AL Guru Trades in Q2 2013

Paul Tudor Jones 56,600 sh (+95.17%)
Jim Simons 380,000 sh (+7.59%)
Chuck Royce 2,085,557 sh (+3.04%)
Murray Stahl 871,317 sh (-0.69%)
John Keeley 1,639,654 sh (-3.59%)
Ron Baron 3,004,043 sh (-20.08%)
» More
Q3 2013

AL Guru Trades in Q3 2013

George Soros 400,000 sh (New)
John Keeley 2,051,594 sh (+25.12%)
Paul Tudor Jones 59,200 sh (+4.59%)
Chuck Royce 2,167,960 sh (+3.95%)
Murray Stahl 826,488 sh (-5.14%)
Ron Baron 2,760,209 sh (-8.12%)
Jim Simons 293,900 sh (-22.66%)
» More
Q4 2013

AL Guru Trades in Q4 2013

Steven Cohen 160,002 sh (New)
George Soros 800,000 sh (+100%)
John Keeley 2,117,234 sh (+3.2%)
Chuck Royce 2,187,003 sh (+0.88%)
Jim Simons 294,800 sh (+0.31%)
Louis Moore Bacon 150,000 sh (unchged)
Ron Baron 2,758,809 sh (-0.05%)
Paul Tudor Jones 55,589 sh (-6.1%)
Murray Stahl 751,106 sh (-9.12%)
» More
Q1 2014

AL Guru Trades in Q1 2014

Ron Baron 5,044,944 sh (+82.87%)
Jim Simons 357,400 sh (+21.23%)
Steven Cohen Sold Out
Chuck Royce 2,165,560 sh (-0.98%)
John Keeley 1,999,662 sh (-5.55%)
Paul Tudor Jones 37,623 sh (-32.32%)
Murray Stahl 446,784 sh (-40.52%)
George Soros 400,000 sh (-50%)
» More
» Details

Insider Trades

Latest Guru Trades with AL

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Ron Baron 2014-03-31 Add 82.87%0.35%$30.27 - $37.69 $ 36.418%5044944
George Soros 2014-03-31 Reduce -50%0.11%$30.27 - $37.69 $ 36.418%400000
George Soros 2013-12-31 Add 100%0.11%$27.73 - $33.29 $ 36.4119%800000
John Keeley 2013-09-30 Add 25.12%0.2%$25.8 - $28.67 $ 36.4133%2051594
George Soros 2013-09-30 New Buy0.12%$25.8 - $28.67 $ 36.4133%400000
Ron Baron 2013-06-30 Reduce -20.08%0.12%$26.18 - $30.58 $ 36.4130%3004043
Wilbur Ross 2013-03-31 Sold Out 8.3%$21.5 - $29.36 $ 36.4142%0
John Keeley 2012-12-31 New Buy0.8%$20.26 - $22.75 $ 36.4168%1667574
Ron Baron 2012-12-31 Reduce -20.67%0.14%$20.26 - $22.75 $ 36.4168%4118049
Ron Baron 2012-06-30 New Buy0.69%$18.93 - $24.86 $ 36.4165%5630936
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Air Lease Corp

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

Baron Funds Comments on Air Lease Corp - Aug 23, 2012

From Baron Funds' second quarter commentary:

Air Lease Corp. (AL) purchases commercial aircraft to lease to airlines around the world. CEO Steve Udvar-Hazy has an impeccable track record, previously running International Lease Finance Corp, the largest aircraft lessor in the world. He co-founded the aircraft leasing business in 1973, and owns a significant stake in Air Lease. AL currently has 114 modern aircraft, with 280 new airplanes on order. Aircraft manufacturers are sold-out at a time U.S. and European carriers are looking to replace their fleet with more fuel-efficient models and when emerging markets are growing, requiring more lift. Airlines continue to rely more on lessors like Air Lease to fund aircraft as lending from European banks has dried up and financing from agencies like the U.S. Export–Import Bank have become difficult. AL has 80% of its planes placed with long-term leases by 2015, and is well capitalized to finance its growth plans. The company's stock is trading below its book value which we believe is understated. (David Goldsmith)
Check out Ron Baron latest stock trades

Top Ranked Articles about Air Lease Corp

Baron Funds Comments on Air Lease Corp
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) Read more...
Baron Funds Comments on Air Lease Corp
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 Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 18.40
AL's P/E(ttm) is ranked higher than
67% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 19.60 vs. AL: 18.40 )
AL' s 10-Year P/E(ttm) Range
Min: 16.4   Max: 2637
Current: 18.4

