Willis Lease Finance (WLFC) AI Stock Analysis

• Market Cap: $1.01B
• Dividend Yield: 0.67%
• Average Volume (3M): 58.21K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.21
• Revenue Growth: 30.08%
• EPS Growth: 32.62%
• Country: US
• Employees: 445
• Sector: Industrials
• Sector Strength: 73
• Industry: Rental & Leasing Services
• EPS (TTM): 8.43
• Shares Outstanding: 6,809,636
• 10 Day Avg. Volume: 39,660
• 30 Day Avg. Volume: 58,207
• 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: 3.03
• Enterprise Value/Revenue: 4.54
• Enterprise Value/Gross Profit: 6.62
• Enterprise Value/Ebitda: 8.04
• 1Y Price Target: $162.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $162.00 ▲(8.70% Upside)

Willis Lease Finance's strong financial performance and strategic achievements in the earnings call are significant positives. However, high leverage and negative cash flow present risks. The stock's valuation is attractive, and recent corporate events support financial stability.

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 generates revenue primarily through the leasing of aircraft engines and related services. The company earns income from long-term leases, which typically provide a steady stream of revenue over extended periods, as well as short-term leases that cater to immediate needs. Additionally, WLFC offers maintenance and support services, which are often bundled with leasing agreements, generating further revenue. The company benefits from its strategic partnerships with airlines and OEMs, enhancing its market presence and providing access to a broader customer base. Factors contributing to its earnings include the demand for leased aircraft engines, market conditions in the aviation industry, and the company's ability to manage and maintain its fleet efficiently.

Willis Lease Finance Financial Statement Overview

Summary

Willis Lease Finance shows strong revenue growth and high gross profit margins, indicating efficient cost management. However, high leverage and negative free cash flow pose financial risks, impacting financial flexibility.

Income Statement

Willis Lease Finance shows a strong revenue growth rate of 9.5% TTM, indicating robust business expansion. The gross profit margin remains high at 68.6%, reflecting efficient cost management. However, the net profit margin has slightly decreased to 18.0% TTM from 19.1% in the previous year, suggesting some pressure on net profitability. The EBIT and EBITDA margins are solid at 41.0% and 56.5% TTM, respectively, though they have slightly declined from the previous year, indicating potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio is high at 4.11 TTM, indicating significant leverage, which could pose financial risks if not managed properly. Return on equity is strong at 20.6% TTM, showcasing effective use of equity to generate profits. The equity ratio is relatively low, suggesting a higher reliance on debt financing, which could impact financial stability in adverse conditions.

Cash Flow

Willis Lease Finance's free cash flow is negative, with a significant decline of 28.9% TTM, raising concerns about cash generation capabilities. The operating cash flow to net income ratio is slightly above 1, indicating that operating cash flow adequately covers net income. However, the negative free cash flow to net income ratio suggests challenges in converting profits into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	678.15M	569.22M	407.97M	305.68M	250.39M	288.69M
Gross Profit	464.88M	429.44M	301.84M	196.59M	235.46M	177.39M
EBITDA	382.94M	345.63M	236.85M	164.80M	167.63M	176.90M
Net Income	122.40M	108.61M	43.78M	5.44M	3.35M	9.75M
Balance Sheet
Total Assets	3.95B	3.30B	2.65B	2.58B	2.46B	2.36B
Cash, Cash Equivalents and Short-Term Investments	782.53M	9.11M	7.07M	12.15M	14.33M	42.54M
Total Debt	2.80B	2.26B	1.80B	1.85B	1.79B	1.69B
Total Liabilities	3.27B	2.75B	2.16B	2.17B	2.09B	2.00B
Stockholders Equity	681.20M	549.34M	488.93M	404.69M	375.88M	364.01M
Cash Flow
Free Cash Flow	-392.19M	-546.07M	60.96M	-148.60M	-117.29M	-318.78M
Operating Cash Flow	299.94M	284.41M	229.74M	144.42M	90.66M	93.44M
Investing Cash Flow	-492.15M	-764.91M	-92.78M	-194.38M	-148.00M	-506.67M
Financing Cash Flow	826.83M	444.98M	-57.94M	43.33M	74.05M	428.48M

Willis Lease Finance Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 149.03
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WLFC, the sentiment is Neutral. The current price of 149.03 is below the 20-day moving average (MA) of 152.02, above the 50-day MA of 145.23, and below the 200-day MA of 166.76, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 26.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WLFC.

