TSX:CJT

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Reasonable growth potential with questionable track record.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.03%

CJT

-1.6%

CA Logistics

0.8%

CA Market


1 Year Return

50.0%

CJT

9.9%

CA Logistics

10.6%

CA Market

Return vs Industry: CJT exceeded the Canadian Logistics industry which returned 13.5% over the past year.

Return vs Market: CJT exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

CJTIndustryMarket
7 Day0.03%-1.6%0.8%
30 Day6.7%1.0%2.1%
90 Day19.8%2.7%6.6%
1 Year51.5%50.0%12.6%9.9%14.1%10.6%
3 Year137.0%128.3%12.2%4.9%17.0%6.4%
5 Year364.1%328.1%29.3%16.0%38.5%18.2%

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?

68.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CJT (CA$109.78) is trading above our estimate of fair value (CA$87.28)

Significantly Below Fair Value: CJT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CJT is poor value based on its PE Ratio (66x) compared to the Logistics industry average (20.8x).

PE vs Market: CJT is poor value based on its PE Ratio (66x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: CJT is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: CJT is overvalued based on its PB Ratio (8.8x) 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?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CJT's forecast earnings growth (21.4% per year) is above the savings rate (1.4%).

Earnings vs Market: CJT's earnings (21.4% per year) are forecast to grow faster than the Canadian market (10.3% per year).

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

Revenue vs Market: CJT's revenue (8.3% per year) is forecast to grow faster than the Canadian market (5% per year).

High Growth Revenue: CJT's revenue (8.3% 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 CJT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cargojet performed over the past 5 years?

64.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CJT has high quality earnings.

Growing Profit Margin: CJT's current net profit margins (4.7%) are lower than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: CJT has become profitable over the past 5 years, growing earnings by 64.4% 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 (-10.4%) over the past year, making it difficult to compare to the Logistics industry average (-9.5%).


Return on Equity

High ROE: CJT's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Cargojet's financial position?


Financial Position Analysis

Short Term Liabilities: CJT's short term assets (CA$53.5M) do not cover its short term liabilities (CA$91.3M).

Long Term Liabilities: CJT's short term assets (CA$53.5M) do not cover its long term liabilities (CA$790.5M).


Debt to Equity History and Analysis

Debt Level: CJT's debt to equity ratio (301.7%) is considered high.

Reducing Debt: CJT's debt to equity ratio has increased from 110.7% to 301.7% over the past 5 years.

Debt Coverage: CJT's debt is well covered by operating cash flow (26.9%).

Interest Coverage: CJT's interest payments on its debt are not well covered by EBIT (1.5x coverage).


Balance Sheet

Inventory Level: CJT has a high level of physical assets or inventory.

Debt Coverage by Assets: CJT's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

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

0.83%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.9%markettop25%5.5%industryaverage2.5%forecastin3Years0.9%

Current dividend yield vs market & industry

Notable Dividend: CJT's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: CJT's dividend (0.85%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


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

What is the CEO of Cargojet's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Ajay Virmani (62yo)

0yrs

Tenure

CA$9,413,586

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 ($USD7.21M) is above average for companies of similar size in the Canadian market ($USD1.63M).

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


Management Age and Tenure

5.4yrs

Average Tenure

Experienced Management: CJT's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

62yo

Average Age

Experienced Board: CJT's board of directors are considered experienced (6.3 years average tenure).


Insider Trading

Insider Buying: CJT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$206,79523 Dec 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares2,000
Max PriceCA$104.93
SellCA$300,00002 Dec 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares3,000
Max PriceCA$100.00
SellCA$1,180,45225 Nov 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares12,000
Max PriceCA$99.14
SellCA$554,84418 Nov 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares5,700
Max PriceCA$97.54
SellCA$287,98215 Nov 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares2,900
Max PriceCA$100.10
SellCA$1,010,31713 Nov 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares10,000
Max PriceCA$103.27
SellCA$472,07004 Oct 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares5,000
Max PriceCA$94.41
SellCA$1,032,33016 Sep 19
Pauline Dhillon
EntityIndividual
Role
Head of Marketing
Executive VP of Marketing
Shares10,000
Max PriceCA$103.23
SellCA$340,21916 Sep 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares3,380
Max PriceCA$100.79
SellCA$68,074,00011 Sep 19
Ajay Virmani
EntityIndividual
Role
Chief Executive Officer
Founder
Shares674,000
Max PriceCA$101.00
SellCA$286,54502 Jul 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares3,500
Max PriceCA$81.87
SellCA$17,18803 Apr 19
Jamie Porteous
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Commercial Officer
Shares220
Max PriceCA$78.13

Ownership Breakdown

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


Management Team

  • Ajay Virmani (62yo)

    Founder

    • Compensation: CA$9.41m
  • Jamie Porteous

    Executive VP & Chief Commercial Officer

    • Tenure: 5yrs
    • Compensation: CA$1.84m
  • George Sugar

    Senior Vice President of Flight Operations

    • Tenure: 14yrs
    • Compensation: CA$744.06k
  • Paul Rinaldo

    Senior Vice President of Engineering & Maintenance

    • Tenure: 5yrs
    • Compensation: CA$744.06k
  • John Kim

    VP of Governance

    • Tenure: 9.8yrs
    • Compensation: CA$873.85k
  • Carl Turner

    VP of Legal & Governance and Corporate Secretary

    • Tenure: 5.4yrs
  • Pauline Dhillon

    Executive VP of Marketing

    • Compensation: CA$983.33k

Board Members

  • Jim Crane (65yo)

    Independent Chairman of the Board

    • Tenure: 1.8yrs
    • Compensation: CA$404.19k
  • Ajay Virmani (62yo)

    Founder

    • Compensation: CA$9.41m
  • Paul Godfrey (80yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: CA$249.99k
  • Arlene Dickinson (62yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: CA$340.20k
  • John Webster (61yo)

    Lead Director

    • Compensation: CA$291.99k

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$1.797b
  • Shares outstanding: 16.01m
  • 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 14 cities in Canada; and provision of dedicated aircraft to customers on an aircraft, crew, maintenance, and insurance (ACMI) basis operating between points in Canada, North and South America, and Europe. The company also operates scheduled international routes for various cargo customers between the United States and Bermuda; between Canada and Germany; and between Canada, Colombia, and Peru. In addition, it offers specialty charter services for livestock shipments, military equipment movements, emergency relief supplies, and virtually large shipments across North America, Mexico, South America, the Caribbean, and Europe. Further, the company is involved in the ground handling and ground service equipment business. As of December 31, 2018, it operated a fleet of 23 all-cargo aircrafts. Cargojet Inc. was founded in 2005 and is headquartered in Mississauga, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/23 00:33
End of Day Share Price2020/01/22 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.