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WestJet Airlines

TSX:WJA
Snowflake Description

Reasonable growth potential and fair value.

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

WestJet Airlines Ltd. provides scheduled airline services and travel packages. The last earnings update was 18 days ago. More info.


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  • WestJet Airlines has significant price volatility in the past 3 months.
WJA Share Price and Events
7 Day Returns
0.4%
TSX:WJA
-2.2%
CA Airlines
-1.7%
CA Market
1 Year Returns
48.3%
TSX:WJA
45.2%
CA Airlines
-2.4%
CA Market
WJA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
WestJet Airlines (WJA) 0.4% 58.4% 44.3% 48.3% 36.2% 24.3%
CA Airlines -2.2% 27.3% 20.7% 45.2% 131.7% 153%
CA Market -1.7% -3.5% -0.2% -2.4% 10.4% 3.7%
1 Year Return vs Industry and Market
  • WJA outperformed the Airlines industry which returned 45.2% over the past year.
  • WJA outperformed the Market in Canada which returned -2.4% over the past year.
Price Volatility
WJA
Industry
5yr Volatility vs Market

WJA Value

 Is WestJet Airlines 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 WestJet Airlines 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 WestJet Airlines.

TSX:WJA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
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:WJA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.58
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.579 (1 + (1- 26.5%) (84.44%))
0.959
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.959 * 5.96%)
7.66%

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

The calculations below outline how an intrinsic value for WestJet Airlines 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:WJA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.66%)
2019 448.75 Analyst x5 416.81
2020 101.98 Analyst x6 87.98
2021 148.89 Analyst x3 119.31
2022 818.00 Analyst x1 608.81
2023 924.00 Analyst x1 638.75
2024 1,008.16 Est @ 9.11% 647.32
2025 1,078.33 Est @ 6.96% 643.10
2026 1,137.17 Est @ 5.46% 629.91
2027 1,187.25 Est @ 4.4% 610.84
2028 1,230.78 Est @ 3.67% 588.16
Present value of next 10 years cash flows CA$4,990.98
TSX:WJA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$1,230.78 × (1 + 1.95%) ÷ (7.66% – 1.95%)
CA$21,949.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$21,949.68 ÷ (1 + 7.66%)10
CA$10,489.28
TSX:WJA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$4,990.98 + CA$10,489.28
CA$15,480.27
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$15,480.27 / 113.95
CA$135.85
TSX:WJA Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$135.85
Current discount Discount to share price of CA$30.21
= -1 x (CA$30.21 - CA$135.85) / CA$135.85
77.8%

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

Current Discount
Amount off the current price WestJet Airlines is available for.
Intrinsic value
>50%
Share price is CA$30.21 vs Future cash flow value of CA$135.85
Current Discount Checks
For WestJet Airlines to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • WestJet Airlines's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • WestJet Airlines'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 WestJet Airlines's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are WestJet Airlines's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:WJA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$0.90
TSX:WJA Share Price ** TSX (2019-05-24) in CAD CA$30.21
Canada Airlines Industry PE Ratio Median Figure of 6 Publicly-Listed Airlines Companies 15.58x
Canada Market PE Ratio Median Figure of 544 Publicly-Listed Companies 14.69x

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

** Primary Listing of WestJet Airlines.

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

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

= 30.21 ÷ 0.90

33.47x

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

  • WestJet Airlines is overvalued based on earnings compared to the CA Airlines industry average.
  • WestJet Airlines is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does WestJet Airlines's expected growth come at a high price?
Raw Data
TSX:WJA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
28%per year
North America Airlines Industry PEG Ratio Median Figure of 15 Publicly-Listed Airlines Companies 1.19x
Canada Market PEG Ratio Median Figure of 250 Publicly-Listed Companies 1.14x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.47x ÷ 28%

1.19x

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

  • WestJet Airlines is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on WestJet Airlines's assets?
Raw Data
TSX:WJA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$19.95
TSX:WJA Share Price * TSX (2019-05-24) in CAD CA$30.21
Canada Airlines Industry PB Ratio Median Figure of 7 Publicly-Listed Airlines Companies 2.1x
Canada Market PB Ratio Median Figure of 2,405 Publicly-Listed Companies 1.41x
TSX:WJA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 30.21 ÷ 19.95

1.51x

* Primary Listing of WestJet Airlines.

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

  • WestJet Airlines is good value based on assets compared to the CA Airlines industry average.
X
Value checks
We assess WestJet Airlines'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 Airlines 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 Airlines industry average (and greater than 0)? (1 check)
  5. WestJet Airlines has a total score of 3/6, 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.

