Air Lease (FRA:AVLA) ROE %: 8.62% (As of Dec. 2025) — 14% Below Median


FRA:AVLA Air Lease Corp FRA:AVLA
64 GF Score
Price €55.50
GF Value €45.29
! 11 Warning Signs
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What is Air Lease ROE %?

Air Lease FRA:AVLA 64 ROE % is 8.62% as of Dec. 2025, which is 14% below its 10-year median of 10.08. GuruFocus rates FRA:AVLA with a GF Score™ of 64/100 and a GF Value™ of €45.29. The stock has 11 warning signs investors should review. Among 1,058 Business Services companies, Air Lease ranks better than 68.05% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Air Lease's annualized net income for the quarter that ended in Dec. 2025 was €618 Mil. Air Lease's average Total Stockholders Equity over the quarter that ended in Dec. 2025 was €7,171 Mil. Therefore, Air Lease's annualized ROE % for the quarter that ended in Dec. 2025 was 8.62%.

The historical rank and industry rank for Air Lease's ROE % or its related term are showing as below:

FRA:AVLA' s ROE % Range Over the Past 10 Years
Min: -1.42   Med: 10.08   Max: 20.14
Current: 13.46

During the past 13 years, Air Lease's highest ROE % was 20.14%. The lowest was -1.42%. And the median was 10.08%.

FRA:AVLA's ROE % is ranked better than
68.05% of 1058 companies
in the Business Services industry
Industry Median: 8.095 vs FRA:AVLA: 13.46

Air Lease  (FRA:AVLA) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=618.064/7171.189
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(618.064 / 2802.416)*(2802.416 / 28263.9525)*(28263.9525 / 7171.189)
=Net Margin %*Asset Turnover*Equity Multiplier
=22.05 %*0.0992*3.9413
=ROA %*Equity Multiplier
=2.19 %*3.9413
=8.62 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2025 )
=Net Income/Total Stockholders Equity
=618.064/7171.189
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (618.064 / 773.644) * (773.644 / 817.048) * (817.048 / 2802.416) * (2802.416 / 28263.9525) * (28263.9525 / 7171.189)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7989 * 0.9469 * 29.16 % * 0.0992 * 3.9413
=8.62 %

Note: The net income data used here is four times the quarterly (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Air Lease ROE % Related Terms


Air Lease ROE % Historical Data

* Premium members only.

The historical data trend for Air Lease's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Air Lease ROE % Chart

Air Lease Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.90 -1.47 8.78 5.94 12.88

Air Lease Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.11 19.22 18.54 7.01 8.62

FRA:AVLA vs R, UHAL, GATX: ROE % Comparison

For the Rental & Leasing Services subindustry, Air Lease's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Air Lease ROE % vs Business Services Industry

For the Business Services industry and Industrials sector, Air Lease's ROE % distribution charts can be found below:

* The bar in red indicates where Air Lease's ROE % falls into.


FRA:AVLA
64GF Score
Air Lease Corp FRA:AVLA
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Air Lease ROE % Calculation

Air Lease's annualized ROE % for the fiscal year that ended in Dec. 2025 is calculated as

ROE %=Net Income (A: Dec. 2025 )/( (Total Stockholders Equity (A: Dec. 2024 )+Total Stockholders Equity (A: Dec. 2025 ))/ count )
=929.482/( (7193.658+7235.734)/ 2 )
=929.482/7214.696
=12.88 %

Air Lease's annualized ROE % for the quarter that ended in Dec. 2025 is calculated as

ROE %=Net Income (Q: Dec. 2025 )/( (Total Stockholders Equity (Q: Sep. 2025 )+Total Stockholders Equity (Q: Dec. 2025 ))/ count )
=618.064/( (7106.644+7235.734)/ 2 )
=618.064/7171.189
=8.62 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 8.62% mean?
Air Lease (FRA:AVLA) has a ROE % of 8.62% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Air Lease and its competitors. This is 14% below median its historical median of 10.08. According to the industry distribution chart, Air Lease ranks #338 out of 1058 companies in the Business Services industry, placing it in the top 31.9%.
Is Air Lease's ROE % too high?
Air Lease's current ROE % of 8.62% is 14% below median its 10-year median of 10.08. The Business Services industry median ROE % is 8.10. Air Lease's value of 8.62% is 6.5% above this industry median. Based on the distribution chart, Air Lease ranks #338 out of 1058 companies in the Business Services industry, which is above the industry midpoint. Overall, Air Lease has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Air Lease's ROE % compare to R and UHAL?
According to the Business Services industry distribution chart, Air Lease ranks #338 out of 1058 companies for ROE %. This puts Air Lease in the upper half of its industry. The industry median ROE % is 8.10. Air Lease's value of 8.62% is 6.5% above this benchmark. While the company's 10-year median is 10.08 vs. the industry median of 8.10, Air Lease has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Business Services company?
The median ROE % among Business Services companies is 8.10, based on 1,058 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Lease's current ROE % of 8.62% is 6.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Air Lease and its competitors. For the Business Services industry, the median ROE % is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Lease's current ROE % is 8.62%, which is 14% below median its own 10-year median of 10.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Lease stock overvalued right now?
Air Lease (FRA:AVLA) has a current ROE % of 8.62%. The stock's GF Value™ is €45.29, compared to a current price of €55.50 — trading 22.5% above its estimated fair value. The current ROE % is 8.62%, which is 14% below median its 10-year median of 10.08 and 6.5% above the Business Services industry median of 8.10. Air Lease's overall GF Score™ is 64/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Air Lease (FRA:AVLA), the current ROE % is 8.62% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Air Lease (FRA:AVLA) Overvalued in 2026?

Based on GuruFocus' analysis, Air Lease stock appears to be overvalued. The current stock price of €55.50 is trading 22.5% above its estimated GF Value™ of €45.29.

Key valuation signals for FRA:AVLA:

  • ROE %: 8.62% (14% below median its 10-year median of 10.08)
  • GF Value™: €45.29 vs. price of €55.50 (22.5% above fair value)
  • GF Score™: 64/100 with 11 warning signs
  • Industry Position: 6.5% above the Business Services median (#338 of 1058)

No single metric tells the full story. See the FRA:AVLA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Air Lease Business Description

Address 2000 Avenue of the Stars, Suite 1000N, Los Angeles, CA, USA, 90067
Air Lease Corp is an aircraft leasing company based in the United States. It is engaged in the modern, fuel-efficient new technology commercial jet aircraft directly from aircraft manufacturers and leasing those aircraft to airlines throughout the world to generate attractive returns on equity. The company also sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors, and offers fleet management services to investors and owners of aircraft portfolios for a management fee. Geographically, it derives a maximum of its revenue from the Europe and the rest from Asia Pacific, Middle East and Africa, Central America, South America, Mexico, the United States, and Canada.
64GF Score

Get the complete analysis for FRA:AVLA

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€55.50
Price
€45.29
GF Value