Loading...

We've got a brand new version of Simply Wall St! Try it out

BOC Aviation

SEHK:2588
Snowflake Description

Acceptable track record second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
2588
SEHK
HK$52B
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. The last earnings update was 111 days ago. More info.


Add to Portfolio Compare Print
2588 Share Price and Events
7 Day Returns
4.3%
SEHK:2588
-1.6%
HK Trade Distributors
-2.7%
HK Market
1 Year Returns
27.2%
SEHK:2588
-7.9%
HK Trade Distributors
-5.6%
HK Market
2588 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BOC Aviation (2588) 4.3% 2.4% 9.7% 27.2% 95.9% -
HK Trade Distributors -1.6% -16.7% -16.8% -7.9% -25.5% -63.6%
HK Market -2.7% -4.6% -1% -5.6% 4.1% -4%
1 Year Return vs Industry and Market
  • 2588 outperformed the Trade Distributors industry which returned -7.9% over the past year.
  • 2588 outperformed the Market in Hong Kong which returned -5.6% over the past year.
Price Volatility
2588
Industry
5yr Volatility vs Market

Value

 Is BOC Aviation undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BOC Aviation to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BOC Aviation.

SEHK:2588 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Dividend Discount Model
Dividend Per Share Company Filings (2019-06-30) in USD $ 0.37442875
Payout Ratio Company Filings (2019-06-30) 2863.3%
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year HK Government Bond Rate 1.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:2588
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 1.6%
Equity Risk Premium S&P Global 5.4%
Trade Distributors Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.936 (1 + (1- 17%) (196.37%))
1.447
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.45
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.55% + (1.447 * 5.44%)
9.42%

Discounted Cash Flow Calculation for SEHK:2588 using Dividend Discount Model Model

The calculations below outline how an intrinsic value for BOC Aviation is arrived at by discounting future dividends to their present value. This approach is used for finance firms where free cash flow is difficult to estimate (e.g. Banks/ Insurance firms).

If the firm does not pay the majority of its earnings out as a dividend this method will often arrive at a value significantly lower than the share price.

See our documentation to learn about this calculation.

SEHK:2588 Gordon Growth Model
Calculation Result
Value per share = Expected dividends per share / (Discount Rate - Perpetual growth rate)
= $0.37 / (9.42% - 1.55%)
$37.25
SEHK:2588 Discount to Share Price
Calculation Result
Exchange Rate USD/HKD
(Reporting currency to currency of SEHK:2588)
7.829
Value per Share
(HKD)
= Value per Share in USD x Exchange Rate (USD/HKD)
= $4.76 x 7.829
HK$37.25
Value per share (HKD) From above. HK$37.25
Current discount Discount to share price of HK$77.20
= -1 x (HK$77.20 - HK$37.25) / HK$37.25
-107.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of BOC Aviation is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BOC Aviation's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BOC Aviation's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:2588 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.93
SEHK:2588 Share Price ** SEHK (2019-12-05) in HKD HK$77.2
SEHK:2588 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $9.86
Hong Kong Trade Distributors Industry PE Ratio Median Figure of 27 Publicly-Listed Trade Distributors Companies 9.07x
Hong Kong Market PE Ratio Median Figure of 1,469 Publicly-Listed Companies 10.13x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BOC Aviation.

SEHK:2588 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:2588 Share Price ÷ EPS (both in USD)

= 9.86 ÷ 0.93

10.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BOC Aviation is overvalued based on earnings compared to the HK Trade Distributors industry average.
  • BOC Aviation is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does BOC Aviation's expected growth come at a high price?
Raw Data
SEHK:2588 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
9.7%per year
Asia Trade Distributors Industry PEG Ratio Median Figure of 47 Publicly-Listed Trade Distributors Companies 1.27x
Hong Kong Market PEG Ratio Median Figure of 480 Publicly-Listed Companies 0.72x

*Line of best fit is calculated by linear regression .

