Willis Lease Finance Corp. (WLFC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

UWM Holdings Corp.

LendingClub Corp.

Velocity Financial, Inc.

EZCORP, Inc.

Regional Management Corp.

NewtekOne, Inc.

Atlanticus Holdings Corp.

Willis Lease Finance Corp.

Runway Growth Finance Corp.

Greystone Housing Impact Investors LP

TROOPS, Inc.

Why is Willis Lease Finance Corp. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 14.84% and Operating profit at 22.68% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 8.67% signifying low profitability per unit of shareholders funds

With ROE of 21.52%, it has a very expensive valuation with a 1.60 Price to Book Value

Over the past year, while the stock has generated a return of -4.67%, its profits have risen by 56.8% ; the PEG ratio of the company is 0.1

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.90% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.67% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Willis Lease Finance Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Willis Lease Finance Corp.

-1.78%

3.75

46.11%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.84%

EBIT Growth (5y)

22.68%

EBIT to Interest (avg)

1.69

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

29.32%

Dividend Payout Ratio

3.26%

Pledged Shares

Institutional Holding

55.97%

ROCE (avg)

5.40%

ROE (avg)

8.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.60

EV to EBIT

14.20

EV to EBITDA

9.68

EV to Capital Employed

1.15

EV to Sales

5.10

PEG Ratio

0.14

Dividend Yield

50.54%

ROCE (Latest)

8.12%

ROE (Latest)

21.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

NET PROFIT(HY)

At USD 103.6 MM has Grown at 65.22%

ROCE(HY)

Highest at 18.91%

DIVIDEND PAYOUT RATIO(Y)

Highest at 7.68%

RAW MATERIAL COST(Y)

Fallen by -6.05% (YoY

CASH AND EQV(HY)

Highest at USD 953.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at 289.89 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.93 times

DEBTORS TURNOVER RATIO(HY)

Highest at 15.86 times

OPERATING PROFIT(Q)

Highest at USD 97.89 MM

OPERATING PROFIT MARGIN(Q)

Highest at 58.53 %

-1What is not working for the Company

INTEREST(Q)

Highest at USD 33.68 MM

Here's what is working for Willis Lease Finance Corp.

Net Profit

At USD 103.6 MM has Grown at 65.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Operating Profit

Highest at USD 97.89 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 58.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 953.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 289.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.93 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 15.86 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 7.68%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -6.05% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 28.66 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Willis Lease Finance Corp.

Interest

Highest at USD 33.68 MM

in the last five periods and Increased by 8.39% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)