FTAI Aviation (FTAI) AI Stock Analysis

• Market Cap: $16.75B
• Dividend Yield: 0.72%
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 0.92
• Revenue Growth: 55.05%
• EPS Growth: N/A
• Country: US
• Employees: 580
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): 1.57
• Shares Outstanding: 102,570,595
• 10 Day Avg. Volume: 1,043,053
• 30 Day Avg. Volume: 1,136,051
• PEG Ratio: -14.64
• Price to Book (P/B): 179.75
• Price to Sales (P/S): 8.43
• P/FCF Ratio: -10.88
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 7.00
• Enterprise Value/Gross Profit: 16.03
• Enterprise Value/Ebitda: 14.61
• 1Y Price Target: $189.30
• Price Target Upside: 13.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 61 Neutral
• Price Target: $176.00 ▲(5.48% Upside)

FTAI Aviation's overall stock score reflects strong earnings call performance and strategic corporate events, which are offset by financial risks due to high leverage and negative cash flows. The technical analysis suggests bullish momentum, but valuation concerns remain due to a high P/E ratio.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for FTAI's services, enhancing its market position and supporting long-term business expansion.

Strategic Expansion

Strategic expansions in key locations will likely boost operational capacity and market reach, facilitating sustained growth and competitive advantage.

Acquisition of Pacific Aerodynamic

This acquisition enhances repair capabilities, promising cost efficiencies and margin improvements, strengthening FTAI's service offerings.

Negative Factors

High Debt Levels

Excessive leverage can strain financial resources, limiting flexibility and increasing risk, potentially impacting long-term financial health.

Negative Cash Flows

Negative cash flows suggest liquidity challenges, which could hinder operational capabilities and investment in growth initiatives.

Pressure on Margins

Lower-margin deals may compress profitability, affecting overall margin sustainability and financial performance over time.

FTAI Aviation Business Overview & Revenue Model

Company Description

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.

How the Company Makes Money

FTAI generates revenue through multiple key streams. The primary source is the leasing of commercial jet engines and aircraft, providing long-term contracts to airlines and operators. The company also earns revenue from providing MRO services, which involves maintaining and repairing aviation assets to ensure regulatory compliance and operational reliability. Additionally, FTAI benefits from asset management services, where it oversees and optimizes the performance of aviation assets for third-party investors. Significant partnerships with major airlines and manufacturers enhance FTAI's market presence and contribute to its earnings, while a focus on optimizing asset utilization ensures steady cash flow.

FTAI Aviation Financial Statement Overview

Summary

FTAI Aviation shows strong revenue growth and operational efficiency, but high leverage and low profitability margins pose financial risks. Negative cash flow highlights liquidity challenges, requiring attention to cash management and debt reduction strategies.

Income Statement

FTAI Aviation has demonstrated strong revenue growth, with a notable increase in total revenue from $366.5 million in 2020 to $1.91 billion in TTM 2025. The gross profit margin remains healthy at 40.8% for TTM 2025, indicating effective cost management. The EBIT margin for TTM 2025 is robust at 38.2%, reflecting operational efficiency. However, the net profit margin for TTM 2025 is relatively low at 3.1%, suggesting a need to improve bottom-line profitability.

Balance Sheet

FTAI Aviation exhibits a high debt-to-equity ratio of 128.6 for TTM 2025, indicating significant leverage and potential financial risk. The equity ratio is a modest 0.7%, emphasizing a reliance on debt financing. The return on equity for TTM 2025 is 208.2%, which is exceptionally high but driven by the low equity base, leading to volatility in shareholder returns.

Cash Flow

FTAI Aviation's cash flow situation shows challenges, with negative free cash flow of $466.5 million in TTM 2025, indicating potential liquidity issues. The operating cash flow to net income ratio is negative, suggesting that net income is not converting into cash flow effectively. The high capital expenditures further strain the cash position.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.14B	1.73B	1.17B	708.41M	455.80M	366.50M
Gross Profit	936.28M	690.95M	498.89M	307.11M	254.05M	194.10M
EBITDA	1.03B	469.55M	530.66M	230.71M	263.02M	245.84M
Net Income	444.27M	8.68M	243.82M	-110.61M	-130.71M	-105.02M
Balance Sheet
Total Assets	4.10B	4.04B	2.96B	2.43B	4.86B	3.39B
Cash, Cash Equivalents and Short-Term Investments	301.91M	115.12M	90.76M	33.56M	188.08M	121.70M
Total Debt	3.44B	3.44B	2.52B	2.18B	3.29B	1.97B
Total Liabilities	3.94B	3.96B	2.79B	2.41B	3.74B	2.29B
Stockholders Equity	164.94M	81.37M	175.35M	18.88M	1.12B	1.08B
Cash Flow
Free Cash Flow	-380.83M	-1.34B	-647.91M	-834.31M	-789.67M	-531.67M
Operating Cash Flow	-136.60M	-187.96M	128.98M	-20.66M	-22.04M	63.11M
Investing Cash Flow	246.57M	-469.50M	-373.35M	-411.25M	-1.29B	-509.12M
Financing Cash Flow	23.00M	681.81M	282.21M	44.91M	1.59B	364.92M

FTAI Aviation Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 166.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTAI, the sentiment is Neutral. The current price of 166.86 is below the 20-day moving average (MA) of 169.30, above the 50-day MA of 150.27, and above the 200-day MA of 124.42, indicating a neutral trend. The MACD of 5.62 indicates Positive momentum. The RSI at 53.87 is Neutral, neither overbought nor oversold. The STOCH value of 10.69 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FTAI.

FTAI Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AL	82 Outperform	$7.11B	7.73	11.89%	1.38%	8.08%	76.55%
AER	79 Outperform	$21.45B	7.36	12.21%	0.88%	3.24%	4.46%
R	78 Outperform	$7.63B	15.96	16.46%	1.77%	3.68%	6.61%
GATX	74 Outperform	$6.23B	20.02	11.97%	1.38%	11.74%	33.85%
WLFC	66 Neutral	$932.99M	8.14	17.97%	0.73%	30.08%	32.62%
FTAI	61 Neutral	$16.75B	40.49	389.50%	0.72%	55.05%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

FTAI Aviation Corporate Events

FTAI Aviation Completes Sale of 39 Aircraft

FTAI Aviation Ltd. announced the completion of the sale of 39 aircraft as part of its 2025 Aircraft Sale initiative, which was disclosed on December 30, 2024. This strategic move, involving a partnership with institutional investors, aims to enhance the company’s capital structure and market positioning by focusing on on-lease 737NG and A320ceo aircraft. The company serves as the Servicer of the 2025 Partnership, managing various operational aspects and maintaining a 20% limited partnership interest.