$Willis Lease Finance (WLFC.US)$It is for aircraft and engin...
$Willis Lease Finance (WLFC.US)$It is for aircraft and engine leasing. Unsurprisingly, it shrank sharply in 2020. It only increased 13.8% in 2022. Operating profit and net profit also shrank sharply in 2020, and net profit in 2022 only recovered to 5.44 million. Operating profit in 2022 was 1.4 times interest expenses, and the interest burden was very heavy.
In the first half of 2023, revenue increased sharply by 35.2%, operating profit increased 73%, net profit increased 2.2 times to 0.018 billion, and profit after dividends on preferred shares doubled. It can be seen that financial leverage is working, and profits will recover faster during the revenue recovery period.
The balance ratio has not changed much in the past 5 years. Accounts receivable have been reduced in the past two years, and inventory is relatively small. Long-term loans of 1.827 billion yuan are 4.4 times the net assets of 0.417 billion, and the leverage ratio is very high.
Net cash flow operating over the past 5 years has been significantly lower than net investment, generating no shareholder surplus, and not catching up in the first half of 2023.
Currently, the price-earnings ratio is 129.2, and the price-earnings ratio has dropped to 7.5. If calculated based on a 5-year average net profit of 0.026 billion, the price-earnings ratio is 10.4, which is not very attractive overall.
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