Cargojet (CJT) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 1.72%
• Average Volume (3M): 104.43K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 1.56
• Revenue Growth: 14.37%
• EPS Growth: N/A
• Country: CA
• Employees: 1,935
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 1.02
• Shares Outstanding: 15,518,921
• 10 Day Avg. Volume: 143,870
• 30 Day Avg. Volume: 104,433
• PEG Ratio: 0.08
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 22.23
• Enterprise Value/Market Cap: 1.91
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 10.13
• Enterprise Value/Ebitda: 8.51
• 1Y Price Target: $144.67
• Price Target Upside: 77.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 65 Neutral
• Price Target: C$103.00 ▲(26.36% Upside)

Cargojet's overall score is driven by strong financial performance and positive earnings call sentiment, highlighting growth and strategic partnerships. However, technical analysis indicates bearish trends, and financial management challenges persist, impacting the score.

Positive Factors

Negative Factors

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 demonstrates strong revenue growth and profitability, with solid operating cash flows. However, increasing debt levels and negative free cash flow in the TTM period highlight areas for improvement in financial management.

Income Statement

Cargojet has demonstrated strong revenue growth, particularly in the TTM period with a 72.6% increase. The company maintains healthy profit margins, with a TTM net profit margin of 12.15% and an EBIT margin of 19.90%. However, there has been some fluctuation in margins over the years, indicating potential volatility in profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.08 in the TTM, reflecting a balanced approach to leveraging. Return on equity is solid at 16.88%, indicating effective use of equity to generate profits. However, the increasing debt levels over the years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow remains strong, with a TTM operating cash flow to net income ratio of 1.80. However, the negative free cash flow in the TTM period is a concern, despite a significant growth rate of 203.34%. This suggests potential challenges in cash management and capital expenditure.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.03B	1.00B	877.50M	979.90M	757.80M	668.50M
Gross Profit	238.30M	225.80M	138.10M	247.50M	232.40M	250.50M
EBITDA	283.70M	274.60M	219.80M	292.30M	270.00M	228.00M
Net Income	145.70M	108.40M	37.30M	190.60M	167.40M	-87.80M
Balance Sheet
Total Assets	2.07B	1.93B	2.04B	1.99B	1.49B	1.22B
Cash, Cash Equivalents and Short-Term Investments	5.00M	1.50M	31.80M	6.10M	94.70M	3.70M
Total Debt	959.70M	755.10M	799.20M	707.00M	398.60M	572.80M
Total Liabilities	1.34B	1.19B	1.25B	1.15B	813.40M	1.05B
Stockholders Equity	731.70M	737.70M	784.50M	831.50M	676.40M	175.20M
Cash Flow
Free Cash Flow	-108.90M	78.60M	-73.90M	-328.70M	-32.60M	146.00M
Operating Cash Flow	292.60M	328.60M	192.80M	282.50M	245.00M	292.60M
Investing Cash Flow	-394.30M	-142.70M	-127.50M	-615.10M	-280.40M	-127.70M
Financing Cash Flow	102.10M	-216.20M	-39.60M	244.00M	126.40M	-162.80M

Cargojet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJT, the sentiment is Negative. The current price of 81.51 is below the 20-day moving average (MA) of 91.01, below the 50-day MA of 96.85, and below the 200-day MA of 96.73, indicating a bearish trend. The MACD of -4.21 indicates Positive momentum. The RSI at 21.65 is Positive, neither overbought nor oversold. The STOCH value of 3.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	12.48	9.99%	5.87%	5.52%	-18.01%
EIF	74 Outperform	C$4.00B	28.87	9.71%	3.52%	6.87%	8.42%
DXT	72 Outperform	C$628.64M	18.29	14.80%	3.59%	-5.62%	88.69%
CJT	65 Neutral	$1.26B	8.85	19.73%	1.72%	14.37%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AC	61 Neutral	C$5.30B	4.32	101.32%	―	0.33%	-15.99%
AND	60 Neutral	$2.08B	30.94	15.64%	0.88%	0.34%	10.40%

Cargojet Corporate Events

Cargojet to Redeem 5.25% Senior Debentures Early

Cargojet Inc. announced its plan to redeem all outstanding 5.25% senior unsecured hybrid debentures on October 9, 2025, ahead of their original maturity date in 2026. This strategic financial move will be funded by proceeds from a recent offering of 4.599% senior unsecured notes, potentially enhancing Cargojet’s financial flexibility and market positioning.

The most recent analyst rating on (TSE:CJT) stock is a Buy with a C$116.00 price target. To see the full list of analyst forecasts on Cargojet stock, see the TSE:CJT Stock Forecast page.

Cargojet Retains ISO 9001:2015 Certification for 23rd Year

Cargojet has successfully retained its ISO 9001:2015 Quality Standard Accreditation for the twenty-third consecutive year, reinforcing its commitment to high-quality, safe, and reliable service. This achievement highlights the dedication of Cargojet’s team and the effectiveness of its quality management systems, solidifying its position as the only air cargo carrier in Canada with this consistent certification.

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.