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Cargojet

TSX:CJT
Snowflake Description

Acceptable track record with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CJT
TSX
CA$1B
Market Cap
  1. Home
  2. CA
  3. Transportation
Company description

Cargojet Inc. provides time sensitive overnight air cargo services in Canada. The last earnings update was 28 days ago. More info.


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CJT Share Price and Events
7 Day Returns
-1.6%
TSX:CJT
0.8%
North America Logistics
0.3%
CA Market
1 Year Returns
18.9%
TSX:CJT
-9.5%
North America Logistics
0.7%
CA Market
CJT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cargojet (CJT) -1.6% -3.7% 20.8% 18.9% 190.4% 299.2%
North America Logistics 0.8% -0.6% 14.5% -9.5% 12.5% 28.2%
CA Market 0.3% 2% 13.2% 0.7% 16.6% 5.6%
1 Year Return vs Industry and Market
  • CJT outperformed the Logistics industry which returned -9.5% over the past year.
  • CJT outperformed the Market in Canada which returned 0.7% over the past year.
Price Volatility
CJT
Industry
5yr Volatility vs Market

Value

 Is Cargojet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Cargojet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Cargojet.

TSX:CJT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:CJT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Logistics Unlevered Beta Simply Wall St/ S&P Global 1.03
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.026 (1 + (1- 26.5%) (56.02%))
1.3
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.3
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.3 * 5.96%)
9.7%

Discounted Cash Flow Calculation for TSX:CJT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cargojet is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:CJT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 9.7%)
2019 27.40 Analyst x3 24.98
2020 64.10 Analyst x3 53.27
2021 100.39 Est @ 56.62% 76.05
2022 140.77 Est @ 40.22% 97.21
2023 181.22 Est @ 28.74% 114.09
2024 218.74 Est @ 20.7% 125.53
2025 251.71 Est @ 15.07% 131.68
2026 279.74 Est @ 11.14% 133.41
2027 303.18 Est @ 8.38% 131.81
2028 322.74 Est @ 6.45% 127.90
Present value of next 10 years cash flows CA$1,015.93
TSX:CJT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$322.74 × (1 + 1.95%) ÷ (9.7% – 1.95%)
CA$4,245.17
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$4,245.17 ÷ (1 + 9.7%)10
CA$1,682.40
TSX:CJT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$1,015.93 + CA$1,682.40
CA$2,698.33
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$2,698.33 / 13.45
CA$200.67
TSX:CJT Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$200.67
Current discount Discount to share price of CA$80.24
= -1 x (CA$80.24 - CA$200.67) / CA$200.67
60%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Cargojet is available for.
Intrinsic value
>50%
Share price is CA$80.24 vs Future cash flow value of CA$200.67
Current Discount Checks
For Cargojet to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cargojet's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cargojet's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cargojet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cargojet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:CJT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in CAD CA$1.51
TSX:CJT Share Price ** TSX (2019-03-20) in CAD CA$80.24
North America Logistics Industry PE Ratio Median Figure of 15 Publicly-Listed Logistics Companies 19.95x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 14.78x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cargojet.

TSX:CJT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:CJT Share Price ÷ EPS (both in CAD)

= 80.24 ÷ 1.51

53.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cargojet is overvalued based on earnings compared to the North America Logistics industry average.
  • Cargojet is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does Cargojet's expected growth come at a high price?
Raw Data
TSX:CJT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 53.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
28.7%per year
North America Logistics Industry PEG Ratio Median Figure of 13 Publicly-Listed Logistics Companies 1.63x
Canada Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.2x

*Line of best fit is calculated by linear regression .

TSX:CJT PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 53.27x ÷ 28.7%

1.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cargojet is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cargojet's assets?
Raw Data
TSX:CJT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in CAD CA$11.72
TSX:CJT Share Price * TSX (2019-03-20) in CAD CA$80.24
North America Logistics Industry PB Ratio Median Figure of 19 Publicly-Listed Logistics Companies 2.74x
Canada Market PB Ratio Median Figure of 2,349 Publicly-Listed Companies 1.58x
TSX:CJT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:CJT Share Price ÷ Book Value per Share (both in CAD)

= 80.24 ÷ 11.72

6.85x

* Primary Listing of Cargojet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cargojet is overvalued based on assets compared to the North America Logistics industry average.
X
Value checks
We assess Cargojet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Logistics industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Logistics industry average (and greater than 0)? (1 check)
  5. Cargojet has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cargojet expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
28.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cargojet expected to grow at an attractive rate?
  • Cargojet's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Cargojet's earnings growth is expected to exceed the Canada market average.
  • Cargojet's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:CJT Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:CJT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 28.7%
TSX:CJT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 5.9%
North America Logistics Industry Earnings Growth Rate Market Cap Weighted Average 11.2%
North America Logistics Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 17.8%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:CJT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:CJT Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 562 1
2021-12-31 535 1
2020-12-31 527 123 36 8
2019-12-31 494 109 23 8
TSX:CJT Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-12-31 455 91 20
2018-09-30 441 94 25
2018-06-30 416 107 26
2018-03-31 395 78 26
2017-12-31 383 79 24
2017-09-30 359 78 12
2017-06-30 350 61 1
2017-03-31 341 71 1
2016-12-31 331 62 2
2016-09-30 321 52 2
2016-06-30 316 56 5
2016-03-31 312 34 -5