WJA Future Performance

 How is WestJet Airlines expected to perform in the next 1 to 3 years based on estimates from 15 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%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is WestJet Airlines expected to grow at an attractive rate?
  • WestJet Airlines's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • WestJet Airlines's earnings growth is expected to exceed the Canada market average.
  • WestJet Airlines's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:WJA Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:WJA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 28%
TSX:WJA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 8.7%
Canada Airlines Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
North America Airlines Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.3%
Canada Market Revenue Growth Rate Market Cap Weighted Average 6%

*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:WJA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:WJA Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,163 1,474 1
2022-12-31 6,741 1,368 1
2021-12-31 6,128 1,257 285 4
2020-12-31 5,571 990 193 15
2019-12-31 5,093 1,014 162 15
TSX:WJA Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 4,794 898 103
2018-12-31 4,728 759 91
2018-09-30 4,661 808 107
2018-06-30 4,617 930 197
2018-03-31 4,589 1,024 267
2017-12-31 4,512 1,012 279
2017-09-30 4,407 874 286
2017-06-30 4,315 781 266
2017-03-31 4,207 744 255
2016-12-31 4,123 705 295
2016-09-30 4,064 801 304
2016-06-30 3,984 855 290

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • WestJet Airlines's earnings are expected to grow significantly at over 20% yearly.
  • WestJet Airlines's revenue is expected to grow by 8.7% 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:WJA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from WestJet Airlines Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WJA Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.49 2.49 2.49 1.00
2020-12-31 1.78 2.30 1.16 10.00
2019-12-31 1.43 1.70 1.18 7.00
TSX:WJA Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 0.90
2018-12-31 0.80
2018-09-30 0.94
2018-06-30 1.72
2018-03-31 2.31
2017-12-31 2.40
2017-09-30 2.45
2017-06-30 2.26
2017-03-31 2.14
2016-12-31 2.46
2016-09-30 2.50
2016-06-30 2.36

*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.
  • WestJet Airlines is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess WestJet Airlines'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 Canada 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.
WestJet Airlines has a total score of 4/6, 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.

WJA Past Performance

  How has WestJet Airlines 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 WestJet Airlines's growth in the last year to its industry (Airlines).
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.
  • WestJet Airlines's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • WestJet Airlines's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • WestJet Airlines's 1-year earnings growth is negative, it can't be compared to the CA Airlines industry average.
Earnings and Revenue History
WestJet Airlines'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 WestJet Airlines Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:WJA Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 4,793.81 102.88 446.81
2018-12-31 4,728.42 91.47 440.29
2018-09-30 4,660.95 107.10 427.84
2018-06-30 4,617.39 197.18 418.10
2018-03-31 4,588.66 266.55 410.58
2017-12-31 4,512.47 279.06 393.58
2017-09-30 4,407.29 286.44 382.77
2017-06-30 4,315.05 266.48 377.48
2017-03-31 4,207.05 254.52 370.25
2016-12-31 4,123.36 295.46 356.75
2016-09-30 4,063.71 303.71 349.23
2016-06-30 3,984.42 289.54 341.22
2016-03-31 3,976.14 314.44 331.48
2015-12-31 4,028.66 367.53 325.13
2015-09-30 4,064.94 394.81 119.86
2015-06-30 4,029.62 345.20 181.25
2015-03-31 4,017.96 335.40 254.56
2014-12-31 3,976.55 283.96 325.37
2014-09-30 3,908.58 261.05 605.46
2014-06-30 3,823.69 273.97 607.93
2014-03-31 3,737.05 266.94 592.26
2013-12-31 3,662.20 268.72 579.56
2013-09-30 3,596.42 261.86 559.73
2013-06-30 3,538.11 267.40 544.48
2013-03-31 3,503.70 265.14 536.29
2012-12-31 3,427.41 242.39 535.50
2012-09-30 3,348.31 217.03 520.33
2012-06-30 3,257.06 185.65 506.17

*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.
  • WestJet Airlines has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • WestJet Airlines used its assets less efficiently than the CA Airlines industry average last year based on Return on Assets.
  • WestJet Airlines's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess WestJet Airlines'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 Airlines 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.
WestJet Airlines has a total score of 0/6, 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.

WJA Health

 How is WestJet Airlines'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 WestJet Airlines's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • WestJet Airlines's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • WestJet Airlines's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of WestJet Airlines'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 0.7x 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 WestJet Airlines Company Filings, last reported 1 month ago.

