AIR CANADA (AC.CA) Fundamental Analysis & Valuation

TSX:AC • CA0089118776

Current stock price

16.56 CAD
-0.53 (-3.1%)
Last:

This AC.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. AC.CA Profitability Analysis

1.1 Basic Checks

  • AC had positive earnings in the past year.
  • In the past year AC had a positive cash flow from operations.
  • In multiple years AC reported negative net income over the last 5 years.
  • Of the past 5 years AC 4 years had a positive operating cash flow.
AC.CA Yearly Net Income VS EBIT VS OCF VS FCFAC.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2B -2B 4B -4B

1.2 Ratios

  • AC has a worse Return On Assets (2.06%) than 66.67% of its industry peers.
  • With an excellent Return On Equity value of 24.86%, AC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 5.31%, AC is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for AC is in line with the industry average of 5.48%.
Industry RankSector Rank
ROA 2.06%
ROE 24.86%
ROIC 5.31%
ROA(3y)5.04%
ROA(5y)-0.48%
ROE(3y)127.6%
ROE(5y)N/A
ROIC(3y)6.58%
ROIC(5y)N/A
AC.CA Yearly ROA, ROE, ROICAC.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -10K -20K -30K -40K

1.3 Margins

  • Looking at the Profit Margin, with a value of 2.88%, AC is doing worse than 66.67% of the companies in the same industry.
  • AC has a Operating Margin (4.97%) which is in line with its industry peers.
  • With a decent Gross Margin value of 61.90%, AC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • AC's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 4.97%
PM (TTM) 2.88%
GM 61.9%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.01%
GM growth 5Y7.53%
AC.CA Yearly Profit, Operating, Gross MarginsAC.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50 -50

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2

2. AC.CA Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AC is destroying value.
  • AC has less shares outstanding than it did 1 year ago.
  • AC has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for AC has been reduced compared to a year ago.
AC.CA Yearly Shares OutstandingAC.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
AC.CA Yearly Total Debt VS Total AssetsAC.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • AC has an Altman-Z score of 0.71. This is a bad value and indicates that AC is not financially healthy and even has some risk of bankruptcy.
  • AC's Altman-Z score of 0.71 is on the low side compared to the rest of the industry. AC is outperformed by 66.67% of its industry peers.
  • The Debt to FCF ratio of AC is 15.50, which is on the high side as it means it would take AC, 15.50 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 15.50, AC is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • AC has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 3.32, AC is doing worse than 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.32
Debt/FCF 15.5
Altman-Z 0.71
ROIC/WACC0.74
WACC7.14%
AC.CA Yearly LT Debt VS Equity VS FCFAC.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B 10B 15B

2.3 Liquidity

  • A Current Ratio of 0.56 indicates that AC may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.56, AC is doing worse than 83.33% of the companies in the same industry.
  • A Quick Ratio of 0.53 indicates that AC may have some problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 0.53, AC is doing worse than 83.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.56
Quick Ratio 0.53
AC.CA Yearly Current Assets VS Current LiabilitesAC.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

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4

3. AC.CA Growth Analysis

3.1 Past

  • AC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.09%.
  • AC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.53%.
  • AC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.85% yearly.
EPS 1Y (TTM)-56.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%160%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y10.56%
Revenue growth 5Y30.85%
Sales Q2Q%6.77%

3.2 Future

  • AC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 41.28% yearly.
  • AC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.11% yearly.
EPS Next Y41.7%
EPS Next 2Y29.61%
EPS Next 3Y28.61%
EPS Next 5Y41.28%
Revenue Next Year5.85%
Revenue Next 2Y6.23%
Revenue Next 3Y7.05%
Revenue Next 5Y6.11%

3.3 Evolution

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AC.CA Yearly Revenue VS EstimatesAC.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B
AC.CA Yearly EPS VS EstimatesAC.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0 5 -5 -10

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9

4. AC.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.68, which indicates a very decent valuation of AC.
  • AC's Price/Earnings ratio is rather cheap when compared to the industry. AC is cheaper than 83.33% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.70. AC is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 7.54, the valuation of AC can be described as very cheap.
  • 100.00% of the companies in the same industry are more expensive than AC, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 23.84. AC is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.68
Fwd PE 7.54
AC.CA Price Earnings VS Forward Price EarningsAC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 100.00% of the companies in the same industry are more expensive than AC, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of AC indicates a rather cheap valuation: AC is cheaper than 83.33% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 6.51
EV/EBITDA 2.67
AC.CA Per share dataAC.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60

4.3 Compensation for Growth

  • AC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • AC's earnings are expected to grow with 28.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y29.61%
EPS Next 3Y28.61%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AC.CA Dividend Analysis

5.1 Amount

  • AC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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AC.CA Fundamentals: All Metrics, Ratios and Statistics

