Chorus Aviation (CHR) AI Stock Analysis

• Market Cap: C$551.77M
• Dividend Yield: N/A
• Average Volume (3M): 31.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: -17.58%
• EPS Growth: -703.93%
• Country: CA
• Employees: 4,345
• Sector: Industrials
• Sector Strength: 90
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.57
• Shares Outstanding: 26,463,837
• 10 Day Avg. Volume: 37,619
• 30 Day Avg. Volume: 31,977
• PEG Ratio: -0.54
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.96
• 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$27.42
• Price Target Upside: 31.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: C$20.00 ▼(-4.12%Downside)

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

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. is a Canadian holding company with subsidiaries involved in regional aviation services. With headquarters in Halifax, Nova Scotia, the company operates primarily through its regional airline, Jazz Aviation, and its aircraft leasing segment, Chorus Aviation Capital. Chorus provides a comprehensive range of services to the aviation sector, including contract flying, leasing, and maintenance, repair, and overhaul (MRO) services.

How the Company Makes Money

Chorus 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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.39B	1.40B	1.40B	1.60B	1.02B	948.72M
	Gross Profit
223.40M	270.89M	441.60M	423.40M	205.63M	230.12M
	EBIT
94.39M	92.65M	158.53M	188.27M	70.98M	114.55M
	EBITDA
179.05M	165.54M	271.36M	360.85M	270.46M	363.12M
	Net Income Common Stockholders
-148.39M	-158.50M	101.35M	48.89M	-20.48M	41.49M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
74.35M	222.22M	88.83M	100.03M	123.57M	165.72M
	Total Assets
1.42B	1.61B	3.85B	4.06B	3.18B	3.34B
	Total Debt
418.44M	516.38M	1.76B	2.03B	1.91B	2.19B
	Net Debt
344.09M	294.16M	1.67B	1.93B	1.79B	2.03B
	Total Liabilities
900.62M	1.10B	2.57B	2.79B	2.49B	2.70B
	Stockholders Equity
516.22M	511.95M	1.19B	1.18B	690.47M	641.34M
Cash Flow		Free Cash Flow
108.50M	212.13M	256.51M	217.23M	110.26M	-249.50M
	Operating Cash Flow
149.43M	265.02M	299.68M	279.51M	184.97M	156.64M
	Investing Cash Flow
724.75M	818.67M	37.56M	-231.37M	-45.74M	-407.59M
	Financing Cash Flow
-992.42M	-1.06B	-325.55M	-71.46M	-180.93M	334.56M

Chorus Aviation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 20.86 is above the 20-day moving average (MA) of 20.46, above the 50-day MA of 19.50, and above the 200-day MA of 20.36, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 64.60 is Neutral, neither overbought nor oversold. The STOCH value of 58.58 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
AC	73 Outperform	$6.53B	3.96	132.28%	―	0.24%	-23.10%
BBD.B	73 Outperform	$9.86B	27.52	-18.58%	―	16.31%	4.12%
DXT	72 Outperform	C$556.11M	17.69	15.03%	3.96%	-10.24%	-23.79%
EIF	70 Outperform	C$2.92B	21.97	9.16%	4.57%	5.95%	-1.42%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
CHR	52 Neutral	C$551.77M	―	-0.09%	―	-17.58%	-703.93%
BLDP	49 Neutral	C$683.62M	―	-37.81%	―	-29.66%	-67.02%

Chorus Aviation Corporate Events

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.

Jazz Aviation Celebrated as Top Employer in Nova Scotia for 14th Year

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.

Chorus Aviation Launches $25 Million Share Buyback Program

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.

Chorus Aviation to Announce Q1 2025 Results and Host Shareholder Meeting

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.

Chorus Aviation Launches $25 Million Share Buyback

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.

Jazz Aviation Celebrates 14th Year as Top Atlantic Canadian Employer

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.

Jazz Aviation Celebrates 14th Consecutive Year as Top Employer in Atlantic Canada

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.