Mohnish Pabrai (Trades, Portfolio) acquired a new holding in AerCap Holdings NV (AER, Financial) during the second quarter.
In AerCap, Pabrai purchased 624,160 shares for an average price of $38.38 per share. The transaction had an impact of 7.1% on the portfolio. The stock has increased by 3% since.
AerCap provides aircraft leasing and aviation finance services. Its services also include aircraft asset management, corporate services, aircraft remarketing, maintenance payments and monitoring aircraft maintenance.
Pabrai is managing partner at Pabrai Investment Funds, which was established in 1999. He is a value investor, taking an interest in smaller companies that are out of favor. His holdings range from small to mega-cap companies, however.
The company has a market cap of $7.4 billion with an enterprise value of $34.02 billion. It has a price-earnings (P/E) ratio of 7.5 and a forward P/E of 6.7. Its price-book (P/B) ratio is 0.8, and its price-sales (P/S) ratio is 1.4.
GuruFocus ranked its financial strength 4 of 10 and its profitability and growth 9 of 10. The company’s operating margin is 42.7%, and its net margin is 18.4%. Its Piotroski F-Score is 7, indicating a healthy financial condition. Its Altman Z-Score is 0.53, placing it in the distress zone, which implies the possibility of bankruptcy in the near future.
Gurus invested in AerCap include David Einhorn (Trades, Portfolio), Donald Smith (Trades, Portfolio), Richard Perry (Trades, Portfolio) and Leon Cooperman (Trades, Portfolio).
Disclosure: I do not own stock in any companies mentioned in the article.
Start a free 7-day trial of Premium Membership to GuruFocus.
Also check out:
