Chorus Aviation (TSX:CHR) - Share price, News & Analysis

CHR fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	4/6
Past Performance	3/6
Financial Health	1/6
Dividends	0/6

CHR Stock Overview

Chorus Aviation Inc., through its subsidiaries, provides various aviation support services in the United States and Canada.

Rewards

Trading at 84.9% below our estimate of its fair value

Earnings are forecast to grow 32.7% per year

Earnings grew by 95.6% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year

Chorus Aviation Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Chorus Aviation
Historical stock prices
Current Share Price	CA$3.83
52 Week High	CA$5.22
52 Week Low	CA$3.18
Beta	2.25
1 Month Change	-6.36%
3 Month Change	-12.76%
1 Year Change	-17.99%
3 Year Change	-49.61%
5 Year Change	-48.24%
Change since IPO	-62.82%

Shareholder Returns

	CHR	CA Airlines	CA Market
7D	-0.3%	-2.9%	-0.7%
1Y	-18.0%	-32.1%	5.2%

Return vs Industry: CHR exceeded the Canadian Airlines industry which returned -28.4% over the past year.

Return vs Market: CHR underperformed the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is CHR's price volatile compared to industry and market?
CHR volatility
CHR Average Weekly Movement	5.4%
Airlines Industry Average Movement	12.2%
Market Average Movement	9.8%
10% most volatile stocks in CA Market	16.9%
10% least volatile stocks in CA Market	4.3%

Stable Share Price: CHR is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CHR's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2010	4,583	Joe Randell	https://www.chorusaviation.com

Chorus Aviation Inc., through its subsidiaries, provides various aviation support services in the United States and Canada. The company operates through two segments, Regional Aviation Services and Regional Aircraft Leasing. The Regional Aviation Services segment includes all three sectors of the regional aviation, such as contract flying, including ACMI and charter operations; aircraft leasing; and maintenance, repair, and overhaul, as well as part sales and technical services.

Chorus Aviation Fundamentals Summary

How do Chorus Aviation's earnings and revenue compare to its market cap?
CHR fundamental statistics
Market Cap	CA$777.68m
Earnings (TTM)	CA$40.50m
Revenue (TTM)	CA$1.16b

19.2x

P/E Ratio

0.7x

P/S Ratio

Is CHR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHR income statement (TTM)
Revenue	CA$1.16b
Cost of Revenue	CA$697.14m
Gross Profit	CA$466.03m
Other Expenses	CA$425.53m
Earnings	CA$40.50m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 04, 2022

Earnings per share (EPS)	0.20
Gross Margin	40.07%
Net Profit Margin	3.48%
Debt/Equity Ratio	258.3%

How did CHR perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CHR (CA$3.83) is trading below our estimate of fair value (CA$25.37)

Significantly Below Fair Value: CHR is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: CHR is poor value based on its Price-To-Earnings Ratio (19.2x) compared to the North American Airlines industry average (19x).

PE vs Market: CHR is poor value based on its Price-To-Earnings Ratio (19.2x) compared to the Canadian market (11.3x).

Price to Earnings Growth Ratio

PEG Ratio: CHR is good value based on its PEG Ratio (0.6x)

Price to Book Ratio

PB vs Industry: CHR is good value based on its Price-To-Book Ratio (1.1x) compared to the XN Airlines industry average (2.1x).

Future Growth

How is Chorus Aviation forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

32.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CHR's forecast earnings growth (32.7% per year) is above the savings rate (1.6%).

Earnings vs Market: CHR's earnings (32.7% per year) are forecast to grow faster than the Canadian market (7.6% per year).

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

Revenue vs Market: CHR's revenue (11.3% per year) is forecast to grow faster than the Canadian market (6.4% per year).

High Growth Revenue: CHR's revenue (11.3% 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

Past Performance

How has Chorus Aviation performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-32.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CHR has a large one-off loss of CA$19.2M impacting its March 31 2022 financial results.

Growing Profit Margin: CHR's current net profit margins (3.5%) are higher than last year (2.6%).

Past Earnings Growth Analysis

Earnings Trend: CHR's earnings have declined by 32.6% per year over the past 5 years.

Accelerating Growth: CHR's earnings growth over the past year (95.6%) exceeds its 5-year average (-32.6% per year).

Earnings vs Industry: CHR earnings growth over the past year (95.6%) exceeded the Airlines industry 26.9%.

Return on Equity

High ROE: CHR's Return on Equity (5.7%) is considered low.

Financial Health

How is Chorus Aviation's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CHR's short term assets (CA$361.4M) do not cover its short term liabilities (CA$491.9M).

Long Term Liabilities: CHR's short term assets (CA$361.4M) do not cover its long term liabilities (CA$1.9B).

Debt to Equity History and Analysis

Debt Level: CHR's net debt to equity ratio (242.7%) is considered high.

Reducing Debt: CHR's debt to equity ratio has reduced from 644.7% to 258.3% over the past 5 years.

Debt Coverage: CHR's debt is not well covered by operating cash flow (10.3%).

Interest Coverage: CHR's interest payments on its debt are not well covered by EBIT (1.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.70%

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.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CHR has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Joe Randell (67 yo)

21.33yrs

Tenure

CA$2,375,094

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 ($USD1.85M) is about average for companies of similar size in the Canadian market ($USD1.54M).

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

Leadership Team

Experienced Management: CHR's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: CHR's board of directors are considered experienced (4.1 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: CHR 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 14.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31