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Market Cap

CA$3.0b

Last Updated

2021/05/08 01:54 UTC

Data Sources

Company Financials +

Executive Summary

Cargojet Inc. provides time sensitive overnight air cargo services in Canada. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

-2.5%

CJT

5.9%

CA Logistics

1.9%

CA Market


1 Year Return

26.6%

CJT

101.1%

CA Logistics

36.9%

CA Market

Return vs Industry: CJT underperformed the Canadian Logistics industry which returned 102.8% over the past year.

Return vs Market: CJT underperformed the Canadian Market which returned 37.1% over the past year.


Shareholder returns

CJTIndustryMarket
7 Day-2.5%5.9%1.9%
30 Day1.6%17.8%2.2%
90 Day-17.8%23.0%8.3%
1 Year27.2%26.6%105.0%101.1%41.4%36.9%
3 Year176.5%169.0%67.4%57.3%30.1%17.7%
5 Year495.2%461.2%139.1%114.0%60.1%36.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

46.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CJT (CA$176.5) is trading below our estimate of fair value (CA$332.65)

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


Price To Earnings Ratio

PE vs Industry: CJT is poor value based on its PE Ratio (824x) compared to the XN Logistics industry average (30x).

PE vs Market: CJT is poor value based on its PE Ratio (824x) compared to the Canadian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: CJT is poor value based on its PEG Ratio (99.4x)


Price to Book Ratio

PB vs Industry: CJT is overvalued based on its PB Ratio (5x) compared to the XN Logistics industry average (3.5x).


Future Growth

How is Cargojet forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

8.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CJT's forecast earnings growth (8.3% per year) is above the savings rate (1.5%).

Earnings vs Market: CJT's earnings (8.3% per year) are forecast to grow slower than the Canadian market (18.6% per year).

High Growth Earnings: CJT's earnings are forecast to grow, but not significantly.

Revenue vs Market: CJT's revenue (10% per year) is forecast to grow faster than the Canadian market (7.3% per year).

High Growth Revenue: CJT's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CJT's Return on Equity is forecast to be low in 3 years time (14.9%).


Past Performance

How has Cargojet performed over the past 5 years?

-39.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CJT has high quality earnings.

Growing Profit Margin: CJT's current net profit margins (0.5%) are lower than last year (2%).


Past Earnings Growth Analysis

Earnings Trend: CJT has become profitable over the past 5 years, growing earnings by -39.2% per year.

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

Earnings vs Industry: CJT had negative earnings growth (-65.3%) over the past year, making it difficult to compare to the Logistics industry average (-15.8%).


Return on Equity

High ROE: CJT's Return on Equity (0.6%) is considered low.


Financial Health

How is Cargojet's financial position?


Financial Position Analysis

Short Term Liabilities: CJT's short term assets (CA$286.4M) exceed its short term liabilities (CA$139.4M).

Long Term Liabilities: CJT's short term assets (CA$286.4M) do not cover its long term liabilities (CA$691.3M).


Debt to Equity History and Analysis

Debt Level: CJT's debt to equity ratio (51.6%) is considered high.

Reducing Debt: CJT's debt to equity ratio has reduced from 383.7% to 51.6% over the past 5 years.

Debt Coverage: CJT's debt is well covered by operating cash flow (106.1%).

Interest Coverage: CJT's interest payments on its debt are well covered by EBIT (4.3x coverage).


Balance Sheet


Dividend

What is Cargojet current dividend yield, its reliability and sustainability?

0.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CJT's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.5%).

High Dividend: CJT's dividend (0.59%) is low compared to the top 25% of dividend payers in the Canadian market (4.66%).


Stability and Growth of Payments

Stable Dividend: CJT is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: CJT is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

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


Future Payout to Shareholders

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

8.7yrs

Average management tenure


CEO

Ajay Virmani (64 yo)

no data

Tenure

CA$11,888,822

Compensation

Dr. Ajay K. Virmani is the Founder, President and Chief Executive Officer of Cargojet Inc., and has been its Director since 2005 also served as its Chairman of the Board until March 8, 2018. He has served ...


CEO Compensation Analysis

Compensation vs Market: Ajay's total compensation ($USD9.75M) is above average for companies of similar size in the Canadian market ($USD3.09M).

Compensation vs Earnings: Ajay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: CJT's management team is seasoned and experienced (8.7 years average tenure).


Board Members

Experienced Board: CJT's board of directors are considered experienced (3.1 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 been diluted in the past year, with total shares outstanding growing by 11.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Cargojet Inc.
  • Ticker: CJT
  • Exchange: TSX
  • Founded: 2005
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: CA$3.014b
  • Shares outstanding: 17.32m
  • Website: https://www.cargojet.com

Number of Employees


Location

  • Cargojet Inc.
  • 2281 North Sheridan Way
  • Mississauga
  • Ontario
  • L5K 2S3
  • Canada

Listings


Biography

Cargojet Inc. provides time sensitive overnight air cargo services in Canada. Its air cargo business activities include operation of domestic overnight air cargo services between fourteen cities in North A...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/08 01:54
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.