Willis Lease Finance Corporation Common Stock (WLFC)

FairStock Score: 56/100 — STEADY

Key Financials

Strengths

• Solid return on equity of 17.0% above cost of capital
• Revenue growth of 26.7% demonstrates strong top-line momentum

Concerns

• High leverage at 3.74x 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

Willis Lease Finance Corporation Common Stock is a micro-cap industrials company valued at $1.3 billion. Revenue stands at $716 million. From a quality standpoint, Willis shows distressed Altman Z-Score of 0.7 warrants caution and adequate 17% ROE. On valuation, the stock is attractively valued at 12.3x earnings, with trades above its Graham Number with a negative 9% margin. Growth dynamics show revenue growing at 26.7% and profit growth of -42.1%. Our composite FairStock Score of 56/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Willis's 27% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Elevated leverage at 3.7x 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