CHORUS AVIATION INC (CHR-DB-C.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CHR-DB-C - CA17040TAG72
100.31 CAD
-0.19 (-0.19%)
Overall CHR-DB-C gets a fundamental rating of 4 out of 10. We evaluated CHR-DB-C against 6 industry peers in the Passenger Airlines industry. Both the profitability and the financial health of CHR-DB-C get a neutral evaluation. Nothing too spectacular is happening here. CHR-DB-C has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
- CHR-DB-C had positive earnings in the past year.
- CHR-DB-C had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: CHR-DB-C reported negative net income in multiple years.
- CHR-DB-C had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -2.62%, CHR-DB-C is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
- CHR-DB-C has a Return On Equity of -6.31%. This is in the better half of the industry: CHR-DB-C outperforms 66.67% of its industry peers.
- The Return On Invested Capital of CHR-DB-C (6.40%) is better than 83.33% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CHR-DB-C is in line with the industry average of 4.35%.
- The last Return On Invested Capital (6.40%) for CHR-DB-C is above the 3 year average (5.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.62% | ||
| ROE | -6.31% | ||
| ROIC | 6.4% |
ROA(3y)-4.73%
ROA(5y)-2.72%
ROE(3y)-14.73%
ROE(5y)-8.13%
ROIC(3y)5.3%
ROIC(5y)4.78%
1.3 Margins
- CHR-DB-C has a Operating Margin of 6.81%. This is in the better half of the industry: CHR-DB-C outperforms 66.67% of its industry peers.
- CHR-DB-C's Operating Margin has declined in the last couple of years.
- CHR-DB-C has a Gross Margin of 65.68%. This is amongst the best in the industry. CHR-DB-C outperforms 83.33% of its industry peers.
- CHR-DB-C's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.81% | ||
| PM (TTM) | N/A | ||
| GM | 65.68% |
OM growth 3Y-18.7%
OM growth 5Y-14.78%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.38%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CHR-DB-C is destroying value.
- Compared to 1 year ago, CHR-DB-C has less shares outstanding
- The number of shares outstanding for CHR-DB-C has been increased compared to 5 years ago.
- CHR-DB-C has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 2.32 indicates that CHR-DB-C is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.32, CHR-DB-C belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
- The Debt to FCF ratio of CHR-DB-C is 10.63, which is on the high side as it means it would take CHR-DB-C, 10.63 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CHR-DB-C (10.63) is better than 83.33% of its industry peers.
- CHR-DB-C has a Debt/Equity ratio of 0.50. This is a neutral value indicating CHR-DB-C is somewhat dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.50, CHR-DB-C is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 10.63 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.71
WACC9.01%
2.3 Liquidity
- CHR-DB-C has a Current Ratio of 1.22. This is a normal value and indicates that CHR-DB-C is financially healthy and should not expect problems in meeting its short term obligations.
- With a Current ratio value of 1.22, CHR-DB-C perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- A Quick Ratio of 0.63 indicates that CHR-DB-C may have some problems paying its short term obligations.
- CHR-DB-C's Quick ratio of 0.63 is on the low side compared to the rest of the industry. CHR-DB-C is outperformed by 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- CHR-DB-C shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.86%, which is quite impressive.
- Measured over the past years, CHR-DB-C shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.03% on average per year.
- Looking at the last year, CHR-DB-C shows a decrease in Revenue. The Revenue has decreased by -8.40% in the last year.
- CHR-DB-C shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.56% yearly.
EPS 1Y (TTM)92.86%
EPS 3Y-16.46%
EPS 5Y-19.03%
EPS Q2Q%42.86%
Revenue 1Y (TTM)-8.4%
Revenue growth 3Y11.15%
Revenue growth 5Y0.56%
Sales Q2Q%-5.39%
3.2 Future
- The Earnings Per Share is expected to grow by 14.09% on average over the next years. This is quite good.
- Based on estimates for the next years, CHR-DB-C will show a decrease in Revenue. The Revenue will decrease by -4.52% on average per year.
EPS Next Y63.49%
EPS Next 2Y15.08%
EPS Next 3Y14.09%
EPS Next 5YN/A
Revenue Next Year-6.45%
Revenue Next 2Y-5.27%
Revenue Next 3Y-4.52%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 41.28, the valuation of CHR-DB-C can be described as expensive.
- CHR-DB-C's Price/Earnings is on the same level as the industry average.
- CHR-DB-C's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.87.
- With a Price/Forward Earnings ratio of 50.16, CHR-DB-C can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHR-DB-C is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, CHR-DB-C is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.28 | ||
| Fwd PE | 50.16 |
4.2 Price Multiples
- CHR-DB-C's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. CHR-DB-C is more expensive than 66.67% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CHR-DB-C.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 72.3 | ||
| EV/EBITDA | 12.66 |
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.
- A more expensive valuation may be justified as CHR-DB-C's earnings are expected to grow with 14.09% in the coming years.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y15.08%
EPS Next 3Y14.09%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.44%, CHR-DB-C has a reasonable but not impressive dividend return.
- CHR-DB-C's Dividend Yield is rather good when compared to the industry average which is at 0.95. CHR-DB-C pays more dividend than 83.33% of the companies in the same industry.
- CHR-DB-C's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- The dividend of CHR-DB-C is nicely growing with an annual growth rate of 21.58%!
- CHR-DB-C does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)21.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of CHR-DB-C are negative and hence is the payout ratio. CHR-DB-C will probably not be able to sustain this dividend level.
- The dividend of CHR-DB-C is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP-5.89%
EPS Next 2Y15.08%
EPS Next 3Y14.09%
CHORUS AVIATION INC / CHR-DB-C.CA FAQ
Can you provide the ChartMill fundamental rating for CHORUS AVIATION INC?
ChartMill assigns a fundamental rating of 4 / 10 to CHR-DB-C.CA.
Can you provide the valuation status for CHORUS AVIATION INC?
ChartMill assigns a valuation rating of 2 / 10 to CHORUS AVIATION INC (CHR-DB-C.CA). This can be considered as Overvalued.
What is the profitability of CHR-DB-C stock?
CHORUS AVIATION INC (CHR-DB-C.CA) has a profitability rating of 5 / 10.
What is the valuation of CHORUS AVIATION INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CHORUS AVIATION INC (CHR-DB-C.CA) is 41.28 and the Price/Book (PB) ratio is 4.24.
Can you provide the expected EPS growth for CHR-DB-C stock?
The Earnings per Share (EPS) of CHORUS AVIATION INC (CHR-DB-C.CA) is expected to grow by 63.49% in the next year.