Jet Leasing CompaniesJets leasing companies
After comparing the 2 biggest rent a cars and the 3 biggest truck rentals, we will today be comparing the 3 biggest airplane leasing deals: - Air Lease Corporation (NYSE: AL), based in Los Angeles, California, buys and rents airliners to carriers and other leasing companies around the world and provides asset and owner leasing solutions.
The company operates a total of 193 aircrafts, 146 of which are single-aisle narrow-body jets, 31 two-aisle wide-body jets and 16 turbo-propjets. - Aircastle LTD (NYSE: AYR), based in Stamford, Connecticut, purchases, rents and markets airliners to carriers around the world and also expands its investment in various aerospace activities, primarily by investing in debentures backed by airliners.
The company has 162 aircrafts, which it rents to 64 clients in 37 states. - Based in Dun Laoghaire, Ireland, Flex Leasing Limited (NYSE: Flex) acquires and leasing its 121 passenger jet fleets under multi-year agreements to various carriers around the world. While the economy was recovering, air leasing companies outperformed the wider S&P 500 and Dow Jones Transportation Index (DJT), in some respects outperforming the airline industry itself - especially in the first year of business rebound, when airline companies were trying to find planes to put into operation in a rush.
However, the two lease contracts increased even more as the economy recovered, and reached up to 400% at the beginning of 2012, while S&P, DJT and Delta were still between 100% and 150%. Meanwhile, the biggest aviation leasing business, Air Lease, has not developed nearly as well, increasing by only 40% in its almost four-year track record as a listed business.
In terms of prospective revenue performance, it is anticipated that the entire aircraft leasing sub-sector will soon turn on its own afterburner, as shown below, where a green indicates overperformance, while amber indicates overperformance. At around 6 %, revenues in the sector are anticipated to exceed the overall profit increase for the overall marked for the ongoing and next quarter.
Between 56 and 13. 36 rates before gradually loosing buoyancy to a 2. 38-fold increase over the next five years. However, the three biggest leasing companies are likely to face some turmoil in the short run, as shown below. All three companies are likely to achieve below-average revenue increases compared to the S&P averages in the third month of this year, with Aircastle and FLY actually contracting, while Air Lease, the poorest provider to date, is showing a performance close to the real markets.
But in the next trimester the old Acrobatics will probably really give a show, as Aircastle and Flu are growing with about 15 years. Fifty-fold as fast as the overall industry, while Air Lease is still developing in the industry. Aircastle is growing at 1.24 just above the S&P and Aircastle is losing a profit.
However, when dimensioning a business as a prospective capital expenditure, more than just profit increase needs to be considered. What is the comparison between the three in other key figures and which are the best investments? Let's respond by matching their business bases with the following format: a) financials benchmarks, b) estimations and analysts' advice, and c) ranking with associated tables.
When comparing each ratio, the best performer is colored blue and the best performer is colored blue, which will be considered later for the placement. Whilst business scale is not necessarily an asset and therefore not orderly, it is important as a common denominator against which other financials are benchmarked for rankings.
- Growing: As income and expense can fluctuate widely from year to year, we measure our sales performance on a sequential y-o-y comparison and compare, for example, the first three months of this year to the first three months of last year. FLY achieved the highest sales increase in the last reporting period with Aircastle delivering the least.
Aircastle's results are not comparable because the lower than expected percentage is not available. However, it should be noted that FLY's revenue increase exceeded Air Lease's increase many times over. An organization's margin is important in order to determine how much revenue it will generate from its business transactions.
Margins are the percentages achieved after running expenses such as labour, material and overheads. Managers' efficiency is assessed on the basis of the return on the investment of the controlled asset base and the shareholder's capital employed in the Group. - Basic and diluted loss per share: Out of all the measures that measure a company's performance, shareholder value per stock is probably the most significant because it is the value the business adds to each stock it owns.
As the number of issued stocks will vary from business to business, I favor converting EPS to a percent of the actual market value of the stocks in order to better identify where an asset could generate the greatest capital appreciation. Out of the three companies likened here, FLY offers ordinary shareholders the highest basic EPS as a percent of actual equity prices, while Aircastle's DPS is the lower of actual equity prices.
- Share value: However, even if a firm surpasses its competitors on all of the above measures, the investor may still be reluctant to invest in its share if its share is already too high. Here the share quotation is examined in relation to the forward profits and the carrying amount of the enterprise as well as the share quotation in relation to the result in relation to the profit increase, the so-called PEG-relationship.
Low quotas indicate that the share is currently being traded at a lower level than its competitors and could therefore be a good deal. Of our three fighters, FLY's share is the best in all respects. Aircastle's share is the most pricey in comparison to the 5-year PEG at the overexpensive end of the range, where Air Lease's shares are most oversubscribed in relation to its time gains and carrying value.
Regardless of how qualified we see ourselves in judging the outlook of a given equity as an asset, it would of course be advisable to at least consider what professionals and companies are forecasting - comprising the projected return per equity and the rates of return on those returns, target prices and buy and sell recommendation.
- Profit estimates: In order to correctly benchmark the projected EPS across several companies, we would need to translate them into a percent of the actual market value of their shares. From our three examples, FLY provides the highest return percent compared to the actual equity quote for the ongoing quarterly and longer range Aircastle provides it for the next quarterly, while Air Lease provides the minimum return percent for all timeframes.
- Increase in yield: This is one of the most important ratios for long-term depositors, as it indicates the rate by which income is likely to increase or decrease in comparison with income from the corresponding period in the previous year. In terms of revenue increase, Air Lease and Air Lease provide the largest short range increase, Aircastle the mid range and Air Lease the long range.
With high, medium and low 12-month share prices set for the next 12 month, market participants believe that Aircastle's shares offer the highest upward momentum and the lowest downward exposure, with Aircastle's offering the lowest upward and downward exposure. However, it should be noted that the share is already below its low level.
Although this may mean that there is greater room for a clear uptrend, it may justify a revaluation of expected outcomes. They have been translated into the percentages of those who recommend each one. After cracking all the numbers and comparing all the forecasts, it's finally our turn to summarize the gains and our three rivals.
The use of the capitalisation of a firm as a common denominator comes into the picture here, since a large part of the information in the chart has been transformed into a proportion of the capitalisation for a fairly compare. First and last placed companies are shade. Next, we sum up the results of each business to calculate its overall rank, with the first places being counted as merit and the last places as minus points.
Wherever the subindustry of aircraft leasing is likely to surpass S&P's wider markets by astronomical margins in this quarterly period, it is anticipated that the three biggest companies in outerspace will essentially divide up next and well beyond them - with the biggest air lease remaining smoothly and consistently near the market's pace of expansion in the short run before surpassing the longer run, Aircastle struggling against a downturn in the ongoing quarterly period before being hoisted into the atmosphere, and Flu from a downturn to explosively growing and back to stratospheric levels everywhere in the world.
However, after considering all corporate basics, the most solid financial indicators are used to navigate within Flex Leasing Ltd., as the highest share prices, the highest present value relation, the highest turnover above total capitalization, the highest post-employment turnover increase, the highest watered-down result above the present share value, the highest prospective result above the present share value as a whole, the highest prospective profit increase for the next three months, the highest dividends return, the best share target and the strongest buy analysts' recommendation - the Aircraft Leasing Subindustry Aviation Show are the decisive winners.