| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 72.21 | 183 |
| Intrinsic value (DCF) | 343.46 | 1245 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 4.59 | -82 |
FTAI Aviation Ltd. (NASDAQ: FTAIN) is a leading player in the aviation and offshore energy equipment leasing and aerospace products sector. Headquartered in New York, the company operates through two key segments: Aviation Leasing and Aerospace Products. The Aviation Leasing segment manages a diverse portfolio of 363 aviation assets, including 96 commercial aircraft and 267 engines, serving global transportation needs. The Aerospace Products segment focuses on the development, manufacturing, and aftermarket support of aircraft engines and components. With a strong presence in the Industrials sector, FTAI Aviation capitalizes on the growing demand for aviation leasing and maintenance services, positioning itself as a critical infrastructure provider in global logistics. The company’s dual-segment approach allows it to benefit from both recurring leasing revenue and high-margin aerospace product sales, making it a unique player in the rental and leasing services industry.
FTAI Aviation presents a mixed investment profile. On the positive side, the company operates in a high-demand sector with a diversified portfolio of aviation assets and aerospace products, providing multiple revenue streams. However, investors should be cautious due to its negative diluted EPS (-$0.32), negative operating cash flow (-$187.96M), and high total debt ($3.44B). The company’s beta of 1.664 indicates higher volatility compared to the market, which may appeal to risk-tolerant investors. The dividend yield, supported by a $2.58 per share payout, could attract income-focused investors, but sustainability remains a concern given the current financial metrics. Long-term growth potential hinges on the recovery of global aviation demand and effective debt management.
FTAI Aviation’s competitive advantage lies in its diversified business model, combining aviation leasing with aerospace product manufacturing and servicing. This dual approach mitigates sector-specific risks and creates cross-selling opportunities. The company’s portfolio of 363 aviation assets provides scale, though exposure to geopolitical risks (e.g., 25 assets in Russia) is a concern. Compared to pure-play lessors, FTAI’s Aerospace Products segment offers higher-margin revenue, enhancing profitability in favorable market conditions. However, its high debt load ($3.44B) and negative operating cash flow limit financial flexibility relative to competitors. The company’s niche focus on mid-life aircraft and engines differentiates it from larger players but may constrain growth during industry downturns. Strategic partnerships and aftermarket capabilities in aerospace products provide a moat, but execution risks remain given the capital-intensive nature of the business.