Recs

7

5-Star Stocks Poised to Pop: Genesis Lease

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Genesis Lease Limited (NYSE: GLS  ) , which acquires and leases commercial aircraft, has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Genesis' business and see what CAPS investors are saying about the stock right now.

Genesis Lease facts

Headquarters (Founded)

Shannon, Ireland (2006)

Market Cap

$234.2 million

Industry

Trading Companies and Distributors

Trailing-12-Month Revenue

$219.8 million

Management

Chairman / CEO John McMahon (since 2006)

CFO Alan Jenkins (since 2006)

Trailing-12-Month Return on Equity

7.1%

Cash / Debt

$66.1 million / $1.1 billion

Dividend Yield

6.0%

Competitors

Boeing (NYSE: BA  )
Aircastle (NYSE: AYR  )

CAPS Members Bullish on GLS Also Bullish on

Transocean (NYSE: RIG  )
Apple (Nasdaq: AAPL  )

CAPS Members Bearish on GLS Also Bearish on

AIG (NYSE: AIG  )
Citigroup (NYSE: C  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 292 members who have rated Genesis believe the stock will outperform the S&P 500 going forward. These bulls include rjs157 and All-Star TSIF, who is ranked in the top 1% of our community.

Late last month, rjs157 tapped Genesis as a tantalizing bet to take off:

Solid and simple business model. Low risk stock at a low price. Airline related companies should do well as the global economy improves.

In a pitch from last week, TSIF elaborates:

Leasing commercial jet aircraft and related high dollar items may not seem like a good deal in a recession. However, Genesis has been very successful in this, taking on some of the risk and cash expenditures that others don't want to incur, but who need the jets. The balance is tricky as holding extra assets not racking up lease payments would crimp the bottom line, but Genesis has been successful at bringing in more than ample revenue to cover the debt associated with high ticket assets. … With a P/E of 6, profit margins of 16%, and a P/B of 0.45 Genesis is beaten down more than it should be, even if a recession. It has a solid loan agreement with [General Electric] and is highly respected by the industry.

What do you think about Genesis, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.


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