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cargojet's earnings are expected to grow significantly at over 20% yearly.
  • Cargojet's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:CJT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Cargojet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CJT Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 2.05 2.05 2.05 1.00
2021-12-31 1.47 1.47 1.47 1.00
2020-12-31 2.43 2.52 2.30 3.00
2019-12-31 1.71 1.78 1.66 3.00
TSX:CJT Past Financials Data
Date (Data in CAD Millions) EPS *
2018-12-31 1.51
2018-09-30 1.87
2018-06-30 1.94
2018-03-31 2.00
2017-12-31 1.96
2017-09-30 1.01
2017-06-30 0.11
2017-03-31 0.06
2016-12-31 0.23
2016-09-30 0.19
2016-06-30 0.45
2016-03-31 -0.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Cargojet is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cargojet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cargojet has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cargojet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cargojet's growth in the last year to its industry (Logistics).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cargojet has delivered over 20% year on year earnings growth in the past 5 years.
  • Cargojet's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Cargojet's 1-year earnings growth is negative, it can't be compared to the North America Logistics industry average.
Earnings and Revenue History
Cargojet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cargojet Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:CJT Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 454.90 20.20 52.00
2018-09-30 440.50 25.00 51.00
2018-06-30 415.80 25.90 51.50
2018-03-31 395.00 25.60 48.60
2017-12-31 382.90 23.70 48.10
2017-09-30 358.80 11.60 51.10
2017-06-30 350.10 1.20 43.80
2017-03-31 341.20 0.60 42.90
2016-12-31 331.00 2.40 41.20
2016-09-30 321.30 2.00 33.60
2016-06-30 315.90 4.60 35.20
2016-03-31 311.80 -5.30 35.30
2015-12-31 289.00 -18.00 34.60
2015-09-30 261.72 -21.58 33.45
2015-06-30 233.65 -21.66 33.24
2015-03-31 202.78 -16.25 28.91
2014-12-31 192.40 -9.52 26.31
2014-09-30 183.80 -2.15 22.13
2014-06-30 179.99 0.35 20.02
2014-03-31 178.37 2.16 19.36
2013-12-31 175.38 3.33 18.80
2013-09-30 173.23 2.47 18.95
2013-06-30 171.59 3.19 18.99
2013-03-31 169.35 3.11 18.87
2012-12-31 168.77 3.55 18.95
2012-09-30 165.31 1.82 18.23
2012-06-30 163.84 2.35 18.42
2012-03-31 164.54 2.71 19.54

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cargojet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cargojet used its assets more efficiently than the North America Logistics industry average last year based on Return on Assets.
  • Cargojet has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cargojet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Logistics industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cargojet has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cargojet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cargojet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cargojet's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Cargojet's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cargojet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cargojet Company Filings, last reported 2 months ago.

