Aercap Holdings (AER) AI Stock Analysis

• Market Cap: $23.00B
• Dividend Yield: 0.81%
• Average Volume (3M): 1.22M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.88
• Revenue Growth: 2.90%
• EPS Growth: 67.73%
• Country: US
• Employees: 698
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 4.97
• Shares Outstanding: 176,566,560
• 10 Day Avg. Volume: 1,354,741
• 30 Day Avg. Volume: 1,221,427
• PEG Ratio: -0.41
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 2.27
• P/FCF Ratio: -15.40
• Enterprise Value/Market Cap: 2.75
• Enterprise Value/Revenue: 7.92
• Enterprise Value/Gross Profit: 15.19
• Enterprise Value/Ebitda: 14.61
• 1Y Price Target: $143.20
• Price Target Upside: 9.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $147.00 ▲(12.87% Upside)

Aercap Holdings' strong earnings performance and strategic initiatives are the most significant factors driving the score. Despite high leverage and liquidity concerns, the company's profitability and undervaluation provide a solid investment case. Technical indicators suggest caution due to overbought conditions.

Positive Factors

Strong Earnings Performance

Strong earnings performance indicates effective management and operational efficiency, supporting long-term profitability and financial health.

Strategic Acquisitions

Strategic acquisitions enhance fleet capabilities and market position, driving future growth and competitive advantage in the aviation leasing sector.

High Aircraft Utilization

High utilization rates reflect strong demand and operational efficiency, ensuring consistent revenue generation and asset optimization.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, constraining the company's ability to fund operations and strategic initiatives.

Engine Maintenance Challenges

Maintenance challenges can increase operational costs and reduce aircraft availability, impacting revenue and profitability in the long term.

Aercap Holdings Business Overview & Revenue Model

Company Description

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. The company also provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. In addition, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. As of December 31, 2021, the company had a portfolio of 2,369 owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Aercap generates revenue primarily through leasing commercial aircraft to airlines and cargo operators on long-term contracts, which provide a steady stream of rental income. The company also earns money from the sale of aircraft and engines, as well as through management fees from its aircraft management services. Additional revenue streams include financing arrangements and sales of aviation-related services. Aercap benefits from its extensive portfolio of aircraft, which includes a diverse range of commercial jets and cargo aircraft, and maintains significant partnerships with aircraft manufacturers and airlines, enhancing its market position and revenue generation capabilities.

Aercap Holdings Financial Statement Overview

Summary

Aercap Holdings demonstrates solid revenue and profit growth, with strong operational efficiency as evidenced by high EBIT and EBITDA margins. However, the company faces challenges with its high leverage and negative free cash flow, largely due to substantial capital investments. These investments may drive future growth, but they also increase financial risk. Balancing debt levels while maintaining growth will be crucial for long-term stability and profitability.

Income Statement

The revenue growth rate has been healthy with a consistent upward trajectory over the past few years, though there was a slight dip in the latest TTM compared to the previous annual period. Gross profit margins are strong and show stability, while the net profit margin has improved significantly from losses in earlier years. The EBIT and EBITDA margins reflect strong operational efficiency. However, the recent decrease in gross profit compared to previous years suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating a leveraged position, which could pose risks if not managed prudently. However, the equity ratio has shown improvement, suggesting that the company is strengthening its equity base relative to assets. Return on equity has seen significant improvement, driven by rising net income, which is a positive indicator of profitability for shareholders.

Cash Flow

Operating cash flow remains robust, but free cash flow has turned negative in recent periods due to large capital expenditures, indicating aggressive reinvestment strategies. The cash flow ratios indicate that while the company generates strong operating cash, its conversion into free cash flow is hindered by high investment spending.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.98B	8.00B	7.58B	7.01B	4.59B	4.49B
Gross Profit	4.16B	4.61B	4.34B	2.21B	1.30B	2.52B
EBITDA	4.33B	4.15B	3.91B	4.20B	2.72B	3.93B
Net Income	2.95B	2.10B	3.14B	-726.04M	1.00B	-298.57M
Balance Sheet
Total Assets	73.63B	71.44B	71.27B	69.73B	74.57B	42.05B
Cash, Cash Equivalents and Short-Term Investments	2.70B	1.21B	1.63B	1.60B	1.73B	1.25B
Total Debt	46.16B	45.35B	46.58B	46.67B	50.55B	28.84B
Total Liabilities	55.69B	54.26B	54.69B	53.53B	57.92B	33.12B
Stockholders Equity	17.95B	17.18B	16.59B	16.12B	16.57B	8.86B
Cash Flow
Free Cash Flow	-1.01B	-1.18B	-970.95M	1.30B	1.90B	946.66M
Operating Cash Flow	5.32B	5.44B	5.26B	5.17B	3.69B	2.13B
Investing Cash Flow	-3.33B	-3.72B	-3.18B	-2.16B	-23.46B	-712.29M
Financing Cash Flow	-754.36M	-2.13B	-2.01B	-3.16B	20.18B	-1.23B

Aercap Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 130.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AER, the sentiment is Positive. The current price of 130.24 is above the 20-day moving average (MA) of 122.98, above the 50-day MA of 122.58, and above the 200-day MA of 110.10, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 67.92 is Neutral, neither overbought nor oversold. The STOCH value of 91.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AER.

