AerSale Corporation (ASLE) AI Stock Analysis

• Market Cap: $401.51M
• Dividend Yield: N/A
• Average Volume (3M): 410.21K
• Price to Earnings (P/E): 62.5
• Beta (1Y): 0.82
• Revenue Growth: -1.12%
• EPS Growth: N/A
• Country: US
• Employees: 636
• Sector: Industrials
• Sector Strength: 78
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.20
• Shares Outstanding: 47,181,520
• 10 Day Avg. Volume: 683,106
• 30 Day Avg. Volume: 410,208
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 3.99
• Enterprise Value/Ebitda: 12.52
• 1Y Price Target: $7.83
• Price Target Upside: -11.33% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 67 Neutral
• Price Target: $9.50 ▲(7.59% Upside)

AerSale Corporation's overall stock score reflects strong technical momentum and positive earnings call highlights, offset by high valuation concerns and moderate financial performance. The company's strategic initiatives and executive alignment are positive, but profitability and cash flow challenges remain significant.

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 (ASLE) is a leading provider of aviation aftermarket services, specializing in the sale of used aircraft, engines, and parts, as well as offering maintenance, repair, and overhaul (MRO) services. The company operates primarily in the aerospace sector, catering to commercial airlines, cargo operators, and government agencies. AerSale's core offerings include aircraft and engine component sales, lease services, and technical support, making it a key player in enhancing the operational efficiency and cost-effectiveness of its clients' aviation fleets.

How the Company Makes Money

AerSale generates revenue through multiple streams, primarily focusing on the sale and lease of used aircraft and engines, as well as the sale of aircraft parts and components. The company also earns significant income from its MRO services, providing maintenance and repair solutions that help extend the lifecycle of aircraft. Key revenue streams include direct aircraft and engine sales, aftermarket parts sales, and service contracts for maintenance and technical support. AerSale has established partnerships with various airlines and aviation operators, enhancing its market reach and customer base. Additionally, the company's involvement in aircraft leasing provides a steady income stream, as it leases aircraft to clients while maintaining ownership of the assets.

AerSale Corporation Financial Statement Overview

Summary

AerSale Corporation is facing financial challenges with declining revenues and profitability. The balance sheet remains relatively strong in terms of equity ratio, but increased leverage and negative cash flows pose risks. Improving cash flow management and cost efficiency will be crucial for 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	350.58M	345.07M	334.50M	408.54M	340.44M	208.94M
Gross Profit	106.72M	103.94M	92.42M	151.39M	119.39M	52.79M
EBITDA	34.05M	26.16M	48.00K	66.89M	69.66M	24.41M
Net Income	6.51M	5.85M	-5.56M	43.86M	36.12M	8.09M
Balance Sheet
Total Assets	646.67M	604.72M	553.94M	531.58M	487.49M	389.13M
Cash, Cash Equivalents and Short-Term Investments	5.75M	4.70M	5.87M	147.19M	130.19M	29.32M
Total Debt	148.92M	75.97M	66.53M	32.71M	0.00	0.00
Total Liabilities	230.76M	149.10M	108.92M	86.60M	78.61M	36.49M
Stockholders Equity	415.91M	455.62M	445.01M	444.98M	408.88M	352.64M
Cash Flow
Free Cash Flow	1.69M	-17.85M	-185.51M	-15.71M	75.19M	-19.50M
Operating Cash Flow	22.55M	11.18M	-174.15M	-113.00K	79.08M	-12.23M
Investing Cash Flow	-10.89M	-16.13M	3.09M	41.37M	13.20M	-21.14M
Financing Cash Flow	-10.20M	3.77M	29.74M	-24.26M	8.59M	45.18M

AerSale Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.83
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 8.83 is above the 20-day moving average (MA) of 7.09, above the 50-day MA of 6.40, and above the 200-day MA of 6.58, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 80.29 is Negative, neither overbought nor oversold. The STOCH value of 89.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASLE.

AerSale Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNCY	73 Outperform	$650.46M	11.48	10.15%	―	3.76%	17.44%
Sector *	71 Outperform	¥267.71B	14.94	8.32%	2.77%	6.08%	11.04%
ASLE	67 Neutral	$401.51M	62.49	1.50%	―	-1.12%	―
BLDE	55 Neutral	$336.59M	―	-8.39%	―	6.70%	63.35%
FLYX	54 Neutral	$279.65M	28.86	26.01%	―	―	―
ULCC	51 Neutral	$1.03B	13.43	-6.63%	―	4.60%	49.81%
UP	50 Neutral	$1.26B	―	-2416.94%	―	-20.21%	88.09%

AerSale Corporation Corporate Events

AerSale Corporation Adjusts CEO Compensation Structure

On August 6, 2025, AerSale Corporation‘s Board of Directors approved a change in the compensation structure for CEO Nicolas Finazzo to better align his incentives with the company’s long-term stock performance. The modification involves eliminating his annual cash bonus and increasing his equity grants to 600% of his base salary, with a focus on performance stock units, restricted stock units, and stock options, making 64% of his compensation dependent on long-term company performance.

AerSale Boosts Equity Grants for Key Executives

On August 1, 2025, AerSale Corporation‘s Board of Directors approved an increase in the target equity grants for 2025 for its CFO, Martin Garmendia, and COO, Gary Jones, under the 2020 Equity Incentive Plan. The grants, now valued at 150% of their base salaries, are divided into performance stock units, restricted stock units, and stock options, reflecting a strategic move to enhance executive compensation and potentially strengthen leadership alignment with company goals.

AerSale Corporation Holds Annual Stockholders Meeting

On June 5, 2025, AerSale Corporation held its annual meeting of stockholders, where key decisions were made regarding the election of directors and other corporate governance matters. The meeting resulted in the election of seven directors, approval of amendments to the equity incentive plan, and the decision to hold annual advisory votes on executive compensation, reflecting the company’s commitment to shareholder engagement and strategic governance.