AC:CA:TSX-Air Canada (CAD)

COMMON STOCK | Airlines | TSX

Last Closing Price

CAD 25.43

Change

-0.78 (-2.98)%

Market Cap

CAD 8.77B

Volume

5.52M

Average Target Price

CAD 28.31 (+11.32%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Air Canada provides domestic, U.S. transborder, and international airline services. It offers scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand name in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada, as well as through capacity purchase agreements on other regional carriers. As of December 31, 2020, the company operated a fleet of 169 aircraft under the Air Canada mainline brand name comprising 91 Boeing and Airbus narrow-body aircraft, and 78 Boeing and Airbus wide-body aircraft; 136 aircraft under the Air Canada Express brand name, including 49 Bombardier regional jets, 62 De Havilland Dash-8 turboprop aircraft, and 25 Embraer 175 aircraft; and 39 aircraft under the Air Canada Rouge brand name consisting of 14 Airbus A321 aircraft, 5 Airbus A320 aircraft, and 20 Airbus A319 aircraft. It also provides air cargo services in domestic and U.S. transborder routes, as well as on international routes between Canada and markets in Europe, Asia, South America, and Australia. In addition, the company operates, develops, markets, and distributes vacation travel packages in the Caribbean, Mexico, the United States, Europe, Central and South America, South Pacific, Australia, and Asia; offers cruise packages in North America, Europe, and the Caribbean; and provides travel loyalty programs. Air Canada was founded in 1937 and is headquartered in Saint-Laurent, Canada.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-04-15 )

Largest Industry Peers for Airlines

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
EIF:CA Exchange Income Corporation

+0.07 (+0.18%)

CAD1.37B 49.64 9.06
CHR:CA Chorus Aviation Inc

-0.10 (-2.24%)

CAD0.72B 17.88 7.60

ETFs Containing AC:CA

Symbol Name Weight Mer Price(Change) Market Cap
FBE:CA CI First Asset Canadian B.. 0.00 % 0.60 %

N/A

CAD8.28M
QXM:CA CI First Asset Morningsta.. 0.00 % 0.50 %

N/A

CAD0.08B
ZIN:CA BMO Equal Weight Industri.. 0.00 % 0.55 %

+0.19 (+0.56%)

CAD0.05B
DIAL Columbia Diversified Fixe.. 0.00 % 0.28 %

+0.02 (+0.09%)

CAD0.95B

Market Performance

  Market Performance vs.
Industry/Classification (Airlines)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 11.68% 67% D+ 64% D
Dividend Return N/A N/A N/A N/A N/A
Total Return 11.68% 67% D+ 63% D
Trailing 12 Months  
Capital Gain 48.71% 33% F 61% D-
Dividend Return N/A N/A N/A N/A N/A
Total Return 48.71% 33% F 58% F
Trailing 5 Years  
Capital Gain 193.65% 100% A+ 92% A-
Dividend Return N/A N/A N/A N/A N/A
Total Return 193.65% 100% A+ 91% A-
Average Annual (5 Year Horizon)  
Capital Gain 33.45% 100% A+ 93% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 33.45% 100% A+ 93% A
Risk Return Profile  
Volatility (Standard Deviation) 62.43% 33% F 12% F
Risk Adjusted Return 53.58% 100% A+ 71% C-
Market Capitalization 8.77B 100% A+ 85% B
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Airlines)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 89.39 33% F 8% F
Price/Book Ratio 5.25 33% F 20% F
Price / Cash Flow Ratio -3.73 100% A+ 82% B-
EV/EBITDA 11.91 33% F 51% F
Management Effectiveness  
Return on Equity -151.99% 33% F 4% F
Return on Invested Capital -27.02% 33% F 8% F
Return on Assets -8.64% 33% F 11% F
Debt to Equity Ratio 475.16% 33% F 2% F
Technical Ratios  
Short Ratio 2.06 100% A+ 36% F
Short Percent N/A N/A N/A N/A N/A
Beta 2.48 67% D+ 7% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (CAD)

Quarterly Financials (CAD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector