Transat AT V & VV (TRZ) AI Stock Analysis

• Market Cap: C$114.17M
• Dividend Yield: N/A
• Average Volume (3M): 92.05K
• Price to Earnings (P/E): 0.5
• Beta (1Y): 0.66
• Revenue Growth: 3.49%
• EPS Growth: N/A
• Country: CA
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Services
• EPS (TTM): -0.42
• Shares Outstanding: 40,485,767
• 10 Day Avg. Volume: 41,242
• 30 Day Avg. Volume: 92,051
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.13
• Price to Sales (P/S): 0.02
• P/FCF Ratio: 1.42
• 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$3.30
• Price Target Upside: 30.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$2.50 ▼(-0.79% Downside)

The overall stock score of 53 reflects significant financial challenges, including high leverage and negative equity, despite operational improvements and strategic expansions highlighted in the earnings call. Technical indicators show moderate bullish momentum, and the valuation suggests potential undervaluation, but these are offset by the financial instability.

Positive Factors

Operational Improvements

The significant improvement in adjusted EBITDA indicates effective cost management and the potential for sustained profitability, enhancing long-term financial health.

Network Expansion

Expanding into new markets like West Africa and South America positions Transat for growth by tapping into high-potential regions, strengthening its competitive market position.

Debt Refinancing

Reducing long-term debt from $803 million to $400 million lowers financial risk and interest expenses, improving cash flow and financial stability.

Negative Factors

Revenue Decline

The decline in revenue reflects challenges in maintaining sales momentum, potentially impacting future growth and profitability if not addressed.

High Leverage

High leverage and negative equity indicate financial instability, which could limit future investment and growth opportunities, posing long-term risks.

Grounded Aircraft

Grounded aircraft reduce operational capacity and revenue potential, impacting service reliability and customer satisfaction, which are crucial for long-term success.

Transat AT V & VV Business Overview & Revenue Model

Company Description

Transat AT Inc. (TRZ) is a Canadian integrated tourism company specializing in the travel sector, particularly in leisure travel. The company operates through its subsidiaries, providing a variety of services including airline transportation, hotel accommodations, and vacation packages. Transat is known for its charter airline, Air Transat, which offers flights to destinations across North America, the Caribbean, and Europe, as well as its tour operator segment that creates and sells vacation packages, facilitating seamless travel experiences for consumers.

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's financial performance is concerning due to negative revenue growth, high leverage, and modest profitability margins. Despite positive net income and cash flow improvements, the high debt levels and negative equity pose significant risks.

Income Statement

Transat AT V & VV's income statement shows mixed results. The company has achieved a positive net income in the latest year, indicating a turnaround from previous losses. However, revenue growth has been negative, and the gross profit margin remains low. The EBIT and EBITDA margins have improved, but they are still modest, reflecting ongoing challenges in profitability.

Balance Sheet

The balance sheet reveals significant financial leverage, with a negative stockholders' equity and a high debt-to-equity ratio. This indicates potential financial instability and risk. The equity ratio is negative, and although the company has improved its return on equity, the overall financial health remains concerning due to high debt levels.

Cash Flow

Cash flow analysis indicates some improvement, with positive operating cash flow and free cash flow in the latest year. However, the free cash flow growth rate is negative, and the ratios of cash flow to net income suggest that cash generation is still a challenge. The company needs to focus on sustaining positive cash flows to support its operations and reduce debt.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.40B	3.28B	3.05B	1.64B	124.82M
Gross Profit	390.55M	347.67M	415.68M	-92.26M	-138.79M
EBITDA	633.27M	251.42M	291.73M	-193.70M	-153.61M
Net Income	241.92M	-114.03M	-25.29M	-445.32M	-389.44M
Balance Sheet
Total Assets	2.57B	2.75B	2.57B	2.27B	1.90B
Cash, Cash Equivalents and Short-Term Investments	594.92M	260.34M	435.65M	322.54M	433.19M
Total Debt	1.56B	2.15B	1.89B	1.75B	1.42B
Total Liabilities	3.22B	3.64B	3.35B	3.02B	2.21B
Stockholders Equity	-645.05M	-889.08M	-779.04M	-750.18M	-315.11M
Cash Flow
Free Cash Flow	59.12M	-43.90M	264.18M	-210.38M	-524.04M
Operating Cash Flow	156.97M	94.67M	321.75M	-177.85M	-518.44M
Investing Cash Flow	-10.21M	-31.45M	-7.93M	-33.78M	4.54M
Financing Cash Flow	-243.19M	-240.29M	-203.02M	99.69M	522.07M

