AerSale Corporation (ASLE) AI Stock Analysis

• Market Cap: $374.58M
• Dividend Yield: N/A
• Average Volume (3M): 782.73K
• Price to Earnings (P/E): 61.8
• Beta (1Y): 0.50
• Revenue Growth: 3.16%
• EPS Growth: N/A
• Country: US
• Employees: 636
• Sector: Industrials
• Sector Strength: 70
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.11
• Shares Outstanding: 53,207,348
• 10 Day Avg. Volume: 645,439
• 30 Day Avg. Volume: 782,726
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.26
• Price to Cash Flow (P/CF): 2.90
• P/FCF Ratio: 4.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.00
• Price Target Upside: 19.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

AerSale Corporation's overall stock score reflects a combination of robust technical momentum and promising earnings call outlook, tempered by valuation concerns and cash flow challenges. The recent share repurchase plan and leadership appointment further bolster its strategic positioning. While the stock shows potential for growth, investors should remain cautious of its high valuation and liquidity issues.

Positive Factors

Demand trends

ASLE has seen encouraging trends with a higher level of interest from potential customers for its 757 freighter aircraft.

Regulatory approvals

AerAware received FAA certification.

Negative Factors

Bid success rate

ASLE bid on more than $250MM of feedstock in Q3, but won just $4MM of the $117MM ultimately awarded.

Insurance uncertainty

ASLE has submitted an insurance claim following the fire at its USM facility, but the insurance recovery size and timing remains TBD.

Order challenges

ASLE hasn't received an order for AerAware, but discussions are ongoing with multiple airlines.

AerSale Corporation Business Overview & Revenue Model

Company Description

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment also provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

How the Company Makes Money

AerSale Corporation generates revenue through several key streams. Primarily, the company earns money by selling and leasing used aircraft, engines, and components. This includes acquiring aircraft and engines, refurbishing them, and then selling or leasing them to operators and other stakeholders in the aviation sector. Additionally, AerSale offers comprehensive MRO services, which provide a significant source of revenue by maintaining and repairing aircraft and their components to ensure they meet safety and operational standards. The company also benefits from strategic partnerships and long-term contracts with airlines and other aviation entities, which secure consistent income and enhance its market position.

AerSale Corporation Financial Statement Overview

Summary

AerSale Corporation demonstrates a recovering financial position with improving profitability and a strong capital structure. The income statement reflects a return to profitability, while the balance sheet shows prudent financial management with low leverage. Cash flow challenges remain a concern, although recent improvements suggest the potential for better liquidity management. Continued focus on revenue growth and cash flow stability will be critical for sustained financial health.

Income Statement

AerSale Corporation shows a mixed performance with a recent return to profitability. The gross profit margin stands at 30.1% for 2024, indicating efficiency in managing production costs. The net profit margin has improved to 1.7% in 2024 from a negative 1.7% in 2023, reflecting a return to positive earnings. However, revenue growth remains low at 3.2% from 2023 to 2024, and the EBIT margin is relatively low at 2.8%, suggesting limited operating efficiency.

Balance Sheet

The company's balance sheet reflects moderate stability and leverage with a debt-to-equity ratio of 0.08 in 2024, indicating conservative borrowing relative to equity. Return on equity (ROE) improved to 1.3% in 2024, signaling a rebound in profitability. The equity ratio is strong at 75.3%, showcasing a robust capital structure with significant equity backing. However, the low cash position and fluctuations in debt levels pose potential liquidity concerns.

