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

  • In the past year AC was profitable.
  • 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.
  • AC had a positive operating cash flow in 4 of the past 5 years.
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's Return On Assets of 2.06% is on the low side compared to the rest of the industry. AC is outperformed by 66.67% of its industry peers.
  • AC's Return On Equity of 24.86% is amongst the best of the industry. AC outperforms 100.00% of its industry peers.
  • The Return On Invested Capital of AC (5.31%) is comparable to the rest of the 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

  • The Profit Margin of AC (2.88%) is worse than 66.67% of its industry peers.
  • With a Operating Margin value of 4.97%, AC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
  • The Gross Margin of AC (61.90%) is better than 66.67% of its industry peers.
  • 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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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. AC.CA Health Analysis

2.1 Basic Checks

  • AC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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

  • Based on the Altman-Z score of 0.71, we must say that AC is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of AC (0.71) is worse than 66.67% of its industry peers.
  • AC has a debt to FCF ratio of 15.50. This is a negative value and a sign of low solvency as AC would need 15.50 years to pay back of all of its debts.
  • AC has a better Debt to FCF ratio (15.50) than 66.67% of its industry peers.
  • AC has a Debt/Equity ratio of 3.32. This is a high value indicating a heavy dependency on external 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 0.71
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.
  • With a Current ratio value of 0.56, AC is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.53 indicates that AC may have some problems paying its short term obligations.
  • AC's Quick ratio of 0.53 is on the low side compared to the rest of the industry. AC is outperformed by 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

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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.
  • 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

  • Based on estimates for the next years, AC will show a very strong growth in Earnings Per Share. The EPS will grow by 41.28% on average per year.
  • The Revenue is expected to grow by 6.11% on average over the next years.
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

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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

  • With a Price/Earnings ratio of 10.68, the valuation of AC can be described as very reasonable.
  • Based on the Price/Earnings ratio, AC is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.70, AC is valued rather cheaply.
  • AC is valuated cheaply with a Price/Forward Earnings ratio of 7.54.
  • AC's Price/Forward Earnings ratio is rather cheap when compared to the industry. AC is cheaper than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, AC is valued rather cheaply.
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

  • Based on the Enterprise Value to EBITDA ratio, AC is valued cheaper than 100.00% of the companies in the same industry.
  • AC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AC is cheaper than 83.33% of the companies 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%

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%

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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.