AerCap Holdings N.V. Ordinary Shares (AER)

FairStock Score: 65/100 — STEADY

Key Financials

Strengths

• High return on equity of 21.1% demonstrating efficient capital deployment

Concerns

• High leverage at 2.38x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of 0.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

AerCap Holdings N.V. Ordinary Shares is a mid-cap industrials company valued at $22.6 billion. The business generates $8.5 billion in annual revenue with a 7.4% net margin. From a quality standpoint, AerCap shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 0.7 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 6.5x, with offers a 40% margin of safety vs Graham Number of $232. Growth dynamics show revenue growing at 8.3% and profit growth of -5.7%. The 1.2% dividend yield adds an income component for patient holders. Our composite FairStock Score of 59/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

The market underappreciates AerCap's consistent 21% ROE at just 7x earnings—a re-rating toward sector peers could unlock 30-50% upside. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 2.4x D/E means rising interest rates or revenue weakness could strain debt covenants and force asset sales at distressed prices. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer