Air Lease Intrinsic Value Calculation – Air Lease Secures Insurance Settlement for Jets Stranded in Russia

December 27, 2023

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Air Lease ($NYSE:AL) is a leading global aircraft leasing company, specializing in acquiring, leasing, and remarketing commercial aircraft. Recently, the company has announced it has secured an insurance settlement following the stranding of four of its jets in Russia. The jets were unable to be flown out of the country due to problems that arose from the conflict between Russia and Ukraine. The insurance settlement will resolve the issue of the four stranded jets and enable Air Lease to move forward with its operations. This is a major victory for the company, as stranding jets can be a costly business, both in terms of time and money.

The jets have now been successfully flown out of Russia, ensuring that the company can continue to offer its leasing services without further disruption. Air Lease customers can now rest assured that their aircraft will be able to be relocated when needed, with minimal disruption to operations. This insurance settlement is yet another example of the company’s commitment to providing high-quality services to its customers. As they continue to expand their services and grow their customer base, this will help to further cement their reputation as a reliable and efficient leasing company.

Price History

On Tuesday, Air Lease Corporation saw its stock open at $42.2 and close at $42.0, a 0.2% decrease from the previous closing price of 42.1. This follows the news that Air Lease had secured an insurance settlement for jets stranded in Russia. Air Lease is a global aviation company that specializes in aircraft leasing and financing. Their business model consists of purchasing new aircraft from manufacturers and leasing them to airlines and other customers around the world.

As part of their operations, they also insure and finance their aircrafts. Air Lease had previously taken out insurance policies to protect against such scenarios and has now received a sizable payout from those policies. The settlement will provide significant relief to Air Lease as it will allow them to recoup losses associated with the stranded jets. Live Quote…

About the Company

  • Industry Classification
  • Key Executives
  • Ownership (Institutional/ Fund Holdings)
  • News Feed
  • Income Snapshot

    Below shows the total revenue, net income and net margin for Air Lease. More…

    Total Revenues Net Income Net Margin
    2.57k 497.18 20.0%
  • Income Statement Reports (Yearly/ Quarterly/ LTM)
  • Income Supplement
  • Growth Performance
  • Cash Flow Snapshot

    Below shows the cash from operations, investing and financing for Air Lease. More…

    Operations Investing Financing
    1.71k -2.36k 50.17
  • Cash Flow Statement (Yearly/ Quarterly/ LTM)
  • Cash Flow Supplement
  • Balance Sheet Snapshot

    Below shows the total assets, liabilities and book value per share for Air Lease. More…

    Total Assets Total Liabilities Book Value Per Share
    29.67k 22.71k 62.7
  • Balance Sheet (Yearly/ Quarterly)
  • Balance Sheet Supplement
  • Key Ratios Snapshot

    Some of the financial key ratios for Air Lease are shown below. More…

    3Y Rev Growth 3Y Operating Profit Growth Operating Margin
    7.4% -3.0% 28.1%
    FCF Margin ROE ROA
    -93.9% 6.5% 1.5%
  • Income Statement Ratios
  • Balance Sheet Ratios
  • Cash Flow Ratios
  • Valuation Ratios
  • Other Ratios
  • Other Supplementary Items
  • Analysis – Air Lease Intrinsic Value Calculation

    At GoodWhale, we have conducted an analysis of AIR LEASE‘s fundamentals. Our proprietary Valuation Line has determined that the fair value of an AIR LEASE share is around $47.4. Currently, AIR LEASE stock is being traded at $42.0, a price which our analysis has determined to be undervalued by 11.3%. This could provide a great opportunity for those looking to invest in the stock. More…

  • Star Chart Analysis
  • Valuation Analysis




  • Peers

    All four companies are vying for a share of the growing demand for aircraft leasing and financing services as the global airline industry continues to expand. While each company offers unique services and products, all four are engaged in a competitive battle to gain the lion’s share of the market.

    – CSSC (Hong Kong) Shipping Co Ltd ($SEHK:03877)

    CSSC (Hong Kong) Shipping Co Ltd is a major shipping company based in Hong Kong. It is a leading provider of container transportation and logistics services, specializing in container operations, chartering, logistics and container sales. The company has a market cap of 6.75B as of 2022 and a Return on Equity of 13.77%, indicating that the company has a strong financial position and is able to generate attractive returns for its shareholders. CSSC (Hong Kong) Shipping Co Ltd’s market cap and ROE are both significantly higher than the industry average, suggesting that the company is well-positioned to capitalize on future growth opportunities.

    – AerCap Holdings NV ($NYSE:AER)

    AerCap Holdings NV is a global aircraft leasing company headquartered in The Netherlands. With a market cap of 14.55B as of 2022, AerCap has become one of the leading companies in the industry. The company’s return on equity (ROE) is 6.18%, indicating that it is using its shareholder equity efficiently to generate profits. AerCap Holdings NV offers a wide range of services, such as aircraft leasing, aircraft remarketing and asset management, aircraft trading, and aviation finance services. With its strong financial performance, AerCap Holdings NV is well-positioned to continue its growth in the industry.

    – SBI Leasing Services Co Ltd ($TSE:5834)

    SBI Leasing Services Co Ltd is one of the leading financial services companies in India. The company offers a range of leasing and financing services such as loan syndication, asset finance, and leasing services. As of 2022, SBI Leasing Services Co Ltd has an impressive market capitalization of 22.86 billion dollars and a return on equity of 90.49%. This is an indication of the company’s strong financial performance and high profitability. The company continues to strive to deliver superior services to its customers, creating value and enhancing shareholder wealth.

    Summary

    Air Lease (NYSE: AL) is an aircraft leasing company that recently received an insurance settlement from four of its jets, which were stranded in Russia. This settlement is favorable news for AL investors, as it aligns with the company’s ongoing focus on inorganic growth through strategic investments. With an improved fleet of aircraft, Air Lease will be able to meet the growing demand for air travel around the world.

    Additionally, the company’s strong financial position and credit ratings give it the flexibility to capitalize on opportunities that will drive long-term growth. Looking ahead, Air Lease’s primary goal is to maximize value for shareholders and ensure the sustainability of its business. This settlement is a positive step towards that goal.

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