Cargojet (CJT) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: 1.67%
• Average Volume (3M): 186.50K
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.71
• Revenue Growth: 7.71%
• EPS Growth: 3170.43%
• Country: CA
• Employees: 1,935
• Sector: Industrials
• Sector Strength: 72
• Industry: Integrated Freight & Logistics
• EPS (TTM): 0.32
• Shares Outstanding: 15,087,771
• 10 Day Avg. Volume: 203,078
• 30 Day Avg. Volume: 186,501
• 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: 1.85
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 11.43
• Enterprise Value/Ebitda: 8.16
• 1Y Price Target: $114.22
• Price Target Upside: 36.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$85.00 ▲(1.50% Upside)

Cargojet's overall stock score reflects a moderate financial performance with strengths in profitability but weaknesses in revenue growth and cash flow management. The technical analysis indicates mixed signals, while the valuation suggests the stock is undervalued. The earnings call provided positive insights into domestic growth and strategic initiatives, but global trade uncertainties pose challenges.

Positive Factors

Strong Domestic Network Performance

The strong growth in the domestic network, driven by e-commerce and pricing adjustments, indicates robust demand and resilience, supporting long-term revenue stability.

New Route Expansion

Expanding routes to Europe enhances Cargojet's market reach and competitive position, potentially increasing international revenue streams and diversifying market exposure.

Debt Refinancing Achievement

Refinancing at a lower interest rate improves financial flexibility and reduces cost of capital, positively impacting long-term profitability and cash flow management.

Negative Factors

Decline in ACMI Revenue

The decline in ACMI revenue due to trade disruptions highlights vulnerability to global trade shifts, potentially impacting revenue diversification and growth.

Charter Business Decline

The reduction in charter flights indicates challenges in maintaining service levels and revenue in key trade lanes, affecting overall business performance.

Global Trade Uncertainty

Global trade uncertainties and regulatory changes pose risks to demand stability, potentially affecting Cargojet's strategic planning and revenue forecasts.

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 overnight express delivery and charter services. The company's revenue model is built on long-term contracts with major clients, including e-commerce giants and retailers, which provide a stable income stream. Key revenue streams include scheduled cargo flights, charter services for specific customer needs, and dedicated fleet services for businesses requiring consistent transportation solutions. Additionally, partnerships with logistics companies and freight forwarders enhance Cargojet's service offerings and expand its market reach, contributing significantly to its earnings. The company also benefits from seasonal demand spikes, particularly during peak shopping periods, which further bolsters its financial performance.

Cargojet Financial Statement Overview

Summary

Cargojet shows robust revenue growth and profitability, supported by solid operating cash flows. However, the increasing debt levels and negative free cash flow in the TTM period highlight areas for improvement in financial management. The company needs to focus on maintaining its growth trajectory while managing leverage and cash flow effectively.

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	1.00B	1.00B	877.50M	979.90M	757.80M	668.50M
Gross Profit	205.00M	225.80M	138.10M	247.50M	232.40M	250.50M
EBITDA	287.00M	274.60M	219.80M	292.30M	270.00M	228.00M
Net Income	124.80M	108.40M	37.30M	190.60M	167.40M	-87.80M
Balance Sheet
Total Assets	2.09B	1.93B	2.04B	1.99B	1.49B	1.22B
Cash, Cash Equivalents and Short-Term Investments	3.70M	1.50M	31.80M	6.10M	94.70M	3.70M
Total Debt	957.00M	755.10M	799.20M	707.00M	398.60M	572.80M
Total Liabilities	1.35B	1.19B	1.25B	1.15B	813.40M	1.05B
Stockholders Equity	735.50M	737.70M	784.50M	831.50M	676.40M	175.20M
Cash Flow
Free Cash Flow	-108.30M	78.60M	-73.90M	-328.70M	-32.60M	146.00M
Operating Cash Flow	308.50M	328.60M	192.80M	282.50M	245.00M	292.60M
Investing Cash Flow	-447.00M	-142.70M	-127.50M	-615.10M	-280.40M	-127.70M
Financing Cash Flow	135.50M	-216.20M	-39.60M	244.00M	126.40M	-162.80M

Cargojet Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJT, the sentiment is Neutral. The current price of 83.74 is above the 20-day moving average (MA) of 78.90, above the 50-day MA of 77.81, and below the 200-day MA of 88.96, indicating a neutral trend. The MACD of 0.52 indicates Negative momentum. The RSI at 65.56 is Neutral, neither overbought nor oversold. The STOCH value of 86.29 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CJT.

