FTAI Aviation Ltd. (NASDAQ: FTAI)

Sector: Industrials Industry: Rental & Leasing Services CIK: 0001590364
Market Cap 27.80 Bn
P/B 24.71
P/E -179.72
P/S 106.00
ROIC (Qtr) 16.11
Div Yield % 0.58
Rev 1y % (Qtr) 43.21
Total Debt (Qtr) 3.45 Bn
Debt/Equity (Qtr) 13.65
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About

FTAI Aviation Ltd., a prominent entity in the aviation and offshore energy equipment leasing and management industry, operates under the ticker symbol FTAI on the NASDAQ stock exchange. Since its inception in 2017, the company has rapidly expanded its footprint in the industry, boasting a robust portfolio of top-tier aviation and offshore energy equipment. In the highly dynamic aviation and offshore energy equipment leasing and management industry, FTAI Aviation Ltd. has carved out a niche for itself by offering a wide array of products and services....

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Investment thesis

Bull case

  • Tangible assets of 4.14B provide robust 20.60x coverage of other current liabilities 200.88M, indicating strong asset backing.
  • Strong cash position of 509.94M provides 2.54x coverage of other current liabilities 200.88M, indicating excellent liquidity.
  • Cash reserves of 509.94M provide robust 1.46x coverage of current liabilities 348.23M, indicating strong short-term solvency.
  • Cash reserves of 509.94M provide solid 2.65x coverage of other non-current liabilities 192.77M, indicating strong liquidity.
  • Free cash flow of 179.47M provides healthy 0.52x coverage of current liabilities 348.23M, showing strong operational health.

Bear case

  • Operating cash flow of (173.47M) barely covers its investment activities of 695.90M, with a coverage ratio of -0.25, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (173.47M) provides thin coverage of dividend payments of (123.07M) with a 1.41 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • The company's operating cash flow of (173.47M) shows concerning coverage of stock compensation expenses of 19.49M, with a -8.90 ratio indicating potential earnings quality issues.
  • Free cash flow of 179.47M provides weak coverage of capital expenditures of (352.94M), with a -0.51 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (173.47M) provides minimal -1.87x coverage of tax expenses of 92.68M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Rental & Leasing Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 URI United Rentals, Inc. 55.62 Bn 22.30 3.45 15.35 Bn
2 FTAI FTAI Aviation Ltd. 27.80 Bn -179.72 106.00 3.45 Bn
3 AER AerCap Holdings N.V. 26.27 Bn 7.00 3.08 43.57 Bn
4 UHAL U-Haul Holding Co /NV/ 13.75 Bn 106.91 2.29 8.06 Bn
5 GATX Gatx Corp 9.00 Bn 53.16 6.81 9.03 Bn
6 R Ryder System Inc 8.88 Bn 17.80 0.70 7.65 Bn
7 AL Air Lease Corp 7.23 Bn 6.92 2.40 19.73 Bn
8 HRI Herc Holdings Inc 5.00 Bn 5,004.00 1.14 9.68 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.98 1.32
EV to Cash from Ops. EV/CFO 1,139.43 77.20
EV to Debt EV to Debt 8.59 3.45
EV to EBIT EV/EBIT -684.91 -105.66
EV to EBITDA EV/EBITDA 148.81 20.85
EV to Free Cash Flow [EV/FCF] EV/FCF -54.54 -1.38
EV to Market Cap EV to Market Cap 1.06 3.10
EV to Revenue EV/Rev 112.88 9.87
Price to Book Value [P/B] P/B 24.71 7.72
Price to Earnings [P/E] P/E -179.72 277.95
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.85 3.00
Dividend Payout Ratio % Div Payout % (Qtr) 27.10 500.03
Dividend per Basic Share Div per Share (Qtr) 1.20 1.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 68.57 6.22
Interest Coverage Int. cover (Qtr) 3.34 -60.94
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 191.26 17.05
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 355.15 54.66
Dividend Growth (1y) % Div 1y % (Qtr) 33.33 0.10
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 851.84 38.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 150.51 5.40
EBIT Growth (1y) % EBIT 1y % (Qtr) 412.62 2.84
EBT Growth (1y) % EBT 1y % (Qtr) 1,452.77 42.60
EPS Growth (1y) % EPS 1y % (Qtr) 5,011.11 243.85
FCF Growth (1y) % FCF 1y % (Qtr) 134.47 5.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 31.27 31.59
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.55 0.54
Cash Payout Ratio Cash Payout (Qtr) -0.22 0.03
Cash Ratio Cash Ratio (Qtr) 1.46 0.21
Current Ratio Curr Ratio (Qtr) 5.84 1.01
Debt to Equity Ratio Debt/Equity (Qtr) 13.65 20.57
Interest Cover Ratio Int Coverage (Qtr) 3.34 -60.94
Times Interest Earned Times Interest Earned (Qtr) 3.34 -60.94
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 44.90 35.32
EBIT Margin % EBIT Margin % (Qtr) 35.33 12.98
EBT Margin % EBT Margin % (Qtr) 24.77 3.50
Gross Margin % Gross Margin % (Qtr) 41.20 42.91
Net Profit Margin % Net Margin % (Qtr) 19.30 1.24