Cargojet (CJT) AI Stock Analysis

• Market Cap: $1.18B
• Dividend Yield: 1.81%
• Average Volume (3M): 95.85K
• Price to Earnings (P/E): 11.2
• Beta (1Y): 1.05
• 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: 91,500
• 30 Day Avg. Volume: 95,853
• PEG Ratio: 0.05
• 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: $152.27
• Price Target Upside: 103.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Cargojet's overall score reflects strong financial performance and a positive outlook from recent earnings, tempered by technical weaknesses and moderate valuation. While revenue growth and operational efficiency are significant strengths, cost pressures and debt levels require close monitoring.

Positive Factors

Financial Performance

Balance sheet is in decent shape, and forecast continues to support modest positive free cash flow.

Fleet Utilization

Cargojet has historically had success maintaining a high level of fleet utilization by emphasizing ad-hoc markets when demand for its core services is soft.

Market Position

Cargojet is described as a well-managed company with a dominant market position and strong, durable competitive advantages in Canada's air cargo network.

Negative Factors

Freight Demand

Analyst is lowering the forecast for Cargojet to reflect expectations for a more muted freight demand environment.

Inflationary Pressures

Cost inflationary pressures remain elevated, and there is anticipation that this pressure could further escalate when the company faces a renewal of its collective agreement with its pilots.

Operating Leverage

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. provides time sensitive overnight air cargo services in Canada. Its air cargo business activities include operation of domestic air cargo network services between fourteen cities in North America; 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; and between Canada, the United Kingdom, and Germany. In addition, it offers aircraft to customers on an adhoc charter basis operating between points in Canada, the United States, and other international destinations; and specialty charter services for livestock shipments, military equipment movements, emergency relief supplies, and virtually large shipments across North America, South America, the Caribbean, and Europe. Further, the company is involved in the flight planning and dispatch, crew planning and training, ground handling, and commercial airline cargo management businesses. As of December 31, 2021, it operated a fleet of 31 aircraft. The company was founded in 2005 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Cargojet makes money through its core air cargo services, which include overnight air freight services, charter services, and dedicated aircraft operations. The company's revenue streams primarily come from contracts with major courier companies, e-commerce businesses, and freight forwarders requiring reliable and timely delivery solutions. Cargojet's strategic partnerships with leading logistics and retail companies contribute significantly to its earnings, as these partnerships ensure a steady demand for its services. Additionally, the company capitalizes on the growing e-commerce sector, which drives increased demand for fast and efficient shipping solutions.

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: 74.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 74.86 is below the 20-day moving average (MA) of 78.89, below the 50-day MA of 89.35, and below the 200-day MA of 115.62, indicating a bearish trend. The MACD of -4.07 indicates Negative momentum. The RSI at 35.81 is Neutral, neither overbought nor oversold. The STOCH value of 44.40 is Neutral, 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
CJT	66 Neutral	$1.18B	11.21	14.17%	1.81%	14.05%	213.77%
Sector *	62 Neutral	$4.16B	11.31	5.46%	215.65%	4.12%	-8.47%
CHR	48 Neutral	C$490.84M	―	-1.28%	―	-12.40%	-529.26%

Cargojet Corporate Events

Cargojet Shareholders Approve All Business Items at Annual Meeting

Cargojet Inc. announced the results of its annual shareholders’ meeting, where all business items, including the election of director nominees, were approved by shareholders. This outcome reinforces the company’s stable governance and could positively impact its operational efficiency and stakeholder confidence.

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.