TSX:CJT Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 157.70 604.40
2018-09-30 151.50 530.20
2018-06-30 156.20 450.00
2018-03-31 155.20 412.90
2017-12-31 154.60 400.50 5.70
2017-09-30 145.50 349.70 0.10
2017-06-30 124.80 333.20 0.80
2017-03-31 67.90 372.50 0.50
2016-12-31 66.60 347.30 2.20
2016-09-30 68.20 371.10 24.20
2016-06-30 66.00 359.20 0.30
2016-03-31 60.70 379.10 3.80
2015-12-31 54.80 362.30 6.00
2015-09-30 56.75 347.59 0.65
2015-06-30 53.67 324.40
2015-03-31 58.95 287.48 0.26
2014-12-31 65.42 187.83
2014-09-30 71.38 142.11 24.29
2014-06-30 74.20 111.28 10.20
2014-03-31 68.70 28.85 0.05
2013-12-31 62.54 27.89 0.44
2013-09-30 61.26 32.10 0.47
2013-06-30 62.14 34.25
2013-03-31 62.12 30.93 0.29
2012-12-31 64.47 29.13 0.15
2012-09-30 64.07 28.17 0.08
2012-06-30 64.20 31.07
2012-03-31 64.50 50.71 19.95
  • Cargojet's level of debt (383.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (44.6% vs 383.3% today).
  • Debt is not well covered by operating cash flow (15.1%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Cargojet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cargojet has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.11%
Current annual income from Cargojet dividends. Estimated to be 1.1% next year.
If you bought CA$2,000 of Cargojet shares you are expected to receive CA$2 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cargojet's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.02%).
  • Cargojet's dividend is below the markets top 25% of dividend payers in Canada (5.61%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:CJT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
North America Logistics Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 330 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:CJT Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31
2020-12-31 0.89 2.00
2019-12-31 0.87 2.00
TSX:CJT Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-02-28 0.088 0.106
2018-11-13 0.848 1.114
2018-08-13 0.848 1.066
2018-05-07 0.848 1.296
2018-03-14 0.848 1.275
2017-11-13 0.770 1.310
2017-08-08 0.770 1.510
2017-05-15 0.770 1.635
2017-03-09 0.770 1.690
2016-11-07 0.700 1.460
2016-08-22 0.700 1.657
2016-05-12 0.596 1.798
2016-03-07 0.596 2.171
2015-11-09 0.596 2.427
2015-08-13 0.596 2.682
2015-05-11 0.596 2.241
2015-03-09 0.596 2.218
2014-11-10 0.596 2.274
2014-08-11 0.596 2.626
2014-05-14 0.596 2.735
2014-03-06 0.596 2.865
2013-11-12 0.596 4.221
2013-08-12 0.596 5.159
2013-05-06 0.596 5.517
2013-03-08 0.596 6.130
2012-11-12 0.596 6.854
2012-08-13 0.568 7.554
2012-05-07 0.568 8.094
2012-02-27 0.568 6.815
2011-11-09 0.540 6.629
2011-08-10 0.540 7.332
2011-05-09 1.620 17.900
2011-03-02 0.504 5.814
2010-12-09 0.504 5.806
2010-11-12 0.504 6.115
2010-10-15 0.504 6.262
2010-09-17 0.504 6.636
2010-08-19 0.504 6.883
2010-07-15 0.504 7.110
2010-06-14 0.504 7.875
2010-05-17 0.504 8.187
2010-04-19 0.504 6.717
2010-03-17 0.504 6.233
2010-02-16 0.504 5.677
2010-01-19 0.504 5.187
2009-12-18 0.504 5.331
2009-11-12 0.504 5.855
2009-10-20 0.324 5.170
2009-09-21 0.324 4.903
2009-08-17 0.324 5.788
2009-07-20 0.324 8.253
2009-06-19 0.324 8.495
2009-05-19 0.324 8.331
2009-03-23 0.324 10.899

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cargojet is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • Cargojet is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Cargojet's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Cargojet's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Cargojet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cargojet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cargojet has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ajay Virmani
COMPENSATION CA$9,413,586
AGE 57
CEO Bio

Mr. Ajay K. Virmani, MBA, has been the Managing Director of Lords Chloro Alkali Limited since July 12, 2012. Mr. Virmani served as the Chief Executive Officer of Lords Chloro Alkali Limited since October 9, 2008. Mr. Virmani served as an Assistant Vice President of TCS e-Serve Limited. He serves as the Chief Executive Officer and President of Cargojet GP Inc., General Partner of Cargojet Income Fund. He is the Founder, Chief Executive Officer and President of Cargojet Inc. He serves as the Chief Executive Officer and President of Flagship International Marketing Limited and Cargojet Airways Ltd. He served as the Chief Executive Officer and President of Commercial Transport International (Canada) Ltd. He served as the Chairman of Cargojet GP Inc., until March 08, 2018. He served as an Assistant Vice President of MAX New York Life Insurance. He has been a Director of Cargojet Inc. and Cargojet GP Inc., General Partner of Cargojet Income Fund since 2005. He has been a Director of Cargojet Inc. since 2005. He has been a Director of Academy Of Canadian Cinema And Television since August 2015. He has been an Executive Director of Lords Chloro Alkali Limited since May 14, 2010. He served as a Director of Export Development Canada. Mr. Virmani holds B.Sc. and PGDBM. He is a Chartered Accountant. He has vast experience in Finance, taxation, manufacturing sectors including chemicals. He has been instrumental in shaping financial and business strategies for Lords Chloro Alkali Limited.

CEO Compensation
  • Ajay's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Ajay's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Cargojet management team in years:

4.6
Average Tenure
  • The tenure for the Cargojet management team is about average.
Management Team

Ajay Virmani

TITLE
Founder
COMPENSATION
CA$9M
AGE
57

John Kim

TITLE
VP of Governance
COMPENSATION
CA$874K
TENURE
8.9 yrs

Pauline Dhillon

TITLE
Executive VP of Marketing
COMPENSATION
CA$983K

George Sugar

TITLE
Senior Vice President of Flight Operations
COMPENSATION
CA$744K
TENURE
13.2 yrs

Jamie Porteous

TITLE
Executive VP & Chief Commercial Officer
COMPENSATION
CA$2M
TENURE
4.2 yrs

Paul Rinaldo

TITLE
Senior Vice President of Engineering & Maintenance
COMPENSATION
CA$744K
TENURE
4.2 yrs

