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
Flat results in Mar 26
- NET PROFIT(Q) At CAD 68.68 MM has Fallen at -51.85%
- INVENTORY TURNOVER RATIO(HY) Lowest at 37.58 times
- INTEREST(Q) At CAD 149 MM has Grown at 11.19%
3
With ROE of 29.24%, it has a fair valuation with a 2.21 Price to Book Value
- Over the past year, while the stock has generated a return of 25.94%, its profits have fallen by -61.8%
4
Majority shareholders : FIIs
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
25.94%
-1.05
33.05%
S&P/TSX 60
29.6%
2.31
12.81%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
51.89%
EBIT Growth (5y)
17.57%
EBIT to Interest (avg)
-0.93
Debt to EBITDA (avg)
1.38
Net Debt to Equity (avg)
1.78
Sales to Capital Employed (avg)
1.87
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.13%
ROCE (avg)
22.29%
ROE (avg)
82.27%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
2.21
EV to EBIT
7.85
EV to EBITDA
2.83
EV to Capital Employed
1.58
EV to Sales
0.39
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 Trend8What is working for the Company
NET PROFIT(HY)
Higher at CAD 359.49 MM
RAW MATERIAL COST(Y)
Fallen by -13.97% (YoY
NET SALES(Q)
Highest at CAD 5,785 MM
-13What is not working for the Company
NET PROFIT(Q)
At CAD 68.68 MM has Fallen at -51.85%
INVENTORY TURNOVER RATIO(HY)
Lowest at 37.58 times
INTEREST(Q)
At CAD 149 MM has Grown at 11.19%
CASH AND EQV(HY)
Lowest at CAD 12,214 MM
DEBTORS TURNOVER RATIO(HY)
Lowest at 17.71 times
Here's what is working for Air Canada
Net Sales
Highest at CAD 5,785 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CAD MM)
Raw Material Cost
Fallen by -13.97% (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
Net Profit
At CAD 68.68 MM has Fallen at -51.85%
over average net sales of the previous four periods of CAD 142.64 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CAD MM)
Interest
At CAD 149 MM has Grown at 11.19%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CAD MM)
Inventory Turnover Ratio
Lowest at 37.58 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
Cash and Eqv
Lowest at CAD 12,214 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debtors Turnover Ratio
Lowest at 17.71 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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