Notes
30NOV08 - $4.63
Market Cap (intraday): 393.72MEnterprise Value (29-Nov-08): 3.82B
Trailing P/E (ttm, intraday): 1.82
Forward P/E (fye 31-Dec-09): 1.91
PEG Ratio (5 yr expected): 0.12
Price/Sales (ttm): 0.33
Price/Book (mrq): 0.35
Enterprise Value/Revenue (ttm): 3.20
Enterprise Value/EBITDA (ttm): 8.861
Book value is 90% tangible.
Debt/equity: 3.2 <-- Hm.
Current ratio: 3.1
4:30 PM EST November 19, 2008. AerCap Holdings N.V. (NYSE: AER) sees insider buying. CEO Klaus Heinemann bought 25,000 shares, CFO Keith Helming bought 25,000 shares, Officer Eric Soeren Ferre bought 6,000, Officer Patricius Elzen Den bought 15,000 shares, Officer Dikken Wouter Den bought 3,000 shares, Director James Chapman bought 2,000.
Standard & Poors: 4 stars.
Argus: Buy
Both S&P and Argus report that Aercap leases modern, fuel-efficient aircraft, which are in demand. The average plane age is reportedly around 6 years. Both report good access to capital. Both report that Aercap has leased all its planes through 2009, with an average term around 5 years.
Thoughts. AER tends to follow the airline stocks, which creates opportunities. The airline stocks tend to move inversely of fuel prices, but AER isn't in the business of flying planes so fuel isn't a major expense. The fundamentals and valuations are excellent. The company just announced earnings which 1) increased, and 2) beat estimates. AER's main business is leasing aircraft to the airlines. It benefits from fuel prices that are high enough to make the airlines efficiency-conscious. AER leases newer, fuel efficient aircraft. The airlines also tend to lease (rather than buy) aircraft when credit is tight, like now. On the other hand, fuel prices that are really high threaten the airlines with bankruptcy, which would cost AER customers. So the sweet spot for the aircraft lessors like AER is a fuel price high enough to make the airlines conscious of energy efficiency and their balance sheets, but not so high to threaten the airlines with bankruptcy. That's where we are right now.
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