Cargojet (CJT) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 1.45%
• Average Volume (3M): 93.81K
• Price to Earnings (P/E): 12.0
• Beta (1Y): 1.15
• Revenue Growth: 16.28%
• EPS Growth: 239.02%
• Country: CA
• Employees: 1,935
• Sector: Industrials
• Sector Strength: 91
• Industry: Integrated Freight & Logistics
• EPS (TTM): 1.62
• Shares Outstanding: 15,518,921
• 10 Day Avg. Volume: 97,931
• 30 Day Avg. Volume: 93,810
• PEG Ratio: 0.64
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -37.14
• 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: $147.50
• Price Target Upside: 55.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Cargojet's strong financial performance and strategic growth initiatives are key strengths, highlighted by robust revenue growth and operational efficiency. However, the stock faces challenges from rising leverage and negative free cash flow, which necessitate careful management. Technical indicators suggest potential weaknesses, while valuation remains moderate, making the stock a cautious buy in its current state.

Positive Factors

Fleet Utilization

Cargojet has historically had success maintaining a high level of fleet utilization by emphasizing ad-hoc markets when demand for its core services is soft.

Market Position

Cargojet is described as a well-managed company with a dominant market position and strong, durable competitive advantages in Canada's air cargo network.

Negative Factors

Freight Demand

Analyst is lowering the forecast for Cargojet to reflect expectations for a more muted freight demand environment.

Inflationary Pressures

Cost inflationary pressures remain elevated, and there is anticipation that this pressure could further escalate when the company faces a renewal of its collective agreement with its pilots.

Cargojet Business Overview & Revenue Model

Company Description

Cargojet Inc. provides time sensitive overnight air cargo services in Canada. Its air cargo business activities include operation of domestic air cargo network services between fourteen cities in North America; and provision of dedicated aircraft to customers on an aircraft, crew, maintenance, and insurance (ACMI) basis operating between points in Canada, North and South America, and Europe. The company also operates scheduled international routes for various cargo customers between the United States and Bermuda; and between Canada, the United Kingdom, and Germany. In addition, it offers aircraft to customers on an adhoc charter basis operating between points in Canada, the United States, and other international destinations; and specialty charter services for livestock shipments, military equipment movements, emergency relief supplies, and virtually large shipments across North America, South America, the Caribbean, and Europe. Further, the company is involved in the flight planning and dispatch, crew planning and training, ground handling, and commercial airline cargo management businesses. As of December 31, 2021, it operated a fleet of 31 aircraft. The company was founded in 2005 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Cargojet makes money through its core air cargo services, which include overnight air freight services, charter services, and dedicated aircraft operations. The company's revenue streams primarily come from contracts with major courier companies, e-commerce businesses, and freight forwarders requiring reliable and timely delivery solutions. Cargojet's strategic partnerships with leading logistics and retail companies contribute significantly to its earnings, as these partnerships ensure a steady demand for its services. Additionally, the company capitalizes on the growing e-commerce sector, which drives increased demand for fast and efficient shipping solutions.

Cargojet Financial Statement Overview

Summary

Cargojet exhibits strong revenue growth and operational efficiency, with good profitability margins. However, the increasing leverage and negative free cash flow pose potential risks. The company should focus on managing debt levels and improving free cash flow to support long-term financial stability.

Income Statement

Cargojet has demonstrated a consistent increase in revenue over recent years, with a notable growth rate from 2023 to 2024 and into the TTM period. Gross Profit Margin and Net Profit Margin are solid, indicating profitability, although there was a decline in gross profit compared to 2022. EBIT and EBITDA margins are stable, reflecting strong operational efficiency. However, the net income has experienced some fluctuations, highlighting a potential area of risk.

Balance Sheet

The company's balance sheet shows a steady increase in stockholders' equity, contributing to a reasonable equity ratio. However, the Debt-to-Equity Ratio has increased, indicating rising leverage which could pose risks if not managed carefully. The Return on Equity is strong, suggesting effective use of equity to generate profits, but the increase in total debt is a concern that may affect future stability.

