Cargojet (CJT) AI Stock Analysis

• Market Cap: $1.56B
• Dividend Yield: 1.39%
• Average Volume (3M): 71.73K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.29
• Revenue Growth: 14.37%
• EPS Growth: N/A
• Country: CA
• Employees: 1,935
• Sector: Industrials
• Sector Strength: 84
• Industry: Integrated Freight & Logistics
• EPS (TTM): 1.02
• Shares Outstanding: 15,518,921
• 10 Day Avg. Volume: 63,259
• 30 Day Avg. Volume: 71,733
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.55
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 10.37
• Enterprise Value/Ebitda: 6.90
• 1Y Price Target: $140.00
• Price Target Upside: 39.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 74 Outperform
• Price Target: C$114.00 ▲(13.50% Upside)

Cargojet's overall score is driven by strong valuation metrics and strategic corporate partnerships, which enhance its market position. While financial performance shows growth, the increasing leverage and negative free cash flow are concerns. Technical indicators suggest stable momentum, and the earnings call provided a positive outlook despite some challenges.

Positive Factors

Ad-hoc Revenue Opportunities

The ad-hoc charter market has the potential to provide revenue opportunities in the immediate term for Cargojet.

Competitive Advantage

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

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.

Negative Factors

Cost Inflation

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.

Freight Demand

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

Operating Costs

Operating leverage was limited due to new contract start-up costs and ongoing elevated inflationary pressures in the aviation industry.

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 generates revenue primarily through its air cargo services, which include scheduled overnight deliveries and charter services. The company operates a hub-and-spoke network that allows for efficient distribution of goods, enabling it to charge premium rates for time-sensitive shipments. Key revenue streams include service contracts with major clients, such as Canada Post, which represents a significant portion of its business, as well as contracts with other businesses needing reliable air freight services. Additionally, Cargojet benefits from partnerships with various logistics and transportation companies, enhancing its service offerings and expanding its market reach. The company's ability to adapt to evolving market demands, such as increased e-commerce, also contributes to its revenue growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.00B	877.50M	979.90M	757.80M	668.50M
Gross Profit	225.80M	136.10M	247.50M	230.90M	250.50M
EBITDA	359.20M	329.50M	397.80M	348.10M	95.30M
Net Income	108.40M	37.30M	190.60M	167.40M	-87.80M
Balance Sheet
Total Assets	1.93B	2.04B	1.99B	1.49B	1.22B
Cash, Cash Equivalents and Short-Term Investments	1.50M	31.80M	6.10M	94.70M	3.70M
Total Debt	755.10M	799.20M	707.00M	398.60M	572.80M
Total Liabilities	1.19B	1.25B	1.15B	813.40M	1.05B
Stockholders Equity	737.70M	784.50M	831.50M	676.40M	175.20M
Cash Flow
Free Cash Flow	78.60M	-73.90M	-328.70M	-32.60M	146.00M
Operating Cash Flow	328.60M	192.80M	282.50M	245.00M	292.60M
Investing Cash Flow	-142.70M	-127.50M	-615.10M	-280.40M	-127.70M
Financing Cash Flow	-216.20M	-39.60M	244.00M	126.40M	-162.80M

Cargojet Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 100.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 100.44 is below the 20-day moving average (MA) of 101.38, above the 50-day MA of 98.59, and below the 200-day MA of 102.70, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 55.01 is Neutral, neither overbought nor oversold. The STOCH value of 53.31 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
CJT	74 Outperform	$1.56B	10.90	19.73%	1.39%	14.37%	―
Sector *	64 Neutral	$10.66B	16.26	6.50%	2.14%	2.69%	-21.81%
ACDVF	―	$4.16B	4.57	101.32%	―	―	―
MTL	72 Outperform	C$1.17B	11.74	9.99%	6.24%	5.52%	-18.01%
DXT	72 Outperform	C$614.98M	17.91	14.80%	3.54%	-5.62%	88.69%
EIF	71 Outperform	C$3.51B	26.30	9.16%	4.00%	5.95%	-1.42%
ANDHF	―	$1.52B	31.47	15.64%	0.86%	―	―

