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

LendingClub Corp.

EZCORP, Inc.

UWM Holdings Corp.

Atlanticus Holdings Corp.

NewtekOne, Inc.

Regional Management Corp.

Velocity Financial, Inc.

Willis Lease Finance Corp.

Greystone Housing Impact Investors LP

Runway Growth Finance Corp.

TROOPS, Inc.

Why is Willis Lease Finance Corp. ?

Poor Management Efficiency with a low ROCE of 5.40%

The company has been able to generate a Return on Capital Employed (avg) of 5.40% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 18.84% and Operating profit at 25.16% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at USD 298.9 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 12.26%
RAW MATERIAL COST(Y) Fallen by 0.84% (YoY)

With ROE of 19.42%, it has a attractive valuation with a 1.58 Price to Book Value

Over the past year, while the stock has generated a return of 45.47%, its profits have risen by 21.5% ; the PEG ratio of the company is 0.5

High Institutional Holdings at 56.22%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 45.47% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Willis Lease Finance Corp. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Willis Lease Finance Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Willis Lease Finance Corp.

45.47%

4.81

47.89%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.84%

EBIT Growth (5y)

25.16%

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

7.47%

Pledged Shares

Institutional Holding

56.22%

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

1.58

EV to EBIT

15.14

EV to EBITDA

10.02

EV to Capital Employed

1.15

EV to Sales

4.89

PEG Ratio

0.46

Dividend Yield

50.13%

ROCE (Latest)

7.58%

ROE (Latest)

19.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 298.9 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 12.26%

RAW MATERIAL COST(Y)

Fallen by 0.84% (YoY

CASH AND EQV(HY)

Highest at USD 767.52 MM

DEBT-EQUITY RATIO (HY)

Lowest at 268.28 %

INVENTORY TURNOVER RATIO(HY)

Highest at 3.87 times

DEBTORS TURNOVER RATIO(HY)

Highest at 17.39 times

DIVIDEND PER SHARE(HY)

Highest at USD 17.39

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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

Operating Cash Flow

Highest at USD 298.9 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)

Cash and Eqv

Highest at USD 767.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 268.28 %

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 3.87 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 17.39 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 17.39

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 12.26%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.84% (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