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Chorus Aviation V&VV (TSE:CHR)
TSX:CHR

Chorus Aviation (CHR) AI Stock Analysis

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Chorus Aviation

(TSX:CHR)

52Neutral
Chorus Aviation's stock score is primarily influenced by its resilience in cash flow management and leverage reduction amidst challenging profitability. Technical indicators present a cautious outlook, and valuation remains a concern due to a negative P/E ratio. Corporate events like share buybacks and strong quarterly results provide some optimism, but ongoing improvements in profitability and financial stability are critical for enhancing the stock's appeal.
Positive Factors
Cash flow generation
CHR is expected to generate substantial free cash flow in the coming years, providing flexibility for growth and shareholder returns.
Earnings stability
The capacity purchase agreement with Air Canada offers predictable and stable earnings and cash flows.
Growth opportunities
Voyageur remains a growth lever with record parts sales and a strong pipeline, aiming for $150 million in revenues.
Shareholder returns
The announcement of an NCIB for approximately 10% of the public float demonstrates a continued focus on shareholder distributions.
Negative Factors
Leasing segment sale
The sale of the leasing segment is on track to be completed, having received necessary approvals, which is expected to aid in deleveraging.
Stock re-rating potential
Analysts believe there is a framework for further re-rating in the stock, supported by ongoing shareholder distributions and deleveraging efforts.

Chorus Aviation (CHR) vs. S&P 500 (SPY)

Chorus Aviation Business Overview & Revenue Model

Company DescriptionChorus 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 MoneyChorus Aviation generates revenue through multiple streams. A significant portion comes from its capacity purchase agreements with Air Canada, under which its subsidiary, Jazz Aviation, operates flights on behalf of Air Canada under the Air Canada Express brand. This agreement ensures a steady flow of income based on the capacity provided rather than passenger load factors. Additionally, Chorus Aviation earns revenue from its aircraft leasing business through its subsidiary, Chorus Aviation Capital, which leases aircraft to regional airlines worldwide. The company also derives income from providing MRO services, which include aircraft maintenance and engineering solutions. These diversified revenue streams, along with strategic partnerships and a global presence in the aircraft leasing market, contribute to Chorus Aviation's overall financial performance.

Chorus Aviation Financial Statement Overview

Summary
Chorus Aviation shows resilience in managing cash flows and optimizing leverage amidst revenue challenges. Despite widening net losses, the focus on maintaining a strong cash position and reducing leverage is commendable. Continued efforts in cost management and revenue growth are essential for future financial health.
Income Statement
45
Neutral
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
55
Neutral
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
65
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.39B1.40B1.40B1.60B1.02B948.72M
Gross Profit
223.40M270.89M441.60M423.40M205.63M230.12M
EBIT
94.39M92.65M158.53M188.27M70.98M114.55M
EBITDA
179.05M165.54M271.36M360.85M270.46M363.12M
Net Income Common Stockholders
-148.39M-158.50M101.35M48.89M-20.48M41.49M
Balance SheetCash, Cash Equivalents and Short-Term Investments
74.35M222.22M88.83M100.03M123.57M165.72M
Total Assets
1.42B1.61B3.85B4.06B3.18B3.34B
Total Debt
418.44M516.38M1.76B2.03B1.91B2.19B
Net Debt
344.09M294.16M1.67B1.93B1.79B2.03B
Total Liabilities
900.62M1.10B2.57B2.79B2.49B2.70B
Stockholders Equity
516.22M511.95M1.19B1.18B690.47M641.34M
Cash FlowFree Cash Flow
108.50M212.13M256.51M217.23M110.26M-249.50M
Operating Cash Flow
149.43M265.02M299.68M279.51M184.97M156.64M
Investing Cash Flow
724.75M818.67M37.56M-231.37M-45.74M-407.59M
Financing Cash Flow
-992.42M-1.06B-325.55M-71.46M-180.93M334.56M

Chorus Aviation Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price19.99
Price Trends
50DMA
19.46
Positive
100DMA
19.83
Negative
200DMA
20.15
Negative
Market Momentum
MACD
0.22
Negative
RSI
53.05
Neutral
STOCH
60.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHR, the sentiment is Neutral. The current price of 19.99 is above the 20-day moving average (MA) of 19.25, above the 50-day MA of 19.46, and below the 200-day MA of 20.15, indicating a neutral trend. The MACD of 0.22 indicates Negative momentum. The RSI at 53.05 is Neutral, neither overbought nor oversold. The STOCH value of 60.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CHR.

