AIR CANADA (AC.CA) Fundamental Analysis & Valuation

TSX:AC • CA0089118776

Current stock price

18.76 CAD
+0.05 (+0.27%)
Last:

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

3

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 80.00% 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.
  • With a Return On Invested Capital value of 5.31%, AC is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
  • 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

  • Looking at the Profit Margin, with a value of 2.88%, AC is doing worse than 80.00% of the companies in the same industry.
  • Looking at the Operating Margin, with a value of 4.97%, AC is doing worse than 60.00% of the companies in the same industry.
  • AC has a Gross Margin (61.90%) which is in line with 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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1

2. AC.CA Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AC is destroying value.
  • The number of shares outstanding for AC has been reduced compared to 1 year ago.
  • The number of shares outstanding for AC has been reduced compared to 5 years ago.
  • Compared to 1 year ago, AC has an improved debt to assets ratio.
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 60.00% 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.
  • The Debt to FCF ratio of AC (15.50) is worse than 60.00% 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.
  • AC has a Debt to Equity ratio of 3.32. This is in the lower half of the industry: AC underperforms 60.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.32
Debt/FCF 15.5
Altman-Z 0.72
ROIC/WACC0.72
WACC7.39%
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.
  • AC has a Current ratio of 0.56. This is amonst the worse of the industry: AC underperforms 80.00% 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.
  • The Quick ratio of AC (0.53) is worse than 80.00% 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

  • AC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -56.09%.
  • Looking at the last year, AC shows a small growth in Revenue. The Revenue has grown by 0.53% in the last year.
  • The Revenue has been growing by 30.85% on average over the past years. This is a very strong growth!
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 Y-4.4%
EPS Next 2Y22.64%
EPS Next 3Y25.31%
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

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6

4. AC.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 12.10, which indicates a correct valuation of AC.
  • 80.00% of the companies in the same industry are more expensive than AC, based on the Price/Earnings ratio.
  • AC is valuated cheaply when we compare the Price/Earnings ratio to 26.86, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 12.66, AC is valued correctly.
  • Based on the Price/Forward Earnings ratio, AC is valued a bit cheaper than 80.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 37.39, AC is valued rather cheaply.
Industry RankSector Rank
PE 12.1
Fwd PE 12.66
AC.CA Price Earnings VS Forward Price EarningsAC.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 a bit cheaper when compared to the industry. AC is cheaper than 80.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.36
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

  • AC's earnings are expected to grow with 25.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.64%
EPS Next 3Y25.31%

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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 (4/10/2026, 7:00:00 PM)

18.76

+0.05 (+0.27%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)02-12
Earnings (Next)05-01
Inst Owners16.6%
Inst Owner ChangeN/A
Ins Owners0.26%
Ins Owner ChangeN/A
Market Cap5.50B
Revenue(TTM)22.37B
Net Income(TTM)644.00M
Analysts75.83
Price Target24.32 (29.64%)
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)-7.74%
PT rev (3m)-3.33%
EPS NQ rev (1m)-3.75%
EPS NQ rev (3m)9.06%
EPS NY rev (1m)-32.53%
EPS NY rev (3m)-32.84%
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 12.1
Fwd PE 12.66
P/S 0.25
P/FCF 7.36
P/OCF 1.5
P/B 2.12
P/tB N/A
EV/EBITDA 2.82
EPS(TTM)1.55
EY8.26%
EPS(NY)1.48
Fwd EY7.9%
FCF(TTM)2.55
FCFY13.59%
OCF(TTM)12.48
OCFY66.53%
SpS76.35
BVpS8.84
TBVpS-6.64
PEG (NY)N/A
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
WACC7.39%
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 Y-4.4%
EPS Next 2Y22.64%
EPS Next 3Y25.31%
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 Year225.54%
EBIT Next 3Y62.35%
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 3 / 10 to AC.CA.


Can you provide the valuation status for AIR CANADA?

ChartMill assigns a valuation rating of 6 / 10 to AIR CANADA (AC.CA). This can be considered as Fairly Valued.


What is the profitability of AC stock?

AIR CANADA (AC.CA) has a profitability rating of 3 / 10.


How financially healthy is AIR CANADA?

The financial health rating of AIR CANADA (AC.CA) is 1 / 10.


Can you provide the expected EPS growth for AC stock?

The Earnings per Share (EPS) of AIR CANADA (AC.CA) is expected to decline by -4.4% in the next year.