TSX:TRZ

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Transat A.T. Inc. operates as an integrated tour operator in the Americas and Europe. More Details


Snowflake Analysis

Imperfect balance sheet with limited growth.


Similar Companies

Share Price & News

How has Transat A.T's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TRZ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.3%

TRZ

2.3%

CA Hospitality

-1.6%

CA Market


1 Year Return

-73.4%

TRZ

-24.1%

CA Hospitality

-8.0%

CA Market

Return vs Industry: TRZ underperformed the Canadian Hospitality industry which returned -24.1% over the past year.

Return vs Market: TRZ underperformed the Canadian Market which returned -8% over the past year.


Shareholder returns

TRZIndustryMarket
7 Day-9.3%2.3%-1.6%
30 Day-24.6%2.9%-3.8%
90 Day-30.7%3.0%6.4%
1 Year-73.4%-73.4%-21.4%-24.1%-4.8%-8.0%
3 Year-59.4%-59.4%-4.7%-12.8%6.5%-3.8%
5 Year-45.4%-45.4%61.7%43.5%39.2%17.9%

Price Volatility Vs. Market

How volatile is Transat A.T's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Transat A.T undervalued compared to its fair value and its price relative to the market?

0.49x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TRZ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TRZ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TRZ is unprofitable, so we can't compare its PE Ratio to the CA Hospitality industry average.

PE vs Market: TRZ is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate TRZ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TRZ is good value based on its PB Ratio (0.5x) compared to the CA Hospitality industry average (1x).


Next Steps

Future Growth

How is Transat A.T forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

64.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TRZ is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TRZ is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TRZ is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TRZ's revenue (20.4% per year) is forecast to grow faster than the Canadian market (5.3% per year).

High Growth Revenue: TRZ's revenue (20.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TRZ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Transat A.T performed over the past 5 years?

-31.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TRZ is currently unprofitable.

Growing Profit Margin: TRZ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TRZ is unprofitable, and losses have increased over the past 5 years at a rate of 31.2% per year.

Accelerating Growth: Unable to compare TRZ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TRZ is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-6.7%).


Return on Equity

High ROE: TRZ has a negative Return on Equity (-76.17%), as it is currently unprofitable.


Next Steps

Financial Health

How is Transat A.T's financial position?


Financial Position Analysis

Short Term Liabilities: TRZ's short term assets (CA$1.0B) do not cover its short term liabilities (CA$1.1B).

Long Term Liabilities: TRZ's short term assets (CA$1.0B) exceed its long term liabilities (CA$990.7M).


Debt to Equity History and Analysis

Debt Level: TRZ's debt to equity ratio (16.1%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TRZ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: TRZ's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if TRZ's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Transat A.T current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate TRZ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate TRZ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if TRZ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TRZ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: TRZ is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of TRZ's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Jean-Marc Eustache (72 yo)

no data

Tenure

CA$1,392,442

Compensation

Mr. Jean-Marc Eustache co-founded Transat A.T. Inc. and serves as its President and Chief Executive Officer. Mr. Eustache serves as the President at Look Voyages SA at Transat A.T. Inc. He has been Preside ...


CEO Compensation Analysis

Compensation vs Market: Jean-Marc's total compensation ($USD1.04M) is above average for companies of similar size in the Canadian market ($USD174.80K).

Compensation vs Earnings: Jean-Marc's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Marc Eustache
Chairman of the Boardno dataCA$1.39m1.13%
CA$ 1.7m
Denis Pétrin
VP of Finance & Administration and CFO11.67yrsCA$751.70k0.23%
CA$ 348.5k
Annick Guérard
Chief Operating Officer2.83yrsCA$858.04k0.18%
CA$ 265.4k
Jordi Solé
President of Hotel Division2.58yrsCA$748.20k0.020%
CA$ 30.2k
Jean-Francois Lemay
President & GM of Air Transat4.67yrsCA$696.01k0.15%
CA$ 231.2k
Bruno Leclaire
Chief Information & Digital Officerno datano datano data
Bernard Bussières
VP of Legal Affairs19.5yrsCA$827.65kno data
Odette Trottier
Director of Corporate Affairs & Communicationsno datano datano data
Christophe Hennebelle
Vice President of Human Resources & Corporate Affairs4.25yrsno datano data
Daniel Godbout
Senior VP & Advisor to the President9.67yrsCA$777.57kno data
Joseph Adamo
President-Transat Distribution Canada Inc and VP & Chief Distribution Officer-Transat Tours Canada3.42yrsno datano data
Grant Elder
Vice-President of Operational Efficiency & Continuous Improvementno datano datano data

4.5yrs

Average Tenure

Experienced Management: TRZ's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean-Marc Eustache
Chairman of the Boardno dataCA$1.39m1.13%
CA$ 1.7m
W. Edwards
Independent Indepedent Director10.25yrsCA$268.34k0.050%
CA$ 75.0k
Susan Kudzman
Independent Director6.5yrsCA$145.42kno data
Lina De Cesare
Independent Director31.33yrsCA$122.27k0.094%
CA$ 142.0k
Jacques Simoneau
Independent Director19.83yrsCA$266.76k0.048%
CA$ 72.9k
Philippe Sureau
Independent Director33.58yrsCA$220.65k0.86%
CA$ 1.3m
Louise St-Pierre
Independent Director2.92yrsCA$121.00kno data
Jean-Yves Leblanc
Independent Director11.75yrsCA$329.41k0.034%
CA$ 51.9k
Raymond Bachand
Independent Lead Director2yrsCA$265.40kno data
Louis-Marie Beaulieu
Independent Director7.5yrsCA$141.50k0.053%
CA$ 79.8k
Ian Rae
Independent Director1.92yrsCA$114.62kno data
Lucie Chabot
Independent Director4.92yrsCA$137.92k0.017%
CA$ 25.1k

7.5yrs

Average Tenure

67yo

Average Age

Experienced Board: TRZ's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Transat A.T. Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Transat A.T. Inc.
  • Ticker: TRZ
  • Exchange: TSX
  • Founded: 1987
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: CA$150.611m
  • Shares outstanding: 37.75m
  • Website: https://www.transat.com

Number of Employees


Location

  • Transat A.T. Inc.
  • 300 Léo-Pariseau Street
  • Suite 600
  • Montréal
  • Quebec
  • H2X 4C2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRZTSX (The Toronto Stock Exchange)YesClass B SharesCACADMar 2005
1TJDB (Deutsche Boerse AG)YesClass B SharesDEEURMar 2005
TRZB.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDMar 2005

Biography

Transat A.T. Inc. operates as an integrated tour operator in the Americas and Europe. It develops and markets holiday travel services in packages, including air travel and hotel stays, and air-only formats ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/27 06:44
End of Day Share Price2020/09/25 00:00
Earnings2020/07/31
Annual Earnings2019/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.