AerSale Corporation (ASLE) AI Stock Analysis

• Market Cap: $325.10M
• Dividend Yield: N/A
• Average Volume (3M): 473.34K
• Price to Earnings (P/E): 54.3
• Beta (1Y): 0.96
• Revenue Growth: -1.64%
• EPS Growth: 1966.67%
• Country: US
• Employees: 636
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.04
• Shares Outstanding: 47,185,013
• 10 Day Avg. Volume: 294,152
• 30 Day Avg. Volume: 473,337
• PEG Ratio: -0.33
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.97
• P/FCF Ratio: -18.75
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 1.59
• Enterprise Value/Gross Profit: 5.15
• Enterprise Value/Ebitda: 15.28
• 1Y Price Target: $7.00
• Price Target Upside: -0.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.48
• Revenue Forecast (FY): $372.25M

• Rating: 57 Neutral
• Price Target: $6.50 ▼(-7.28% Downside)

AerSale Corporation's overall stock score is driven by stable financials but hindered by weak technical indicators and valuation concerns. The earnings call provided some optimism with strategic growth initiatives, but challenges in revenue and cash flow remain significant.

Positive Factors

USM Business Growth

The growth in the Used Serviceable Material (USM) business indicates a strong market demand and effective inventory management, which can drive sustained revenue growth and enhance competitive positioning in the aviation aftermarket sector.

MRO Facility Expansion

The completion of facility expansions positions AerSale to capture future growth opportunities and increase revenue from MRO services, supporting long-term strategic goals and enhancing operational capacity.

Adjusted EBITDA Improvement

Improved adjusted EBITDA reflects enhanced operational efficiency and cost management, which strengthens financial performance and supports sustainable profitability in the long term.

Negative Factors

Revenue Decline

The decline in revenue due to the absence of engine or aircraft sales highlights potential volatility in revenue streams, which could impact financial stability and growth prospects if not addressed.

Net Loss

The net loss indicates challenges in maintaining profitability, which could strain financial resources and limit investment in growth initiatives if not managed effectively.

Limited Feedstock Supply

Limited feedstock supply could constrain AerSale's ability to capitalize on market opportunities, affecting revenue growth and competitive advantage in the aviation aftermarket.

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 generates revenue through several key streams, primarily by selling refurbished aircraft and aircraft components. The company acquires retired or surplus aircraft, disassembles them, and refurbishes the parts for resale. Additionally, AerSale earns income from providing aftermarket services, including parts logistics and technical support, which are essential for maintaining operational efficiency in the aviation industry. Partnerships with airlines and freight operators enhance its market reach and facilitate consistent revenue flow. The company's leasing services also contribute to its earnings, as they provide a steady income stream from customers who prefer to lease rather than purchase aircraft outright.

AerSale Corporation Financial Statement Overview

Summary

AerSale Corporation shows a stable financial position with strong equity and low leverage. However, challenges in revenue growth and cash flow management impact profitability and operational efficiency. Improvements in cash flow generation and revenue growth are essential.

Income Statement

AerSale Corporation's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth at -3.28%, reflecting challenges in maintaining sales momentum. However, the company maintains a stable gross profit margin of 30.83%, suggesting efficient cost management. The net profit margin is low at 2.17%, indicating limited profitability. EBIT and EBITDA margins are modest at 3.73% and 8.96%, respectively, showing some operational efficiency but room for improvement.

Balance Sheet

The balance sheet of AerSale Corporation is relatively strong, with a low debt-to-equity ratio of 0.08, indicating prudent financial leverage. The return on equity is modest at 1.73%, suggesting limited returns on shareholder investments. The equity ratio is healthy, reflecting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

The cash flow statement reveals significant challenges, with a negative free cash flow growth rate of -992.89%, indicating substantial cash outflows. The operating cash flow to net income ratio is low at 0.04, suggesting limited cash generation from operations. The free cash flow to net income ratio is negative, highlighting cash flow difficulties relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	339.09M	345.07M	334.50M	408.54M	340.44M	208.94M
Gross Profit	104.53M	103.94M	92.42M	151.39M	119.39M	52.79M
EBITDA	35.26M	26.16M	48.00K	66.89M	69.66M	34.07M
Net Income	7.35M	5.85M	-5.56M	43.86M	36.12M	8.09M
Balance Sheet
Total Assets	646.28M	604.72M	553.94M	531.58M	487.49M	389.13M
Cash, Cash Equivalents and Short-Term Investments	11.69M	4.70M	5.87M	147.19M	130.19M	29.32M
Total Debt	157.62M	75.97M	66.53M	32.71M	0.00	0.00
Total Liabilities	229.19M	149.10M	108.92M	86.60M	78.61M	37.67M
Stockholders Equity	417.08M	455.62M	445.01M	444.98M	408.88M	351.45M
Cash Flow
Free Cash Flow	-17.74M	-17.85M	-185.51M	-15.71M	75.19M	-19.50M
Operating Cash Flow	3.21M	11.18M	-174.15M	-113.00K	79.08M	-12.23M
Investing Cash Flow	-10.10M	-16.13M	3.09M	41.37M	13.20M	-21.14M
Financing Cash Flow	2.37M	3.77M	29.74M	-24.26M	8.59M	45.18M

AerSale Corporation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASLE, the sentiment is Neutral. The current price of 7.01 is above the 20-day moving average (MA) of 6.46, above the 50-day MA of 6.98, and below the 200-day MA of 7.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 89.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ASLE.

AerSale Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNCY	74 Outperform	$784.39M	14.16	9.99%	―	4.27%	28.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ASLE	57 Neutral	$325.10M	54.26	1.35%	―	-1.64%	1966.67%
ULCC	50 Neutral	$1.33B	―	-27.87%	―	1.77%	-1964.48%
FLYX	47 Neutral	$296.93M	―	―	―	―	―
SRFM	47 Neutral	$140.84M	―	―	―	-8.51%	82.15%
MESA	38 Underperform	$55.26M	-0.31	-509.71%	―	-15.06%	-119.79%

AerSale Corporation Corporate Events

AerSale Corporation Warehouse Fire in Roswell Airport

On December 4, 2025, a fire destroyed a warehouse leased by AerSale Corporation at the Roswell, New Mexico airport. While the cause is under investigation, the company does not anticipate significant disruption to its operations, as most of its assets and inventory are housed in unaffected locations.