Cargojet (CJT) AI Stock Analysis

• Market Cap: $1.44B
• Dividend Yield: 1.51%
• Average Volume (3M): 64.39K
• Price to Earnings (P/E): 10.0
• Beta (1Y): 1.48
• 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: 88,041
• 30 Day Avg. Volume: 64,385
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.68
• Enterprise Value/Revenue: 2.37
• Enterprise Value/Gross Profit: 10.37
• Enterprise Value/Ebitda: 6.90
• 1Y Price Target: $147.51
• Price Target Upside: 59.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 65 Neutral
• Price Target: C$103.00 ▲(11.23% 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 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
EBITDA	349.90M	383.70M	329.50M	397.80M	348.10M	95.30M
Net Income	123.90M	108.40M	37.30M	190.60M	167.40M	-87.80M
Balance Sheet
Total Assets	1.99B	1.93B	2.04B	1.99B	1.49B	1.22B
Cash, Cash Equivalents and Short-Term Investments	7.40M	1.50M	31.80M	6.10M	94.70M	3.70M
Total Debt	840.40M	755.10M	799.20M	707.00M	398.60M	572.80M
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: Negative
• Last Price: 92.60
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 92.6 is below the 20-day moving average (MA) of 98.73, below the 50-day MA of 100.20, and below the 200-day MA of 97.90, indicating a bearish trend. The MACD of -1.34 indicates Positive momentum. The RSI at 32.16 is Neutral, neither overbought nor oversold. The STOCH value of 21.26 is Neutral, 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$1.22B	12.18	9.88%	6.01%	5.52%	-18.01%
EIF	74 Outperform	C$3.75B	27.08	9.07%	3.75%	6.87%	8.42%
DXT	72 Outperform	C$566.39M	16.48	―	3.98%	-5.62%	88.69%
CJT	65 Neutral	$1.44B	10.05	19.73%	1.51%	14.37%	―
AND	64 Neutral	C$2.09B	30.99	15.35%	0.88%	0.34%	10.40%
AC	61 Neutral	C$5.27B	4.30	82.54%	―	0.33%	-15.99%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.