Transat AT V & VV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TRZ, the sentiment is Positive. The current price of 2.52 is below the 20-day moving average (MA) of 2.63, above the 50-day MA of 2.40, and above the 200-day MA of 2.31, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 83.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
GH	68 Neutral	C$248.16M	11.92	18.14%	5.06%	1.01%	6.68%
MTY	68 Neutral	C$914.57M	27.98	3.64%	3.51%	1.38%	-64.10%
AW	62 Neutral	C$916.48M	32.55	57.97%	5.07%	-2.54%	-10.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOO	59 Neutral	C$7.28B	306.30	45.71%	0.86%	-5.14%	-87.15%
TRZ	53 Neutral	C$114.17M	0.46	12.83%	―	3.49%	―
NFI	52 Neutral	C$1.84B	-4.69	-52.38%	―	14.40%	-1117.18%

Transat AT V & VV Corporate Events

Transat A.T. Delivers Record 2025 EBITDA and Restructures Debt as It Targets Leisure Travel Growth

Transat A.T. Inc. reported record adjusted EBITDA of $271 million for fiscal 2025, a 33% increase year over year, on revenues of $3.4 billion, driven by higher yields, modest traffic growth, productivity gains and lower fuel costs. The company swung to a net income of $241.9 million for the year from a net loss in 2024, while still generating negative free cash flow as it continues to invest in its operations. Fourth-quarter performance was softer, with revenues down 2.2% to $771.6 million and adjusted EBITDA nearly halving to $71.4 million, largely due to reduced compensation tied to Pratt & Whitney engine issues, although underlying revenue grew when excluding this effect. Management highlighted a major milestone in restructuring its government LEEFF debt, cutting the outstanding balance to $350 million and extending maturities to 2035, which is expected to substantially lower interest expenses and free capacity for growth and optimization initiatives. With all key collective agreements renewed through at least 2027 and a tentative deal with its pilots, Transat expects to accelerate growth in 2026 through targeted network expansion in Africa, Europe and South America, increased capacity as fewer aircraft remain grounded, and the full realization of its Elevation Program, which is projected to add $100 million in adjusted EBITDA by mid-2026, underpinning its strategy to create long-term shareholder value.

The most recent analyst rating on (TSE:TRZ) stock is a Hold with a C$3.00 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. Schedules Special Shareholder Meeting Amid Board Change Proposals

Transat A.T. Inc. has scheduled a special meeting of shareholders for March 10, 2026, in response to a requisition by shareholder Financière Outremont Inc. The meeting aims to address proposed changes to the board of directors, which include replacing a majority of independent directors with nominees aligned with a shareholder owning less than 10% of Transat’s shares. The board emphasizes the importance of shareholder democracy and aims to ensure that decisions reflect the interests of all stakeholders, including employees, travelers, partners, and creditors, rather than the ambitions of a single shareholder.

The most recent analyst rating on (TSE:TRZ) stock is a Hold with a C$3.00 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. Receives Shareholder Meeting Request for Board Changes

Transat A.T. Inc. has received a formal requisition from a dissenting shareholder to convene an extraordinary shareholder meeting to discuss proposed changes to the board. The board, which has been in discussions with shareholder Pierre Karl Péladeau, is reviewing the request in line with the Business Corporations Act and will respond accordingly, emphasizing their commitment to long-term value creation.

The most recent analyst rating on (TSE:TRZ) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.