Investment Thesis
AerSale Corp exhibits concerning operational deterioration with negative free cash flow of -$29.1M despite flat revenue growth, indicating fundamental cash generation weakness in a low-margin business (2.6% net margin). The company's severely depressed returns on equity (2.0%) and assets (1.3%), combined with declining operating cash flow, suggest structural profitability challenges that are not offset by its relatively strong balance sheet.
ASLE Strengths
- Strong balance sheet with manageable debt-to-equity ratio of 0.00x and low long-term debt of $1.3M
- Solid current ratio of 3.71x indicating adequate short-term liquidity
- Gross margin of 31.5% provides reasonable cost structure in wholesale machinery sector
ASLE Risks
- Significant negative free cash flow of -$29.1M with -8.7% FCF margin indicates the company is burning cash despite profitability
- Deteriorating operating cash flow of -$23.0M suggests working capital issues and potential operational distress
- Very low returns on equity (2.0%) and assets (1.3%) demonstrate poor capital efficiency and value destruction
- Stagnant revenue growth (0.0% YoY) combined with minimal net income growth limits future earnings visibility
- Quick ratio of 0.88x below 1.0x threshold indicates potential liquidity stress when excluding inventory
Key Metrics to Watch
- Operating cash flow trend and inventory turnover metrics
- Free cash flow sustainability and working capital management
- Revenue growth acceleration and operating margin expansion
- Return on equity and return on assets improvement trajectory
ASLE Financial Metrics
ASLE Profitability Ratios
ASLE Balance Sheet & Liquidity
ASLE 5-Year Financial Trend
5-Year Trend Summary: AerSale Corp's revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $-0.15 indicates the company is currently unprofitable.
ASLE Growth Metrics (YoY)
ASLE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $71.2M | -$120.0K | $0.00 |
| Q2 2025 | $77.1M | $2.6M | $0.05 |
| Q1 2025 | $65.8M | -$5.3M | $-0.10 |
| Q3 2024 | $82.7M | $5.0K | $0.00 |
| Q2 2024 | $69.3M | $5.0K | $0.05 |
| Q1 2024 | $78.3M | $5.0K | $0.12 |
| Q3 2023 | $51.0M | $5.0K | $-0.07 |
| Q2 2023 | $69.3M | $5.0K | $-0.07 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
ASLE Capital Allocation
ASLE SEC Filings
Access official SEC EDGAR filings for AerSale Corp (CIK: 0001754170)