Willis Lease Finance (WLFC) AI Stock Analysis

• Market Cap: $895.30M
• Dividend Yield: 0.55%
• Average Volume (3M): 45.78K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.14
• Revenue Growth: 28.48%
• EPS Growth: 150.59%
• Country: US
• Employees: 445
• Sector: Industrials
• Sector Strength: 63
• Industry: Rental & Leasing Services
• EPS (TTM): 15.38
• Shares Outstanding: 6,606,390
• 10 Day Avg. Volume: 47,802
• 30 Day Avg. Volume: 45,778
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.12
• Price to Cash Flow (P/CF): 4.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

WLFC demonstrates strong revenue growth and profitability, supported by strategic financial management and an attractive valuation. While technical indicators suggest caution due to downward momentum, the stock's fundamentals and strategic initiatives present a solid investment case, tempered by liquidity challenges from high capital expenditures.

Willis Lease Finance Business Overview & Revenue Model

Company Description

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2021, it had a total lease portfolio of 304 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 76 lessees in 40 countries; and managed a total lease portfolio of 475 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.

How the Company Makes Money

Willis Lease Finance makes money primarily through leasing aircraft engines and related equipment to commercial airlines, OEMs, and MRO facilities. The company's revenue model is based on long-term and short-term lease agreements, where clients pay a monthly or periodic fee for the use of engines and auxiliary power units. Additionally, WLFC generates income through the sale of spare parts and engines, as well as providing maintenance services and asset management solutions. The company's strategic partnerships with airlines and manufacturers enhance its revenue streams by ensuring a steady demand for its leasing and maintenance services. Furthermore, WLFC's investment in innovative programs, such as its ConstantThrust program, offers flexible leasing options that adjust to the changing needs of the aviation sector, thereby contributing to its financial performance.

Willis Lease Finance Financial Statement Overview

Summary

Willis Lease Finance shows strong revenue growth and improved profitability, with significant operational efficiency and shareholder returns. Zero debt enhances balance sheet stability, though negative free cash flow due to high capital expenditures is a concern.

Income Statement

Willis Lease Finance demonstrated strong revenue growth with a significant revenue increase from $407.97 million in 2023 to $569.22 million in 2024, yielding a revenue growth rate of approximately 39.5%. The company also improved its net profit margin from 10.73% to 18.34% in the same period, indicating enhanced profitability. The Gross Profit Margin remained robust at 100% due to the nature of their business model. EBIT Margin increased to 25.37%, and EBITDA Margin improved to 60.71%, reflecting operational efficiency. Overall, the income statement shows a positive trajectory with strong growth and profitability.

Balance Sheet

The balance sheet shows a solid equity position with Stockholders' Equity increasing to $549.34 million by 2024. The Debt-to-Equity Ratio improved significantly as the company reported zero total debt in 2024, reducing financial leverage risk. However, the Equity Ratio slightly decreased from 18.43% in 2023 to 16.67% in 2024, indicating a higher proportion of liabilities relative to assets. The Return on Equity increased significantly from 8.95% to 19.00%, highlighting enhanced shareholder value creation. The balance sheet reflects a transition to a more stable financial structure, though the slight dip in the equity ratio warrants attention.

