Many stocks have been testing new highs in 2020, and one of the most notable is AerCap Holdings N.V. (AER). Currently, AER is trading at $40.04 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $45.29.
To add more color to this target, the company’s high over the last year is $64.86 and the low is $10.42. Over the last 52 weeks, AER is down -38.27% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, AER reported a profit of $1.24 billion. AerCap Holdings N.V. also saw revenues increase to $1.24 billion. In addition, AER has free cash flow of $567.59 million as of 03-2020 The company’s EBITDA came in at $1.06 billion which compares well with its peers.
AER booked profit margins of 25.00%, its Return on Equity (ROE) is 12.90%, and its Return on Assets is 2.70%. All told, it is clear that, AER needs to be on your watchlist.
About AerCap Holdings N.V.
If readers are unfamiliar, AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in China, the United States, Ireland, and internationally. The company offers aircraft asset management services, including remarketing aircraft; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also comprise periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and aircraft engine valuations; and providing market research services. The company also provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. As of December 31, 2018, it had a portfolio of 1,421 owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AER has a short ratio of 1.53 and outstanding shares of 128.30M.
AER has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.92 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 8.91. AerCap Holdings N.V. AER also noted assets of $47.14 billion at the end of the last quarter. Investors should also keep an eye on sector updates as AER has historically followed its peers on positive news.
All told, AerCap Holdings N.V. AER has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AER represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
AerCap Holdings N.V. AER is now commanding a market cap of 5.15B and a float of 125.68M. AER is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AER stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in AER, either long or short, and we have not been compensated for this article.