Carl Turner

TITLE
VP of Legal & Governance and Corporate Secretary
TENURE
4.6 yrs
Board of Directors Tenure

Average tenure and age of the Cargojet board of directors in years:

5.5
Average Tenure
61
Average Age
  • The tenure for the Cargojet board of directors is about average.
Board of Directors

Jim Crane

TITLE
Chairman of the Board
COMPENSATION
CA$404K
AGE
64
TENURE
1 yrs

Ajay Virmani

TITLE
Founder
COMPENSATION
CA$9M
AGE
57
TENURE
14.2 yrs

John Webster

TITLE
Lead Director
COMPENSATION
CA$292K
AGE
60

Paul Godfrey

TITLE
Independent Director
COMPENSATION
CA$250K
AGE
79
TENURE
10 yrs

Arlene Dickinson

TITLE
Director
COMPENSATION
CA$340K
AGE
61
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
29. Nov 18 Buy Arlene Dickinson Individual 29. Nov 18 29. Nov 18 10,000 CA$68.09 CA$680,900
29. Jun 18 Sell Jamie Porteous Individual 26. Jun 18 27. Jun 18 -9,000 CA$66.79 CA$-586,317
07. Jun 18 Sell George Sugar Individual 04. Jun 18 04. Jun 18 -358 CA$65.79 CA$-23,552
02. Apr 18 Sell Jamie Porteous Individual 26. Mar 18 28. Mar 18 -25,286 CA$68.26 CA$-1,720,604
29. Mar 18 Sell George Sugar Individual 29. Mar 18 29. Mar 18 -1,087 CA$67.59 CA$-73,470
X
Management checks
We assess Cargojet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cargojet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

The Cargojet (TSE:CJT) Share Price Is Up 287% And Shareholders Are Boasting About It

(TSE:CJT) share price has soared 287% in the last half decade. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

Simply Wall St -

How Good Is Cargojet Inc. (TSE:CJT) At Creating Shareholder Value?

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Cargojet Inc's (TSE:CJT) High P/E Ratio A Problem For Investors?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Cargojet Inc (TSE:CJT): What Does Its Beta Value Mean For Your Portfolio?

If you're interested in Cargojet Inc (TSE:CJT), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.

Simply Wall St -

Why Cargojet Inc (TSE:CJT) Could Be Worth Watching

Cargojet Inc (TSE:CJT), which is in the logistics business, and is based in Canada,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Cargojet’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

A Look At The Intrinsic Value Of Cargojet Inc (TSE:CJT)

by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Are Insiders Pessimistic About Cargojet Inc (TSE:CJT) Stock?

Cargojet's insiders have divested from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Should You Expect Cargojet Inc (TSE:CJT) To Continue Delivering An ROE Of 16.50%?

With an ROE of 16.50%, Cargojet Inc (TSE:CJT) outpaced its own industry which delivered a less exciting 12.47% over the past year. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden. … Check out our latest analysis for Cargojet

Simply Wall St -

Does Cargojet Inc's (TSE:CJT) PE Ratio Warrant A Sell?

This analysis is intended to introduce important early concepts to people who are starting to invest. … Although some investors may jump to the conclusion that you should avoid the stock or sell if you own it, understanding the assumptions behind the P/E ratio might change your mind. … I will break down what the P/E ratio is, how to interpret it and what to watch out for

Simply Wall St -

Should You Buy Cargojet Inc (TSE:CJT) For Its Dividend?

Cargojet Inc (TSE:CJT) has returned to shareholders over the past 10 years, an average dividend yield of 8.00% annually. … Does Cargojet tick all the boxes of a great dividend stock? … Check out our latest analysis for Cargojet

Simply Wall St -

Company Info

Description

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.

Details
Name: Cargojet Inc.
CJT
Exchange: TSX
Founded: 2005
CA$1,078,933,169
13,446,284
Website: http://www.cargojet.com
Address: Cargojet Inc.
2281 North Sheridan Way,
Mississauga,
Ontario, L5K 2S3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX CJT Common Voting Shares The Toronto Stock Exchange CA CAD 09. Jun 2005
OTCPK CGJT.F Common Voting Shares Pink Sheets LLC US USD 09. Jun 2005
DB CJ8 Common Voting Shares Deutsche Boerse AG DE EUR 09. Jun 2005
TSX CJT.A Variable Voting Shares The Toronto Stock Exchange CA CAD 06. Jan 2011
OTCPK CGGJ.F Variable Voting Shares Pink Sheets LLC US USD 06. Jan 2011
Number of employees
Current staff
Staff numbers
1,019
Cargojet employees.
Industry
Air Freight and Logistics
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/21 00:29
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/02/28
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.