Cash Flow

AerSale Corporation's cash flow position is challenging, with a negative free cash flow of -$2.87 million in 2024, showing a significant improvement from the previous year. The operating cash flow to net income ratio is 1.91, indicating efficient cash generation relative to net income. However, the company experienced substantial cash outflows in previous years, impacting overall liquidity and financial flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
345.07M	334.50M	408.54M	340.44M	208.94M
	Gross Profit
103.94M	92.42M	151.39M	119.39M	52.79M
	EBIT
9.74M	-10.77M	55.05M	56.66M	11.28M
	EBITDA
9.74M	48.00K	66.89M	69.66M	24.41M
	Net Income Common Stockholders
5.85M	-5.56M	43.86M	36.12M	8.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.70M	5.87M	147.19M	130.19M	29.32M
	Total Assets
604.72M	553.94M	531.58M	487.49M	389.13M
	Total Debt
36.73M	66.53M	32.71M	0.00	0.00
	Net Debt
32.04M	60.66M	-114.48M	-130.19M	-29.32M
	Total Liabilities
149.10M	108.92M	86.60M	78.61M	36.49M
	Stockholders Equity
455.62M	445.01M	444.98M	408.88M	352.64M
Cash Flow		Free Cash Flow
-2.87M	-185.51M	-15.71M	75.19M	-19.50M
	Operating Cash Flow
11.18M	-174.15M	-113.00K	79.08M	-12.23M
	Investing Cash Flow
-16.13M	3.09M	41.37M	13.20M	-21.14M
	Financing Cash Flow
3.77M	29.74M	-24.26M	8.59M	45.18M

AerSale Corporation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASLE, the sentiment is Negative. The current price of 6.69 is below the 20-day moving average (MA) of 7.58, below the 50-day MA of 7.42, and above the 200-day MA of 6.26, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 37.24 is Neutral, neither overbought nor oversold. The STOCH value of 51.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASLE.

AerSale Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASLE	70 Outperform	$374.58M	61.85	1.30%	―	3.16%	―
Sector *	63 Neutral	$4.29B	11.05	5.73%	232.30%	4.75%	-5.69%
ULCC	61 Neutral	$724.01M	8.38	15.12%	―	5.18%	―
SNCY	60 Neutral	$537.96M	10.32	9.75%	―	2.49%	-22.41%
BLDE	56 Neutral	$219.08M	―	-11.97%	―	12.04%	-30.50%
FLYX	41 Neutral	$238.42M	28.86	26.01%	―	―	―
UP	28 Underperform	$566.29M	―	-2416.94%	―	-36.80%	96.50%

AerSale Corporation Corporate Events

AerSale Corporation Expands Board with New Appointments

On April 1, 2025, AerSale Corporation announced the appointment of Carol DiBattiste and Thomas D. Mitchell as independent members of its Board of Directors, increasing the board size from eight to nine members. These appointments are effective until the 2025 Annual Meeting of Stockholders. DiBattiste will serve as Chair of the Nominating and Corporate Governance Committee and a member of the Compensation Committee, while Mitchell will join the Nominating and Corporate Governance Committee. The announcement also noted that Peter Nolan and General C. Robert Kehler will not stand for re-election at the 2025 Annual Meeting, with their decisions not stemming from any disagreements with the company. These changes reflect AerSale’s strategic focus on leveraging the new directors’ expertise in governance, compliance, and operational efficiency to guide the company’s growth.

AerSale Corporation Announces Major Share Repurchase Plan

On March 14, 2025, AerSale Corporation announced a strategic move to repurchase approximately 6.428 million shares from its major shareholder, Leonard Green & Partners, L.P., at $7.00 per share, effectively reducing its outstanding share count by 12%. This transaction, expected to close on March 18, 2025, aims to strengthen shareholder value and mitigate market volatility as Leonard Green & Partners transitions out of its long-term role. Concurrently, Jonathan Seiffer resigned from the board of directors, with the company expressing gratitude for his 15 years of service. The repurchase will be funded with cash on hand and available credit, following an amendment to the company’s credit agreement to facilitate the transaction.

AerSale Corporation Appoints Thomas Mullins to Board

On February 18, 2025, AerSale Corporation’s Board of Directors expanded from seven to eight members, appointing Thomas Mullins as an independent director and member of the Audit Committee. Mullins, who brings over 30 years of investment banking experience, particularly in the aviation industry, is expected to enhance AerSale’s financial acumen and assist in optimizing its capital structure. This strategic move aims to strengthen AerSale’s leadership and financial strategy, potentially benefiting stakeholders by improving the company’s market positioning and operational efficiency.