Chorus Aviation Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
TSDXT
72
Outperform
C$540.43M17.1515.03%4.05%-10.24%-23.79%
TSEIF
70
Outperform
C$2.99B22.499.16%4.54%5.95%-1.42%
64
Neutral
$4.44B11.995.16%249.23%4.01%-11.87%
TSCHR
52
Neutral
C$538.52M―-0.09%―-17.58%-703.93%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CHR
Chorus Aviation
19.65
4.11
26.45%
BLDP
Ballard Power Systems
1.39
-1.60
-53.51%
BDRBF
Bombardier
66.10
8.38
14.52%
ACDVF
Air Canada
13.49
-0.05
-0.37%
TSE:EIF
Exchange Income
57.77
13.49
30.47%
TSE:DXT
Dexterra Group
8.60
3.47
67.64%

Chorus Aviation Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q3-2024)
|
% Change Since: 4.60%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Chorus' strong financial performance, including improved leverage ratios, significant free cash flow, and growth in Voyageur's revenues. However, the reclassification of the RAL segment as discontinued operations and the downward trend in aircraft maintenance expenses were noted as challenges. Overall, the positive developments, such as contract extensions and safety recognitions, outweigh the lowlights.
Q3-2024 Updates
Positive Updates
Strengthened Financial Position
Chorus improved its leverage ratio to 3.0, down from 3.3 at the beginning of the year, and expects further improvement following the closure of the RAL segment sale.
Strong Free Cash Flow and Adjusted EBITDA
Generated over $32 million in free cash flow this quarter and reported adjusted EBITDA of almost $54 million for Q3 and $159 million year-to-date.
Successful Contract Extensions and New Partnerships
Extended six Q400 CPA aircraft leases with Air Canada to 2026 and launched a new pilot training program with Cygnet Aviation.
Voyageur's Revenue Growth
Voyageur's revenues increased by 16% year-to-date, reaching $90 million, with record parts sales contributing to this growth.
Recognition for Safety Excellence
Jazz was recognized as an award of Excellence Winner for the eighth consecutive year as part of Canada's Safest Employers.
Negative Updates
Discontinued Operations and Segment Sale
The RAL segment has been reclassified to discontinued operations as Chorus plans to sell it by the end of 2024.
Aircraft Maintenance Expense Trends
Aircraft maintenance materials, supplies, and services expenses have been trending down, with no clear seasonality or significant read-through.
Company Guidance
During the Chorus Third Quarter 2024 earnings call, the company provided detailed guidance on its financial performance and strategic initiatives. The call highlighted a significant focus on the sale of the Regional Aircraft Leasing (RAL) segment, which is expected to conclude by the end of 2024. This transaction will lead to a streamlined balance sheet, with a pro forma leverage ratio projected to decrease to 1.5 from 3.0, enabling better financial flexibility. Chorus reported an adjusted EBITDA of $54 million for the quarter and $159 million year-to-date, alongside a free cash flow of $32 million. On a pro forma basis, free cash flow for the quarter was $37 million, illustrating a robust financial position post-transaction. The company is also committed to enhancing shareholder value through a normal course issuer bid (NCIB) for share repurchases. Operationally, Chorus emphasized its strong contractual relationship with Air Canada, extending leases on six Q400 CPA aircraft to 2026, and highlighted growth at Voyageur with record parts sales and revenue up 16% year-over-year. The call underscored Chorus' focus on capital structure optimization, pilot recruitment advancements, and strengthening its regional aviation services.

Chorus Aviation Corporate Events

Stock BuybackRegulatory Filings and Compliance
Chorus Aviation Secures Regulatory Approval for Potential Extension of Share Buyback Offer
Neutral
May 15, 2025

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.

Spark’s Take on TSE:CHR Stock

According to Spark, TipRanks’ AI Analyst, TSE:CHR is a Neutral.