TSX:WJA Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,273.24 2,906.93 1,617.03
2018-12-31 2,302.57 1,980.61 1,321.70
2018-09-30 2,280.35 1,992.75 1,310.89
2018-06-30 2,250.14 2,038.76 1,273.61
2018-03-31 2,285.09 2,049.56 1,420.16
2017-12-31 2,258.86 2,061.07 1,411.42
2017-09-30 2,205.61 2,078.11 1,465.76
2017-06-30 2,128.27 2,084.67 1,413.44
2017-03-31 2,095.67 2,054.30 1,571.80
2016-12-31 2,060.70 2,055.69 1,558.15
2016-09-30 2,050.42 2,040.29 1,773.25
2016-06-30 1,970.81 2,027.49 1,698.25
2016-03-31 2,006.12 1,502.88 1,406.91
2015-12-31 1,959.99 1,187.80 1,224.21
2015-09-30 1,910.60 1,210.54 1,419.68
2015-06-30 1,868.27 1,233.80 1,329.55
2015-03-31 1,854.50 1,227.14 1,405.34
2014-12-31 1,777.50 1,196.32 1,392.54
2014-09-30 1,707.88 1,217.19 1,424.75
2014-06-30 1,662.27 968.48 1,076.67
2014-03-31 1,637.50 866.34 1,112.48
2013-12-31 1,589.84 881.62 1,291.44
2013-09-30 1,558.97 788.86 1,232.96
2013-06-30 1,553.50 690.21 1,223.60
2013-03-31 1,549.43 698.69 1,364.80
2012-12-31 1,472.31 739.93 1,440.96
2012-09-30 1,449.25 784.83 1,452.93
2012-06-30 1,400.19 826.02 1,264.22
  • WestJet Airlines's level of debt (127.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (53% vs 127.9% today).
  • Debt is well covered by operating cash flow (30.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
X
Financial health checks
We assess WestJet Airlines'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. WestJet Airlines has a total score of 2/6, 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.

WJA Dividends

 What is WestJet Airlines'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
1.85%
Current annual income from WestJet Airlines dividends. Estimated to be 2.01% next year.
If you bought CA$2,000 of WestJet Airlines shares you are expected to receive CA$37 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?
  • WestJet Airlines's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.05%).
  • WestJet Airlines's dividend is below the markets top 25% of dividend payers in Canada (5.75%).
Upcoming dividend payment

Purchase WestJet Airlines before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:WJA 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 15 Analyst Estimates (S&P Global) See Below
North America Airlines Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 2.2%
Canada Market Average Dividend Yield Market Cap Weighted Average of 331 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

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

TSX:WJA Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.56 1.00
2020-12-31 0.62 3.00
2019-12-31 0.61 3.00
TSX:WJA Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-05-07 0.560 2.212
2018-10-30 0.560 2.902
2018-07-31 0.560 2.963
2018-05-08 0.560 2.914
2018-02-06 0.560 2.350
2017-10-31 0.560 2.168
2017-08-01 0.560 2.117
2017-02-07 0.560 2.449
2016-11-01 0.560 2.521
2016-07-26 0.560 2.398
2016-02-02 0.560 2.800
2015-11-03 0.560 2.743
2015-07-28 0.560 2.319
2015-02-03 0.560 2.047
2014-11-04 0.480 1.494
2014-07-29 0.480 1.602
2014-05-06 0.480 1.878
2014-02-04 0.480 1.917
2013-11-05 0.400 1.464
2013-07-30 0.400 1.685
2013-05-07 0.400 1.816
2013-02-06 0.400 1.689
2012-11-07 0.320 1.595
2012-08-01 0.320 1.853
2012-05-01 0.240 1.534
2012-02-08 0.240 1.735
2011-11-09 0.200 1.707
2011-05-03 0.200 1.429
2011-02-09 0.200 1.363
2010-11-03 0.200 1.453

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

  • Whilst dividend payments have been stable, WestJet Airlines has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but WestJet Airlines only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of WestJet Airlines's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.1x coverage).
X
Income/ dividend checks
We assess WestJet Airlines's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - 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 WestJet Airlines afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. WestJet Airlines has a total score of 2/6, see the detailed checks below.


