ScoreWhy is Air Canada ?
1
Poor long term growth as Net Sales has grown by an annual rate of 9.44% and Operating profit at 40.95% over the last 5 years
- PRE-TAX PROFIT(Q) At CAD 97 MM has Fallen at -51.13%
- NET PROFIT(Q) At CAD 180 MM has Fallen at -65.38%
- OPERATING CASH FLOW(Y) Lowest at CAD 3,835 MM
2
Underperformed the market in the last 1 year
- The stock has generated a return of 11.54% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Air Canada for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Air Canada
-100.0%
-1.25
40.20%
S&P/TSX 60
21.59%
1.54
14.62%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
18.46%
EBIT Growth (5y)
18.34%
EBIT to Interest (avg)
-0.93
Debt to EBITDA (avg)
1.38
Net Debt to Equity (avg)
1.78
Sales to Capital Employed (avg)
1.83
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.09%
ROCE (avg)
22.29%
ROE (avg)
82.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
1
Industry P/E
Price to Book Value
1.05
EV to EBIT
3.25
EV to EBITDA
1.48
EV to Capital Employed
1.02
EV to Sales
0.23
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
31.29%
ROE (Latest)
105.15%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -0.03% (YoY
-18What is not working for the Company
PRE-TAX PROFIT(Q)
At CAD 97 MM has Fallen at -51.13%
NET PROFIT(Q)
At CAD 180 MM has Fallen at -65.38%
OPERATING CASH FLOW(Y)
Lowest at CAD 3,835 MM
INVENTORY TURNOVER RATIO(HY)
Lowest at 38.37%
Here's what is working for Air Canada
Raw Material Cost
Fallen by -0.03% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Here's what is not working for Air Canada
Pre-Tax Profit
At CAD 97 MM has Fallen at -51.13%
over average net sales of the previous four periods of CAD 198.5 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CAD MM)
Net Profit
At CAD 180 MM has Fallen at -65.38%
over average net sales of the previous four periods of CAD 520 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Inventory Turnover Ratio
Lowest at 38.37% and Fallen
In each half year in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
Operating Cash Flow
Lowest at CAD 3,835 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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