Chorus Aviation (CHR) AI Stock Analysis

• Market Cap: C$583.20M
• Dividend Yield: N/A
• Average Volume (3M): 53.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -17.58%
• EPS Growth: -703.93%
• Country: CA
• Employees: 4,345
• Sector: Industrials
• Sector Strength: 93
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.57
• Shares Outstanding: 25,850,965
• 10 Day Avg. Volume: 32,211
• 30 Day Avg. Volume: 53,379
• PEG Ratio: -0.61
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.39
• 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$28.42
• Price Target Upside: 25.98% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: C$21.50 ▼(-4.70%Downside)

Chorus Aviation's stock score is influenced by its strong corporate actions and effective cash flow management. However, persistent profitability challenges and a negative valuation aspect due to ongoing losses weigh on the overall score. Technical indicators suggest potential for recovery, but caution is advised due to mixed signals.

Positive Factors

Earnings and Cash Flows

The company's capacity purchase agreement with Air Canada and the growing Voyageur business provide visibility into earnings and cash flows.

Revenue Streams

CHR going forward benefits from two largely contracted, predictable and stable revenue streams.

Negative Factors

Financial Performance

Q1/25 results were generally better than expectations, and mark a new era for the company.

Free Cash Flow

Free cash flow usage of $28.9m came in well below the positive $8.1m forecast, driven by higher-than-anticipated working capital draw.

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 streams. A significant portion of its income comes from long-term leasing agreements with regional airlines worldwide, where it leases aircraft from its diverse fleet to operators who require flexible and efficient regional aircraft solutions. Additionally, Chorus earns money through its contract flying operations, notably with Air Canada, under the 'Capacity Purchase Agreement' where it provides regional flight services. The company also derives revenue from its aircraft maintenance, repair, and overhaul (MRO) services, offering these services to third-party airlines and ensuring operational efficiency and reliability of aircraft. These revenue streams are supported by strategic partnerships and long-term contracts that provide stable and recurring income.

Chorus Aviation Financial Statement Overview

Summary

Chorus Aviation shows resilience in cash flow management and leverage optimization despite challenges in profitability. The focus on maintaining a solid cash position and reducing leverage is commendable, but increasing net losses remain a concern.

Income Statement

Chorus Aviation's revenue contracted slightly in the TTM period compared to the previous year. The gross profit margin reduced to 16.02% in TTM from 19.28% the previous year, indicating increased pressure on costs or pricing. The net loss widened in TTM, leading to a negative net profit margin of -10.64%, compared to the previous year's -11.28%. While EBIT margin showed resilience at 6.77% for TTM, EBITDA margin improved to 12.84%. The visible trend is a struggle to maintain profitability amidst fluctuating revenue.

Balance Sheet

The balance sheet reflects a decrease in total assets and liabilities over time. The debt-to-equity ratio stands at 0.81 in TTM, an improvement from 1.01 the previous year, suggesting a reduction in leverage. However, the equity ratio decreased to 36.43% from 31.85%, indicating relative stability in equity financing. Overall, the financial stability appears moderate with a cautious approach to debt management.

Cash Flow

The company's operating cash flow to net income ratio is strong at -1.01, reflecting robust cash generation capabilities despite net losses. The free cash flow was positive at $108.5 million, although it decreased compared to the previous year's $212.1 million. The free cash flow growth rate is negative due to this decline. Cash flow management seems effective despite the challenges in profitability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.40B	1.40B	1.60B	1.02B	948.72M
Gross Profit	270.89M	337.13M	423.40M	205.63M	230.12M
EBITDA	165.54M	271.36M	381.35M	270.46M	363.12M
Net Income	-158.50M	101.35M	48.89M	-20.48M	41.49M
Balance Sheet
Total Assets	1.61B	3.85B	4.06B	3.18B	3.34B
Cash, Cash Equivalents and Short-Term Investments	222.22M	88.83M	100.03M	123.57M	165.72M
Total Debt	516.38M	1.76B	2.03B	1.91B	2.19B
Total Liabilities	1.10B	2.57B	2.79B	2.49B	2.70B
Stockholders Equity	511.95M	1.19B	1.18B	690.47M	641.34M
Cash Flow
Free Cash Flow	212.13M	256.51M	217.23M	110.26M	-249.50M
Operating Cash Flow	265.02M	299.68M	279.51M	184.97M	156.64M
Investing Cash Flow	818.67M	37.56M	-231.37M	-45.74M	-407.59M
Financing Cash Flow	-1.06B	-325.55M	-71.46M	-180.93M	334.56M

Chorus Aviation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHR, the sentiment is Positive. The current price of 22.56 is below the 20-day moving average (MA) of 22.61, above the 50-day MA of 21.42, and above the 200-day MA of 20.81, indicating a neutral trend. The MACD of 0.42 indicates Positive momentum. The RSI at 55.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CHR.

