Willis Lease Finance (WLFC) Following Dividend And Pratt Deal Looks Cheap At 13x P E
Simply Wall St
Sat, 1 August 2026 at 9:40 pm GMT+5:30
4 min read
- WLFC
-1.64%
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Willis Lease Finance (WLFC) recently affirmed a quarterly dividend of $0.133 per share following its 3-for-1 stock split, along with a new five year engine storage agreement with Pratt & Whitney
At a share price of $71.33, Willis Lease Finance has seen some short-term volatility, with the share price falling 5.74% over the past 30 days but rising 9.35% over 90 days. The 1 year total shareholder return of 59.86% and very large 5 year total shareholder return indicate strong longer term momentum
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After a sharp run over the past year and a modest pullback in recent weeks, Willis Lease Finance now trades only slightly below analyst targets, while our model points to a premium. Is the market being too cautious or simply realistic about the risks?
Preferred P/E of 13x for Willis Lease Finance: Is it justified?
On a simple headline measure, Willis Lease Finance trades on a P/E of 13x, which screens as inexpensive compared to both the wider US market and its Trade Distributors peers
The P/E ratio compares the current share price to earnings per share and gives a rough sense of how much investors are paying for each dollar of profit. For a leasing and parts business like Willis Lease Finance, which reports high quality earnings and 16.4% earnings growth over the past year, this metric can help you judge how that profit profile is being priced
What stands out is that the company has outperformed both the US market and its industry over the past year, while also growing earnings faster than the sector benchmark, yet still trades at a P/E of 13x. Compared to the broader US market P/E of 19.3x, the market appears to be pricing Willis Lease Finance at a discount despite this recent earnings track record
The gap is even clearer when stacked against peers. The US Trade Distributors industry trades on an average P/E of 25.2x, almost double Willis Lease Finance at 13x, even though the company has grown earnings faster than the industry and produced very strong multi year total returns
Result: Preferred multiple of Price-to-Earnings of 13x (UNDERVALUED)
See what the numbers say about this price — find out in our valuation breakdown
