Willis Lease Finance (WLFC) AI Stock Analysis

• Market Cap: $1.00B
• Dividend Yield: 0.69%
• Average Volume (3M): 80.48K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.04
• Revenue Growth: 32.55%
• EPS Growth: 70.32%
• Country: US
• Employees: 445
• Sector: Industrials
• Sector Strength: 90
• Industry: Rental & Leasing Services
• EPS (TTM): 2.21
• Shares Outstanding: 6,902,975
• 10 Day Avg. Volume: 123,827
• 30 Day Avg. Volume: 80,482
• PEG Ratio: 1.04
• Price to Book (P/B): 0.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.41
• Enterprise Value/Market Cap: 2.18
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $159.00 ▲(10.03%Upside)

Willis Lease Finance demonstrates robust financial performance with notable revenue growth and strategic transactions, despite challenges like high leverage and negative cash flow. The technical outlook is bearish, but the valuation appears attractive. Positive earnings call outcomes and beneficial corporate events further support the stock's potential.

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 exhibits strong revenue and profitability growth, supported by efficient operations. However, high leverage and negative free cash flow indicate financial risks, particularly in liquidity and investment management.

Income Statement

Willis Lease Finance shows strong revenue growth and profitability improvements. The TTM (Trailing-Twelve-Months) revenue increased by 4.26% from the previous period, with a high gross profit margin of 73.94% and an impressive net profit margin of 17.63%. The EBIT and EBITDA margins are also solid at 28.67% and 60.45% respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 3.95, highlighting significant reliance on debt. However, the company maintains a healthy equity ratio of 17.27% and a strong ROE of 18.50%, suggesting effective use of shareholder funds despite the leverage.

Cash Flow

Cash flow analysis shows challenges with negative free cash flow, largely impacted by high capital expenditures. The operating cash flow to net income ratio is robust at 2.54, reflecting strong cash generation relative to reported earnings. Yet, the negative free cash flow to net income ratio indicates potential liquidity and investment challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
593.44M	569.22M	407.97M	311.93M	274.20M	288.69M
	Gross Profit
438.75M	429.44M	301.84M	202.83M	168.77M	177.39M
	EBIT
170.12M	144.40M	136.83M	7.57M	-5.66M	11.05M
	EBITDA
358.85M	345.63M	236.85M	164.80M	167.63M	176.90M
	Net Income Common Stockholders
104.61M	108.61M	43.78M	5.44M	3.35M	9.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
168.03M	9.11M	7.07M	12.15M	14.33M	42.54M
	Total Assets
2.75B	3.30B	2.65B	2.58B	2.46B	2.36B
	Total Debt
1.81B	2.26B	1.80B	1.85B	1.79B	1.69B
	Net Debt
1.64B	2.26B	1.80B	1.84B	1.78B	1.65B
	Total Liabilities
2.26B	2.75B	2.16B	2.17B	2.09B	2.00B
	Stockholders Equity
488.93M	549.34M	488.93M	404.69M	375.88M	364.01M
Cash Flow		Free Cash Flow
-551.38M	-546.07M	60.96M	-148.60M	-117.29M	-318.78M
	Operating Cash Flow
265.59M	284.41M	229.74M	144.42M	90.66M	93.44M
	Investing Cash Flow
-687.46M	-764.91M	-92.78M	-194.38M	-148.00M	-506.67M
	Financing Cash Flow
476.71M	444.98M	-57.94M	43.33M	74.05M	428.48M

Willis Lease Finance Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 144.50
• 50DMA: Positive
• 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 WLFC, the sentiment is Neutral. The current price of 144.5 is above the 20-day moving average (MA) of 137.79, above the 50-day MA of 141.75, and below the 200-day MA of 169.28, indicating a neutral trend. The MACD of -0.90 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 87.24 is Negative, 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
PRG	75 Outperform	$1.17B	5.95	33.88%	1.72%	4.62%	101.14%
JBI	71 Outperform	$1.15B	24.30	9.51%	―	-13.95%	-63.37%
WLFC	69 Neutral	$1.00B	9.97	18.32%	0.69%	32.55%	70.32%
APOG	68 Neutral	$848.04M	10.12	17.74%	2.59%	-3.95%	-14.56%
CTOS	66 Neutral	$1.06B	―	-3.76%	―	-0.61%	-248.58%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
EVEX	43 Neutral	$1.62B	―	-148.98%	―	―	-2.94%

Willis Lease Finance Corporate Events

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.

Willis Lease Finance Appoints New General Counsel

On May 14, 2025, Dean Poulakidas resigned as General Counsel and Corporate Secretary of Willis Lease Finance Corporation, receiving a compensation package totaling approximately $6.8 million, which includes accelerated stock vesting. His successor, Clifton Dameron, was appointed on the same day, bringing extensive experience in aviation and corporate law, having previously served as Chief Legal Officer at Carlyle Aviation Partners. Dameron’s appointment is expected to strengthen WLFC’s legal functions and support its market opportunities.

Willis Lease Finance Sells UK Aviation Consultancy

On May 7, 2025, Willis Asset Management Limited, a subsidiary of Willis Lease Finance Corporation, entered into a Share Purchase Agreement to sell Bridgend Asset Management Limited, its UK-based aviation consultancy business, to Willis Mitsui & Co Engine Support Limited for $45 million. This strategic move aims to enhance the joint venture’s capabilities in aviation services and expand its service offerings and asset portfolio, reflecting WLFC’s commitment to strengthening collaboration with Mitsui & Co., Ltd. The transaction is expected to unlock fresh capital for WLFC, which can be reinvested to accelerate its portfolio growth, and further solidify the long-term relationship between WLFC and Mitsui.

Willis Lease Finance to Announce Q1 2025 Results

On April 22, 2025, Willis Lease Finance Corporation announced it will release its first quarter 2025 financial results on May 6, 2025, followed by a conference call to discuss these results. This announcement is part of the company’s ongoing efforts to keep stakeholders informed about its financial performance and operational strategies, potentially impacting its market positioning and stakeholder confidence.

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.