TSX:CJT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.3%

CJT

-1.2%

CA Logistics

-1.6%

CA Market


1 Year Return

124.6%

CJT

46.9%

CA Logistics

-6.3%

CA Market

Return vs Industry: CJT exceeded the Canadian Logistics industry which returned 44.3% over the past year.

Return vs Market: CJT exceeded the Canadian Market which returned -5.5% over the past year.


Shareholder returns

CJTIndustryMarket
7 Day-2.3%-1.2%-1.6%
30 Day14.4%2.9%-0.8%
90 Day33.2%20.8%-0.7%
1 Year126.4%124.6%50.5%46.9%-2.9%-6.3%
3 Year326.9%313.7%47.4%37.9%3.4%-6.6%
5 Year875.8%811.7%91.6%70.5%31.6%11.4%

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?

17.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CJT (CA$225.15) is trading below our estimate of fair value (CA$267.89)

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


Price To Earnings Ratio

PE vs Industry: CJT is unprofitable, so we can't compare its PE Ratio to the XN Logistics industry average.

PE vs Market: CJT 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 CJT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CJT is overvalued based on its PB Ratio (15.8x) compared to the XN Logistics industry average (3x).


Next Steps

Future Growth

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

50.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CJT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CJT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CJT's is expected to become profitable in the next 3 years.

Revenue vs Market: CJT's revenue (4.6% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: CJT's revenue (4.6% 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 high in 3 years time (22.5%)


Next Steps

Past Performance

How has Cargojet performed over the past 5 years?

29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CJT is currently unprofitable.

Growing Profit Margin: CJT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CJT is unprofitable, but has reduced losses over the past 5 years at a rate of 29.5% per year.

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

Earnings vs Industry: CJT is unprofitable, making it difficult to compare its past year earnings growth to the Logistics industry (-22.4%).


Return on Equity

High ROE: CJT has a negative Return on Equity (-17.81%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cargojet's financial position?


Financial Position Analysis

Short Term Liabilities: CJT's short term assets (CA$104.4M) do not cover its short term liabilities (CA$152.8M).

Long Term Liabilities: CJT's short term assets (CA$104.4M) do not cover its long term liabilities (CA$771.3M).


Debt to Equity History and Analysis

Debt Level: CJT's debt to equity ratio (182.6%) is considered high.

Reducing Debt: CJT's debt to equity ratio has reduced from 313.9% to 182.6% over the past 5 years.

Debt Coverage: CJT's debt is well covered by operating cash flow (50.8%).

Interest Coverage: CJT is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

0.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CJT's dividend (0.42%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.7%).

High Dividend: CJT's dividend (0.42%) is low compared to the top 25% of dividend payers in the Canadian market (5.93%).


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?

8.1yrs

Average management tenure


CEO

Ajay Virmani (63 yo)

no data

Tenure

CA$9,732,930

Compensation

Mr. Ajay K. Virmani has served as the President and Chief Executive Officer of Cargojet Airways, Ltd. since its inception, and has been responsible for the general business direction of the Company. Mr. Vi ...


CEO Compensation Analysis

Compensation vs Market: Ajay's total compensation ($USD7.40M) is above average for companies of similar size in the Canadian market ($USD3.02M).

Compensation vs Earnings: Ajay's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Ajay Virmani
Founderno dataCA$9.73m5.71%
CA$ 196.9m
John Kim
VP of Governance10.5yrsCA$611.75k0.25%
CA$ 8.5m
Pauline Dhillon
Executive Vice President of Marketingno dataCA$691.25k0.049%
CA$ 1.7m
Jamie Porteous
Executive VP & Chief Commercial Officer5.75yrsCA$1.43m0.097%
CA$ 3.4m
Paul Rinaldo
Senior Vice President of Engineering & Maintenance5.75yrsCA$560.50k0.055%
CA$ 1.9m
Fernando Garcia
Vice President of Legal & Corporate Governanceno datano datano data
George Sugar
Senior Vice President of Flight Operations14.75yrsCA$744.06k0.012%
CA$ 397.0k

8.1yrs

Average Tenure

Experienced Management: CJT's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ajay Virmani
Founderno dataCA$9.73m5.71%
CA$ 196.9m
James Crane
Independent Chairman of the Board2.58yrsCA$460.44k0.19%
CA$ 6.6m
Paul Godfrey
Independent Director11.58yrsCA$300.04k0.16%
CA$ 5.5m
Arlene Dickinson
Independent Director2.5yrsCA$300.04k0.076%
CA$ 2.6m
John Webster
Lead Independent Directorno dataCA$342.04k0.038%
CA$ 1.3m

7.1yrs

Average Tenure

63yo

Average Age

Experienced Board: CJT's board of directors are considered experienced (7.1 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 15.3%.


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:
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: CA$3.446b
  • Shares outstanding: 15.60m
  • Website: https://www.cargojet.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CJTTSX (The Toronto Stock Exchange)YesCommon Voting SharesCACADJun 2005
CGJT.FOTCPK (Pink Sheets LLC)YesCommon Voting SharesUSUSDJun 2005
CJ8DB (Deutsche Boerse AG)YesCommon Voting SharesDEEURJun 2005
CJ8AMUN (Boerse Muenchen)YesCommon Voting SharesDEEURJun 2005
CJT.ATSX (The Toronto Stock Exchange)Variable Voting SharesCACADJan 2011

Biography

Cargojet Inc. provides time sensitive overnight air cargo services in Canada. Its air cargo business activities include operation of domestic overnight air cargo co-load network between 15 cities in North ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 00:00
End of Day Share Price2020/10/28 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.