Transat AT V & VV (TRZ) AI Stock Analysis

• Market Cap: C$97.17M
• Dividend Yield: N/A
• Average Volume (3M): 92.05K
• Price to Earnings (P/E): 0.3
• Beta (1Y): 0.66
• Revenue Growth: 4.80%
• EPS Growth: N/A
• Country: CA
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): -0.28
• Shares Outstanding: 40,317,657
• 10 Day Avg. Volume: 41,242
• 30 Day Avg. Volume: 92,051
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$2.62
• Price Target Upside: 24.17% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: C$2.00 ▼(-5.21% Downside)

Transat AT V & VV's overall score reflects a mixed financial performance with significant leverage and profitability challenges, offset by positive cash flow management. Technical indicators suggest bearish momentum, while valuation metrics indicate potential undervaluation but with high risk. The earnings call provided a more optimistic outlook with strategic improvements, contributing positively to the score.

Transat AT V & VV Business Overview & Revenue Model

Company Description

Transat A.T. Inc. operates as an integrated international tourism company in the Americas and Europe. The company offers vacation packages, hotel stays, and air travel services under the Transat and Air Transat brands to approximately 60 destinations in approximately 25 countries. It also operates outgoing tours; and involved in the retail distribution activities, such as providing advice to travelers. In addition, the company offers air transportation services; destination services, including hospitality and representation, passenger transfers, excursions, tours, sports, and other activities; and specialty services, such as destination weddings, teambuilding, etc. Transat A.T. Inc. was incorporated in 1987 and is headquartered in Montréal, Canada.

How the Company Makes Money

Transat AT generates revenue primarily through its airline operations and vacation package sales. The airline segment earns money through the sale of flight tickets to travelers, which includes both direct sales and sales through travel agencies. The tour operator division contributes significant revenue by offering bundled vacation packages that include flights, hotels, and ground services. Additionally, the company benefits from ancillary revenues such as baggage fees, seat selection fees, and in-flight services. Strategic partnerships with hotels and other travel service providers also enhance revenue opportunities. Seasonal travel trends and demand fluctuations significantly impact earnings, as the company capitalizes on peak travel periods, particularly during summer and holidays.

Transat AT V & VV Financial Statement Overview

Summary

Transat AT V & VV shows signs of recovery with revenue growth, but profitability remains weak with continuous net losses and a concerning balance sheet. Positive cash flow management offers some optimism.

Income Statement

Transat AT V & VV shows a positive trajectory in revenue growth, with a TTM (Trailing-Twelve-Months) revenue increase of 3.1%, indicating a recovering business environment. However, profitability remains a challenge, with a negative net profit margin of -4.3% and gross profit margin of 12.3%. The EBIT margin of 1.2% and EBITDA margin of 7.4% suggest potential for operational improvements, but net losses continue to weigh heavily on overall profitability.

Balance Sheet

The company's balance sheet is concerning, with a negative stockholders' equity of -$1.03 billion, reflecting accumulated losses. The debt-to-equity ratio is not meaningful due to negative equity, indicating high financial leverage and risk. Despite this, the equity ratio is effectively negative, and the return on equity cannot be calculated. Liquidity is somewhat supported by cash reserves, but the high level of debt poses significant financial risk.

Cash Flow

Transat AT V & VV's cash flow statement reflects some positive trends. The operating cash flow to net income ratio indicates better cash generation than accounting profits suggest, with a positive operating cash flow of $177 million. Free cash flow is also positive, demonstrating improved cash management. However, the free cash flow growth rate is volatile, reflecting fluctuations in capital expenditures and operational performance.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.28B	3.05B	1.64B	124.82M	1.30B
Gross Profit	347.67M	415.68M	-92.26M	-138.79M	51.49M
EBITDA	251.42M	288.97M	-191.23M	-148.91M	-235.64M
Net Income	-114.03M	-25.29M	-445.32M	-389.44M	-496.76M
Balance Sheet
Total Assets	2.75B	2.57B	2.27B	1.90B	2.02B
Cash, Cash Equivalents and Short-Term Investments	260.34M	435.65M	322.54M	433.19M	426.43M
Total Debt	2.15B	1.89B	1.75B	1.42B	903.89M
Total Liabilities	3.64B	3.35B	3.02B	2.21B	1.95B
Stockholders Equity	-889.08M	-779.04M	-750.18M	-315.11M	66.31M
Cash Flow
Free Cash Flow	-43.90M	264.18M	-210.38M	-524.04M	-107.56M
Operating Cash Flow	94.67M	321.75M	-177.85M	-518.44M	-46.14M
Investing Cash Flow	-31.45M	-7.93M	-33.78M	4.54M	-60.41M
Financing Cash Flow	-240.29M	-203.02M	99.69M	522.07M	-33.37M

Transat AT V & VV Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.11
• 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:TRZ, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.60, and below the 200-day MA of 2.15, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 23.10 is Positive, neither overbought nor oversold. The STOCH value of 3.33 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DOL	―	$49.68B	39.80	94.57%	0.22%	9.91%	16.96%
LNR	―	$4.29B	20.45	3.61%	1.42%	-2.60%	-64.22%
XTC	―	$258.68M	10.96	6.01%	6.42%	-3.50%	-22.76%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	―	$736.61M	―	-4.10%	1.98%	-8.84%	-148.15%
DOO	―	$6.43B	―	38.70%	0.97%	-13.78%	-115.58%
TRZ	―	C$97.17M	0.33	12.83%	―	4.80%	―

Transat AT V & VV Corporate Events

Transat A.T. V & Vv’s Earnings Call: Growth Amid Challenges

Transat A.T. V & Vv’s latest earnings call reflects a nuanced sentiment, balancing positive strides in revenue growth and strategic initiatives against operational challenges and competitive pressures. The company has made notable progress with its Elevation program and debt restructuring, yet faces hurdles such as aircraft grounding and a slight decline in load factors.

Transat A.T. Inc. Reports Strong Q3 2025 Financial Performance

Transat A.T. Inc. reported a significant improvement in its third-quarter financial performance for fiscal 2025, with revenues increasing by 4.1% to $766.3 million and adjusted EBITDA rising to $81.2 million. The company’s strategic initiatives, including the Elevation Program and debt restructuring, have strengthened its financial position, allowing for continued growth and diversification in its travel offerings. Despite economic uncertainties and challenges in the industry, Transat remains focused on disciplined cost management and network expansion to enhance its market position.

The most recent analyst rating on (TSE:TRZ) stock is a Sell with a C$2.60 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.

Transat A.T. Inc. Reduces Debt and Adjusts Equity Structure

Transat A.T. Inc. has announced the redemption of Series 4 Preferred Shares and partial repayment of its LEEFF debt, using $30 million from a recent engine sale and leaseback transaction. This financial maneuver reduces Transat’s debt obligations and adjusts its equity structure, impacting its financial positioning and potentially influencing stakeholder interests, while maintaining its existing credit facility with CEEFC.

The most recent analyst rating on (TSE:TRZ) stock is a Sell with a C$1.50 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.

Air Transat Boosts Liquidity with $45 Million Engine Sale-Leaseback

Air Transat has completed a US$45 million engine sale and leaseback agreement with Rolls-Royce & Partners Finance for two Pratt & Whitney spare engines. This transaction aims to enhance the airline’s liquidity, allowing it to repay debt, redeem preferred shares, and fund operations, thereby strengthening its financial position.

The most recent analyst rating on (TSE:TRZ) stock is a Sell with a C$1.50 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.

Air Transat Boosts Liquidity with Engine Sale-Leaseback Deal

Air Transat has completed a sale and leaseback agreement for two Pratt & Whitney GTF spare engines with Rolls-Royce & Partners Finance, valued at US$45 million. This transaction will enhance the airline’s liquidity, enabling it to repay debt, redeem preferred shares, and fund operations, thereby strengthening its financial position and operational flexibility.

The most recent analyst rating on (TSE:TRZ) stock is a Sell with a C$1.50 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.