Chorus Aviation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIF	78 Outperform	C$3.40B	25.51	9.16%	4.12%	5.95%	-1.42%
AC	77 Outperform	$7.09B	4.67	132.28%	―	0.24%	-23.10%
BBD.B	73 Outperform	$16.21B	42.01	-18.58%	―	16.31%	4.12%
DXT	72 Outperform	C$610.64M	19.43	15.03%	3.57%	-10.24%	-23.79%
Sector *	67 Neutral	CHF7.02B	25.57	14.57%	2.27%	-2.32%	-30.70%
CHR	59 Neutral	C$583.20M	―	-0.09%	―	-17.58%	-703.93%
BLDP	58 Neutral	$872.51M	―	-37.81%	―	-29.66%	-67.02%

Chorus Aviation Corporate Events

Chorus Aviation to Acquire Elisen & Associates, Expanding Aerospace Capabilities

Chorus Aviation Inc. announced its agreement to acquire Elisen & Associates Inc., a Montreal-based aerospace engineering firm known for its work on complex aircraft modifications and sustainable aviation projects. This acquisition is expected to enhance Chorus’s defense and specialized MRO capabilities by leveraging Elisen’s expertise and industry relationships, although it is not anticipated to significantly impact Chorus’s financial metrics.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Chorus Aviation to Announce Q2 2025 Financial Results

Chorus Aviation Inc. announced that it will present its second quarter 2025 financial results on August 6, 2025. The presentation will be led by the company’s President and CEO, Colin Copp, along with CFO Gary Osborne, and will be accessible to analysts and media. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction for the upcoming quarters.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Chorus Aviation Initiates Quarterly Dividend to Enhance Shareholder Value

Chorus Aviation Inc. has announced the initiation of a quarterly cash dividend of $0.08 per share, starting with its 2025 third-quarter earnings release. This move is part of Chorus’ strategy to enhance shareholder value following the sale of its Regional Aircraft Leasing business, alongside debt reduction and share buybacks. The company aims to distribute approximately 25% of its free cash flow as dividends while maintaining a leverage ratio within its target range and pursuing growth opportunities, reflecting its commitment to delivering shareholder value and investing in future growth.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Chorus Aviation Resumes Share Repurchase with New Plan

Chorus Aviation Inc. has initiated an automatic share purchase plan (ASPP) to facilitate the repurchase of its Class A and Class B shares under its normal course issuer bid (NCIB), which had been suspended during a substantial issuer bid. The ASPP allows Chorus to buy shares during trading blackout periods, with the plan reviewed by the Toronto Stock Exchange. This move is expected to optimize the company’s capital structure and potentially enhance shareholder value, although there is no assurance on the number of shares to be acquired.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Chorus Aviation Completes Substantial Issuer Bid and Plans to Resume Share Purchases

Chorus Aviation Inc. announced the final results of its substantial issuer bid, purchasing 471,319 shares at $21.00 per share for approximately $9.9 million. This move represents about 1.78% of its outstanding shares, and the company plans to resume its normal course issuer bid, continuing share purchases opportunistically until November 2025.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Chorus Aviation Announces Preliminary Results of Share Buyback

Chorus Aviation Inc. announced the preliminary results of its substantial issuer bid, aiming to purchase and cancel up to $25 million of its shares. The company successfully tendered 471,319 shares at $21.00 each, representing approximately 1.78% of its outstanding shares. Following this transaction, Chorus will have 25,992,518 shares remaining. The issuer bid was less than the maximum allowed, so all validly tendered shares will be purchased without proration. The company plans to resume its normal course issuer bid, purchasing shares opportunistically until November 2025.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Chorus Aviation Secures Regulatory Approval for Potential Extension of Share Buyback Offer

Chorus Aviation Inc. announced that it has received exemptive relief from the Nova Scotia Securities Commission, allowing it to extend its substantial issuer bid if undersubscribed, without needing to first purchase shares already tendered. This move is part of Chorus’s offer to buy back up to $25 million worth of its Class A and Class B shares through a modified Dutch auction. The decision to extend the offer has not yet been made, but it could impact the company’s financial strategy and shareholder value.

The most recent analyst rating on (TSE:CHR) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on Chorus Aviation stock, see the TSE:CHR Stock Forecast page.

Chorus Aviation Announces Board of Directors Election Results

Chorus Aviation Inc. announced the election results for its Board of Directors during its virtual annual meeting of shareholders on May 7, 2025. The meeting saw 11,754,727 shares represented, accounting for 43.92% of the company’s voting shares, with all business items receiving approval. The election results highlight the continued support for the company’s leadership, which could positively impact its operational strategies and stakeholder confidence.

Chorus Aviation Reports Strong Q1 2025 Results and Focuses on Shareholder Value

Chorus Aviation Inc. reported a strong financial performance for the first quarter of 2025, with a net income of $18.9 million, up from $12.3 million in the same period of 2024. The company’s improved results were driven by the sale of its regional aircraft leasing business, increased parts sales, and cost reductions. Additionally, Chorus has been actively returning capital to shareholders through share buy-backs, reflecting its strengthened balance sheet and commitment to enhancing shareholder value.