Chorus Aviation’s overall stock score reflects significant challenges, particularly in financial performance due to declining profitability and increased leverage. Technical analysis indicates limited upward momentum with potential resistance. Valuation metrics are weak with a negative P/E ratio. However, positive corporate events, including strong Q1 results and strategic initiatives like share buybacks, provide some optimism. Improvements in profitability and financial stability are essential for enhancing the stock’s appeal.

To see Spark’s full report on TSE:CHR stock, click here.

Executive/Board ChangesShareholder Meetings
Chorus Aviation Announces Board of Directors Election Results
Positive
May 7, 2025

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.

Spark’s Take on TSE:CHR Stock

According to Spark, TipRanks’ AI Analyst, TSE:CHR is a Neutral.

Chorus Aviation’s stock score is primarily impacted by financial performance issues, including declining profitability and leverage concerns. Technical indicators are bearish, adding to the cautious outlook. Despite these challenges, positive corporate events, such as share buybacks and strong Q1 results, offer some optimism. Improvements in profitability and financial stability are crucial for enhancing the stock’s appeal.

To see Spark’s full report on TSE:CHR stock, click here.

Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Chorus Aviation Reports Strong Q1 2025 Results and Focuses on Shareholder Value
Positive
May 6, 2025

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.

Spark’s Take on TSE:CHR Stock

According to Spark, TipRanks’ AI Analyst, TSE:CHR is a Neutral.

Chorus Aviation’s overall stock score is primarily hindered by declining profitability and negative valuation metrics, reflected in a low financial performance score. The bearish technical indicators further weigh on the stock’s outlook. However, the company’s strategic initiatives, such as debt reduction and share buybacks, provide some positive momentum. Improvements in profitability and financial stability are crucial for enhancing the stock’s appeal.

To see Spark’s full report on TSE:CHR stock, click here.

Other
Jazz Aviation Celebrated as Top Employer in Nova Scotia for 14th Year
Positive
Apr 15, 2025

Jazz Aviation LP has been recognized as one of Nova Scotia’s Top Employers for the 14th consecutive year by Mediacorp Canada Inc. This accolade underscores Jazz’s dedication to fostering an exceptional work environment for its over 850 employees in Nova Scotia, reflecting its commitment to community involvement and employee development. The recognition is part of a series of accolades Jazz has received, highlighting its industry leadership and value creation for stakeholders.

Spark’s Take on TSE:CHR Stock

According to Spark, TipRanks’ AI Analyst, TSE:CHR is a Neutral.

Chorus Aviation faces significant challenges with declining profitability and increased leverage, reflected in a low financial performance score and negative valuation metrics. Bearish technical indicators further weigh on the stock’s outlook. However, strategic initiatives like share buybacks and debt reduction provide some positive momentum. Overall, improvements in profitability and financial stability are crucial for enhancing the stock’s appeal.

To see Spark’s full report on TSE:CHR stock, click here.

Stock BuybackBusiness Operations and Strategy
Chorus Aviation Launches $25 Million Share Buyback Program
Positive
Apr 14, 2025

Chorus Aviation Inc. has initiated a substantial issuer bid to repurchase up to $25 million of its Class A and Class B shares. This move, conducted via a modified Dutch auction, allows shareholders to tender their shares within a specified price range. The initiative aims to optimize the company’s capital structure and potentially enhance shareholder value by reducing the number of outstanding shares.

Spark’s Take on TSE:CHR Stock

According to Spark, TipRanks’ AI Analyst, TSE:CHR is a Neutral.

Chorus Aviation’s overall stock score is driven by significant financial challenges, including declining profitability and increased leverage. Despite strategic moves like a share buyback and debt reduction, the negative P/E ratio and bearish technical indicators weigh heavily on the stock’s outlook. Improvements in profitability and financial stability are crucial for enhancing the stock’s appeal.

To see Spark’s full report on TSE:CHR stock, click here.

Shareholder MeetingsFinancial Disclosures
Chorus Aviation to Announce Q1 2025 Results and Host Shareholder Meeting
Neutral
Apr 7, 2025

Chorus Aviation Inc. announced that it will present its first quarter 2025 financial results and hold its Annual Meeting of Shareholders on May 7, 2025. The presentation will be led by CEO Colin Copp and CFO Gary Osborne, providing insights into the company’s financial performance and strategic direction. This announcement is significant as it offers stakeholders an opportunity to engage with the company’s leadership and gain a deeper understanding of its operational and financial strategies.