Cash Flow

Despite a strong operating cash flow of $284.41 million, Willis Lease Finance experienced a negative free cash flow of -$546.07 million in 2024, primarily due to significant capital expenditures. The Free Cash Flow to Net Income Ratio was negative, indicating cash flow issues in covering net income. However, the Operating Cash Flow to Net Income Ratio was positive at 2.72, showing robust cash generation from operations relative to net income. The cash flow statement reveals strong operational cash generation but highlights significant capital spending impacting liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
569.22M	407.97M	311.93M	274.20M	288.69M
	Gross Profit
429.44M	301.84M	202.83M	168.77M	177.39M
	EBIT
144.40M	136.83M	7.57M	-5.66M	11.05M
	EBITDA
349.87M	236.85M	164.80M	167.63M	176.90M
	Net Income Common Stockholders
104.38M	43.78M	5.44M	3.35M	9.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.11M	7.07M	12.15M	14.33M	42.54M
	Total Assets
3.30B	2.65B	2.58B	2.46B	2.36B
	Total Debt
2.26B	1.80B	1.85B	1.79B	1.69B
	Net Debt
-9.11M	1.80B	1.84B	1.78B	1.65B
	Total Liabilities
2.75B	2.16B	2.17B	2.09B	2.00B
	Stockholders Equity
549.34M	488.93M	404.69M	375.88M	364.01M
Cash Flow		Free Cash Flow
-546.07M	60.96M	-148.60M	-117.29M	-318.78M
	Operating Cash Flow
284.41M	229.74M	144.42M	90.66M	93.44M
	Investing Cash Flow
-764.91M	-92.78M	-194.38M	-148.00M	-506.67M
	Financing Cash Flow
444.98M	-57.94M	43.33M	74.05M	428.48M

Willis Lease Finance Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLFC, the sentiment is Negative. The current price of 135.52 is below the 20-day moving average (MA) of 168.20, below the 50-day MA of 183.10, and below the 200-day MA of 156.27, indicating a bearish trend. The MACD of -6.99 indicates Positive momentum. The RSI at 34.60 is Neutral, neither overbought nor oversold. The STOCH value of 16.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WLFC.

Willis Lease Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WLFC	76 Outperform	$895.30M	8.83	19.70%	0.55%	28.48%	150.59%
APOG	69 Neutral	$990.76M	10.09	20.11%	2.24%	-1.58%	-5.49%
JBI	66 Neutral	$968.14M	14.34	13.56%	―	-9.61%	-47.79%
CTOS	63 Neutral	$794.29M	―	-3.22%	―	-3.37%	-156.92%
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%
PRG	54 Neutral	$1.02B	5.56	31.77%	1.94%	2.29%	55.85%
EVEX	37 Underperform	$991.16M	―	-95.63%	―	―	-2.94%

Willis Lease Finance Corporate Events

Willis Lease Finance Amends CEO Compensation Agreement

On March 31, 2025, Willis Lease Finance Corporation’s Compensation Committee approved an amendment to the employment agreement with Charles F. Willis IV, canceling a non-qualified stock option for 231,000 shares and altering the vesting schedule for a restricted stock award. This amendment impacts Mr. Willis’s compensation structure, aligning it with the company’s 2023 Incentive Stock Plan, and affects the vesting conditions based on his continued service or termination circumstances.

Willis Lease Finance Renews Executive Chairman’s Contract

On March 13, 2025, Willis Lease Finance Corporation’s Board of Directors approved a renewed and amended employment agreement for Charles F. Willis IV, who will continue as Executive Chairman. The agreement includes a five-year term with automatic renewals, an initial annual base salary of $1,269,000, and a target annual bonus of 150% of the base salary. Additionally, the agreement introduces a new trigger for change in control and includes a grant of restricted stock and stock options for Mr. Willis, which are subject to vesting conditions and are part of the company’s incentive plan.

Willis Lease Finance Achieves Record Financial Results for 2024

Willis Lease Finance Corporation reported record financial results for 2024, with total revenues reaching $569.2 million and pre-tax income at $152.6 million. The company experienced significant growth in core lease rent and maintenance reserve revenues, driven by a robust aviation market, and successfully reinvested earnings into high-demand engines and aircraft. The book value of lease assets increased significantly, and the company expanded its credit facility to support further growth. These achievements reflect the company’s strong market position and operational efficiency, benefiting stakeholders through increased dividends and asset value.

Willis Lease Finance to Announce 2024 Financial Results

On February 10, 2025, Willis Lease Finance Corporation announced plans to release its financial results for the fourth quarter and full year of 2024 on March 10, 2025. The announcement includes a scheduled conference call on the same day, led by the executive management team, to discuss these results. This event is significant as it could provide insights into the company’s operational performance and future outlook, potentially impacting stakeholders’ perspectives.