AIR CANADA

TSX:AC (3/13/2026, 7:00:00 PM)

16.56

-0.53 (-3.1%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)02-12
Earnings (Next)05-06
Inst Owners16.33%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap4.86B
Revenue(TTM)22.37B
Net Income(TTM)644.00M
Analysts77.5
Price Target26.36 (59.18%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)57.43%
Min EPS beat(2)-23.28%
Max EPS beat(2)138.14%
EPS beat(4)2
Avg EPS beat(4)28.69%
Min EPS beat(4)-23.28%
Max EPS beat(4)138.14%
EPS beat(8)4
Avg EPS beat(8)-10.92%
EPS beat(12)7
Avg EPS beat(12)-5.4%
EPS beat(16)8
Avg EPS beat(16)-9.47%
Revenue beat(2)1
Avg Revenue beat(2)-1.12%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)1.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-4.63%
Max Revenue beat(4)1.6%
Revenue beat(8)2
Avg Revenue beat(8)-1.69%
Revenue beat(12)5
Avg Revenue beat(12)-0.24%
Revenue beat(16)7
Avg Revenue beat(16)-0.14%
PT rev (1m)3.52%
PT rev (3m)3.68%
EPS NQ rev (1m)8.66%
EPS NQ rev (3m)12.35%
EPS NY rev (1m)-1.63%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)-2.32%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-1.3%
Valuation
Industry RankSector Rank
PE 10.68
Fwd PE 7.54
P/S 0.22
P/FCF 6.51
P/OCF 1.33
P/B 1.88
P/tB N/A
EV/EBITDA 2.67
EPS(TTM)1.55
EY9.36%
EPS(NY)2.2
Fwd EY13.26%
FCF(TTM)2.55
FCFY15.37%
OCF(TTM)12.46
OCFY75.25%
SpS76.23
BVpS8.83
TBVpS-6.63
PEG (NY)0.26
PEG (5Y)N/A
Graham Number17.55
Profitability
Industry RankSector Rank
ROA 2.06%
ROE 24.86%
ROCE 6.51%
ROIC 5.31%
ROICexc 7.85%
ROICexgc 12.93%
OM 4.97%
PM (TTM) 2.88%
GM 61.9%
FCFM 3.34%
ROA(3y)5.04%
ROA(5y)-0.48%
ROE(3y)127.6%
ROE(5y)N/A
ROIC(3y)6.58%
ROIC(5y)N/A
ROICexc(3y)10.64%
ROICexc(5y)N/A
ROICexgc(3y)16.97%
ROICexgc(5y)N/A
ROCE(3y)8.07%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.01%
GM growth 5Y7.53%
F-Score7
Asset Turnover0.72
Health
Industry RankSector Rank
Debt/Equity 3.32
Debt/FCF 15.5
Debt/EBITDA 2.76
Cap/Depr 144.63%
Cap/Sales 13.01%
Interest Coverage 1.88
Cash Conversion 117.06%
Profit Quality 115.99%
Current Ratio 0.56
Quick Ratio 0.53
Altman-Z 0.71
F-Score7
WACC7.14%
ROIC/WACC0.74
Cap/Depr(3y)127.67%
Cap/Depr(5y)109.05%
Cap/Sales(3y)10.67%
Cap/Sales(5y)11.66%
Profit Quality(3y)104.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-56.09%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%160%
EPS Next Y41.7%
EPS Next 2Y29.61%
EPS Next 3Y28.61%
EPS Next 5Y41.28%
Revenue 1Y (TTM)0.53%
Revenue growth 3Y10.56%
Revenue growth 5Y30.85%
Sales Q2Q%6.77%
Revenue Next Year5.85%
Revenue Next 2Y6.23%
Revenue Next 3Y7.05%
Revenue Next 5Y6.11%
EBIT growth 1Y-11.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year254.54%
EBIT Next 3Y64.42%
EBIT Next 5Y31.11%
FCF growth 1Y-42.27%
FCF growth 3Y-2.1%
FCF growth 5YN/A
OCF growth 1Y-6.95%
OCF growth 3Y15.59%
OCF growth 5YN/A

AIR CANADA / AC.CA Fundamental Analysis FAQ

What is the fundamental rating for AC stock?

ChartMill assigns a fundamental rating of 4 / 10 to AC.CA.


Can you provide the valuation status for AIR CANADA?

ChartMill assigns a valuation rating of 9 / 10 to AIR CANADA (AC.CA). This can be considered as Undervalued.


How profitable is AIR CANADA (AC.CA) stock?

AIR CANADA (AC.CA) has a profitability rating of 4 / 10.


What is the financial health of AIR CANADA (AC.CA) stock?

The financial health rating of AIR CANADA (AC.CA) is 2 / 10.