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

WJA Management

 What is the CEO of WestJet Airlines'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
Ed Sims
COMPENSATION CA$3,410,575
AGE 54
TENURE AS CEO 1.2 years
CEO Bio

Mr. Edward Sims, also known as Ed, is the President and Chief Executive Officer of WestJet Airlines Ltd. since March 7, 2018. Mr. Sims was an Executive Vice President of Commercial at WestJet Airlines Ltd. since May 28, 2017 until March 2018. Mr. Sims is responsible for all aspects of the commercial function at WestJet including sales, marketing, product, network planning, revenue management, corporate development, airline partnerships and WestJet Vacations. He served as the Chief Executive Officer of Airways Corporation of New Zealand Limited from July 4, 2011 to May 2017. Mr. Sims served as the Group General Manager of International Airline at Airways Corporation of New Zealand Limited (also known as Air New Zealand Ltd) from December 2003 to January 1, 2011. He was responsible for the international cabin crew and long haul fleet induction and refurbishment programmes. He has career spans more than 30 years in the tourism and aviation industries, encompassing airlines and tour operators, as well as air traffic control. He left Air New Zealand in February 2011. He served at Tui, Thomas Cook and Virgin Groups. Mr. Sims joined Air New Zealand in 2001 as Vice President of the airline's retail division, held senior positions at the Virgin Travel Group and Airtours, Europe's largest packaged operator. He was responsible for the line management operational performance of 1800 cabin crew and pilots. In 2006, he served as Group General Manager, adding offshore sales and marketing, commercial, airport and cargo functions to his remit. His extensive expertise in leadership, innovation, offshore sales and marketing, operations and change management supports Airways’ increasing presence in the international marketplace and its continued delivery of a safe and efficient network in New Zealand. In 2002, he became the Vice President of Marketing & Alliances, a role which earned him the 2003 New Zealand Marketer of the Year and the 2004 Tourism Industry Marketing Innovation Award. Mr. Sims obtained his Bachelor of Arts and his Master of Arts from the Jesus College, University of Oxford. He has previously served on the boards of multiple tourism associations, the New Zealand Police and the Office of the New Zealand Auditor General.

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

Average tenure and age of the WestJet Airlines management team in years:

1.9
Average Tenure
55
Average Age
  • The average tenure for the WestJet Airlines management team is less than 2 years, this suggests a new team.
Management Team

Ed Sims

TITLE
President
COMPENSATION
CA$3M
AGE
54
TENURE
1.2 yrs

Harry Taylor

TITLE
CFO & Executive VP of Finance
COMPENSATION
CA$1M
AGE
56
TENURE
3.6 yrs

Craig MacCubbin

TITLE
Chief Information Officer & Executive VP
COMPENSATION
CA$1M
AGE
51
TENURE
2.1 yrs

Mark Porter

TITLE
Executive Vice President of People & Culture
COMPENSATION
CA$1M
TENURE
3.6 yrs

Jeff Martin

TITLE
COO & Executive VP
AGE
58
TENURE
0.7 yrs

Stuart McDonald

TITLE
VP & Chief Technology Officer
TENURE
1.3 yrs

Jeff Hagen

TITLE
Manager of Investor Relations

Richard Bartrem

TITLE
Vice-President of Marketing Communications

Brian Znotins

TITLE
Vice-President of Network Planning

Charles Duncan

TITLE
Executive VP & Chief Strategy Officer
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the WestJet Airlines board of directors in years:

8.7
Average Tenure
60.5
Average Age
  • The tenure for the WestJet Airlines board of directors is about average.
Board of Directors

Clive Beddoe

TITLE
Co-Founder & Chairman
COMPENSATION
CA$206K
AGE
71
TENURE
23.9 yrs

Ed Sims

TITLE
President
COMPENSATION
CA$3M
AGE
54
TENURE
1.2 yrs

Christopher Burley

TITLE
Vice Chairman
COMPENSATION
CA$158K
AGE
56
TENURE
2.8 yrs

Allan Jackson

TITLE
Independent Director
COMPENSATION
CA$145K
AGE
77
TENURE
15.8 yrs

S. Jackson

TITLE
Independent Director
COMPENSATION
CA$135K
AGE
65
TENURE
10.3 yrs

Brett Godfrey

TITLE
Independent Director
COMPENSATION
CA$121K
AGE
54
TENURE
12.8 yrs

Ron Brenneman

TITLE
Independent Director
COMPENSATION
CA$127K
AGE
72
TENURE
9.7 yrs

Janice Rennie

TITLE
Independent Director
COMPENSATION
CA$127K
AGE
61
TENURE
7.8 yrs

Karen Sheriff

TITLE
Independent Director
COMPENSATION
CA$127K
AGE
60
TENURE
3.3 yrs

Brad Armitage

TITLE
Non-Independent Director
COMPENSATION
CA$20K
AGE
48
TENURE
2.3 yrs
Who owns this company?
Recent Insider Trading
  • WestJet Airlines insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
01. Mar 19 Sell Clive Beddoe Individual 27. Feb 19 01. Mar 19 -150,000 CA$21.22 CA$-3,177,690
06. Nov 18 Buy Colleen Johnston Individual 02. Nov 18 02. Nov 18 30,000 CA$18.75 CA$562,500
10. Aug 18 Buy Christopher Burley Individual 09. Aug 18 09. Aug 18 20,000 CA$17.30 CA$346,000
10. Aug 18 Sell Barbara Munroe Individual 08. Aug 18 08. Aug 18 -6,500 CA$17.30 CA$-112,452
X
Management checks
We assess WestJet Airlines'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. WestJet Airlines 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.

