Here's Why We Think Air Lease (NYSE:AL) Might Deserve Your Attention Today

Yahoo

07-05-2025

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story even if these companies are loss-making. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Air Lease (NYSE:AL). While this doesn't necessarily speak to whether it's undervalued, the profitability of the business is enough to warrant some appreciation - especially if its growing.
We've discovered 4 warning signs about Air Lease. View them for free.
Air Lease's Improving Profits
Air Lease has undergone a massive growth in earnings per share over the last three years. So much so that this three year growth rate wouldn't be a fair assessment of the company's future. As a result, we'll zoom in on growth over the last year, instead. Air Lease's EPS has risen over the last 12 months, growing from US$4.97 to US$5.72. There's little doubt shareholders would be happy with that 15% gain.
Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth. EBIT margins for Air Lease remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 3.6% to US$2.8b. That's a real positive.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
NYSE:AL Earnings and Revenue History May 7th 2025
View our latest analysis for Air Lease
While we live in the present moment, there's little doubt that the future matters most in the investment decision process. So why not check this interactive chart depicting future EPS estimates, for Air Lease?
Are Air Lease Insiders Aligned With All Shareholders?
We would not expect to see insiders owning a large percentage of a US$5.4b company like Air Lease. But we are reassured by the fact they have invested in the company. Notably, they have an enviable stake in the company, worth US$365m. This suggests that leadership will be very mindful of shareholders' interests when making decisions!
Should You Add Air Lease To Your Watchlist?
As previously touched on, Air Lease is a growing business, which is encouraging. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. We should say that we've discovered 4 warning signs for Air Lease (2 are concerning!) that you should be aware of before investing here.