SEHK:2588 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.62x ÷ 9.7%

1.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BOC Aviation is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on BOC Aviation's assets?
Raw Data
SEHK:2588 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $6.18
SEHK:2588 Share Price * SEHK (2019-12-05) in HKD HK$77.2
SEHK:2588 Share Price converted to USD reporting currency Exchange rate (HKD/ USD) 0.128 $9.86
Hong Kong Trade Distributors Industry PB Ratio Median Figure of 58 Publicly-Listed Trade Distributors Companies 0.58x
Hong Kong Market PB Ratio Median Figure of 2,202 Publicly-Listed Companies 0.81x
SEHK:2588 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:2588 Share Price ÷ Book Value per Share (both in USD)

= 9.86 ÷ 6.18

1.59x

* Primary Listing of BOC Aviation.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BOC Aviation is overvalued based on assets compared to the HK Trade Distributors industry average.
X
Value checks
We assess BOC Aviation's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Trade Distributors industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Trade Distributors industry average (and greater than 0)? (1 check)
  5. BOC Aviation has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is BOC Aviation expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BOC Aviation expected to grow at an attractive rate?
  • BOC Aviation's earnings growth is expected to exceed the low risk savings rate of 1.6%.
Growth vs Market Checks
  • BOC Aviation's earnings growth is positive but not above the Hong Kong market average.
  • BOC Aviation's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:2588 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:2588 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 9.7%
SEHK:2588 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 11.5%
Asia Trade Distributors Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
Asia Trade Distributors Industry Revenue Growth Rate Market Cap Weighted Average 3.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:2588 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:2588 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,412 2,290 814 8
2020-12-31 2,182 1,969 743 11
2019-12-31 1,951 1,729 673 11
2019-12-05
SEHK:2588 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 1,731 1,740 645
2019-03-31 1,677 1,731 632
2018-12-31 1,623 1,723 620
2018-09-30 1,549 1,622 632
2018-06-30 1,474 1,522 644
2018-03-31 1,394 1,397 615
2017-12-31 1,313 1,271 587
2017-09-30 1,245 1,229 516
2017-06-30 1,176 1,186 446
2017-03-31 1,136 1,146 432
2016-12-31 1,096 1,106 418
2016-09-30 1,075 1,089 401

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BOC Aviation's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
  • BOC Aviation's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:2588 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from BOC Aviation Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2588 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.18 1.23 1.08 6.00
2020-12-31 1.07 1.12 1.00 10.00
2019-12-31 0.97 1.01 0.92 10.00
2019-12-05
SEHK:2588 Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.93
2019-03-31 0.91
2018-12-31 0.89
2018-09-30 0.91
2018-06-30 0.93
2018-03-31 0.89
2017-12-31 0.85
2017-09-30 0.74
2017-06-30 0.64
2017-03-31 0.64
2016-12-31 0.64
2016-09-30 0.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BOC Aviation is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BOC Aviation's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BOC Aviation has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has BOC Aviation performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BOC Aviation's growth in the last year to its industry (Trade Distributors).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BOC Aviation's year on year earnings growth rate has been positive over the past 5 years.
  • BOC Aviation's 1-year earnings growth is less than its 5-year average (0.2% vs 18.8%)
  • BOC Aviation's earnings growth has not exceeded the HK Trade Distributors industry average in the past year (0.2% vs 1%).
Earnings and Revenue History
BOC Aviation's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BOC Aviation Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:2588 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 1,730.54 644.51 95.65
2019-03-31 1,676.91 632.47 97.41
2018-12-31 1,623.29 620.44 99.18
2018-09-30 1,548.81 631.99 94.05
2018-06-30 1,474.33 643.54 88.92
2018-03-31 1,393.77 615.09 84.43
2017-12-31 1,313.21 586.65 79.94
2017-09-30 1,244.54 516.33 81.23
2017-06-30 1,175.86 446.02 82.52
2017-03-31 1,135.98 432.05 82.40
2016-12-31 1,096.09 418.08 82.27
2016-09-30 1,074.62 401.06 75.91
2016-06-30 1,053.14 384.03 69.55
2016-03-31 1,034.24 363.67 67.78
2015-12-31 1,015.33 343.31 66.02
2015-09-30 1,006.15 330.01 89.75
2015-06-30 991.88 316.71 88.66
2015-03-31 970.20 312.64 73.26
2014-12-31 948.52 308.57 57.86
2014-09-30 928.20 292.78 42.06
2014-06-30 912.96 276.98 51.08
2014-03-31 872.51 277.02 51.08
2013-12-31 832.06 277.06 51.08
2013-09-30 794.35 280.71 44.44
2013-06-30 756.63 284.37 37.79
2013-03-31 726.35 254.83 37.79
2012-12-31 696.07 225.30 37.79

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BOC Aviation has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • BOC Aviation used its assets more efficiently than the HK Trade Distributors industry average last year based on Return on Assets.
  • BOC Aviation has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BOC Aviation's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Trade Distributors industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BOC Aviation has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is BOC Aviation's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BOC Aviation's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BOC Aviation's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • BOC Aviation's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of BOC Aviation's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BOC Aviation Company Filings, last reported 5 months ago.