Cargojet Corporate Events

Cargojet Reports Revenue Growth and Operational Efficiency in Q2 2025

Cargojet Inc. reported a 3.2% increase in total revenues for the second quarter of 2025, driven by significant growth in domestic and charter revenues. Despite a net loss of $3.2 million, the company achieved record on-time performance and improved adjusted EBITDA margins, highlighting effective cost management and productivity initiatives. The EU-US trade deal is expected to open new opportunities in the coming quarters, potentially enhancing Cargojet’s position in the air cargo market.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet and DHL Extend Strategic Partnership to 2033 with C$3.2 Billion Revenue Target

Cargojet has extended its strategic partnership with DHL until 2033, with potential extensions to 2037, aiming for a revenue target of up to C$3.2 billion. This agreement solidifies Cargojet’s position as a key player in global logistics, offering a comprehensive range of air-transportation services to support DHL’s global network. The partnership includes a minimum monthly block hours guarantee and opportunities for Cargojet to expand its routes. Additionally, Cargojet will issue warrants to DHL, aligning interests and strengthening their long-term relationship.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet and DHL Extend Strategic Partnership to 2033 with C$3.2 Billion Revenue Target

Cargojet Inc. has extended its strategic agreement with DHL Network Operations until 2033, with potential extensions to 2037, aiming for a revenue target of up to C$3.2 billion. This agreement strengthens Cargojet’s position as a key player in global logistics, offering a comprehensive range of air transportation services to support DHL’s logistics network. The partnership will see Cargojet providing preferred opportunities for additional routes and includes a new warrant agreement tied to business volume delivery, reflecting a deepened commitment between the two companies.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Schedules Second Quarter Financial Results Announcement

Cargojet Inc. announced it will release its second-quarter financial results on August 6, 2025, followed by a conference call on August 7, 2025, hosted by its executive team. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Extends Key Agreement with Amazon Until 2029

Cargojet has extended its Air Transportation Services Agreement with Amazon Canada Fulfillment Services for an additional four years, with an option for Amazon to renew until 2031. This extension highlights Cargojet’s integral role in Amazon’s logistics network and reinforces its strong position in the air cargo industry, potentially benefiting stakeholders by ensuring continued collaboration with a major client.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Secures $250 Million Through Successful Note Offering

Cargojet Inc. has successfully closed a $250 million offering of 4.599% senior unsecured notes due 2030, which will be used to redeem existing debt, repay credit facilities, and for general corporate purposes. This move reflects Cargojet’s strategic financial management, enhancing its credit structure by transitioning to unsecured obligations and modifying covenants to align with an investment-grade credit rating, potentially impacting its operational flexibility and cost of capital.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Launches $250 Million Investment Grade Notes Offering

Cargojet Inc. has announced the pricing of a $250 million offering of 4.599% senior unsecured notes due in 2030, with the proceeds intended to redeem existing debentures, repay credit facilities, and support general corporate purposes. This move is part of Cargojet’s strategy to strengthen its financial position by reducing costs and increasing flexibility, as the notes carry no financial or maintenance covenants and are rated BBB (low) by Morningstar DBRS. The offering, led by Scotia Capital Inc. and RBC Capital Markets, is expected to close by June 30, 2025, and will be conducted privately in Canada, targeting accredited investors.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Receives BBB (low) Credit Rating with Stable Outlook

Cargojet Inc. has been assigned an investment-grade issuer credit rating of BBB (low) with a stable trend by Morningstar DBRS. This rating reflects Cargojet’s strong market position in the Canadian domestic overnight air cargo market, efficient operations, and commitment to maintaining leverage within its target range. The credit rating is expected to enhance Cargojet’s financial flexibility, allowing the company to pursue opportunities to improve its cost of capital and strengthen its balance sheet.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Appoints Aaron McKay as New CFO to Strengthen Leadership

Cargojet has appointed Aaron McKay as its new Chief Financial Officer, effective August 1, 2025. McKay’s extensive experience in the airline industry and financial leadership is expected to bolster Cargojet’s executive team, aiding in the company’s strategic initiatives and reinforcing its position as a market leader in air cargo services.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Announces Quarterly Dividend, Reinforcing Market Position

Cargojet Inc. has announced a quarterly cash dividend of $0.35 per common voting share for the period from April 1, 2025, to June 30, 2025, with a record date of June 20, 2025, and payment by July 4, 2025. This move reflects Cargojet’s stable financial position and commitment to returning value to shareholders, potentially enhancing its attractiveness to investors and solidifying its market position in the air cargo industry.

The most recent analyst rating on (TSE:CJT) stock is a Hold with a C$120.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.