DB:1TJ

Stock Analysis Report

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Executive Summary

Transat A.T. Inc. operates as an integrated tour operator in the Americas and Europe.


Snowflake Analysis

Imperfect balance sheet and overvalued.


Similar Companies

Share Price & News

How has Transat A.T's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1TJ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.3%

1TJ

3.9%

DE Hospitality

3.5%

DE Market


1 Year Return

-57.4%

1TJ

-34.8%

DE Hospitality

3.0%

DE Market

Return vs Industry: 1TJ underperformed the German Hospitality industry which returned -34.8% over the past year.

Return vs Market: 1TJ underperformed the German Market which returned 3% over the past year.


Shareholder returns

1TJIndustryMarket
7 Day-6.3%3.9%3.5%
30 Day-13.0%-13.4%-0.08%
90 Day-29.4%14.9%21.0%
1 Year-57.4%-57.4%-32.2%-34.8%5.2%3.0%
3 Yearn/a-47.1%-54.2%4.5%-4.0%
5 Yearn/a-47.6%-58.6%11.5%-3.2%

Price Volatility Vs. Market

How volatile is Transat A.T's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Transat A.T undervalued compared to its fair value and its price relative to the market?

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1TJ's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1TJ's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1TJ is unprofitable, so we can't compare its PE Ratio to the Hospitality industry average.

PE vs Market: 1TJ is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1TJ's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1TJ is good value based on its PB Ratio (0.6x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Transat A.T forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

88.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1TJ is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1TJ is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1TJ is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1TJ's revenue (13% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 1TJ's revenue (13% 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 1TJ's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Transat A.T performed over the past 5 years?

-19.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1TJ is currently unprofitable.

Growing Profit Margin: 1TJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1TJ is unprofitable, and losses have increased over the past 5 years at a rate of -19.6% per year.

Accelerating Growth: Unable to compare 1TJ's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1TJ is unprofitable, making it difficult to compare its past year earnings growth to the Hospitality industry (-15.6%).


Return on Equity

High ROE: 1TJ has a negative Return on Equity (-53.68%), as it is currently unprofitable.


Next Steps

Financial Health

How is Transat A.T's financial position?


Financial Position Analysis

Short Term Liabilities: 1TJ's short term assets (CA$1.2B) do not cover its short term liabilities (CA$1.2B).

Long Term Liabilities: 1TJ's short term assets (CA$1.2B) exceed its long term liabilities (CA$900.2M).


Debt to Equity History and Analysis

Debt Level: 1TJ's debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1TJ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 1TJ's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if 1TJ's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Transat A.T current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1TJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1TJ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1TJ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1TJ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 1TJ is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 1TJ's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Jean-Marc Eustache (72yo)

no data

Tenure

CA$1,392,442

Compensation

Mr. Jean-Marc Eustache co-founded Transat A.T. Inc. and serves as its President and Chief Executive Officer. Mr. Eustache serves as the President at Look Voyages SA at Transat A.T. Inc. He has been Preside ...


CEO Compensation Analysis

Compensation vs Market: Jean-Marc's total compensation ($USD1.03M) is above average for companies of similar size in the German market ($USD780.56K).

Compensation vs Earnings: Jean-Marc's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jean-Marc Eustache
Chairman of the Boardno dataCA$1.39m1.13% CA$1.6m
Denis Pétrin
VP of Finance & Administration and CFO11.5yrsCA$751.70k0.23% CA$321.8k
Annick Guérard
Chief Operating Officer2.67yrsCA$858.04k0.18% CA$245.1k
Jordi Solé
President of Hotel Division2.42yrsCA$748.20k0.020% CA$27.9k
Jean-Francois Lemay
President & GM of Air Transat4.5yrsCA$696.01k0.15% CA$213.5k
Bruno Leclaire
Chief Information & Digital Officerno datano datano data
Bernard Bussières
VP of Legal Affairs19.33yrsCA$827.65kno data
Odette Trottier
Director of Corporate Affairs & Communicationsno datano datano data
Christophe Hennebelle
Vice President of Human Resources & Corporate Affairs4.08yrsno datano data
Daniel Godbout
Senior VP & Advisor to the President9.5yrsCA$777.57kno data

4.5yrs

Average Tenure

Experienced Management: 1TJ's management team is considered experienced (4.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jean-Marc Eustache
Chairman of the Boardno dataCA$1.39m1.13% CA$1.6m
W. Edwards
Independent Indepedent Director10.08yrsCA$268.34k0.050% CA$69.2k
Susan Kudzman
Independent Director6.33yrsCA$145.42kno data
Lina De Cesare
Independent Director31.17yrsCA$122.27k0.094% CA$131.1k
Jacques Simoneau
Independent Director19.67yrsCA$266.76k0.048% CA$67.3k
Philippe Sureau
Independent Director33.42yrsCA$220.65k0.86% CA$1.2m
Jean-Yves Leblanc
Independent Director11.58yrsCA$329.41k0.034% CA$47.9k
Raymond Bachand
Independent Lead Director1.83yrsCA$265.40kno data
Louis-Marie Beaulieu
Independent Director7.33yrsCA$141.50k0.053% CA$73.7k
Lucie Chabot
Independent Director4.75yrsCA$137.92k0.017% CA$23.2k

10.1yrs

Average Tenure

69yo

Average Age

Experienced Board: 1TJ's board of directors are seasoned and experienced ( 10.1 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Transat A.T. Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Transat A.T. Inc.
  • Ticker: 1TJ
  • Exchange: DB
  • Founded: 1987
  • Industry: Hotels, Resorts and Cruise Lines
  • Sector: Consumer Services
  • Market Cap: CA$213.271m
  • Listing Market Cap: CA$139.055m
  • Shares outstanding: 37.75m
  • Website: https://www.transat.com

Number of Employees


Location

  • Transat A.T. Inc.
  • 300 Léo-Pariseau Street
  • Suite 600
  • Montréal
  • Quebec
  • H2X 4C2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TRZTSX (The Toronto Stock Exchange)YesClass B SharesCACADMar 2005
1TJDB (Deutsche Boerse AG)YesClass B SharesDEEURMar 2005
TRZB.FOTCPK (Pink Sheets LLC)YesClass B SharesUSUSDMar 2005
TRZTSX (The Toronto Stock Exchange)YesClass B SharesCACADMar 2005

Biography

Transat A.T. Inc. operates as an integrated tour operator in the Americas and Europe. It develops and markets holiday travel services in packages, including air travel and hotel stays, and air-only formats to 60 destinations in approximately 25 countries in the Americas and Europe. The company also operates as an outgoing tour operator to purchase various components of a trip locally or abroad and sell them separately or in packages to consumers in their local markets, through travel agencies, or through the Web. In addition, it is involved in the retail distribution activities, such as providing advice to travelers. Further, the company provides air transportation services; and value-added services at travel destinations. Additionally, it offers destination services, such as hospitality and representation, passenger transfers, excursions, tours, sports and other activities; and specialty services, including destination weddings, teambuilding, etc. The company operates under the Transat and Air Transat brands in Canada, France, the United Kingdom, and in approximately 10 other European countries. Transat A.T. Inc. was incorporated in 1987 and is headquartered in Montréal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/07 21:37
End of Day Share Price2020/07/07 00:00
Earnings2020/04/30
Annual Earnings2019/10/31


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.