Air Canada (AC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Chorus Aviation, Inc.

Exchange Income Corp.

Air Canada

Global Crossing Airlines Group, Inc.

ACE Aviation Holdings, Inc.

Canada Jetlines Operations Ltd.

Why is Air Canada ?

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

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 Report

Verdict Report

How 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

12.82%

-1.25

40.20%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

30.85%

EBIT Growth (5y)

17.46%

EBIT to Interest (avg)

-0.93

Debt to EBITDA (avg)

1.38

Net Debt to Equity (avg)

1.78

Sales to Capital Employed (avg)

1.85

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.13%

ROCE (avg)

22.29%

ROE (avg)

82.27%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.00

EV to EBIT

9.55

EV to EBITDA

2.99

EV to Capital Employed

1.42

EV to Sales

0.39

PEG Ratio

Dividend Yield

ROCE (Latest)

14.88%

ROE (Latest)

22.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 336 MM has Grown at 860%

INTEREST COVERAGE RATIO(Q)

Highest at 631.34

RAW MATERIAL COST(Y)

Fallen by -5.46% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 233.54 %

NET PROFIT(Q)

Highest at CAD 290.81 MM

EPS(Q)

Highest at CAD 1

-14What is not working for the Company

NET PROFIT(HY)

At CAD 546.54 MM has Grown at -70.54%

OPERATING CASH FLOW(Y)

Lowest at CAD 3,657 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 35.28 times

CASH AND EQV(HY)

Lowest at CAD 11,922 MM

Here's what is working for Air Canada

Pre-Tax Profit

At CAD 336 MM has Grown at 860%

over average net sales of the previous four periods of CAD 35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 290.81 MM has Grown at 825.15%

over average net sales of the previous four periods of CAD 31.43 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Interest Coverage Ratio

Highest at 631.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

Highest at CAD 290.81 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 1

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Lowest at 233.54 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.46% (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

Depreciation

Highest at CAD 522 MM

in the last five periods

MOJO 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

Operating Cash Flow

Lowest at CAD 3,657 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Inventory Turnover Ratio

Lowest at 35.28 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at CAD 11,922 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents