AIR CANADA (AC.CA) Fundamental Analysis & Valuation

TSX:AC • CA0089118776

Current stock price

18.71 CAD
+0.18 (+0.97%)
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.
  • The reported net income has been mixed in the past 5 years: AC reported negative net income in multiple 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 Return On Assets of 2.06%. This is in the lower half of the industry: AC underperforms 66.67% of its industry peers.
  • The Return On Equity of AC (24.86%) is better than 100.00% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for AC is in line with the industry average of 5.94%.
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

  • The Profit Margin of AC (2.88%) is worse than 66.67% of its industry peers.
  • The Operating Margin of AC (4.97%) is comparable to the rest of the industry.
  • AC has a better Gross Margin (61.90%) than 66.67% of its industry peers.
  • In the last couple of years the Gross Margin of AC has grown nicely.
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

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.
  • Compared to 1 year ago, AC has less shares outstanding
  • Compared to 5 years ago, AC has less shares outstanding
  • AC has a better debt/assets ratio than last year.
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 0.72. 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 0.72 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.
  • Looking at the Debt to FCF ratio, with a value of 15.50, AC is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • A Debt/Equity ratio of 3.32 is on the high side and indicates that AC has dependencies on debt financing.
  • The Debt to Equity ratio of AC (3.32) is worse than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.32
Debt/FCF 15.5
Altman-Z 0.72
ROIC/WACC0.72
WACC7.38%
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

  • AC has a Current Ratio of 0.56. This is a bad value and indicates that AC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • AC's Current 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.
  • AC has a Quick Ratio of 0.56. This is a bad value and indicates that AC is not financially healthy enough and could expect problems in meeting its short term obligations.
  • AC has a Quick ratio of 0.53. This is amonst the worse of the industry: AC underperforms 83.33% of its industry peers.
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

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. AC.CA Growth Analysis

3.1 Past

  • The earnings per share for AC have decreased strongly by -56.09% in the last year.
  • The Revenue has been growing slightly by 0.53% in the past year.
  • Measured over the past years, AC shows a very strong growth in Revenue. The Revenue has been growing by 30.85% on average per year.
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.
  • Based on estimates for the next years, AC will show a small growth in Revenue. The Revenue will grow by 6.11% on average per year.
EPS Next Y41.7%
EPS Next 2Y29.61%
EPS Next 3Y28.61%
EPS Next 5Y41.28%
Revenue Next Year6.84%
Revenue Next 2Y6.52%
Revenue Next 3Y7.15%
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

More info and screens

Find the best growth stocksShow best growing peers

8

4. AC.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.07, which indicates a correct valuation of AC.
  • 83.33% of the companies in the same industry are more expensive than AC, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.91. AC is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 8.52 indicates a reasonable valuation of AC.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AC indicates a rather cheap valuation: AC is cheaper than 100.00% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of AC to the average of the S&P500 Index (23.68), we can say AC is valued rather cheaply.
Industry RankSector Rank
PE 12.07
Fwd PE 8.52
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.
  • Based on the Price/Free Cash Flow ratio, AC is valued cheaper than 83.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.34
EV/EBITDA 2.82
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

  • The 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)0.29
PEG (5Y)N/A
EPS Next 2Y29.61%
EPS Next 3Y28.61%

More info and screens

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%

More info and screens

Find the best dividend stocksShow peers with best dividend

AC.CA Fundamentals: All Metrics, Ratios and Statistics

AIR CANADA

TSX:AC (4/9/2026, 7:00:00 PM)

18.71

+0.18 (+0.97%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)02-12
Earnings (Next)05-01
Inst Owners16.33%
Inst Owner ChangeN/A
Ins Owners0.24%
Ins Owner ChangeN/A
Market Cap5.48B
Revenue(TTM)22.37B
Net Income(TTM)644.00M
Analysts75.83
Price Target24.48 (30.84%)
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)-7.14%
PT rev (3m)-2.7%
EPS NQ rev (1m)-3.75%
EPS NQ rev (3m)9.06%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.47%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)-1.77%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 12.07
Fwd PE 8.52
P/S 0.25
P/FCF 7.34
P/OCF 1.5
P/B 2.12
P/tB N/A
EV/EBITDA 2.82
EPS(TTM)1.55
EY8.28%
EPS(NY)2.2
Fwd EY11.74%
FCF(TTM)2.55
FCFY13.63%
OCF(TTM)12.48
OCFY66.71%
SpS76.35
BVpS8.84
TBVpS-6.64
PEG (NY)0.29
PEG (5Y)N/A
Graham Number17.56
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 0.72
F-Score7
WACC7.38%
ROIC/WACC0.72
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 Year6.84%
Revenue Next 2Y6.52%
Revenue Next 3Y7.15%
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 8 / 10 to AIR CANADA (AC.CA). This can be considered as Undervalued.


What is the profitability of AC stock?

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


How financially healthy is AIR CANADA?

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


Can you provide the expected EPS growth for AC stock?

The Earnings per Share (EPS) of AIR CANADA (AC.CA) is expected to grow by 41.7% in the next year.