📊 WLFC Key Takeaways
Is Willis Lease Finance Corp. (WLFC) a Good Investment?
Willis Lease demonstrates solid operational profitability (17.4% operating margin) and strong free cash flow generation ($53.1M, 27.3% FCF margin), but faces critical financial fragility with interest coverage of only 1.0x and extreme leverage of 3.25x debt-to-equity. The company has minimal cash ($24.6M) relative to $2.3B debt, leaving virtually no buffer for economic downturns or rate increases.
Why Buy Willis Lease Finance Corp. Stock? WLFC Key Strengths
- Strong free cash flow generation of $53.1M with 27.3% FCF margin shows efficient cash conversion
- Healthy operating margin of 17.4% and net margin of 12.9% demonstrate operational efficiency
- Positive net income of $25.1M and $56.7M operating cash flow in current period
WLFC Stock Risks: Willis Lease Finance Corp. Investment Risks
- Critical: Interest coverage ratio of 1.0x leaves virtually no margin for error; any profitability decline risks debt service failure
- Extreme leverage of 3.25x debt-to-equity with only $24.6M cash creates severe vulnerability to market disruptions or rate increases
- Very poor shareholder returns (3.6% ROE, 0.7% ROA) indicate capital is not being deployed efficiently despite heavy debt burden
Key Metrics to Watch
- Interest coverage ratio trend - must improve above 1.5x minimum
- Operating cash flow stability - any decline below $50M signals distress
- Debt levels and refinancing needs - monitor ability to service and roll over $2.3B debt
Willis Lease Finance Corp. (WLFC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 27.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
WLFC Profit Margin, ROE & Profitability Analysis
WLFC vs Industrial Sector: How Willis Lease Finance Corp. Compares
How Willis Lease Finance Corp. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Willis Lease Finance Corp. Stock Overvalued? WLFC Valuation Analysis 2026
Based on fundamental analysis, Willis Lease Finance Corp. shows some fundamental concerns relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Willis Lease Finance Corp. Balance Sheet: WLFC Debt, Cash & Liquidity
WLFC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Willis Lease Finance Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $6.23 reflects profitable operations.
WLFC Revenue Growth, EPS Growth & YoY Performance
WLFC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2024 | $4.7M | $4.4M | $0.55 |
| Q3 2022 | $2.4M | $1.6M | $-0.14 |
| Q2 2020 | $26.5M | $5.4M | $0.74 |
| Q1 2020 | $20.5M | $4.3M | $0.56 |
| Q3 2019 | $19.4M | $9.7M | $1.47 |
| Q2 2019 | $22.0M | $8.4M | $1.26 |
| Q1 2019 | $15.4M | $7.1M | $1.00 |
| Q3 2018 | $19.4M | $5.3M | $0.80 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Willis Lease Finance Corp. Dividends, Buybacks & Capital Allocation
WLFC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Willis Lease Finance Corp. (CIK: 0001018164)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WLFC
What is the AI rating for WLFC?
Willis Lease Finance Corp. (WLFC) has an AI rating of HOLD with 42% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WLFC's key strengths?
Claude: Strong free cash flow generation of $53.1M with 27.3% FCF margin shows efficient cash conversion. Healthy operating margin of 17.4% and net margin of 12.9% demonstrate operational efficiency.
What are the risks of investing in WLFC?
Claude: Critical: Interest coverage ratio of 1.0x leaves virtually no margin for error; any profitability decline risks debt service failure. Extreme leverage of 3.25x debt-to-equity with only $24.6M cash creates severe vulnerability to market disruptions or rate increases.
What is WLFC's revenue and growth?
Willis Lease Finance Corp. reported revenue of $194.3M.
Does WLFC pay dividends?
Willis Lease Finance Corp. pays dividends, with $3.1M distributed to shareholders in the trailing twelve months.
Where can I find WLFC SEC filings?
Official SEC filings for Willis Lease Finance Corp. (CIK: 0001018164) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WLFC's EPS?
Willis Lease Finance Corp. has a diluted EPS of $3.26.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WLFC a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Willis Lease Finance Corp. has a HOLD rating with 42% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is WLFC stock overvalued or undervalued?
Valuation metrics for WLFC: ROE of 3.6% (sector avg: 15%), net margin of 12.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy WLFC stock in 2026?
Our dual AI analysis gives Willis Lease Finance Corp. a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is WLFC's free cash flow?
Willis Lease Finance Corp.'s operating cash flow is $56.7M, with capital expenditures of $3.5M. FCF margin is 27.3%.
How does WLFC compare to other Industrial stocks?
Vs Industrial sector averages: Net margin 12.9% (avg: 10%), ROE 3.6% (avg: 15%), current ratio N/A (avg: 1.8).
Is Willis Lease Finance Corp. carrying too much debt?
WLFC has a debt-to-equity ratio of 3.25x, which is above the Industrial sector average of 0.7x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.