| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 6/6 |
| Past Performance | 0/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
AC Overview
Air Canada provides domestic, U.S. transborder, and international airline services.
Air Canada Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$23.54 |
| 52 Week High | CA$14.48 |
| 52 Week Low | CA$31.00 |
| Beta | 2.48 |
| 1 Month Change | -4.93% |
| 3 Month Change | -9.15% |
| 1 Year Change | 48.99% |
| 3 Year Change | -14.71% |
| 5 Year Change | 122.08% |
| Change since IPO | 20.23% |
Recent News & Updates
Shareholder Returns
| AC | CA Airlines | CA Market | |
|---|---|---|---|
| 7D | 2.3% | 6.8% | -0.3% |
| 1Y | 49.0% | 48.5% | 30.8% |
Return vs Industry: AC matched the Canadian Airlines industry which returned 48.5% over the past year.
Return vs Market: AC exceeded the Canadian Market which returned 30.8% over the past year.
Price Volatility
| AC volatility | |
|---|---|
| AC Beta | 2.48 |
| Industry Beta | 1.53 |
| Market Beta | 1 |
Stable Share Price: AC is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AC's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1937 | 16,100 | Mike Rousseau | https://www.aircanada.com |
Air Canada provides domestic, U.S. transborder, and international airline services. It offers scheduled passenger services under the Air Canada Vacations and Air Canada Rouge brand name in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada, as well as through capacity purchase agreements on other regional carriers.
Air Canada Fundamentals Summary
| AC fundamental statistics | |
|---|---|
| Market Cap | CA$8.42b |
| Earnings (TTM) | -CA$4.31b |
| Revenue (TTM) | CA$3.15b |
2.7x
P/S Ratio-2.0x
P/E RatioIs AC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AC income statement (TTM) | |
|---|---|
| Revenue | CA$3.15b |
| Cost of Revenue | CA$5.02b |
| Gross Profit | -CA$1.87b |
| Expenses | CA$2.44b |
| Earnings | -CA$4.31b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
Nov 02, 2021
| Earnings per share (EPS) | -12.06 |
| Gross Margin | -59.46% |
| Net Profit Margin | -136.98% |
| Debt/Equity Ratio | 1,620.6% |
How did AC perform over the long term?
See historical performance and comparisonValuation
Is Air Canada undervalued compared to its fair value and its price relative to the market?
47.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AC (CA$23.54) is trading below our estimate of fair value (CA$44.81)
Significantly Below Fair Value: AC is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AC is unprofitable, so we can't compare its PE Ratio to the North American Airlines industry average.
PE vs Market: AC 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 AC's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: AC is overvalued based on its PB Ratio (14.6x) compared to the XN Airlines industry average (2.5x).
Future Growth
How is Air Canada forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
73.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).
Earnings vs Market: AC is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: AC's is expected to become profitable in the next 3 years.
Revenue vs Market: AC's revenue (33.4% per year) is forecast to grow faster than the Canadian market (6% per year).
High Growth Revenue: AC's revenue (33.4% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AC's Return on Equity is forecast to be very high in 3 years time (172.8%).
Past Performance
How has Air Canada performed over the past 5 years?
-64.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AC is currently unprofitable.
Growing Profit Margin: AC is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AC is unprofitable, and losses have increased over the past 5 years at a rate of 64.3% per year.
Accelerating Growth: Unable to compare AC's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: AC is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (5.3%).
Return on Equity
High ROE: AC has a negative Return on Equity (-747.83%), as it is currently unprofitable.
Financial Health
How is Air Canada's financial position?
Financial Position Analysis
Short Term Liabilities: AC's short term assets (CA$6.2B) exceed its short term liabilities (CA$5.6B).
Long Term Liabilities: AC's short term assets (CA$6.2B) do not cover its long term liabilities (CA$20.3B).
Debt to Equity History and Analysis
Debt Level: AC's debt to equity ratio (1620.6%) is considered high.
Reducing Debt: AC had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: AC has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if AC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Dividend
What is Air Canada current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AC'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 AC's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AC's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AC'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?
4.1yrs
Average management tenure
CEO
Mike Rousseau (63 yo)
0.58
Tenure
CA$2,938,206
Compensation
Mr. Michael Stewart Rousseau, also known as Mike, has been Chief Executive Officer and President of Air Canada, a subsidiary of Ace Aviation Holdings Inc. since February 15, 2021 and its Director since Jun...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD2.31M) is below average for companies of similar size in the Canadian market ($USD3.54M).
Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: AC's management team is considered experienced (4.1 years average tenure).
Board Members
Experienced Board: AC's board of directors are considered experienced (5.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AC insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.6%.
Top Shareholders
Company Information
Air Canada's employee growth, exchange listings and data sources
Key Information
- Name: Air Canada
- Ticker: AC
- Exchange: TSX
- Founded: 1937
- Industry: Airlines
- Sector: Transportation
- Market Cap: CA$8.421b
- Shares outstanding: 357.74m
- Website: https://www.aircanada.com
Number of Employees
Location
- Air Canada
- 7373 Côte Vertu Boulevard West
- Saint-Laurent
- Quebec
- H4Y 1H4
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/25 22:01 |
| End of Day Share Price | 2021/09/24 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.