Cargojet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EIF	75 Outperform	C$4.58B	29.87	9.88%	3.14%	15.47%	9.40%
MTL	74 Outperform	C$1.53B	14.69	9.33%	5.24%	5.53%	-21.87%
DXT	72 Outperform	C$747.21M	18.77	14.38%	3.02%	-0.73%	221.74%
CJT	67 Neutral	$1.26B	10.55	16.75%	1.67%	7.71%	3170.43%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AND	60 Neutral	―	―	15.64%	0.86%	0.34%	10.40%
AC	47 Neutral	$5.76B	-29.72	-10.66%	―	-0.09%	-109.21%

Cargojet Corporate Events

Cargojet Declares Quarterly Dividend of $0.35 Per Share

Cargojet Inc. has announced a quarterly cash dividend of $0.35 per common and variable voting share for the period from October 1, 2025, to December 31, 2025. The dividend reflects the company’s ongoing commitment to providing shareholder value and underscores its strong financial position in the air cargo industry.

Cargojet Announces Retirement of Co-CEO Jamie B. Porteous

Cargojet announced the retirement of Co-CEO and Founding Member Jamie B. Porteous, effective December 31, 2025. Jamie, who has been pivotal in transforming Cargojet into a premier air cargo carrier, will remain as a Strategic Advisor until the end of 2026 to ensure a smooth transition. His leadership has been instrumental in building strong customer partnerships and fostering a culture of service excellence. The company acknowledges his significant contributions and looks forward to his continued guidance in his advisory role.

Cargojet Appoints Pauline Dhillon as New CEO to Lead Global Expansion

Cargojet has announced that Pauline Dhillon will become the Chief Executive Officer effective January 1, 2026. Dhillon, who has been with the company since its inception, has played a pivotal role in its growth and development. Her leadership is expected to drive Cargojet’s expansion into European and Asian markets, leveraging its strong business model and customer relationships to tap into high-growth opportunities.

Cargojet Reports Strong Domestic Growth Amidst Macroeconomic Challenges

Cargojet Inc. reported its third-quarter financial results, showcasing a strong performance in its domestic network with a 6% increase in revenue year-over-year, despite facing macroeconomic challenges that affected its ACMI and Charter services. The company achieved a robust EBITDA margin of 32% and a significant increase in free cash flow, demonstrating effective cost and capital management. However, total revenues decreased by 10.5%, and net earnings fell by 70.4%, primarily due to declines in ACMI and Charter revenues.

Cargojet Expands Direct Air Cargo Service to Europe

Cargojet Inc. is expanding its operations by launching a direct air cargo service connecting Canada with Europe, starting November 1, 2025. This new service will enhance Cargojet’s global network by linking Liege Airport, a key European cargo hub, with Canada’s major cargo centers. The initiative aims to strengthen transatlantic trade, offering faster transit times and greater flexibility for shippers, and is part of Cargojet’s long-term expansion strategy to solidify its position in the global logistics market.

Cargojet Renews IATA Operational Safety Registration

Cargojet Inc. has successfully renewed its International Air Transport Association (IATA) Operational Safety Audit (IOSA) registration, underscoring its commitment to maintaining high safety and compliance standards. This achievement reinforces Cargojet’s reputation for operational excellence and reliability in the air cargo industry, highlighting the dedication of its team to uphold these standards.

Cargojet Completes Redemption of $115 Million Debentures

Cargojet Inc. has successfully redeemed its outstanding $115 million 5.25% senior unsecured hybrid debentures due in 2026, using proceeds from a previous offering of 4.599% senior unsecured notes. This strategic financial move reflects Cargojet’s proactive management of its debt obligations, potentially enhancing its financial stability and market positioning.

Cargojet Schedules Third Quarter Financial Results Announcement

Cargojet Inc. announced it will release its third-quarter financial results on November 4, 2025, after market close. A conference call to discuss these results will be held on November 5, 2025, led by the company’s co-CEOs and CFO, which may provide insights into the company’s operational performance and market positioning.

Cargojet Declares Quarterly Dividend, Strengthening Shareholder Value

Cargojet Inc. has announced a quarterly cash dividend of $0.35 per common and variable voting share for the period from July 1, 2025, to September 30, 2025. This move reflects the company’s commitment to providing shareholder value and may impact its financial positioning positively, reinforcing its status as a key player in the air cargo industry.