AIR CANADA (AC.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:AC - CA0089118776 - Common Stock
18.25 CAD
-0.47 (-2.51%)
Overall AC gets a fundamental rating of 3 out of 10. We evaluated AC against 6 industry peers in the Passenger Airlines industry. AC may be in some trouble as it scores bad on both profitability and health. AC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AC had positive earnings in the past year.
AC had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AC reported negative net income in multiple years.
In multiple years AC reported negative operating cash flow during the last 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.95%, AC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
The Return On Equity of AC (-13.57%) is comparable to the rest of the industry.
AC's Return On Invested Capital of 2.20% is on the low side compared to the rest of the industry. AC is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.95% | ||
| ROE | -13.57% | ||
| ROIC | 2.2% |
ROA(3y)2.43%
ROA(5y)-4.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of AC has remained more or less at the same level.
The Operating Margin of AC (2.33%) is comparable to the rest of the industry.
AC's Operating Margin has declined in the last couple of years.
AC's Gross Margin of 61.41% is fine compared to the rest of the industry. AC outperforms 66.67% of its industry peers.
In the last couple of years the Gross Margin of AC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.33% | ||
| PM (TTM) | N/A | ||
| GM | 61.41% |
OM growth 3YN/A
OM growth 5Y-8.03%
PM growth 3YN/A
PM growth 5Y0.03%
GM growth 3Y10.66%
GM growth 5Y0.35%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AC is destroying value.
Compared to 1 year ago, AC has less shares outstanding
Compared to 5 years ago, AC has more shares outstanding
The debt/assets ratio for AC has been reduced compared to a year ago.
2.2 Solvency
AC has an Altman-Z score of 0.64. This is a bad value and indicates that AC is not financially healthy and even has some risk of bankruptcy.
AC has a worse Altman-Z score (0.64) than 83.33% of its industry peers.
AC has a debt to FCF ratio of 16.12. This is a negative value and a sign of low solvency as AC would need 16.12 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 16.12, AC is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 3.99 is on the high side and indicates that AC has dependencies on debt financing.
AC's Debt to Equity ratio of 3.99 is on the low side compared to the rest of the industry. AC is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 16.12 | ||
| Altman-Z | 0.64 |
ROIC/WACC0.32
WACC6.95%
2.3 Liquidity
AC has a Current Ratio of 0.59. This is a bad value and indicates that AC is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.59, AC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
A Quick Ratio of 0.56 indicates that AC may have some problems paying its short term obligations.
AC's Quick ratio of 0.56 is on the low side compared to the rest of the industry. AC is outperformed by 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.56 |
3. Growth
3.1 Past
AC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -63.61%.
AC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.87% yearly.
The Revenue has decreased by -0.09% in the past year.
AC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.07% yearly.
EPS 1Y (TTM)-63.61%
EPS 3YN/A
EPS 5Y0.87%
EPS Q2Q%-70.82%
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y51.5%
Revenue growth 5Y3.07%
Sales Q2Q%-5.44%
3.2 Future
AC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.75% yearly.
The Revenue is expected to grow by 5.79% on average over the next years.
EPS Next Y-65.47%
EPS Next 2Y-20.94%
EPS Next 3Y-6.76%
EPS Next 5Y15.75%
Revenue Next Year0.83%
Revenue Next 2Y4%
Revenue Next 3Y4.92%
Revenue Next 5Y5.79%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.87, which indicates a correct valuation of AC.
Based on the Price/Earnings ratio, AC is valued cheaper than 83.33% of the companies in the same industry.
When comparing the Price/Earnings ratio of AC to the average of the S&P500 Index (26.59), we can say AC is valued slightly cheaper.
A Price/Forward Earnings ratio of 8.27 indicates a reasonable valuation of AC.
100.00% of the companies in the same industry are more expensive than AC, based on the Price/Forward Earnings ratio.
AC is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 8.27 |
4.2 Price Multiples
AC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AC is cheaper than 100.00% of the companies in the same industry.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.41 | ||
| EV/EBITDA | 3.36 |
4.3 Compensation for Growth
A cheap valuation may be justified as AC's earnings are expected to decrease with -6.76% in the coming years.