SEHK:2588 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 4,291.64 13,132.86 295.17
2019-03-31 4,291.64 13,132.86 295.17
2018-12-31 4,199.03 12,402.48 246.17
2018-09-30 4,199.03 12,402.48 246.17
2018-06-30 3,988.20 11,604.32 411.28
2018-03-31 3,988.20 11,604.32 411.28
2017-12-31 3,818.76 10,782.84 305.90
2017-09-30 3,818.76 10,782.84 305.90
2017-06-30 3,536.52 9,447.07 332.54
2017-03-31 3,536.52 9,447.07 332.54
2016-12-31 3,382.17 8,651.49 559.15
2016-09-30 3,382.17 8,651.49 559.15
2016-06-30 3,200.00 9,128.21 1,587.14
2016-03-31 3,200.00 9,128.21 1,587.14
2015-12-31 2,439.72 8,758.43 507.55
2015-09-30 2,439.72 8,758.43 507.55
2015-06-30 2,267.88 8,572.44 375.77
2015-03-31 2,267.88 8,572.44 375.77
2014-12-31 2,096.41 8,239.82 368.40
2014-09-30 2,096.41 8,239.82 368.40
2014-06-30 1,951.17 7,858.15 304.37
2014-03-31 1,951.17 7,858.15 304.37
2013-12-31 1,926.63 7,266.05 539.68
2013-09-30 1,926.63 7,266.05 539.68
2013-06-30 1,812.21 7,171.44 340.49
2013-03-31 1,812.21 7,171.44 340.49
2012-12-31 1,761.06 6,385.31 675.09
  • BOC Aviation's level of debt (306%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (398.7% vs 306% today).
  • Debt is not well covered by operating cash flow (13.3%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess BOC Aviation's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BOC Aviation has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is BOC Aviation's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.28%
Current annual income from BOC Aviation dividends. Estimated to be 3.8% next year.
If you bought HK$2,000 of BOC Aviation shares you are expected to receive HK$66 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BOC Aviation's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.26%).
  • BOC Aviation's dividend is below the markets top 25% of dividend payers in Hong Kong (6.35%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:2588 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Hong Kong Trade Distributors Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 963 Stocks 3.8%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.3%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.3%
Hong Kong Top 25% Dividend Yield 75th Percentile 6.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:2588 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.42 6.00
2020-12-31 0.38 9.00
2019-12-31 0.34 9.00
2019-12-05
SEHK:2588 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-10-03 0.323 3.395
2019-05-29 0.313 3.622
2018-04-24 0.296 4.072
2017-05-31 0.238 4.405
2016-09-28 0.122 2.336

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, BOC Aviation has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but BOC Aviation only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of BOC Aviation's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess BOC Aviation's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BOC Aviation afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BOC Aviation has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of BOC Aviation's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Robert Martin
COMPENSATION $7,479,000
AGE 54
TENURE AS CEO 15.9 years
CEO Bio

Mr. Robert James Martin has been the Chief Executive Officer and Managing Director of BOC Aviation Pte. Ltd since 2004 and July 5, 1998 respectively. Mr. Martin has been an Executive Director of BOC Aviation Pte. Ltd. since July 5, 1998. He joined Singapore Aircraft Leasing Enterprise (SALE) in January 1998. He began his career in aircraft financing in London in 1987, with the Bank of America. He subsequently held senior positions in both London and Singapore with the Long-Term Credit Bank of Japan (LTCB), before moving to HSBC Investment Bank in Hong Kong as Aircraft Finance Director. Mr. Martin holds an M.A. in Economics from Cambridge University.

