| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 50.76 | -21 |
| Intrinsic value (DCF) | 24.68 | -61 |
| Graham-Dodd Method | 0.42 | -99 |
| Graham Formula | 0.84 | -99 |
Doric Nimrod Air Three Limited (LSE: DNA3.L) is a Guernsey-based investment company specializing in the acquisition, leasing, and sale of aircraft. The company owns a fleet of four Airbus A380 aircraft, which it leases to major airlines, generating stable long-term revenue streams. Operating in the Rental & Leasing Services industry under the broader Industrials sector, DNA3.L provides investors with exposure to the aviation leasing market without direct operational risks. The company’s business model focuses on securing long-term lease agreements, ensuring predictable cash flows and consistent dividend payouts. With a market capitalization of approximately £136.4 million, DNA3.L is a niche player in the aircraft leasing space, benefiting from the global demand for wide-body aircraft. Its strategic focus on the A380, despite the model’s mixed market reception, positions it uniquely in a segment with limited competition. Investors looking for aviation-linked income with lower volatility may find DNA3.L an attractive option.
Doric Nimrod Air Three Limited offers a specialized investment proposition in the aircraft leasing sector, characterized by stable cash flows and a high dividend yield (currently £8.25 per share). The company’s zero-debt balance sheet and strong net income (£46.1 million) underscore its financial health, while its low beta (0.39) suggests lower volatility compared to broader markets. However, risks include reliance on a single aircraft model (A380), which faces demand uncertainty due to shifting airline preferences toward more fuel-efficient alternatives. The lack of capital expenditures indicates limited growth initiatives, making DNA3.L primarily an income play rather than a capital appreciation opportunity. Investors should weigh the stable yield against potential long-term obsolescence risks tied to its A380 fleet.
Doric Nimrod Air Three Limited operates in a niche segment of the aircraft leasing market, focusing exclusively on the Airbus A380. This specialization differentiates it from larger, diversified lessors but also exposes it to model-specific risks. The company’s competitive advantage lies in its low overhead structure (as a non-operational lessor) and strong lease agreements, which underpin its high margins (net income/revenue: ~61.6%). However, its small scale (four aircraft) limits its ability to compete with global giants like AerCap or Air Lease Corporation, which benefit from economies of scale and diversified fleets. DNA3.L’s zero-debt position is a strength in volatile markets but may also reflect limited growth ambition. The A380’s declining popularity among airlines (outside select hub operators) could pressure lease rates or re-lease prospects long-term. Competitively, DNA3.L is more comparable to boutique lessors or aviation investment trusts than to broad-based leasing firms, making it a unique but higher-risk proposition within the sector.