Cargojet (CJT) AI Stock Analysis

• Market Cap: $1.30B
• Dividend Yield: 1.68%
• Average Volume (3M): 113.59K
• Price to Earnings (P/E): 12.3
• Beta (1Y): 1.01
• Revenue Growth: 14.05%
• EPS Growth: 213.77%
• Country: CA
• Employees: 1,972
• Sector: Industrials
• Sector Strength: 65
• Industry: Integrated Freight & Logistics
• EPS (TTM): 6.77
• Shares Outstanding: 15,791,843
• 10 Day Avg. Volume: 83,390
• 30 Day Avg. Volume: 113,593
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.42
• Price to Cash Flow (P/CF): 3.40
• P/FCF Ratio: 3.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$159.95
• Price Target Upside: 93.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Cargojet's strong financial performance, marked by revenue and profit growth, forms the backbone of its stock score. The valuation is attractive, with a favorable P/E ratio and a decent dividend yield. However, technical indicators show bearish momentum, which tempers the overall positive outlook. The earnings call provided significant positive insights, reinforcing the company's growth trajectory despite external challenges.

Positive Factors

Earnings Potential

Rising EPS growth and a larger NCIB on deck.

Growth Prospects

Enhanced growth outlook, albeit in a lower risk-adjusted return segment, as the company pivots to fund growth CAPEX to capitalize on commercial opportunities in international freight markets.

Market Position

CJT is a well-managed company with an unparalleled 'middle mile' air cargo network in Canada, holding a dominant market position and strong, durable competitive advantages.

Negative Factors

Crew Costs

CJT could face crew cost inflation next year as it renegotiates collective agreement with pilots.

Investment Risk

CAPEX was raised to support the growth in the international freight market, which tends to have a lower risk-adjusted return versus the domestic network.

Operating Costs

Operating leverage was limited due to new contract start-up costs and ongoing elevated inflationary pressures in the aviation industry.

Cargojet Business Overview & Revenue Model

Company Description

Cargojet Inc. (CJT) is a leading Canadian provider of time-sensitive overnight air cargo services. The company operates a comprehensive network across North America, serving major cities with its extensive fleet of dedicated all-cargo aircraft. Cargojet primarily caters to courier companies, major retailers, and other businesses requiring reliable and efficient air freight services. Its operations are pivotal in facilitating expedited deliveries and supply chain solutions, making it an integral player in the air cargo logistics sector.

How the Company Makes Money

Cargojet makes money primarily through its overnight air cargo services, where it transports parcels and freight across Canada and internationally. The company's revenue model is largely based on long-term contracts with major courier companies, such as Canada Post and Purolator, which ensures a steady and predictable income stream. Additional revenue is generated through ad-hoc charter services, wherein Cargojet offers customized air freight solutions for clients needing specialized logistics support. The company's strategic partnerships and its ability to offer rapid and reliable delivery services are key factors contributing to its profitability. Additionally, Cargojet benefits from economies of scale and operational efficiencies due to its extensive infrastructure and fleet capacity.

Cargojet Financial Statement Overview

Summary

Cargojet is on a growth trajectory, with strong revenue and profit growth, supported by efficient operations as indicated by stable margins. The balance sheet shows moderate leverage, which, while manageable, requires monitoring. Cash flow is improving, but capital expenditure demands could impact future liquidity. Overall, Cargojet is financially stable with strong growth prospects but should manage leverage and capital expenditure strategically.

Income Statement

Cargojet has demonstrated solid revenue growth, particularly in the last year, with a revenue growth rate of 14.06% from 2023 to 2024. The gross profit margin has increased to 22.56%, indicating effective cost management. Although the net profit margin improved to 10.83% in 2024, the lack of EBIT in 2024 is a concern, suggesting possible restructuring or increased non-operating expenses. The EBITDA margin remains robust at 38.34%, showcasing strong operational earnings.

Balance Sheet

The balance sheet indicates moderate financial health with a debt-to-equity ratio of 1.02, which is acceptable but suggests some leverage risk. Return on equity has improved to 14.69%, reflecting effective use of shareholder funds. The equity ratio stands at 38.31%, indicating a reasonable level of equity financing but also highlighting reliance on debt.