CEO Compensation
  • Robert's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Robert's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the BOC Aviation management team in years:

15.7
Average Tenure
54
Average Age
  • The average tenure for the BOC Aviation management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Robert Martin

TITLE
MD, CEO & Executive Director
COMPENSATION
$7M
AGE
54
TENURE
15.9 yrs

Jian Wang

TITLE
Vice Chairman & Deputy MD
COMPENSATION
$921K
AGE
59
TENURE
2.5 yrs

Thim Phang

TITLE
Deputy MD & CFO
AGE
62
TENURE
23.9 yrs

Dave Walton

TITLE
Chief Operating Officer
AGE
58
TENURE
5.1 yrs

Ng Felicia

TITLE
Chief Accounting Officer
AGE
53

Timothy Ross

TITLE
Head of Investor Relations

Jonathan Mahony

TITLE
General Counsel
AGE
50
TENURE
17.3 yrs

Steven Townend

TITLE
Deputy MD & Chief Commercial Officer of Europe
AGE
50
TENURE
15.4 yrs

David Farrell

TITLE
Head of Risk Management

John Bloemen

TITLE
Head of Airline Leasing & Sales - Asia Pacific Middle East
Board of Directors Tenure

Average tenure and age of the BOC Aviation board of directors in years:

3.6
Average Tenure
55.5
Average Age
  • The tenure for the BOC Aviation board of directors is about average.
Board of Directors

Yu Sun

TITLE
Non-Executive Chairman
AGE
46
TENURE
0.8 yrs

Robert Martin

TITLE
MD, CEO & Executive Director
COMPENSATION
$7M
AGE
54
TENURE
21.4 yrs

Jian Wang

TITLE
Vice Chairman & Deputy MD
COMPENSATION
$921K
AGE
59
TENURE
2.5 yrs

Shula Fu

TITLE
Independent Non-Executive Director
COMPENSATION
$77K
AGE
63
TENURE
8.8 yrs

Deming Dai

TITLE
Independent Non-Executive Director
COMPENSATION
$77K
AGE
57
TENURE
3.6 yrs

Tony Tyler

TITLE
Independent Non-Executive Director
COMPENSATION
$180K
AGE
63
TENURE
3.6 yrs

Lin Zhu

TITLE
Non-Executive Director
AGE
45
TENURE
5.9 yrs

Mang Li

TITLE
Non-Executive Director
AGE
51
TENURE
4 yrs

Chenggang Liu

TITLE
Non-Executive Director
AGE
46
TENURE
3.3 yrs

Bernard Yeung

TITLE
Independent Non-Executive Director
COMPENSATION
$45K
AGE
66
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
25. Nov 19 Buy FIL Limited Company 20. Nov 19 20. Nov 19 44,700 HK$77.51 HK$3,464,576
X
Management checks
We assess BOC Aviation's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BOC Aviation has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Excited About BOC Aviation Limited's (HKG:2588) 15% Return On Equity?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for BOC Aviation: 15% = US$645m ÷ US$4.3b (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Companies that can achieve high returns on equity without too much debt are generally of good quality. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

What Should We Expect From BOC Aviation Limited's (HKG:2588) Earnings In The Year Ahead?

Since BOC Aviation Limited (HKG:2588) released its earnings in December 2018, analyst forecasts seem fairly subdued, as a 11% rise in profits is expected in the upcoming year, compared with the higher past 5-year average growth rate of 19%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … SEHK:2588 Past and Future Earnings, August 16th 2019 This results in an annual growth rate of 10% based on the most recent earnings level of US$620m to the final forecast of US$851m by 2022.

Simply Wall St -

Is BOC Aviation Limited's (HKG:2588) Growth Strong Enough To Justify Its August Share Price?

Stocks like BOC Aviation, with a price-to-earnings (P/E) ratio of 9.38x, always catch the eye of investors on the hunt for a bargain. … But, since BOC Aviation is a high-growth stock, we must also account for its earnings growth by using calculation called the PEG ratio. … A PE ratio of 9.38x and expected year-on-year earnings growth of 10% give BOC Aviation a low PEG ratio of 0.91x.

