Transat AT V & VV (TRZ) AI Stock Analysis

• Market Cap: C$106.48M
• Dividend Yield: N/A
• Average Volume (3M): 92.05K
• Price to Earnings (P/E): 0.4
• Beta (1Y): 0.67
• 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: 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$2.50 ▼(-0.79% Downside)

Transat AT V & VV's overall stock score reflects significant financial challenges, including high leverage and negative revenue growth, which weigh heavily on the score. Technical indicators and valuation suggest some potential for recovery, while the earnings call provides a cautiously optimistic outlook. However, the financial instability remains a critical concern.

Positive Factors

Debt Restructuring

Successful debt restructuring significantly reduces financial leverage, improving balance sheet health and enhancing financial flexibility for future growth.

Network Expansion

Expanding routes and strategic partnerships enhance market presence and diversify revenue streams, supporting long-term growth and competitive positioning.

Elevation Program

The Elevation program's progress towards significant EBITDA growth indicates operational improvements and cost efficiencies, bolstering long-term profitability.

Negative Factors

High Leverage

High leverage and negative equity pose financial risks, potentially limiting investment capacity and increasing vulnerability to economic downturns.

Aircraft Grounding

Grounded aircraft reduce operational capacity and revenue potential, impacting service reliability and customer satisfaction in the medium term.

Increased Competition

Rising competition in key markets pressures pricing and margins, challenging Transat's market share and profitability over the coming months.

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: Neutral

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 above the 20-day moving average (MA) of 2.47, above the 50-day MA of 2.33, and above the 200-day MA of 2.25, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 58.93 is Neutral, neither overbought nor oversold. The STOCH value of 45.63 is Neutral, 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
LNR	77 Outperform	$5.12B	20.88	4.01%	1.31%	-5.33%	-57.58%
DOL	71 Outperform	C$55.69B	43.10	102.01%	0.20%	14.02%	20.11%
XTC	71 Outperform	C$258.16M	10.74	6.05%	6.18%	-3.53%	-17.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DOO	59 Neutral	$7.28B	298.82	45.71%	0.86%	-5.14%	-87.15%
TRZ	55 Neutral	C$106.48M	0.44	12.83%	―	3.49%	―
MRE	51 Neutral	$748.99M	-18.20	-2.64%	1.94%	-7.25%	-143.07%

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.