PEG (NY)N/A
PEG (5Y)18.19
EPS Next 2Y-20.94%
EPS Next 3Y-6.76%
5. Dividend
5.1 Amount
AC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX:AC (12/10/2025, 7:00:00 PM)
18.25
-0.47 (-2.51%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners17.52%
Inst Owner ChangeN/A
Ins Owners0.23%
Ins Owner ChangeN/A
Market Cap5.41B
Revenue(TTM)22.01B
Net Income(TTM)-296.00M
Analysts81.74
Price Target25.43 (39.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)0
Avg EPS beat(2)-21%
Min EPS beat(2)-23.28%
Max EPS beat(2)-18.71%
EPS beat(4)1
Avg EPS beat(4)-7.85%
Min EPS beat(4)-23.28%
Max EPS beat(4)18.62%
EPS beat(8)3
Avg EPS beat(8)-56.52%
EPS beat(12)6
Avg EPS beat(12)-32.42%
EPS beat(16)8
Avg EPS beat(16)-16.77%
Revenue beat(2)0
Avg Revenue beat(2)-2.67%
Min Revenue beat(2)-3.85%
Max Revenue beat(2)-1.49%
Revenue beat(4)1
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-4.63%
Max Revenue beat(4)2.21%
Revenue beat(8)1
Avg Revenue beat(8)-2.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.09%
Revenue beat(16)7
Avg Revenue beat(16)0.33%
PT rev (1m)0.96%
PT rev (3m)-4.68%
EPS NQ rev (1m)60.17%
EPS NQ rev (3m)65.4%
EPS NY rev (1m)2.08%
EPS NY rev (3m)-40.67%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)0.25%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)-4.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.87 | ||
| Fwd PE | 8.27 | ||
| P/S | 0.25 | ||
| P/FCF | 7.41 | ||
| P/OCF | 1.38 | ||
| P/B | 2.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.36 |
EPS(TTM)1.15
EY6.3%
EPS(NY)2.21
Fwd EY12.09%
FCF(TTM)2.46
FCFY13.5%
OCF(TTM)13.2
OCFY72.35%
SpS74.29
BVpS7.36
TBVpS-7.79
PEG (NY)N/A
PEG (5Y)18.19
Graham Number13.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.95% | ||
| ROE | -13.57% | ||
| ROCE | 3.05% | ||
| ROIC | 2.2% | ||
| ROICexc | 3.55% | ||
| ROICexgc | 6.25% | ||
| OM | 2.33% | ||
| PM (TTM) | N/A | ||
| GM | 61.41% | ||
| FCFM | 3.32% |
ROA(3y)2.43%
ROA(5y)-4.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y-2.05%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.33%
OM growth 3YN/A
OM growth 5Y-8.03%
PM growth 3YN/A
PM growth 5Y0.03%
GM growth 3Y10.66%
GM growth 5Y0.35%
F-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.99 | ||
| Debt/FCF | 16.12 | ||
| Debt/EBITDA | 3.53 | ||
| Cap/Depr | 163.13% | ||
| Cap/Sales | 14.46% | ||
| Interest Coverage | 0.84 | ||
| Cash Conversion | 158.79% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.59 | ||
| Quick Ratio | 0.56 | ||
| Altman-Z | 0.64 |
F-Score5
WACC6.95%
ROIC/WACC0.32
Cap/Depr(3y)111.41%
Cap/Depr(5y)93.12%
Cap/Sales(3y)9.5%
Cap/Sales(5y)13.18%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-63.61%
EPS 3YN/A
EPS 5Y0.87%
EPS Q2Q%-70.82%
EPS Next Y-65.47%
EPS Next 2Y-20.94%
EPS Next 3Y-6.76%
EPS Next 5Y15.75%
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y51.5%
Revenue growth 5Y3.07%
Sales Q2Q%-5.44%
Revenue Next Year0.83%
Revenue Next 2Y4%
Revenue Next 3Y4.92%
Revenue Next 5Y5.79%
EBIT growth 1Y-67.86%
EBIT growth 3YN/A
EBIT growth 5Y-5.21%
EBIT Next Year90.29%
EBIT Next 3Y35.47%
EBIT Next 5Y23.18%
FCF growth 1Y-69.67%
FCF growth 3YN/A
FCF growth 5Y-18.89%
OCF growth 1Y-1.78%
OCF growth 3YN/A
OCF growth 5Y-7.21%
AIR CANADA / AC.CA FAQ
What is the fundamental rating for AC stock?
ChartMill assigns a fundamental rating of 3 / 10 to AC.CA.
What is the valuation status for AC stock?
ChartMill assigns a valuation rating of 6 / 10 to AIR CANADA (AC.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for AIR CANADA?
AIR CANADA (AC.CA) has a profitability rating of 3 / 10.
What is the financial health of AIR CANADA (AC.CA) stock?
The financial health rating of AIR CANADA (AC.CA) is 2 / 10.