Chorus Aviation (CHR) AI Stock Analysis

• Market Cap: C$496.41M
• Dividend Yield: 0.76%
• Average Volume (3M): 63.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -12.42%
• EPS Growth: 69.23%
• Country: CA
• Employees: 4,345
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.60
• Shares Outstanding: 23,415,380
• 10 Day Avg. Volume: 61,827
• 30 Day Avg. Volume: 63,922
• PEG Ratio: <0.01
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.42
• P/FCF Ratio: 2.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$29.50
• Price Target Upside: 39.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$22.00 ▲(3.77% Upside)

Chorus Aviation's overall stock score reflects mixed financial health and technical indicators, with positive strategic initiatives and operational performance highlighted in the earnings call. The company's profitability and strategic actions are positive, but declining revenue growth, liquidity challenges, and bearish technical signals present risks.

Positive Factors

Debt Management

Chorus Aviation's proactive debt management, including redeeming debentures, reduces financial leverage, enhancing long-term financial stability and flexibility.

Strategic Asset Sales

The sale of aircraft unlocks capital, allowing Chorus to reinvest in higher-return opportunities, strengthening its balance sheet and strategic positioning.

Operational Performance

Strong operational performance by Jazz enhances Chorus's reputation and reliability, supporting sustained partnerships and revenue stability.

Negative Factors

Revenue Decline

A decline in revenue suggests challenges in maintaining growth, potentially impacting long-term profitability and market competitiveness.

Cash Flow Challenges

Significant decline in free cash flow indicates potential liquidity issues, limiting Chorus's ability to invest in growth and manage debt effectively.

Geopolitical Impact

Geopolitical challenges affecting contracts can lead to increased costs and strategic shifts, impacting Chorus's revenue and margin stability.

Chorus Aviation Business Overview & Revenue Model

Company Description

Chorus Aviation Inc., through its subsidiaries, provides various aviation support services in the United States and Canada. The company operates through two segments, Regional Aviation Services and Regional Aircraft Leasing. The Regional Aviation Services segment includes all three sectors of the regional aviation, such as contract flying, including ACMI and charter operations; aircraft leasing; and maintenance, repair, and overhaul, as well as part sales and technical services. The Regional Aircraft Leasing segment provides aircraft leasing to third-party air operators. As of December 31, 2021, this segment's portfolio of leased aircraft consisted of 62 aircraft of which 56 aircraft were on lease to airline customers, such as 23 Dash 8-400s, 18 ATR72-600s, four CRJ1000s, four E190s, two E195s and five A220-300s. The company was formerly known as Jazz Air Income Fund and changed its name to Chorus Aviation Inc. in January 2011. Chorus Aviation Inc. was incorporated in 2010 and is based in Dartmouth, Canada.

How the Company Makes Money

Chorus Aviation generates revenue through multiple key streams. The primary source of income comes from its regional airline operations, where it earns revenue through capacity purchase agreements (CPA) with Air Canada, which provides a stable and predictable cash flow. Under these agreements, Chorus provides airline services using its fleet of regional aircraft, and Air Canada compensates it based on the number of flights operated and the number of available seat miles. Furthermore, Chorus Aviation Capital, the leasing division, generates income by leasing aircraft to other airlines, which includes long-term lease agreements and maintenance services. The company also benefits from maintenance and repair services provided to its aircraft and those of its leasing clients. Strategic partnerships with major airlines and a diverse fleet of regional aircraft enhance its revenue stability and growth potential.

Chorus Aviation Financial Statement Overview

Summary

Chorus Aviation shows mixed financial performance. While operational efficiency and debt management have improved, challenges remain in revenue growth and cash flow generation. The income statement, balance sheet, and cash flow scores reflect these mixed results.

Income Statement

Chorus Aviation's income statement shows mixed results. The TTM (Trailing-Twelve-Months) gross profit margin is stable at 19.33%, but the net profit margin is relatively low at 4.64%. Revenue has declined by 1.91% in the TTM, indicating a potential challenge in maintaining growth. However, the company has managed to improve its EBIT and EBITDA margins compared to the previous year, suggesting better operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 0.72 in the TTM, indicating reduced leverage compared to previous years. However, the return on equity is modest at 11.97%, and the equity ratio is relatively low, suggesting limited asset backing by equity. The company has made progress in reducing debt, which is a positive sign.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow has decreased significantly by 55.12% in the TTM, impacting liquidity. The operating cash flow to net income ratio is low at 0.29, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains reasonable at 0.58, suggesting some level of cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.40B	1.40B	1.60B	1.02B	948.72M
Gross Profit	217.99M	270.89M	337.13M	423.40M	205.63M	230.12M
EBITDA	183.70M	165.54M	271.36M	360.85M	270.46M	363.12M
Net Income	54.43M	-158.50M	101.35M	48.89M	-20.48M	41.49M
Balance Sheet
Total Assets	1.33B	1.61B	3.85B	4.06B	3.18B	3.34B
Cash, Cash Equivalents and Short-Term Investments	26.54M	222.22M	88.83M	100.03M	123.57M	165.72M
Total Debt	345.44M	516.38M	1.76B	2.03B	1.91B	2.19B
Total Liabilities	778.99M	1.10B	2.57B	2.79B	2.49B	2.70B
Stockholders Equity	554.37M	511.95M	1.19B	1.18B	690.47M	641.34M
Cash Flow
Free Cash Flow	32.49M	212.13M	256.51M	217.23M	110.26M	-249.50M
Operating Cash Flow	71.21M	265.02M	299.68M	279.51M	184.97M	156.64M
Investing Cash Flow	673.20M	818.67M	37.56M	-231.37M	-45.74M	-407.59M
Financing Cash Flow	-927.90M	-1.06B	-325.55M	-71.46M	-180.93M	334.56M

Chorus Aviation Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 21.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHR, the sentiment is Negative. The current price of 21.2 is below the 20-day moving average (MA) of 21.66, below the 50-day MA of 22.29, and above the 200-day MA of 21.01, indicating a bearish trend. The MACD of -0.27 indicates Positive momentum. The RSI at 37.19 is Neutral, neither overbought nor oversold. The STOCH value of 4.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CHR.