WJA News

Simply Wall St News

Why WestJet Airlines Ltd.'s (TSE:WJA) High P/E Ratio Isn't Necessarily A Bad Thing

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for WestJet Airlines: P/E of 20.52 = CA$18.52 ÷ CA$0.90 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … WestJet Airlines saw earnings per share decrease by 61% last year. … The Bottom Line On WestJet Airlines's P/E Ratio WestJet Airlines has a P/E of 20.5.

Simply Wall St -

These Factors Make WestJet Airlines Ltd. (TSE:WJA) An Interesting Investment

Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … future

Simply Wall St -

Are Insiders Selling WestJet Airlines Ltd. (TSE:WJA) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in WestJet Airlines Ltd. … The Last 12 Months Of Insider Transactions At WestJet Airlines. … Over the last year we saw more insider selling of WestJet Airlines shares, than buying

Simply Wall St -

Does WestJet Airlines Ltd. (TSE:WJA) Have A Place In Your Portfolio?

Historically, WestJet Airlines Ltd. … Let's take a look at WestJet Airlines in more detail. … See our latest analysis for WestJet Airlines

Simply Wall St -

Are WestJet Airlines Ltd.'s (TSE:WJA) Interest Costs Too High?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Understanding the company's financial health becomes. … The following basic checks can help you get a picture of the company's balance sheet strength.

Simply Wall St -

Income Investors Should Know The WestJet Airlines Ltd. (TSE:WJA) Ex-Dividend Date

Investors who want to cash in on WestJet Airlines Ltd.'s (TSE:WJA) upcoming dividend of CA$0.14 per share have only 3 days left to buy the shares before its ex-dividend date, 12 March 2019, in time for dividends payable on the 29 March 2019. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?

Simply Wall St -

WestJet Airlines Ltd. (TSE:WJA) Delivered A Weaker ROE Than Its Industry

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows WestJet Airlines has a return on equity of 4.0% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Could WestJet Airlines Ltd.'s (TSE:WJA) Investor Composition Influence The Stock Price?

A look at the shareholders of WestJet Airlines Ltd. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St -

What Does WestJet Airlines Ltd.'s (TSE:WJA) P/E Ratio Tell You?

To keep it practical, we'll show how WestJet Airlines Ltd.'s (TSE:WJA) P/E ratio could help you assess the value on offer. … WestJet Airlines has a P/E ratio of 19.83, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

An Examination Of WestJet Airlines Ltd. (TSE:WJA)

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … Below, I've touched on some key aspects you should know on a high level.

Simply Wall St -

WJA Company Info

Description

WestJet Airlines Ltd. provides scheduled airline services and travel packages. The company offers scheduled flights, as well as cargo and charter services. It also operates WestJet Vacations that provides air, hotel, car, and excursion packages; WestJet Encore, a regional airline with a fleet of turboprop aircraft in a network of destinations in Canada and the United States; and Swoop, an ultra-low-cost carrier for air transportation. As of December 31, 2018, it operated a fleet of 115 Boeing 737 Next Generation aircraft, 11 Boeing MAX 737 aircraft, 47 Bombardier Q400 aircraft, and 4 Boeing 767-300 ERW aircraft for approximately 100 destinations in North America, Central America, the Caribbean, and Europe. The company was founded in 1994 and is headquartered in Calgary, Canada.

Details
Name: WestJet Airlines Ltd.
WJA
Exchange: TSX
Founded: 1994
CA$3,442,507,743
113,952,590
Website: http://www.westjet.com
Address: WestJet Airlines Ltd.
22 Aerial Place NE,
Calgary,
Alberta, T2E 3J1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX WJA Common Voting Shares The Toronto Stock Exchange CA CAD 13. Jul 1999
OTCPK WJAF.F Common Voting Shares Pink Sheets LLC US USD 13. Jul 1999
DB WC41 Common Voting Shares Deutsche Boerse AG DE EUR 13. Jul 1999
Number of employees
Current staff
Staff numbers
11,980
WestJet Airlines employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/25 00:01
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/15
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
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.