TSX:CHR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Chorus Aviation Inc., through its subsidiaries, engages in the airline business in Canada and the United States. More Details


Snowflake Analysis

Undervalued with reasonable growth potential.

Share Price & News

How has Chorus Aviation's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.4%

CHR

1.2%

CA Airlines

1.1%

CA Market


1 Year Return

-70.6%

CHR

-43.7%

CA Airlines

-5.8%

CA Market

Return vs Industry: CHR underperformed the Canadian Airlines industry which returned -44.3% over the past year.

Return vs Market: CHR underperformed the Canadian Market which returned -5.6% over the past year.


Shareholder returns

CHRIndustryMarket
7 Day-0.4%1.2%1.1%
30 Day-15.6%-2.8%-2.6%
90 Day-23.8%5.3%4.0%
1 Year-69.5%-70.6%-43.2%-43.7%-2.5%-5.8%
3 Year-69.6%-74.2%-40.1%-42.3%5.7%-4.5%
5 Year-47.0%-61.2%-23.8%-28.0%32.6%12.3%

Price Volatility Vs. Market

How volatile is Chorus Aviation's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Chorus Aviation undervalued compared to its fair value and its price relative to the market?

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHR (CA$2.21) is trading below our estimate of fair value (CA$2.67)

Significantly Below Fair Value: CHR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CHR is good value based on its PE Ratio (4.9x) compared to the XN Airlines industry average (8.9x).

PE vs Market: CHR is good value based on its PE Ratio (4.9x) compared to the Canadian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: CHR is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: CHR is good value based on its PB Ratio (0.6x) compared to the XN Airlines industry average (1x).


Next Steps

Future Growth

How is Chorus Aviation forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

44.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHR's forecast earnings growth (44.4% per year) is above the savings rate (1.7%).

Earnings vs Market: CHR's earnings (44.4% per year) are forecast to grow faster than the Canadian market (22.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHR's revenue (13% per year) is forecast to grow faster than the Canadian market (5.3% per year).

High Growth Revenue: CHR's revenue (13% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Chorus Aviation performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHR has a high level of non-cash earnings.

Growing Profit Margin: CHR's current net profit margins (5.9%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: CHR's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: CHR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CHR had negative earnings growth (-38.5%) over the past year, making it difficult to compare to the Airlines industry average (-48.2%).


Return on Equity

High ROE: CHR's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Chorus Aviation's financial position?


Financial Position Analysis

Short Term Liabilities: CHR's short term assets (CA$357.7M) exceed its short term liabilities (CA$346.4M).

Long Term Liabilities: CHR's short term assets (CA$357.7M) do not cover its long term liabilities (CA$2.2B).


Debt to Equity History and Analysis

Debt Level: CHR's debt to equity ratio (338.3%) is considered high.

Reducing Debt: CHR's debt to equity ratio has increased from 325.2% to 338.3% over the past 5 years.

Debt Coverage: CHR's debt is not well covered by operating cash flow (8.4%).

Interest Coverage: CHR's interest payments on its debt are not well covered by EBIT (2.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Chorus Aviation current dividend yield, its reliability and sustainability?

10.41%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CHR'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 CHR's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CHR'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?

3.7yrs

Average management tenure


CEO

Joe Randell (66 yo)

19.67yrs

Tenure

CA$3,311,045

Compensation

Mr. Joseph D. Randell, also known as Joe, has been the Chief Executive Officer and President of Chorus Aviation Inc. and Jazz Air Holding GP Inc., since January 1, 2001. Mr. Randell's vision of a diversifi ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD2.49M) is above average for companies of similar size in the Canadian market ($USD680.51K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Randell
President19.67yrsCA$3.31m0.79%
CA$ 2.8m
Gary Osborne
Chief Financial Officer1.33yrsCA$636.39k0.0059%
CA$ 21.0k
Colin Copp
COO & President of Chorus Aviation Services1.5yrsCA$1.68m0.030%
CA$ 108.4k
Dennis M. Lopes
Senior VP4.17yrsCA$1.48m0.017%
CA$ 60.1k
M. Mahody
Executive VP & Chief Strategy Officer1.33yrsCA$1.45m0.14%
CA$ 494.5k
Steven Ridolfi
President of Chorus Aviation Capital3.67yrsCA$1.32m0.080%
CA$ 287.9k
Nathalie Megann
Vice President of Investor Relations & Corporate Affairs4.92yrsno data0.032%
CA$ 114.9k
Laurel Clark
Vice President of Corporate Human Resources4.92yrsno data0.034%
CA$ 122.7k
Scott Tapson
President of Voyageur1.5yrsCA$540.88k0.012%
CA$ 42.9k
Carl Kumpic
Vice President of Marketing and Salesno datano data0.00079%
CA$ 2.8k
Randolph deGooyer
President of Jazz Aviation LP1.5yrsno data0.0058%
CA$ 20.7k
Bruce Peddle
Chief Operating Officer of Chorus Aviation Capital5.08yrsno data0.064%
CA$ 229.1k

3.7yrs

Average Tenure

Experienced Management: CHR's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Randell
President19.67yrsCA$3.31m0.79%
CA$ 2.8m
Richard McCoy
Independent Director14.67yrsCA$257.36k0.032%
CA$ 113.4k
R. Hannahs
Independent Director5.08yrsCA$140.36kno data
Gary Collins
Independent Director12.33yrsCA$137.36k0.0031%
CA$ 11.1k
Sydney Isaacs
Independent Director12.67yrsCA$138.36k0.0031%
CA$ 11.1k
Amos Kazzaz
Director0.25yrno datano data
Richard Falconer
Independent Chairman0.25yrCA$147.36k0.022%
CA$ 77.3k
Karen Cramm
Independent Director9.75yrsCA$150.36kno data
Margaret Clandillon
Independent Director2.33yrsCA$138.36kno data
Marie-Lucie Morin
Independent Director4.58yrsCA$145.36k0.0013%
CA$ 4.6k

7.4yrs

Average Tenure

65yo

Average Age

Experienced Board: CHR's board of directors are considered experienced (7.4 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Chorus Aviation Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chorus Aviation Inc.
  • Ticker: CHR
  • Exchange: TSX
  • Founded: 2010
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: CA$357.727m
  • Shares outstanding: 161.87m
  • Website: https://www.chorusaviation.com

Number of Employees


Location

  • Chorus Aviation Inc.
  • 3 Spectacle Lake Drive
  • Suite 100
  • Dartmouth
  • Nova Scotia
  • B3B 1W8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHRTSX (The Toronto Stock Exchange)YesClass B Voting SharesCACADJan 2006
CHRR.FOTCPK (Pink Sheets LLC)YesClass B Voting SharesUSUSDJan 2006
1H0DB (Deutsche Boerse AG)YesClass B Voting SharesDEEURJan 2006

Biography

Chorus Aviation Inc., through its subsidiaries, engages in the airline business in Canada and the United States. It operates scheduled passenger service on behalf of Air Canada under the Air Canada Express ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/01 00:42
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.