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AerSale Corporation (ASLE)
NASDAQ:ASLE
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AerSale Corporation
(NASDAQ:ASLE)
Rating:46Neutral
Price Target:
$6.00
▲(1.35%Upside)
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. SPDR S&P 500 ETF (SPY)
Market Cap
$310.20M
Dividend YieldN/A
Average Volume (3M)384.57K
Price to Earnings (P/E)64.4
Beta (1Y)0.63
Revenue Growth-7.63%
EPS Growth-1191.00%
CountryUS
Employees636
SectorIndustrials
Sector Strength90
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)-0.05
Shares Outstanding53,207,348
10 Day Avg. Volume259,481
30 Day Avg. Volume384,571
Financial Highlights & Ratios
PEG Ratio268.90
Price to Book (P/B)754.57
Price to Sales (P/S)0.00
P/FCF Ratio-8.89
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit5.11
Enterprise Value/Ebitda9.46
Forecast
1Y Price Target
$7.50Price Target Upside26.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
AerSale Corporation Business Overview & Revenue Model
Company DescriptionAerSale Corporation (ASLE) is a prominent provider in the aviation industry, specializing in the sales, lease, and exchange of aftermarket commercial jet aircraft, engines, and components. The company also offers a wide range of maintenance, repair, and overhaul (MRO) services for aircraft and engine components. AerSale serves a global customer base, including airlines, leasing companies, and original equipment manufacturers (OEMs), ensuring quality and reliability in its products and services.
How the Company Makes MoneyAerSale 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 Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -15.91%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging quarter with a decrease in revenue and profitability primarily due to lower whole asset sales. However, there is optimism for future growth, driven by strong performance in core business units, strategic feedstock acquisitions, and expansion in MRO capabilities. The company remains positive about its outlook, with expectations of improved results in the coming quarters.Q1-2025 Updates
Positive Updates
Strong Performance in USM and MRO Business Units
Continued growth in USM, landing gear, and component MRO business units, higher leasing revenue, and increased sales of AerSafe.
Improved Feedstock Acquisition
Acquired $43.4 million of feedstock with a 10.4% win rate, taking advantage of favorable market conditions.
Significant Revenue Growth Excluding Whole Assets
Revenue increased 81.7% to $37.5 million excluding whole asset sales, driven by stronger USM sales and a larger active lease pool.
Positive Outlook for AerAware and AerSafe
Increased AerSafe deliveries and active discussions with potential AerAware customers; backlog of $11 million with sufficient orders for 2025 financial plan.
MRO Facility Expansion
Progress on component MRO facility expansion projects, expected to generate new incremental revenue within the next 30 to 60 days.
Negative Updates
Decline in First Quarter Revenue
Consolidated revenue for the first quarter was $65.8 million compared to $90.5 million in the prior year period, primarily due to a decrease in whole asset sales.
Decrease in Adjusted EBITDA
First quarter adjusted EBITDA was $3.2 million compared to $9 million in the prior year, mainly due to lower whole asset transactions.
Operational Losses
Reported a loss from operations of $6.6 million and a net loss of $5.3 million for the first quarter of 2025.
Challenges in Whole Asset Sales
Sales in asset management declined 33.8% due to lower volume of whole asset sales during the period.
Decline in TechOps Segment Revenue
Segment revenue declined 15.1% to $26.6 million due to the completion of a maintenance check line with a large customer in Goodyear.
