AerCap Continues To Execute, But Not Getting Much Credit For It

AerCap (AER) is a very good company, but these shares can be a little frustrating to hold, as the market doesn’t always seem to want to give them the sort of multiples that the performance would otherwise suggest is reasonable. Looking past that short-term turbulence, though, the shares have done well over the last five and 10 years, as management has shown that it can responsibly manage its fleet, create value at multiple points in the business, and share the proceeds with shareholders (in the form of buybacks).

Although I think earnings growth could be more challenging in the next couple of years, I like the valuation and I think these shares are attractive into the low-to-mid $60s. Between profitable leasing and value-creating portfolio management, AerCap looks well-placed to continue to benefit from global growth in air travel and the economic realities of the industry where AerCap often has better access to credit than many of its customers.

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AerCap Continues To Execute, But Not Getting Much Credit For It