Aercap Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AL	―	$7.14B	7.75	12.59%	1.38%	8.08%	76.55%
AER	―	$23.00B	6.03	21.71%	0.81%	2.90%	67.73%
WLFC	―	$874.22M	7.63	19.97%	0.78%	30.08%	32.62%
FTAI	―	$17.73B	39.54	263.05%	0.67%	50.37%	―
MGRC	―	$2.64B	18.19	12.70%	1.80%	4.77%	-35.44%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HRI	―	$4.73B	―	-4.05%	1.95%	19.40%	-120.47%

Aercap Holdings Corporate Events

AerCap Holdings Announces Q3 2025 Financials and Dividend Declaration

On October 29, 2025, AerCap Holdings N.V. released its interim financial report for the quarter ending September 30, 2025. The company announced a quarterly cash dividend of $0.27 per share, payable on December 4, 2025, to shareholders of record as of November 12, 2025. This announcement reflects AerCap’s ongoing commitment to returning value to shareholders, with specific tax exemptions applicable to U.S. resident shareholders, highlighting the company’s strategic financial management and its implications for stakeholders.

AerCap Holdings Issues $1.2 Billion in Senior Notes to Bolster Financial Position

On October 1, 2025, AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust, both subsidiaries of AerCap Holdings N.V., issued $1.2 billion in senior notes. This issuance, consisting of $600 million 4.375% Senior Notes due 2030 and $600 million 5.000% Senior Notes due 2035, aims to strengthen AerCap’s financial position and support its strategic initiatives in the aviation leasing market.

AerCap Holdings Prices $1.2 Billion Senior Notes Offering

On September 22, 2025, AerCap Holdings N.V. announced the pricing of a $1.2 billion offering of senior notes through its subsidiaries, AerCap Ireland Capital Designated Activity Company and AerCap Global Aviation Trust. The offering consists of $600 million in 4.375% Senior Notes due 2030 and $600 million in 5.000% Senior Notes due 2035, with the proceeds intended for general corporate purposes, including aircraft asset transactions and debt repayment. This move is expected to strengthen AerCap’s financial position and support its strategic initiatives in the aviation leasing industry.

AerCap Secures €91 Million Insurance Settlement Amidst Legal Victory

This week, AerCap Holdings N.V. received a cash insurance settlement of approximately €91 million, resolving claims related to five aircraft previously leased to Nordwind, following the approval of U.S. authorities. Additionally, the Commercial Court in London denied an appeal by insurers, affirming AerCap’s entitlement to a $1 billion indemnity and $234 million in interest related to losses incurred in Russia due to the Ukraine conflict. These developments contribute to AerCap’s total pre-tax recoveries of approximately $2.9 billion since 2023, strengthening its financial position amidst geopolitical challenges.

AerCap Announces $750 Million Share Repurchase Program

On September 10, 2025, AerCap Holdings N.V. announced that its board of directors approved a share repurchase program, authorizing the buyback of up to $750 million of its ordinary shares by the end of 2025. This move aims to enhance shareholder value and will be funded through the company’s existing cash reserves and operational cash flow. The program’s execution will depend on market conditions and other factors, and it may be adjusted or terminated as deemed necessary by AerCap’s management.

AerCap Secures €112 Million Insurance Settlement Amid Ongoing Ukraine Conflict Claims

AerCap Holdings recently received a cash insurance settlement of approximately €112 million related to eight aircraft formerly leased to Russian airlines AirBridgeCargo Airlines LLC and Atran LLC. This settlement, approved by U.S. authorities, contributes to AerCap’s total recoveries from the Ukraine Conflict, now amounting to approximately $2.6 billion. While discussions continue regarding other claims with Russian airlines, the outcome remains uncertain.

AerCap Holdings Declares Quarterly Dividend Amid Financial Report Release

On July 30, 2025, AerCap Holdings announced its interim financial report for the quarter ending June 30, 2025. The company also declared a quarterly cash dividend of $0.27 per share, payable on September 4, 2025, to shareholders of record as of August 13, 2025. This dividend is subject to Irish and Dutch withholding taxes, with certain exemptions available for U.S. resident shareholders and others under specific conditions. The announcement reflects AerCap’s ongoing commitment to returning value to its shareholders while navigating the complexities of international tax regulations.