AL - Embedded Expectations Analysis - 2019 04 23
Air Lease Corp. (AL:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 21.9x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management has concerns about their recent lease placements, investments into new aircraft, and supply chain disruptions.Specifically, management may be concerned about long-term lease pricing strategies, aircraft investment seasonality, and their risk-management policies. Moreover, they may lack confidence in their ability to sustain aircraft sales, and their strategy of investing assets into newer, eco-friendly aircraft. Also, they may be concerned about fleet depreciation, debt maturities, and regulatory constraints in the aircraft market. Furthermore, they may be exaggerating their leasing expertise and growth, and stability in the marketplace. Additionally, they may be concerned about their TAP Air Portugal contract, increases in airplane maintenance intervals, and their ability to evaluate the potential of new aircraft. Finally, they may be downplaying the correlation between the sale-leaseback market and lease market and the concerns about supply chain disruptions.
Automatic Data Processing is a provider of cloud-based human capital management (HCM) solutions to employers, providing solutions to businesses of various sizes. The company's two reportable business segments are Employer Services, which provides a range of technology-based HCM solutions, including payroll services, benefits administration, talent management, HR management, workforce management, compliance services, insurance services and retirement services; and Professional Employer Organization, which provides clients with employment administration outsourcing solutions through a relationship in which employees who work for a client are co-employed by the company and the client.
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