One-glance verdict
Undervalued
$230.26 our estimate vs market $54.33
Wall Street consensus: $75.50 (-67.2% lower than our fair-value estimate)
76% below our estimate, below the bear case
Fundamentals snapshot
Willis Lease Finance Corporation
WLFC · NGM · Industrials · Rental & Leasing Services
Current price
$54.33
52-week range
$38.00 - $81.54
Market cap
$1.15B
Balance sheet
Distressed
2.06x Stretched
Net debt $2.34B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.8% last year.
- Reward Returns 12.6% on equity, ahead of 40% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 46.3% over 3 years.
What this company does
Willis Lease Finance Corporation
Willis Lease Finance acts like a landlord for the airline industry, owning and leasing out expensive jet engines and entire planes to airlines that don't want to buy them outright. The company's main income comes from these long-term lease payments, creating a steady stream of recurring revenue (predictable income that comes in at regular intervals). They also make money by buying, repairing, and selling used engines and spare parts, which helps keep the global airline fleet in the air.
How the company got here
Willis Lease Finance Corporation was founded in 1985 by Charles F. Willis, who pioneered the idea of leasing a jet engine separately from the airplane it powers. Before this, airlines had to buy and own expensive spare engines, which would sit unused until needed for maintenance. By creating a rental market for engines, the company offered airlines more flexibility and a way to manage the huge costs of engine ownership. The company grew by building relationships with airlines, maintenance organizations, and manufacturers worldwide. In 1996, it became a publicly traded company on the Nasdaq stock exchange to raise money and expand its business.
What it actually does
Think of Willis Lease Finance as a rental service for the airline industry, but instead of cars, it leases out crucial and very expensive jet engines and entire aircraft. When an airline's plane needs an engine repair, they can rent a spare from Willis Lease to keep the plane flying and earning money. The company also buys, sells, and manages aircraft and engine parts for its customers, which include passenger and cargo airlines, manufacturers, and repair shops. They provide a range of services that help airlines manage their fleets (the group of aircraft a company operates) and keep maintenance costs down.
Leasing and Related Operations
This is the company's main business, making up the vast majority of its revenue (the total money it brings in). In this segment, the company buys high-demand commercial aircraft engines, like those used on Boeing 737 and Airbus A320 planes, and leases them to airlines for long periods. Airlines pay a regular fee, similar to rent, which gives them access to spare engines without the massive upfront cost of buying them. This part of the business provides a steady and predictable stream of income for the company.
Spare Parts Sales
This smaller but important part of the company focuses on buying and selling used engine parts. When an older engine reaches the end of its useful life, Willis Lease can take it apart and sell the valuable components to maintenance and repair organizations. This allows the company to make money from an engine throughout its entire lifecycle, from leasing it when new to selling its parts when it's retired. This business is a key part of their strategy to maximize the value of every asset they own.
What management is betting on now
The company is focused on becoming a one-stop shop for airlines, expanding its maintenance and asset management services. They are investing in next-generation, fuel-efficient engines that are in high demand as airlines update their fleets. Management is also growing through partnerships and joint ventures, which give them access to more money to buy assets and offer competitive financing to customers. Their goal is to use their deep industry knowledge to help airlines operate more efficiently and save money on maintenance.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$85.74M
FY2024 Q4
$55.09M
FY2025 Q1
$33.53M
FY2025 Q2
$94.54M
FY2025 Q3
$57.83M
FY2025 Q4
$66.25M
FY2026 Q1
$53.14M
FY2026 Q2
$74.78M
Revenue
$194.02M
Net income
$30.17M
Diluted EPS
1.31
Operating cash flow
$77.52M
Free cash flow
$74.78M
Fetching…
Sources
Revenue
$194.35M
Net income
$25.08M
Diluted EPS
3.26
Operating cash flow
$56.68M
Free cash flow
$53.14M
Fetching…
Sources
Revenue
$193.62M
Net income
$12.19M
Diluted EPS
1.50
Operating cash flow
$74.16M
Free cash flow
$66.25M
Fetching…
Sources
Revenue
$183.39M
Net income
$24.32M
Diluted EPS
3.25
Operating cash flow
$63.88M
Free cash flow
$57.83M
Fetching…
Sources
Revenue
$195.50M
Net income
$60.38M
Diluted EPS
8.43
Operating cash flow
$104.18M
Free cash flow
$94.54M
Fetching…
Sources
Revenue
$157.73M
Net income
$16.87M
Diluted EPS
2.21
Operating cash flow
$41.01M
Free cash flow
$33.53M
Fetching…
Sources
Revenue
$152.80M
Net income
$21.06M
Diluted EPS
2.76
Operating cash flow
$67.97M
Free cash flow
$55.09M
Fetching…
Sources
Revenue
$146.22M
Net income
$24.10M
Diluted EPS
3.37
Operating cash flow
$86.79M
Free cash flow
$85.74M
Fetching…
Sources
Is it cheap or expensive?
Fair value $230.26 vs current price $54.33
Wall Street consensus is the average analyst price target: $75.50 (-67.2% lower than our fair-value estimate).
Our most-likely fair value is $230.26 a share — about 323.8% above today's price of $54.33, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $2.3B. Interest coverage 2.1x.
Net debt
$2.34B
Interest coverage
2.06x
Willis Lease Finance Corporation's profit covers its interest bill about 2.1 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
WLFC
BASELINE
Willis Lease Finance Corporation
Total debt $2.35B Interest coverage 2.06x This is the baseline the peer rows are being compared against.
Total debt $969.75M Interest coverage 3.60x +75% vs WLFC Carries about 1.7x more debt cushion than WLFC.
Total debt $1.01B Interest coverage 3.75x +82% vs WLFC Carries about 1.8x more debt cushion than WLFC.
Total debt $177.85M Interest coverage 16.11x +681% vs WLFC Carries about 7.8x more debt cushion than WLFC.
Total debt $3.50B Interest coverage 3.11x +51% vs WLFC Carries about 1.5x more debt cushion than WLFC.
What you should know
The case for and against WLFC
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.8% last year.
-
Returns 12.6% on equity, ahead of 40% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 46.3% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.69x
Forward P/E
7.91x
P/B
1.75x
P/S
1.52x
EV/EBITDA
8.91x
PEG ratio
0.94x
Profitability
How much profit each dollar creates
Gross margin
85.2%
Operating margin
37.7%
Net margin
12.2%
ROE
12.6%
ROA
4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
3.03x
Current ratio
1.54x
Quick ratio
0.20x
Total debt
$2.35B
Total cash
$11.60M
Growth
How the business has been compounding
Revenue TTM
$765.37M
Revenue 5Y CAGR
27.7%
EPS TTM
3.97
EPS 5Y CAGR
259.9%
Cash flow
How much cash the business throws off
Operating CF TTM
$272.24M
Free CF TTM
$252.15M
FCF margin
32.9%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
12.2%
Last ex-div date
2026-08-11