Cash Flow

Operating cash flow remains robust, but there is negative free cash flow in the TTM period due to high capital expenditures, limiting liquidity. The ratio of operating cash flow to net income is strong, suggesting that net income is well-supported by cash flow. The free cash flow to net income ratio indicates challenges in converting profits into free cash flow, which could impact financial flexibility moving forward.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.02B	1.00B	877.50M	979.90M	757.80M	668.50M
	Gross Profit
233.00M	225.80M	136.10M	247.50M	230.90M	250.50M
	EBIT
143.70M	135.20M	64.70M	170.50M	172.10M	156.90M
	EBITDA
349.90M	359.20M	329.50M	397.80M	348.10M	95.30M
	Net Income Common Stockholders
123.90M	108.40M	37.30M	190.60M	167.40M	-87.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
7.40M	1.50M	31.80M	6.10M	94.70M	3.70M
	Total Assets
1.99B	1.93B	2.04B	1.99B	1.49B	1.22B
	Total Debt
840.40M	755.10M	799.20M	707.00M	398.60M	572.80M
	Net Debt
833.00M	753.60M	767.40M	700.90M	303.90M	569.10M
	Total Liabilities
1.21B	1.19B	1.25B	1.15B	813.40M	1.05B
	Stockholders Equity
780.30M	737.70M	784.50M	831.50M	676.40M	175.20M
Cash Flow		Free Cash Flow
-35.90M	78.60M	-73.90M	-328.70M	-32.60M	146.00M
	Operating Cash Flow
313.10M	328.60M	192.80M	282.50M	245.00M	292.60M
	Investing Cash Flow
-341.80M	-142.70M	-127.50M	-615.10M	-280.40M	-127.70M
	Financing Cash Flow
16.20M	-216.20M	-39.60M	244.00M	126.40M	-162.80M

Cargojet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.58
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJT, the sentiment is Positive. The current price of 94.58 is above the 20-day moving average (MA) of 86.58, above the 50-day MA of 84.18, and below the 200-day MA of 111.77, indicating a neutral trend. The MACD of 3.26 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 78.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CJT.

Cargojet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTL	74 Outperform	C$1.25B	11.65	10.81%	5.59%	3.28%	-14.21%
DXT	72 Outperform	C$540.43M	17.15	15.03%	4.05%	-10.24%	-23.79%
CJT	70 Outperform	$1.47B	11.98	15.65%	1.45%	16.28%	239.02%
EIF	70 Outperform	C$2.99B	22.49	9.16%	4.54%	5.95%	-1.42%
Sector *	64 Neutral	$4.44B	11.99	5.16%	249.23%	4.01%	-11.87%

Cargojet Corporate Events

Cargojet Reports Record First Quarter Revenue and Earnings

Cargojet Inc. reported a record first quarter revenue of $249.9 million, marking an 8.1% increase from the previous year. The company achieved a 47.7% rise in net earnings to $48.0 million, driven by strong performance across its diversified service offerings. Despite challenges such as inflation and currency volatility, Cargojet maintained robust margins and achieved a record on-time arrival performance, positioning itself as a key player in the competitive global air cargo industry.

Spark’s Take on TSE:CJT Stock

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

Cargojet’s overall score reflects strong financial performance and a positive outlook from recent earnings, tempered by technical weaknesses and moderate valuation. While revenue growth and operational efficiency are significant strengths, cost pressures and debt levels require close monitoring.

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

Cargojet Shareholders Approve All Business Items at Annual Meeting

Cargojet Inc. announced the results of its annual shareholders’ meeting, where all business items, including the election of director nominees, were approved by shareholders. This outcome reinforces the company’s stable governance and could positively impact its operational efficiency and stakeholder confidence.

Cargojet Schedules First Quarter 2025 Financial Results Release and Conference Call

Cargojet Inc. announced it will release its first-quarter 2025 financial results on April 23, 2025, after market close. The company will hold a conference call on April 24, 2025, to discuss the results, led by Co-CEOs Jamie B. Porteous and Pauline Dhillon, along with Interim CFO Sanjeev Maini. This announcement underscores Cargojet’s ongoing commitment to transparency and engagement with stakeholders, as it continues to solidify its position in the air cargo industry.

Cargojet CFO Departure and Interim Appointment

Cargojet Inc. announced the departure of its Chief Financial Officer, Scott Calver, who is leaving to pursue other opportunities. The company has appointed Sanjeev Maini as Interim CFO while they conduct a formal search for a permanent replacement, expected to conclude later this year. This leadership change comes as Cargojet continues to solidify its position as a leader in the air cargo industry, ensuring stability and continuity in its financial operations.

Cargojet Declares Quarterly Dividend, Reinforces Shareholder Value

Cargojet Inc. has announced a quarterly cash dividend of $0.35 per common and variable voting share for the period from January 1 to March 31, 2025. The record date for shareholders to receive the dividend is March 20, 2025, with payment expected by April 4, 2025. This move underscores Cargojet’s strong market positioning and commitment to shareholder returns, which may positively impact investor confidence in the company.