Simply Wall St -

A Look At The Intrinsic Value Of BOC Aviation Limited (HKG:2588)

Today we will run through one way of estimating the intrinsic value of BOC Aviation Limited (HKG:2588) by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $-222.0m $247.0m $400.7m $577.5m $759.5m $931.6m $1.1b $1.2b $1.3b $1.4b Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 62.21% Est @ 44.15% Est @ 31.5% Est @ 22.65% Est @ 16.46% Est @ 12.12% Est @ 9.09% Est @ 6.96% Present Value ($, Millions) Discounted @ 13.92% $-194.9 $190.3 $271.0 $342.9 $395.8 $426.1 $435.6 $428.7 $410.5 $385.4 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $3.1b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 13.9%.

Simply Wall St -

Here's Why BOC Aviation (HKG:2588) Is Weighed Down By Its Debt Load

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously said that 'Volatility is far from synonymous with risk.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Since BOC Aviation does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Our View To be frank both BOC Aviation's conversion of EBIT to free cash flow and its track record of staying on top of its total liabilities make us rather uncomfortable with its debt levels.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand BOC Aviation Limited (HKG:2588)

The formula for P/E is: Price to Earnings Ratio = Share Price (in reporting currency) ÷ Earnings per Share (EPS) Or for BOC Aviation: P/E of 9.6 = $8.58 (Note: this is the share price in the reporting currency, namely, USD ) ÷ $0.89 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … The P/E ratio indicates whether the market has higher or lower expectations of a company.

Simply Wall St -

Should You Worry About BOC Aviation Limited's (HKG:2588) CEO Salary Level?

Check out our latest analysis for BOC Aviation How Does Robert Martin's Compensation Compare With Similar Sized Companies? … According to our data, BOC Aviation Limited has a market capitalization of HK$45b, and pays its CEO total annual compensation worth US$6.2m. … We examined the amount BOC Aviation Limited pays its CEO, and compared it to the amount paid by similar sized companies.

Simply Wall St -

How Good Is BOC Aviation Limited (HKG:2588) At Creating Shareholder Value?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for BOC Aviation: 0.058 = US$960m ÷ (US$18b - US$1.7b) (Based on the trailing twelve months to December 2018.) So, BOC Aviation has an ROCE of 5.8%. … BOC Aviation's Current Liabilities And Their Impact On Its ROCE Current liabilities are short term bills and invoices that need to be paid in 12 months or less. … BOC Aviation has a low level of current liabilities, which have a minimal impact on its uninspiring ROCE.

Simply Wall St -

BOC Aviation Limited (HKG:2588): What We Can Expect From This Growth Stock

In December 2018, BOC Aviation Limited (HKG:2588) released its earnings update. … with earnings expected to grow by 11% in the upcoming year … the higher past 5-year average growth rate of 19%

Simply Wall St -

Do You Like BOC Aviation Limited (HKG:2588) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … BOC Aviation has a price to earnings ratio of 9.57, based on the last twelve months. … Price to Earnings Ratio = Price per Share (in the reporting currency) ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

BOC Aviation Limited, together with its subsidiaries, operates as an aircraft operating leasing company worldwide. The company offers a range of services to airlines and aircraft owners, including direct operating leases, sale and leaseback facilities, and third party asset management. It also provides aircraft remarketing, structured finance, and technical management services to airlines, banks, and other investors. In addition, the company arranges debt financing and other financial services for airlines; and sells aircrafts. As of June 30, 2019, it had a fleet of 499 owned, managed, or on order aircraft. The company was founded in 1993 and is headquartered in Singapore. BOC Aviation Limited is a subsidiary of Sky Splendor Limited.

Details
Name: BOC Aviation Limited
2588
Exchange: SEHK
Founded: 1993
HK$52,397,780,217
694,010,334
Website: http://www.bocaviation.com
Address: BOC Aviation Limited
No. 18-01, 8 Shenton Way,
Singapore,
068811,
Singapore
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 2588 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 01. Jun 2016
OTCPK BCVV.F Ordinary Shares Pink Sheets LLC US USD 01. Jun 2016
DB 8BO Ordinary Shares Deutsche Boerse AG DE EUR 01. Jun 2016
SHSC 2588 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 01. Jun 2016
SZSC 2588 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 01. Jun 2016
Number of employees
Current staff
Staff numbers
165
BOC Aviation employees.
Industry
Trading Companies and Distributors
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/12/05 13:00
End of day share price update: 2019/12/05 00:00
Last estimates confirmation: 2019/11/29
Last earnings filing: 2019/08/16
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.