Cash Flow

Cargojet's cash flow statement shows a positive trend, with a substantial increase in free cash flow from -$73.9M in 2023 to $78.6M in 2024. Operating cash flow covers net income well, with a ratio of 3.03, indicating strong cash generation. However, the reliance on significant capital expenditures poses a potential risk to sustaining free cash flow levels.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.00B	877.50M	979.90M	757.80M	668.50M
	Gross Profit
225.80M	136.10M	247.50M	230.90M	250.50M
	EBIT
0.00	64.70M	170.50M	172.10M	156.90M
	EBITDA
383.70M	329.50M	397.80M	348.10M	95.30M
	Net Income Common Stockholders
108.40M	37.30M	190.60M	167.40M	-87.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.50M	31.80M	6.10M	94.70M	3.70M
	Total Assets
1.93B	2.04B	1.99B	1.49B	1.22B
	Total Debt
755.10M	799.20M	707.00M	398.60M	572.80M
	Net Debt
753.60M	767.40M	700.90M	303.90M	569.10M
	Total Liabilities
1.19B	1.25B	1.15B	813.40M	1.05B
	Stockholders Equity
737.70M	784.50M	831.50M	676.40M	175.20M
Cash Flow		Free Cash Flow
78.60M	-73.90M	-328.70M	-32.60M	146.00M
	Operating Cash Flow
328.60M	192.80M	282.50M	245.00M	292.60M
	Investing Cash Flow
-142.70M	-127.50M	-615.10M	-280.40M	-127.70M
	Financing Cash Flow
-216.20M	-39.60M	244.00M	126.40M	-162.80M

Cargojet Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 82.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CJT, the sentiment is Negative. The current price of 82.64 is below the 20-day moving average (MA) of 87.59, below the 50-day MA of 102.15, and below the 200-day MA of 119.79, indicating a bearish trend. The MACD of -4.52 indicates Negative momentum. The RSI at 30.41 is Neutral, neither overbought nor oversold. The STOCH value of 14.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CJT.

Cargojet Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CP	78 Outperform	$92.81B	24.99	8.36%	0.80%	15.86%	-5.49%
CNR	71 Outperform	$87.52B	19.90	21.72%	2.53%	1.30%	-18.15%
TFII	68 Neutral	$9.30B	16.10	16.05%	2.16%	13.32%	-13.75%
CJT	67 Neutral	$1.30B	12.35	14.17%	1.68%	14.05%	213.77%
AC	67 Neutral	C$4.80B	2.96	112.28%	―	1.93%	-24.67%
Sector *	62 Neutral	$8.05B	13.60	4.04%	3.11%	3.70%	-14.19%
CHR	46 Neutral	C$530.71M	―	-1.28%	―	-12.40%	-529.26%

Cargojet Corporate Events

Cargojet Schedules First Quarter 2025 Financial Results Release and Conference Call

Cargojet Inc. announced it will release its first-quarter 2025 financial results on April 23, 2025, after market close. The company will hold a conference call on April 24, 2025, to discuss the results, led by Co-CEOs Jamie B. Porteous and Pauline Dhillon, along with Interim CFO Sanjeev Maini. This announcement underscores Cargojet’s ongoing commitment to transparency and engagement with stakeholders, as it continues to solidify its position in the air cargo industry.

Cargojet CFO Departure and Interim Appointment

Cargojet Inc. announced the departure of its Chief Financial Officer, Scott Calver, who is leaving to pursue other opportunities. The company has appointed Sanjeev Maini as Interim CFO while they conduct a formal search for a permanent replacement, expected to conclude later this year. This leadership change comes as Cargojet continues to solidify its position as a leader in the air cargo industry, ensuring stability and continuity in its financial operations.

Cargojet Declares Quarterly Dividend, Reinforces Shareholder Value

Cargojet Inc. has announced a quarterly cash dividend of $0.35 per common and variable voting share for the period from January 1 to March 31, 2025. The record date for shareholders to receive the dividend is March 20, 2025, with payment expected by April 4, 2025. This move underscores Cargojet’s strong market positioning and commitment to shareholder returns, which may positively impact investor confidence in the company.

Cargojet Achieves Milestone with Over $1 Billion in Revenue for 2024

Cargojet Inc. reported strong financial results for the fourth quarter and full year 2024, achieving a milestone of over $1 billion in annual revenue for the first time. The company’s diversified business model and operational efficiency contributed to significant financial growth, including a 16% increase in block hours and improved fleet utilization. This performance underscores Cargojet’s resilience amid economic uncertainties and its commitment to leveraging growth opportunities while maintaining operational excellence.

Cargojet Schedules 2025 Shareholders Meeting

Cargojet Inc. has announced the annual general meeting of shareholders, set to take place on April 3, 2025, at their offices in Mississauga, Ontario. This meeting serves as a significant event for stakeholders, providing a platform for discussing the company’s strategic directions and performance, which could influence its operations and market positioning.

Cargojet to Announce Q4 and Year-End 2024 Financial Results

Cargojet Inc. announced it will release its financial results for the fourth quarter and year-end 2024 on February 17, 2025, after market close. A conference call to discuss these results will be held on February 18, 2025. This announcement is significant for stakeholders as it will provide insights into Cargojet’s financial performance and strategic direction, potentially affecting its market position in the air cargo industry.

Cargojet Appoints Interim CFO Amidst Medical Leave

Cargojet Inc. has announced that its Chief Financial Officer, Scott Calver, is on medical leave, and the role will be temporarily filled by Sanjeev Maini, Vice President of Finance. This interim appointment is expected to ensure continuity in Cargojet’s financial operations, leveraging Mr. Maini’s extensive experience with the company, which may reassure stakeholders about stability in leadership during this period.