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Transat AT V & VV
(TSX:TRZ)
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Rating:52Neutral
Price Target:
C$2.50
▼(-14.68% Downside)
Action:Reiterated
Date:06/12/26
The score is primarily held back by elevated financial risk (negative equity and high debt) alongside weakening operating trends (declining revenue, margin compression, and negative EBIT). Technicals also weigh on the score as the stock is below key moving averages with bearish momentum. Offsetting factors include positive TTM earnings and positive free cash flow, plus a very low P/E that points to depressed valuation.
Positive Factors
Positive operating & free cash flow
Sustained positive operating and free cash flow provide durable liquidity to fund operations, seasonal working capital and targeted capex without immediate reliance on equity raises. Over 2–6 months this supports servicing obligations and reducing short-term refinancing pressure.
Negative Factors
Negative shareholder equity and high debt
Persistently negative equity and elevated leverage materially constrain financial flexibility, raise refinancing risk and increase vulnerability to rate shocks or demand downturns. Over months this limits strategic optionality and heightens solvency focus.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive operating & free cash flow
Sustained positive operating and free cash flow provide durable liquidity to fund operations, seasonal working capital and targeted capex without immediate reliance on equity raises. Over 2–6 months this supports servicing obligations and reducing short-term refinancing pressure.
Read all positive factors
Transat AT V & VV (TRZ) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$98.07M
Dividend YieldN/A
Average Volume (3M)92.05K
Price to Earnings (P/E)0.3
Beta (1Y)0.75
Revenue Growth1.49%
EPS GrowthN/A
CountryCA
Employees5,000
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Services
Share Statistics
EPS (TTM)6.99
Shares Outstanding41,033,200
10 Day Avg. Volume41,242
30 Day Avg. Volume92,051
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.13
Price to Sales (P/S)0.02
P/FCF Ratio1.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$2.25Price Target Upside-23.21% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)-5.89
Revenue Forecast (FY)C$3.54B
Transat AT V & VV Business Overview & Revenue Model
Company Description
Transat A.T. Inc. operates as an integrated global tourism enterprise, with its activities spanning both the Americas and Europe. The company provides a full range of travel services, including comprehensive vacation packages, hotel accommodations...
How the Company Makes Money
Transat A.T. generates revenue mainly by selling leisure travel products and by transporting passengers by air. A core revenue stream is the sale of packaged vacations (typically bundling flights, accommodations, and sometimes transfers and activi...
Transat AT V & VV Earnings Call Summary
Earnings Call Date:Dec 18, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 10, 2026
Earnings Call Sentiment Neutral
Transat showed strong operational improvements and strategic expansions, particularly in network growth and financial restructuring. However, revenue declines and operational challenges, such as grounded aircraft and increased expenses, indicate areas of concern.Positive Updates
Record Adjusted EBITDA
Adjusted EBITDA improved by 33% year-over-year to an all-time record of $271 million, supported by efficient cost management and initial benefits from the Elevation optimization program.
Negative Updates
Revenue Decline
Total revenues declined 2.2% year-over-year to $772 million due to timing of Pratt & Whitney compensation.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Adjusted EBITDA
Adjusted EBITDA improved by 33% year-over-year to an all-time record of $271 million, supported by efficient cost management and initial benefits from the Elevation optimization program.
Read all positive updates
Company Guidance
During the fourth quarter conference call for fiscal 2025, Transat provided several key metrics and guidance for the upcoming year. The company reported a 3.5% increase in annual revenues to $3.4 billion and a record-high adjusted EBITDA of $271 million, up 33% year-over-year. Passenger revenues increased by 1.5%, driven by a higher yield, although total revenues for the fourth quarter declined by 2.2% to $772 million due to timing differences in Pratt & Whitney compensation. Capacity, measured in available seat miles, decreased by 1.8% for the quarter but increased by 0.8% for the year. The load factor remained stable at 87% for the quarter and 84.6% for the year, while yield improved by 2.6% in the quarter and 2.3% for the year. Looking forward to fiscal 2026, Transat anticipates a capacity increase of 5% to 7% for the winter season and 6% to 8% for the entire year, supported by network optimization and fewer grounded aircraft. The company also aims to continue its Elevation optimization program, targeting a $100 million improvement in EBITDA by mid-2026, with a 60-40 split between cost savings and revenue enhancements.Transat AT V & VV Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
18
Very Negative
Cash Flow
55
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.44B | 3.40B | 3.28B | 3.05B | 1.64B | 124.82M |
| Gross Profit | 320.09M | 390.55M | 347.67M | 415.68M | -92.26M | -138.79M |
| EBITDA | 605.81M | 633.27M | 251.42M | 291.73M | -193.70M | -153.61M |
| Net Income | 278.84M | 241.92M | -114.03M | -25.29M | -445.32M | -389.44M |
Balance Sheet | ||||||
| Total Assets | 2.61B | 2.57B | 2.75B | 2.57B | 2.27B | 1.90B |
| Cash, Cash Equivalents and Short-Term Investments | 583.77M | 594.92M | 260.34M | 435.65M | 322.54M | 433.19M |
| Total Debt | 1.40B | 1.56B | 2.15B | 1.89B | 1.75B | 1.42B |
| Total Liabilities | 3.37B | 3.22B | 3.64B | 3.35B | 3.02B | 2.21B |
| Stockholders Equity | -752.91M | -645.05M | -889.08M | -779.04M | -750.18M | -315.11M |
Cash Flow | ||||||
| Free Cash Flow | 102.57M | 59.12M | -43.90M | 264.18M | -210.38M | -524.04M |
| Operating Cash Flow | 195.27M | 156.97M | 94.67M | 321.75M | -177.85M | -518.44M |
| Investing Cash Flow | -33.38M | -10.21M | -31.45M | -7.93M | -33.78M | 4.54M |
| Financing Cash Flow | -302.93M | -243.19M | -240.29M | -203.02M | 99.69M | 522.07M |
Transat AT V & VV Technical Analysis
Negative
2.93
Price Trends
2.58
Negative
2.56
Negative
2.53
Negative
Market Momentum
-0.05
Negative
35.08
Neutral
15.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRZ, the sentiment is Negative. The current price of 2.93 is above the 20-day moving average (MA) of 2.45, above the 50-day MA of 2.58, and above the 200-day MA of 2.53, indicating a bearish trend. The MACD of -0.05 indicates Negative momentum. The RSI at 35.08 is Neutral, neither overbought nor oversold. The STOCH value of 15.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TRZ.
Transat AT V & VV Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$282.28M | 14.68 | 18.49% | 5.06% | 1.35% | -3.12% | |
69 Neutral | C$870.26M | 5.62 | 18.59% | 3.51% | 0.63% | 2106.19% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | C$867.74M | 15.70 | 25.77% | 5.07% | -0.78% | 313.58% | |
55 Neutral | C$6.49B | 21.32 | 46.01% | 0.86% | 16.09% | ― | |
54 Neutral | C$2.86B | -16.90 | -22.22% | ― | 10.76% | -54615.38% | |
52 Neutral | C$98.07M | 0.34 | -41.23% | ― | 1.49% | ― |
* Consumer Cyclical Sector Average
TSE:TRZ
Transat AT V & VV
2.37
-0.40
-14.44%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.