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AerSale Corporation (ASLE)
NASDAQ:ASLE
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AerSale Corporation
(NASDAQ:ASLE)
65Neutral
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 (ASLE) vs. S&P 500 (SPY)
Market Cap
$421.40M
Dividend YieldN/A
Average Volume (3M)312.75K
Price to Earnings (P/E)72.3
Beta (1Y)0.53
Revenue Growth2.84%
EPS Growth-94.93%
CountryUS
Employees707
SectorIndustrials
Sector Strength73
IndustryTransportation
Share Statistics
EPS (TTM)0.11
Shares Outstanding53,207,348
10 Day Avg. Volume470,356
30 Day Avg. Volume312,751
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.27
Price to Cash Flow (P/CF)10.50
P/FCF Ratio13.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.00Price Target Upside1.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
AerSale Corporation Business Overview & Revenue Model
Company DescriptionAerSale Corporation (ASLE) is a global leader in the aviation industry, specializing in the sale, lease, and exchange of used aircraft, engines, and their components. The company operates in sectors including aircraft and engine management, maintenance, repair, and overhaul (MRO) services. AerSale is also involved in aircraft and engine leasing and offers comprehensive asset management solutions to airlines, leasing companies, and maintenance providers.
How the Company Makes MoneyAerSale Corporation generates revenue primarily through three key streams: the sale of used aircraft, engines, and components; leasing of aircraft and engines; and providing maintenance, repair, and overhaul (MRO) services. The company capitalizes on its extensive inventory of aviation assets to meet the needs of a diverse customer base, including airlines, leasing companies, and MRO providers. Additionally, AerSale's asset management services enhance its earnings by optimizing the lifecycle value of aviation assets. Strategic partnerships with airlines and other aviation stakeholders further bolster its revenue, providing a steady flow of business opportunities and reinforcing its market position.
AerSale Corporation Financial Statement Overview
Summary
AerSale Corporation exhibits a stable financial position with low leverage but faces challenges in profitability and cash flow management. While the company maintains strong equity, it needs to enhance its operating efficiency and cash generation capabilities to support growth.Income Statement
AerSale Corporation shows a mixed performance on its income statement. The TTM (Trailing-Twelve-Months) revenue growth rate is modest at 3.06%, indicating slow growth. Gross profit margin is reasonable at 28.61%, but the net profit margin is a low 0.12%, reflecting challenges in translating revenue into profit. While EBIT and EBITDA margins are positive at 1.09% and 3.83% respectively, they are quite low, suggesting operating efficiency issues.60
Neutral
Balance Sheet
The balance sheet of AerSale Corporation is strong, with a debt-to-equity ratio of 0.06, indicating low leverage. The equity ratio stands at 75.08%, showcasing a solid asset base funded by equity. However, return on equity (ROE) is low at 0.09%, pointing to limited profitability from shareholders' equity.75
Positive
Cash Flow
AerSale Corporation's cash flow statement reveals negative free cash flow, with a significant decline in free cash flow growth rate compared to the previous year. The operating cash flow to net income ratio is -77.82, highlighting cash flow challenges. However, the company has managed financing activities effectively, resulting in positive financing cash flow.55
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 344.75M | 334.50M | 408.54M | 340.44M | 208.94M | 304.20M | Gross Profit |
| 98.61M | 92.42M | 151.39M | 119.39M | 52.79M | 85.05M | EBIT |
| 3.76M | -10.77M | 55.05M | 56.66M | 11.28M | 22.06M | EBITDA |
| 13.22M | 48.00K | 66.89M | 69.66M | 24.41M | 55.32M | Net Income Common Stockholders |
| 417.00K | -5.56M | 43.86M | 36.12M | 8.09M | 15.50M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.87M | 5.87M | 147.19M | 130.19M | 29.32M | 17.51M | Total Assets |
| 567.56M | 553.94M | 531.58M | 487.49M | 389.13M | 343.98M | Total Debt |
| 66.53M | 66.53M | 32.71M | 0.00 | 0.00 | 3.35M | Net Debt |
| 60.66M | 60.66M | -114.48M | -130.19M | -29.32M | -14.15M | Total Liabilities |
| 122.55M | 108.92M | 86.60M | 78.61M | 36.49M | 50.00M | Stockholders Equity |
| 445.01M | 445.01M | 444.98M | 408.88M | 352.64M | 293.99M |
| Cash Flow | Free Cash Flow | ||||
| -44.81M | -185.51M | -15.71M | 75.19M | -19.50M | 25.38M | Operating Cash Flow |
| -32.45M | -174.15M | -113.00K | 79.08M | -12.23M | 63.51M | Investing Cash Flow |
| -15.05M | 3.09M | 41.37M | 13.20M | -21.14M | -62.09M | Financing Cash Flow |
| 54.13M | 29.74M | -24.26M | 8.59M | 45.18M | -5.51M |
AerSale Corporation Technical Analysis
Positive
7.92
Price Trends
6.78
Positive
6.33
Positive
6.17
Positive
Market Momentum
0.26
Negative
71.25
Negative
71.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASLE, the sentiment is Positive. The current price of 7.92 is above the 20-day moving average (MA) of 7.12, above the 50-day MA of 6.78, and above the 200-day MA of 6.17, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 71.25 is Negative, neither overbought nor oversold. The STOCH value of 71.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASLE.