Spark’s Take on TSE:CHR Stock

According to Spark, TipRanks’ AI Analyst, TSE:CHR is a Neutral.

Chorus Aviation faces significant challenges with profitability and valuation, reflected in its negative P/E ratio and declining income. While technical indicators provide a neutral outlook, strategic financial maneuvers like debt reduction offer a positive note but are not sufficient to outweigh broader financial difficulties.

To see Spark’s full report on TSE:CHR stock, click here.

Stock BuybackBusiness Operations and Strategy
Chorus Aviation Launches $25 Million Share Buyback
Positive
Apr 7, 2025

Chorus Aviation has announced a substantial issuer bid to purchase up to $25 million of its shares through a modified Dutch auction, allowing shareholders to tender their shares at specified prices. This move is seen as a strategic use of financial resources, reflecting the company’s belief that its current share price undervalues its business and future prospects, while maintaining sufficient capital for ongoing operations and growth opportunities.

Spark’s Take on TSE:CHR Stock

According to Spark, TipRanks’ AI Analyst, (TSE:CHR) is a Neutral.

Chorus Aviation faces significant challenges with profitability and valuation, reflected in its negative P/E ratio and declining income. While technical indicators provide a neutral outlook, strategic financial maneuvers like debt reduction offer a positive note but are not sufficient to outweigh broader financial difficulties.

To see Spark’s full report on (TSE:CHR) stock, click here.

Other
Jazz Aviation Celebrates 14th Year as Top Atlantic Canadian Employer
Positive
Mar 25, 2025

Jazz Aviation LP has been named one of Atlantic Canada’s Top Employers for the 14th consecutive year, underscoring its commitment to a positive workplace culture and employee support in the region. This accolade, awarded by Mediacorp Canada Inc., highlights Jazz’s dedication to collaboration, respect, and continuous improvement, further cementing its reputation as an employer of choice and enhancing its stakeholder value.

Business Operations and Strategy
Jazz Aviation Celebrates 14th Consecutive Year as Top Employer in Atlantic Canada
Positive
Mar 25, 2025

Jazz Aviation LP has been named one of Atlantic Canada’s Top Employers for the 14th consecutive year, underscoring its dedication to creating an exceptional workplace culture. This recognition reflects Jazz’s commitment to fostering a positive, inclusive, and innovative work environment for its over 900 employees in the region. The award, given by Mediacorp Canada Inc., evaluates employers on various criteria, including workplace environment, employee benefits, and community involvement, highlighting Jazz’s leadership in the industry and its value to stakeholders.

Business Operations and Strategy
Jazz Aviation Celebrates 14 Years as a Leading Diversity Employer
Positive
Feb 25, 2025

Jazz Aviation LP has been recognized for the fourteenth consecutive year as one of Canada’s Best Diversity Employers by Mediacorp Canada Inc. This accolade underscores Jazz’s commitment to diversity, equity, inclusion, and accessibility in the workplace, highlighting its successful initiatives for women, visible minorities, persons with disabilities, Indigenous peoples, and the LGBT community. This recognition, along with other awards, reinforces Jazz’s leadership in the aviation industry and its dedication to creating value for stakeholders.

Stock SplitFinancial Disclosures
Chorus Aviation Reports 2024 Financial Results and Announces Share Consolidation
Neutral
Feb 20, 2025

Chorus Aviation Inc. reported its fourth quarter and year-end 2024 financial results, highlighting a significant improvement in its leverage ratio from 3.3 to 1.4 due to the sale of the RAL business, which brought in net proceeds of $607.7 million. Despite a net loss from continuing operations, Chorus achieved adjusted earnings of $28.5 million for the year and a free cash flow of $118.8 million, with substantial revenue driven by its Voyageur operation. In Q4, the company faced a net loss but maintained adjusted earnings of $10.6 million. Additionally, Chorus announced a share consolidation effective February 5, 2025, which will impact its per-share figures moving forward.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.