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ALAir Lease Corporation
$65.00$7.3B
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  4. Financial Ratios

Air Lease Corporation (AL) Financial Ratios

Latest Ratios: P/E Ratio 7.0x · EV/EBITDA N/A · ROE 13.6%. (2011–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

AL Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$7.3B$7.2B$5.4B$4.7B$4.3B$5.1B$5.1B$5.4B$3.4B$5.4B$3.8B
Enterprise Value$6.8B$26.5B$25.1B$23.4B$22.2B$21.0B$19.8B$18.6B$14.6B$14.8B$12.2B
P/E Ratio →7.006.9114.488.16—12.3910.129.346.647.059.98
P/S Ratio2.412.391.971.741.852.422.512.662.023.542.68
P/B Ratio0.860.850.720.650.650.720.830.960.711.301.12
P/FCF———————————
P/OCF4.194.163.222.683.103.684.653.862.715.073.73

P/E links to full P/E history page with 30-year chart

AL EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—8.789.198.719.5610.059.859.238.719.748.63
EV / EBITDA—9.6414.5112.9313.4214.2413.5012.6211.6612.8811.51
EV / EBIT—17.3842.7328.97—35.4928.7824.1021.7523.1220.03
EV / FCF———————————

AL Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin59.4%59.4%29.6%35.8%37.0%35.6%39.8%45.5%46.9%49.5%50.1%
Operating Margin50.5%50.5%21.5%27.6%29.6%28.3%—38.3%40.1%42.1%43.1%
Net Profit Margin36.1%36.1%15.6%22.9%-4.2%20.9%25.6%29.1%30.4%49.9%26.4%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE13.6%13.6%5.8%8.9%-1.4%6.7%8.8%11.3%11.4%20.1%11.7%
ROA3.3%3.3%1.4%2.1%-0.4%1.7%2.2%2.9%3.0%5.1%2.8%
ROIC4.2%4.2%1.7%2.2%2.2%2.0%—3.3%3.4%3.8%4.1%
ROCE5.0%5.0%2.0%2.6%2.6%2.3%—4.1%4.1%4.4%4.8%

AL Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity2.332.332.682.682.802.432.722.412.402.352.58
Debt / EBITDA7.187.1811.6710.6011.2811.5511.239.209.208.458.19
Net Debt / Equity—2.272.622.612.692.272.432.352.342.282.50
Net Debt / EBITDA7.017.0111.4010.3510.8210.8110.058.988.968.207.93
Debt / FCF———————————
Interest Coverage1.711.7110.7314.94-1.6111.6916.0321.0520.5721.6919.75

AL Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.930.930.340.360.921.482.770.180.640.740.82
Quick Ratio0.930.930.340.360.921.482.770.180.640.740.82
Cash Ratio0.200.200.340.350.911.452.730.180.600.710.77
Asset Turnover—0.090.080.090.080.080.080.090.090.100.10
Inventory Turnover———————————
Days Sales Outstanding—99.77—————————

AL Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield1.3%1.4%1.7%1.9%1.9%1.4%1.3%1.1%1.2%0.6%0.5%
Payout Ratio9.0%9.0%21.9%14.4%—16.7%13.2%9.9%8.1%4.1%5.5%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield14.3%14.5%6.9%12.3%—8.1%9.9%10.7%15.1%14.2%10.0%
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%0.0%3.5%0.1%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield1.3%1.4%1.7%1.9%5.4%1.6%1.3%1.1%1.2%0.6%0.5%
Shares Outstanding—$112M$112M$111M$112M$114M$114M$113M$112M$112M$111M

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetAdequate
Cash FlowBurning
Top Statement Risk

OEM delivery schedule volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2025Q4)

Discounted Valuation Reflects Cyclical Skepticism

According to current market data, AL trades at a forward P/E of 12.76 and a P/B of 0.86, suggesting that investors are pricing in significant skepticism regarding the company's ability to realize the full book value of its aircraft portfolio amidst ongoing OEM delivery delays.

The P/B ratio below parity indicates that the market may be discounting the embedded gains in AL's order book, potentially fearing that future asset sales will not achieve historical premiums. While the forward P/E appears attractive, it relies heavily on the assumption that lease yields will remain resilient despite the capital-intensive nature of the business model.

Capital Efficiency Constrained by Intensity

As reported in financial statements, AL's ROIC has remained suppressed, hovering near 1.2% in 2025Q4, which highlights the structural difficulty of generating high returns on invested capital when the business requires constant, massive reinvestment into a depreciating fleet of long-lived aviation assets.

The persistent gap between ROIC and the company's cost of capital warrants investigation, as it suggests that the current fleet expansion strategy may be value-neutral rather than value-accretive. Investors should monitor whether management can improve these returns by shifting toward higher-margin asset trading or if the capital-intensive nature of the business will continue to dilute long-term compounding potential.

Working Capital Volatility and Leverage

Based on reported figures, AL's DPO has fluctuated wildly, reaching 62 days in 2025Q4 compared to 487 days in 2023Q3, which suggests that the company's ability to manage supplier leverage is highly sensitive to the timing of large-scale aircraft deliveries and associated payment milestones.

The extreme variance in DPO reflects the lumpy nature of capital expenditures in the aircraft leasing industry, where payment terms are often dictated by OEM delivery schedules rather than standard operational cycles. This volatility complicates the assessment of working capital efficiency, as the company's cash conversion cycle is effectively dominated by long-term financing decisions rather than short-term trade payables.

Deleveraging Amidst Capital Intensive Growth

According to recent SEC filings, AL has successfully moderated its debt-to-equity ratio to 2.33 in 2025Q4, a notable improvement from the 2.69 level observed in 2024Q2, indicating a disciplined approach to balance sheet management despite the ongoing requirement to fund a multi-billion dollar aircraft order book.

While the reduction in leverage is a positive signal for solvency, the interest coverage ratio of 2.04 in 2025Q4 suggests that the company remains sensitive to interest rate fluctuations. Investors should monitor whether this deleveraging trend is sustainable or if it will be reversed as the company accelerates capital deployment to capture future growth opportunities.

Misapplication of P/E Multiples

Based on industry analysis, the P/E ratio is the most commonly misapplied metric for AL, as it fails to account for the massive non-cash depreciation charges that artificially depress reported earnings and obscure the underlying cash-generating capacity of the aircraft leasing business model.

Using P/E to value AL ignores the fact that depreciation is a non-cash expense that does not reflect the actual economic wear and tear of the fleet, which is often offset by rising residual values. Analysts should instead focus on Price-to-Book or cash-flow-based metrics that better capture the value of the underlying asset base and the recurring nature of lease income.

Download Financial Ratios Data

Includes 30+ ratios · 15 years · Updated daily

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AL — Frequently Asked Questions

Quick answers to the most common questions about buying AL stock.

What is Air Lease Corporation's P/E ratio?

Air Lease Corporation's current P/E ratio is 7.0x. The historical average is 13.4x. This places it at the 14th percentile of its historical range.

What is Air Lease Corporation's ROE?

Air Lease Corporation's return on equity (ROE) is 13.6%. The historical average is 8.8%.

Is AL stock overvalued?

Based on historical data, Air Lease Corporation is trading at a P/E of 7.0x. This is at the 14th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Air Lease Corporation's dividend yield?

Air Lease Corporation's current dividend yield is 1.35% with a payout ratio of 9.0%.

What are Air Lease Corporation's profit margins?

Air Lease Corporation has 59.4% gross margin and 50.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.

How much debt does Air Lease Corporation have?

Air Lease Corporation's Debt/EBITDA ratio is 7.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.