AER

AerCap is firing on every fundamental cylinder while the market prices it like a value trap. FY2025 revenue rose 6.5% to $8.52B, but net income jumped 78.7% to $3.75B and diluted EPS nearly doubled (+97.4%) to $21.30 — the latter turbocharged by a 10.7% reduction in shares outstanding as management bought back stock aggressively. The result is a 44.0% net margin, a 20.5% return on equity, and a stock changing hands at just 6.8x trailing earnings and 2.8x sales. For the dominant global aircraft lessor benefiting from a tight aircraft supply backdrop and recovering air travel, that multiple looks too cheap if earnings hold anywhere near this level.

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