Transat AT V & VV (TRZ) AI Stock Analysis

• Market Cap: C$113.97M
• Dividend Yield: N/A
• Average Volume (3M): 66.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: 3.55%
• EPS Growth: -159.59%
• Country: CA
• Employees: 5,000
• Sector: Consumer Cyclical
• Sector Strength: 73
• Industry: Travel Services
• EPS (TTM): 0.12
• Shares Outstanding: 40,131,020
• 10 Day Avg. Volume: 63,166
• 30 Day Avg. Volume: 66,805
• 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$2.90
• Price Target Upside: 1.05% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 61 Neutral
• Price Target: C$3.00 ▲(4.53% Upside)

Transat AT V & VV's overall score is driven by strong technical indicators and positive earnings call highlights, including revenue growth and debt restructuring. However, financial performance and valuation concerns, such as ongoing losses and negative equity, weigh down the score. The stock's upward momentum is a positive sign, but caution is advised due to potential overbought conditions.

Transat AT V & VV Business Overview & Revenue Model

Company Description

Transat AT V & VV (TRZ) is a Canadian company operating in the tourism and travel industry. The company specializes in holiday travel with a focus on vacation packages, air transportation, and hotel accommodations, primarily catering to the leisure market. Transat AT serves a diverse customer base, offering travel services to numerous destinations worldwide, with a significant emphasis on sun destinations.

How the Company Makes Money

Transat AT V & VV (TRZ) generates revenue primarily through the sale of vacation packages, which include flights, hotel stays, and other travel-related services. The company's key revenue streams include its airline operations, hotel partnerships, and tour operator services. Revenue is driven by the sale of travel packages directly to consumers and through travel agents. Additionally, Transat AT benefits from significant partnerships with hotels, airlines, and other service providers, enabling them to offer competitive pricing and comprehensive travel solutions. Seasonal demand, strategic alliances, and effective marketing campaigns also play crucial roles in the company's earnings.

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: Positive
• Last Price: 2.87
• 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 2.87 is above the 20-day moving average (MA) of 2.62, above the 50-day MA of 2.65, and above the 200-day MA of 1.95, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.71 is Neutral, neither overbought nor oversold. The STOCH value of 94.42 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
DOL	77 Outperform	$53.15B	43.81	138.71%	0.20%	9.20%	18.11%
LNR	74 Outperform	$4.38B	20.86	3.61%	1.43%	-2.60%	-64.22%
XTC	64 Neutral	$256.64M	10.86	6.01%	6.20%	-3.50%	-22.76%
MRE	62 Neutral	$695.12M	5.65	-4.10%	2.09%	-8.84%	-148.15%
TRZ	61 Neutral	C$113.97M	―	12.83%	―	3.55%	-159.59%
DOO	57 Neutral	$5.71B	19.66	26.57%	1.06%	-22.34%	-110.04%
Sector *	57 Neutral	HK$25.63B	4.89	-2.69%	5.48%	-0.60%	-50.24%

Transat AT V & VV Corporate Events

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.

Transat A.T. Inc. Restructures LEEFF Debt, Reducing Financial Burden

Transat A.T. Inc. has successfully restructured its debt under the Large Enterprise Emergency Funding Facility (LEEFF), reducing its outstanding debt with the Canada Enterprise Emergency Funding Corporation (CEEFC) from $772 million to $334 million. The restructuring includes a cash repayment, consolidation of credit facilities, and issuance of debentures and convertible preferred shares, which could impact Transat’s financial stability and CEEFC’s stake in the company, potentially influencing future market dynamics and stakeholder interests.

The most recent analyst rating on (TSE:TRZ) stock is a Sell 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.

Transat A.T. Faces Legal Challenge Over Debt Restructuring Deal

Transat A.T. Inc. has been served with an injunction application by Financière Outremont Inc. to prevent the closing of a debt restructuring transaction with Canada Enterprise Emergency Funding Corporation (CEEFC) unless shareholder approval is obtained. The transaction, which aims to significantly reduce Transat’s debt and strengthen its financial position, has led to a 72% increase in the company’s share price. Transat intends to contest the injunction, asserting that the transaction does not require shareholder approval and emphasizes that it was unanimously approved by the Board of Directors after a thorough review process.

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.

Transat A.T. Inc. Reports Strong Q2 2025 Results with Revenue Growth and Debt Restructuring

Transat A.T. Inc. reported a strong second quarter for fiscal 2025, with revenues increasing by 5.9% to $1,031.1 million, driven by improved yield and passenger traffic. The company achieved an adjusted EBITDA of $98.4 million, reflecting enhanced productivity and lower fuel costs. A significant development was the agreement for debt restructuring, which strengthens the balance sheet and supports the company’s strategic growth plans. The Elevation Program is expected to deliver substantial cost savings and revenue growth, positioning Transat for long-term profitability.

The most recent analyst rating on (TSE:TRZ) stock is a Sell with a C$2.25 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. Restructures LEEFF Debt to Strengthen Financial Position

Transat A.T. Inc. has reached an agreement with the Canada Enterprise Emergency Funding Corporation (CEEFC) to restructure its debt incurred under the Large Enterprise Emergency Funding Facility (LEEFF) program during the COVID-19 pandemic. This agreement will reduce Transat’s outstanding debt from $772 million to $334 million by March 31, 2025, significantly deleveraging its balance sheet. The restructuring includes a cash repayment, issuance of preferred shares, and a new credit facility, providing Transat with the flexibility to implement its long-term strategic plan and maintain its competitive position in the market.

The most recent analyst rating on (TSE:TRZ) stock is a Sell with a C$2.25 price target. To see the full list of analyst forecasts on Transat AT V & VV stock, see the TSE:TRZ Stock Forecast page.