Company Guidance
During the AerSale Corporation's first-quarter 2025 earnings call, the company emphasized key performance metrics and strategic guidance. Consolidated revenue was reported at $65.8 million, a decrease from $90.5 million in the prior year, primarily due to fewer whole asset sales. However, excluding these sales, revenue increased by $23.4 million to $64.0 million, indicating strong underlying business fundamentals. Adjusted EBITDA was $3.2 million, down from $9 million, reflecting the impact of reduced whole asset transactions. The asset management segment saw an 81.7% revenue increase, excluding whole assets, driven by robust USM sales and an expanded leasing pool. AerSale acquired $43.4 million in feedstock, enhancing inventory for future growth. The company anticipates improved results throughout the year, with expectations for EBITDA growth to outpace revenue growth, driven by increased USM sales, lease pool expansion, and new MRO capabilities. The backlog for AerSafe and the potential for AerAware's market growth also contribute to a positive outlook for 2025.AerSale Corporation Financial Statement Overview
Summary
AerSale Corporation is experiencing financial difficulties with declining revenues and profitability. While the balance sheet shows a strong equity ratio, the increase in leverage and negative cash flows present significant risks. Improving cash flow management and cost efficiency is crucial for future financial stability.Income Statement
The company's TTM revenue of $320.3M decreased from the previous annual revenue of $345.1M, indicating a negative growth trend. The gross profit margin stands at 29.1%, which is relatively stable but lower than its previous year. Despite a positive EBITDA margin of 2.8%, the EBIT and net profit margins are negative, at -0.5% and -1.8% respectively, highlighting profitability challenges.45
Neutral
Balance Sheet
The debt-to-equity ratio increased to 0.42, suggesting a rise in leverage. The equity ratio is strong at 62.9%, reflecting a sound equity base. However, the return on equity (ROE) is negative due to net losses, indicating inefficiencies in generating returns for shareholders.55
Neutral
Cash Flow
The company reported a negative free cash flow of $-35.1M, worsening from the previous period. Operating cash flow is also negative, which is concerning. The free cash flow to net income and operating cash flow to net income ratios are unfavorable, signaling cash flow management issues.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 320.30M | 345.07M | 334.50M | 408.54M | 340.44M | 208.94M | Gross Profit |
| 93.11M | 103.94M | 92.42M | 151.39M | 119.39M | 52.79M | EBIT |
| -1.57M | 9.74M | -10.77M | 55.05M | 56.66M | 11.28M | EBITDA |
| 8.96M | 26.16M | 48.00K | 66.89M | 69.66M | 24.41M | Net Income Common Stockholders |
| -5.70M | 5.85M | -5.56M | 43.86M | 36.12M | 8.09M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.64M | 4.70M | 5.87M | 147.19M | 130.19M | 29.32M | Total Assets |
| 571.69M | 604.72M | 553.94M | 531.58M | 487.49M | 389.13M | Total Debt |
| 84.33M | 75.97M | 66.53M | 32.71M | 0.00 | 0.00 | Net Debt |
| 81.69M | 71.27M | 60.66M | -114.48M | -130.19M | -29.32M | Total Liabilities |
| 119.71M | 149.10M | 108.92M | 86.60M | 78.61M | 36.49M | Stockholders Equity |
| 451.98M | 455.62M | 445.01M | 444.98M | 408.88M | 352.64M |
| Cash Flow | Free Cash Flow | ||||
| -35.07M | -17.85M | -185.51M | -15.71M | 75.19M | -19.50M | Operating Cash Flow |
| -12.56M | 11.18M | -174.15M | -113.00K | 79.08M | -12.23M | Investing Cash Flow |
| -19.89M | -16.13M | 3.09M | 41.37M | 13.20M | -21.14M | Financing Cash Flow |
| 34.51M | 3.77M | 29.74M | -24.26M | 8.59M | 45.18M |
AerSale Corporation Technical Analysis
Negative
5.92
Price Trends
6.58
Negative
6.93
Negative
6.26
Negative
Market Momentum
-0.21
Negative
40.63
Neutral
28.62
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 5.92 is below the 20-day moving average (MA) of 6.01, below the 50-day MA of 6.58, and below the 200-day MA of 6.26, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 40.63 is Neutral, neither overbought nor oversold. The STOCH value of 28.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ASLE.
AerSale Corporation Risk Analysis
AerSale Corporation disclosed 41 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 (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $624.66M | 12.01 | 9.46% | ― | 2.24% | -20.24% | |
66 Neutral | $4.50B | 12.29 | 5.40% | 248.66% | 4.13% | -12.33% | |
62 Neutral | $913.34M | 13.49 | 12.71% | ― | 5.99% | ― | |
56 Neutral | $307.87M | ― | -11.64% | ― | 12.04% | -30.50% | |
52 Neutral | $234.78M | 28.86 | 26.01% | ― | ― | ― | |
48 Neutral | $1.06B | ― | -2416.94% | ― | -29.68% | 95.14% | |
46 Neutral | $310.20M | 64.41 | -1.33% | ― | -7.63% | -1191.00% |
* Industrials Sector Average
Performance Comparison
ASLE
AerSale Corporation
5.92
-0.91
-13.32%
BLDE
Blade Air Mobility
4.24
1.22
40.40%
UP
Wheels Up Experience
1.62
-0.31
-16.06%
SNCY
Sun Country Airlines Holdings
11.88
1.28
12.08%
ULCC
Frontier Group Holdings
3.99
-1.27
-24.14%
FLYX
flyExclusive
2.77
-1.53
-35.58%
AerSale Corporation Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
AerSale Corporation Expands Board with New Appointments
Neutral
Apr 3, 2025
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.
Executive/Board ChangesStock Buyback
AerSale Corporation Announces Major Share Repurchase Plan
Positive
Mar 17, 2025
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.
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.