ScoreWhy is Air Canada ?
1
Poor long term growth as Net Sales has grown by an annual rate of 51.89% and Operating profit at 17.57% over the last 5 years
2
Negative results in Jun 26
- OPERATING CASH FLOW(Y) Lowest at CAD 3,685 MM
- ROCE(HY) Lowest at 19.27%
- INVENTORY TURNOVER RATIO(HY) Lowest at 34.63 times
3
With ROE of 29.24%, it has a fair valuation with a 0.59 Price to Book Value
- Over the past year, while the stock has generated a return of 56.65%, its profits have fallen by -61.8%
4
Majority shareholders : FIIs
5
Market Beating Performance
- The stock has generated a return of 56.65% in the last 1 year, much higher than market (S&P/TSX 60) returns of 30.16%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Air Canada should be less than 10%
- Overall Portfolio exposure to Airline should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Air Canada for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Air Canada
47.87%
-0.44
33.99%
S&P/TSX 60
20.36%
2.51
12.02%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
51.89%
EBIT Growth (5y)
17.57%
EBIT to Interest (avg)
1.02
Debt to EBITDA (avg)
0.90
Net Debt to Equity (avg)
1.78
Sales to Capital Employed (avg)
1.88
Tax Ratio
34.85%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.13%
ROCE (avg)
30.18%
ROE (avg)
82.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
2
Industry P/E
Price to Book Value
0.59
EV to EBIT
3.97
EV to EBITDA
1.43
EV to Capital Employed
0.80
EV to Sales
0.20
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
20.17%
ROE (Latest)
29.24%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET PROFIT(9M)
Higher at CAD 187.49 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 216.11 %
NET SALES(Q)
Highest at CAD 6,266 MM
-25What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CAD 3,685 MM
ROCE(HY)
Lowest at 19.27%
INVENTORY TURNOVER RATIO(HY)
Lowest at 34.63 times
INTEREST COVERAGE RATIO(Q)
Lowest at 245.19
RAW MATERIAL COST(Y)
Grown by 39.36% (YoY
OPERATING PROFIT(Q)
Lowest at CAD 331 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 5.28 %
PRE-TAX PROFIT(Q)
Lowest at CAD -310 MM
NET PROFIT(Q)
Lowest at CAD -172 MM
EPS(Q)
Lowest at CAD -0.63
Here's what is working for Air Canada
Net Sales
Highest at CAD 6,266 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Debt-Equity Ratio
Lowest at 216.11 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Depreciation
Highest at CAD 546 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (CAD MM)
Here's what is not working for Air Canada
Pre-Tax Profit
At CAD -310 MM has Fallen at -212.32%
over average net sales of the previous four periods of CAD 276 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CAD MM)
Net Profit
At CAD -172 MM has Fallen at -186.52%
over average net sales of the previous four periods of CAD 198.81 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Operating Cash Flow
Lowest at CAD 3,685 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CAD MM)
Interest Coverage Ratio
Lowest at 245.19
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Inventory Turnover Ratio
Lowest at 34.63 times 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 Profit
Lowest at CAD 331 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CAD MM)
Operating Profit Margin
Lowest at 5.28 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at CAD -310 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CAD MM)
Net Profit
Lowest at CAD -172 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (CAD MM)
EPS
Lowest at CAD -0.63
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (CAD)
Raw Material Cost
Grown by 39.36% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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