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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

UWM Holdings Corp.

LendingClub Corp.

Velocity Financial, Inc.

Regional Management Corp.

EZCORP, Inc.

NewtekOne, Inc.

Atlanticus Holdings Corp.

Willis Lease Finance Corp.

Greystone Housing Impact Investors LP

Runway Growth Finance Corp.

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 10.70% and Operating profit at 15.83% 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 17.91%, it has a fair valuation with a 1.60 Price to Book Value

Over the past year, while the stock has generated a return of -42.99%, its profits have risen by 72.4% ; 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 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -42.99% 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.

-35.21%

1.86

49.46%

S&P 500

12.66%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.70%

EBIT Growth (5y)

15.83%

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

44.57%

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

13.56

EV to EBITDA

9.57

EV to Capital Employed

1.14

EV to Sales

5.44

PEG Ratio

0.13

Dividend Yield

63.39%

ROCE (Latest)

8.40%

ROE (Latest)

17.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 299.95 MM

ROCE(HY)

Highest at 19.97%

NET SALES(Q)

Highest at USD 167.92 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 2.96%

CASH AND EQV(HY)

Highest at USD 931.63 MM

DEBT-EQUITY RATIO (HY)

Lowest at 296.26 %

DEBTORS TURNOVER RATIO(HY)

Highest at 13.05 times

DIVIDEND PER SHARE(HY)

Highest at USD 13.05

PRE-TAX PROFIT(Q)

Highest at USD 88.25 MM

NET PROFIT(Q)

Highest at USD 71.65 MM

EPS(Q)

Highest at USD 8.43

-7What is not working for the Company

INTEREST(9M)

At USD 87.35 MM has Grown at 36.31%

INTEREST COVERAGE RATIO(Q)

Lowest at 235.8

RAW MATERIAL COST(Y)

Grown by 18.67% (YoY

OPERATING PROFIT(Q)

Lowest at USD 73.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 43.63 %

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

Operating Cash Flow

Highest at USD 299.95 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 167.92 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (USD MM)

Pre-Tax Profit

At USD 88.25 MM has Grown at 120.39%

over average net sales of the previous four periods of USD 40.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 71.65 MM has Grown at 154.48%

over average net sales of the previous four periods of USD 28.16 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Net Sales

At USD 167.92 MM has Grown at 18.34%

over average net sales of the previous four periods of USD 141.89 MM

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 88.25 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 71.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 8.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 931.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 296.26 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 13.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 13.05

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 2.96%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 27.55 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 Coverage Ratio

Lowest at 235.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At USD 87.35 MM has Grown at 36.31%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit

Lowest at USD 73.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 43.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 18.67% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.99 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income