AC:CA:TSX-Air Canada (CAD)

COMMON STOCK | Airlines | TSX

Last Closing Price

CAD 16.57

Change

+0.36 (+2.22)%

Market Cap

CAD 4.78B

Volume

4.51M

Average Target Price

CAD 29.45 (+77.73%)
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, 2019, the company operated a fleet of 188 aircraft under the Air Canada mainline brand name comprising 94 Boeing and Airbus narrow-body aircraft, 80 Boeing and Airbus wide-body aircraft, and 14 Embraer 190 regional jets; and 64 aircraft under the Air Canada Rouge brand name consisting of 22 Airbus A319 aircraft, 14 Airbus A321 aircraft, 3 Airbus A320 aircraft, and 25 Boeing 767-300 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; and offers cruise packages in North America, Europe, and the Caribbean. 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: 2020-07-08 )

Largest Industry Peers for Airlines

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

+0.32 (+1.22%)

CAD0.92B 12.92 6.68
CHR:CA Chorus Aviation Inc

-0.08 (-3.01%)

CAD0.42B 5.69 7.12

ETFs Containing AC:CA

Symbol Name Weight Mer Price(Change) Market Cap
DIAL Columbia Diversified Fixe.. 0.00 % 0.28 %

+0.03 (+0.12%)

CAD0.36B

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 -65.84% 67% D+ 3% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -65.84% 67% D+ 2% F
Trailing 12 Months  
Capital Gain -59.35% 67% D+ 7% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -59.35% 67% D+ 6% F
Trailing 5 Years  
Capital Gain 26.68% 100% A+ 72% C-
Dividend Return N/A N/A N/A N/A N/A
Total Return 26.68% 67% D+ 67% D+
Average Annual (5 Year Horizon)  
Capital Gain 46.38% 100% A+ 95% A
Dividend Return N/A N/A N/A N/A N/A
Total Return 46.38% 100% A+ 95% A
Risk Return Profile  
Volatility (Standard Deviation) 51.00% 33% F 14% F
Risk Adjusted Return 90.94% 100% A+ 82% B-
Market Capitalization 4.78B 100% A+ 89% B+
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%

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 95.61 33% F 6% F
Price/Book Ratio 1.20 67% D+ 50% F
Price / Cash Flow Ratio 0.84 100% A+ 79% C+
EV/EBITDA 3.55 100% A+ 87% B+
Management Effectiveness  
Return on Equity 2.17% 33% F 51% F
Return on Invested Capital 12.95% 100% A+ 87% B+
Return on Assets 2.36% 33% F 58% F
Debt to Equity Ratio 118.09% 100% A+ 20% F
Technical Ratios  
Short Ratio 1.25 100% A+ 47% F
Short Percent N/A N/A N/A N/A N/A
Beta 2.06 100% A+ 12% 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.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

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

Positive free cash flow

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

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

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.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.