Chorus Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIF	75 Outperform	C$4.61B	29.94	9.88%	3.12%	15.47%	9.40%
MAL	72 Outperform	C$1.05B	23.93	5.64%	0.93%	8.84%	131.58%
CJT	67 Neutral	C$1.26B	10.58	16.75%	1.67%	7.71%	3170.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CHR	56 Neutral	C$496.41M	-13.01	2.09%	0.76%	-12.42%	69.23%
AC	47 Neutral	$5.87B	-29.80	-10.66%	―	-0.09%	-109.21%
JET	39 Underperform	$69.11M	-33.66	―	―	16.18%	87.47%

Chorus Aviation Corporate Events

Chorus Aviation Completes $50 Million Share Buyback

Chorus Aviation Inc. announced the final results of its substantial issuer bid, purchasing approximately 2,061,855 shares for cancellation at $24.25 per share, totaling around $50 million. This move represents about 8.1% of its outstanding shares, aiming to enhance shareholder value. The offer was oversubscribed, with shareholders having 98.6% of their tendered shares purchased, highlighting strong investor interest. The transaction also has tax implications for shareholders, as the purchase price exceeds the paid-up capital per share, resulting in a deemed dividend for Canadian tax purposes.

Chorus Aviation Declares Quarterly Dividend for Shareholders

Chorus Aviation Inc. announced a quarterly cash dividend of $0.08 per Class A Variable Voting Share and Class B Voting Share, payable on December 29, 2025, to shareholders of record as of December 12, 2025. This dividend declaration reflects Chorus’ ongoing commitment to returning value to its shareholders, and it may have implications for the company’s financial strategy and stakeholder interests, particularly in the context of its operational and financial performance.

Chorus Aviation Declares Quarterly Dividend, Reinforcing Shareholder Value

Chorus Aviation Inc. has announced a quarterly cash dividend of $0.08 per Class A Variable Voting Share and Class B Voting Share, payable on December 29, 2025, to shareholders of record as of December 12, 2025. This dividend declaration reflects Chorus Aviation’s ongoing commitment to providing shareholder value and highlights its stable financial position. The announcement may positively impact the company’s market perception and stakeholder confidence, although future dividends remain subject to the discretion of the board and various financial considerations.

Chorus Aviation Announces Strategic Fleet Expansion

Chorus Aviation has announced a strategic move that could significantly impact its operational capabilities and market positioning. The company has revealed plans to enhance its fleet and expand its service offerings, which is expected to strengthen its competitive edge in the aviation industry and potentially lead to increased stakeholder value.

Jazz Aviation Secures Tentative Union Agreements

Jazz Aviation LP has reached tentative agreements with the Aircraft Mechanics Fraternal Association, representing its heavy and line maintenance employees. These agreements, pending ratification, are crucial for maintaining operational stability and reflect Jazz’s ongoing commitment to its workforce, potentially impacting its service reliability and stakeholder value positively.

Jazz Aviation Wins Canada’s Safest Public Transportation Employer Award

Jazz Aviation LP has been awarded the DriverCheck Award for Canada’s Safest Public Transportation Employer, highlighting its strong safety culture and commitment to employee engagement and psychological safety. This recognition underscores Jazz’s leadership in safety management and inclusivity, marking its ninth consecutive year of receiving accolades for outstanding occupational safety and health practices.

Chorus Aviation to Announce Q3 2025 Financial Results

Chorus Aviation Inc. announced that it will present its third quarter 2025 financial results on November 7, 2025. The presentation will be led by the company’s President and CEO, Colin Copp, and CFO, Gary Osborne, who will also address analysts’ questions. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic positioning within the aviation industry.

Chorus Aviation Completes Debenture Redemption, Enhancing Financial Flexibility

Chorus Aviation Inc. has completed the redemption of its remaining 6.00% convertible senior unsecured debentures due June 30, 2026. The redemption was finalized on September 30, 2025, with holders receiving $1,015 for each $1,000 principal amount, including accrued interest. This move led to the delisting of the debentures from the Toronto Stock Exchange, marking a significant step in Chorus’s financial strategy by reducing its debt obligations and potentially improving its financial flexibility.

Chorus Aviation Launches $50 Million Share Buyback Program

Chorus Aviation has initiated a substantial issuer bid to repurchase up to $50 million of its Class A and Class B shares at a price between $23.00 and $25.00 per share. This move, which is set to expire on November 10, 2025, aims to optimize the company’s capital structure and potentially enhance shareholder value. The offer reflects Chorus’ strategic focus on managing its financial resources effectively and may impact its market positioning by demonstrating confidence in its financial stability.

Chorus Aviation Launches $50 Million Share Buyback

Chorus Aviation has announced a substantial issuer bid to purchase up to $50 million of its Class A and Class B shares through a modified Dutch auction. This move is aimed at consolidating its shareholdings and potentially enhancing shareholder value, with the purchase price set between $23.00 and $25.00 per share. The offer, which is not contingent on a minimum number of shares being tendered, reflects the company’s strategic financial management and could impact its stock liquidity and market perception.