Willis Lease Finance Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AL	82 Outperform	$7.11B	7.73	12.59%	1.38%	8.08%	76.55%
AER	79 Outperform	$21.81B	7.48	16.87%	0.86%	3.24%	4.46%
R	78 Outperform	$7.64B	15.98	16.38%	1.78%	3.68%	6.61%
WLFC	69 Neutral	$1.01B	8.86	19.97%	0.67%	30.08%	32.62%
Sector *	64 Neutral	$10.73B	15.74	7.60%	2.01%	2.75%	-15.09%
HTZ	46 Neutral	$1.70B	―	-350.48%	―	-7.58%	-225.06%
CAR	45 Neutral	$5.50B	8.26	78.26%	―	-2.25%	-395.93%

Willis Lease Finance Corporate Events

Willis Lease Finance Declares Quarterly Dividend

On July 30, 2025, Willis Lease Finance Corporation’s Board of Directors declared a quarterly dividend of $0.25 per share on its outstanding common stock, which is scheduled to be paid on August 21, 2025, to stockholders of record as of August 12, 2025. This announcement reflects the company’s ongoing commitment to returning value to its shareholders and may reinforce its market position by demonstrating financial stability and shareholder confidence.

Willis Lease Finance Amends Credit Agreement Terms

On July 22, 2025, Willis Warehouse Facility LLC, a subsidiary of Willis Lease Finance Corporation, amended its Secured Credit Agreement with several financial institutions, extending the availability period and final repayment date by one year each, to 2027 and 2030 respectively. The amendment also includes more favorable asset advance rates and reduced fees on undrawn loan commitments, potentially enhancing the company’s financial flexibility and operational efficiency.

Willis Lease Finance Q2 2025 Earnings Announcement

On July 15, 2025, Willis Lease Finance Corporation announced it will release its financial results for the second quarter of 2025 on August 5, 2025, before the market opens. The company will hold a conference call at 10:00 a.m. Eastern Time on the same day to discuss these results, which reflects its commitment to transparency and engagement with stakeholders.

Willis Lease Finance Sells UK Consultancy Arm

On June 30, 2025, Willis Lease Finance Corporation completed the sale of its UK-based consultancy arm, Bridgend Asset Management Limited, to its joint venture with Mitsui & Co., Ltd., Willis Mitsui & Co. Engine Support Limited, for $45 million. This transaction enhances the joint venture’s capabilities in aviation asset management and positions it to better serve the global aviation market, with WLFC retaining a 50% stake and continuing to leverage the joint venture’s services.

Willis Lease Finance Completes $596 Million Note Issuance

On June 18, 2025, Willis Lease Finance Corporation and its subsidiary, Willis Engine Structured Trust VIII, completed the issuance of $596 million in fixed rate notes, secured by interests in 62 aircraft engines and two airframes. This transaction is expected to enhance the company’s financial flexibility, supporting its operations and strategic goals in the aviation industry.

Willis Lease Finance Elects Directors at Annual Meeting

On June 5, 2025, Willis Lease Finance Corporation held its Annual Meeting of Stockholders, where 90% of the outstanding common shares were represented. During the meeting, two Class III Directors, Brendan Curran and Charles F. Willis, IV, were elected for a three-year term, and the appointment of Grant Thornton LLP as the independent auditors for 2025 was ratified.

Willis Lease Finance Enters $596M Note Agreement

On June 5, 2025, Willis Lease Finance Corporation and its subsidiary, Willis Engine Structured Trust VIII, entered into a note purchase agreement to issue and sell $596 million in fixed rate notes, secured by a portfolio of aircraft engines and airframes. The transaction, set to close on June 18, 2025, aims to strengthen the company’s financial position, although the notes will not be registered under the Securities Act and are offered only to qualified institutional buyers.

Willis Lease Finance Announces $596M Fixed Rate Notes Offering

On June 3, 2025, Willis Lease Finance Corporation announced the offering of $596 million in fixed rate notes through its subsidiary, Willis Engine Structured Trust VIII. The proceeds from this offering will be used to cover fees, secure reserves, and finance the acquisition of aircraft engines and airframes, while also aiding in debt repayment and general corporate purposes.