16.4
2637
P/B 1.50
AL's P/B is ranked higher than
71% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.05 vs. AL: 1.50 )
AL' s 10-Year P/B Range
Min: 0.86   Max: 1.67
Current: 1.5

0.86
1.67
P/S 4.40
AL's P/S is ranked lower than
58% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.36 vs. AL: 4.40 )
AL' s 10-Year P/S Range
Min: 3.5   Max: 13.45
Current: 4.4

3.5
13.45
EV-to-EBIT 19.94
AL's EV-to-EBIT is ranked higher than
65% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 20.00 vs. AL: 19.94 )
AL' s 10-Year EV-to-EBIT Range
Min: 20.3   Max: 74.6
Current: 19.94

20.3
74.6
Current Ratio 2.28
AL's Current Ratio is ranked higher than
78% of the 237 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.56 vs. AL: 2.28 )
AL' s 10-Year Current Ratio Range
Min: 2.28   Max: 17.73
Current: 2.28

2.28
17.73
Quick Ratio 2.28
AL's Quick Ratio is ranked higher than
83% of the 237 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.33 vs. AL: 2.28 )
AL' s 10-Year Quick Ratio Range
Min: 2.28   Max: 17.73
Current: 2.28

2.28
17.73

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.30
AL's Dividend Yield is ranked lower than
94% of the 163 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.90 vs. AL: 0.30 )
AL' s 10-Year Dividend Yield Range
Min: 0.08   Max: 0.34
Current: 0.3

0.08
0.34
Dividend Payout 0.06
AL's Dividend Payout is ranked higher than
99% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 9999.00 vs. AL: 0.06 )
AL' s 10-Year Dividend Payout Range
Min: 0.05   Max: 0.07
Current: 0.06

0.05
0.07
Yield on cost (5-Year) 0.30
AL's Yield on cost (5-Year) is ranked lower than
93% of the 162 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.07 vs. AL: 0.30 )
AL' s 10-Year Yield on cost (5-Year) Range
Min: 0.08   Max: 0.34
Current: 0.3

0.08
0.34

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.40
AL's Price/Tangible Book is ranked higher than
75% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 2.97 vs. AL: 1.40 )
AL' s 10-Year Price/Tangible Book Range
Min: 0.88   Max: 1.47
Current: 1.4

0.88
1.47
Price/Median PS Value 1.00
AL's Price/Median PS Value is ranked higher than
80% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.26 vs. AL: 1.00 )
AL' s 10-Year Price/Median PS Value Range
Min: 0.81   Max: 2.83
Current: 1

0.81
2.83
Price/Graham Number 1.10
AL's Price/Graham Number is ranked higher than
79% of the 259 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 1.94 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) 5.00
AL's Earnings Yield (Greenblatt) is ranked higher than
55% of the 229 Companies
in the Global Rental & Leasing Services industry.

( Industry Median: 6.10 vs. AL: 5.00 )
AL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.3   Max: 5
Current: 5

1.3
5

Business Description

Industry: Consulting & Outsourcing » Rental & Leasing Services
Compare: » details
Traded in other countries:AVLA.Germany
Air Lease Corporation was incorporated in Delaware and launched in February 2010. It is a aircraft leasing company. The Company is principally engaged in purchasing commercial aircraft which it, in turns, leases to airlines around the world to generate attractive returns on equity. It leases its aircraft to airlines pursuant to net operating leases that require the lessee to pay for maintenance, insurance, taxes and all other aircraft operating expenses during the lease term. It owns 40 aircraft. The Company's fleet is comprised of fuel-efficient and newer technology aircraft, consisting of narrowbody (single-aisle) aircraft, such as the Airbus A319/320/321 and the Boeing 737-700/800, and select widebody (twin-aisle) aircraft, such as the Airbus A330-200 and the Boeing 777-300ER. It manages lease revenues and takes advantage of changes in market conditions by acquiring a balanced mix of aircraft types, both new and used. It operates its business on a global basis, providing aircraft to airline customers in every major geographical region, including emerging and high-growth markets such as Asia, the Pacific Rim, Latin America, the Middle East and Eastern Europe. While its primary business is to own and lease aircraft, it also plans to provide fleet management and remarketing services to third parties for a fee. These services are similar to those it performs for its fleet, including leasing, re-leasing, lease management and sales services.

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