AerSale Corporation Risk Analysis
AerSale Corporation disclosed 43 risk factors in its most recent earnings report. AerSale Corporation reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AerSale Corporation Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $31.10B | 64.99 | 16.18% | 0.09% | 23.06% | 32.43% | |
68 Neutral | $74.93B | 47.14 | -29.16% | ― | 16.89% | 20.33% | |
65 Neutral | $421.40M | 72.26 | 1.30% | ― | 2.84% | -94.93% | |
64 Neutral | $2.30B | 231.48 | 0.86% | ― | 18.53% | -85.13% | |
63 Neutral | $849.07M | ― | -6.41% | ― | 15.41% | 43.28% | |
62 Neutral | $8.27B | 12.81 | 0.55% | 3.01% | 3.90% | -15.60% | |
38 Underperform | $3.77B | ― | 81.63% | ― | 4.44% | -202.63% |
* Industrials Sector Average
Performance Comparison
ASLE
AerSale Corporation
7.96
0.81
11.33%
AIR
AAR
65.38
1.58
2.48%
ATRO
Astronics
24.59
6.68
37.30%
HEI
HEICO
253.11
68.66
37.22%
SPR
Spirit AeroSystems
32.84
1.07
3.37%
TDG
Transdigm Group
1,319.87
199.27
17.78%
AerSale Corporation Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 12.02% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant improvements in revenue and profitability driven by strategic initiatives and cost efficiency measures. However, challenges remain with MRO parts sales, facility delays, and feedstock availability. The outlook for 2025 is optimistic, with expectations for continued growth and improved operations.Highlights
Strong Revenue and EBITDA Growth
Fourth quarter revenue increased to $94.7 million, with a 35.5% increase when excluding volatile whole asset sales. Adjusted EBITDA rose significantly by 118% to $13.1 million, indicating stronger profitability.
Successful Strategic Initiatives
Strategic initiatives such as deploying capital to cost-effective feedstock, expanding the lease pool, and growing MRO capabilities contributed to improved operational performance.
Progress in Asset Management
Excluding whole assets, segment revenue increased by 34% to $105.7 million, driven by better feedstock availability and an expanded lease pool.
Positive Outlook for 2025
AerSale plans to expand growth opportunities and convert inventory into cash, with expectations of monetizing remaining 757 freighter aircraft and generating additional MRO revenue from facility expansions.
Cost Efficiency Improvements
The company implemented an efficiency program expected to save $10.4 million annually, building upon $10 million saved in 2024 through increased efficiency.
Lowlights
Challenges in MRO and Parts Sales
Revenue from TechOps rose only by 3.1% to $30.7 million in Q4, partially offset by lower parts sales in MRO units.
Delayed Facility Openings
Construction delays at pneumatics and Miami Aerostructures facilities have pushed opening dates to the second quarter of 2025, impacting potential revenue.
AerAware Adoption Challenges
While there is ongoing customer interest in the AerAware system, no customer orders have been secured at this time, and the FAA faces challenges in maintaining a high level of safety.
Feedstock Availability Concerns
The market remains tight due to OEM production issues, engine issues, and FAA challenges, affecting the availability of older aircraft for retirement.
Company Guidance
During the AerSale Inc. Fourth Quarter 2024 Earnings Conference Call, the company provided several key metrics, indicating a solid performance and strategic focus for future growth. Fourth quarter revenue was reported at $94.7 million, slightly up from the previous year, despite a $16.4 million reduction in whole asset sales compared to 2023. Excluding whole asset sales, which are known for their volatility, the fourth quarter sales experienced a 35.5% increase. Adjusted EBITDA saw a remarkable rise of 118% to $13.1 million, showcasing improved profitability. For the full year 2024, revenue reached $345.1 million, a 3.2% increase over 2023, with revenue excluding whole asset sales up 18.7%. Full-year adjusted EBITDA increased significantly to $33.4 million from $12.3 million the previous year. The company also noted a 1% decrease in Asset Management sales to $64 million, although excluding whole asset sales, revenue rose by 91.7%. The TechOps segment saw a 3.1% revenue increase in Q4 to $30.7 million, and an 8.6% increase for the year, reaching $129.6 million, driven by strong MRO demand and AerSafe unit sales. AerSale's cash position at the end of Q4 was $4.7 million, with total debt at $41 million, and the company generated $11.2 million in free cash flow during the year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.