CHORUS AVIATION INC (CHR-DB-B.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CHR-DB-B - CA17040TAE25
100.4 CAD
+0.39 (+0.39%)
We assign a fundamental rating of 4 out of 10 to CHR-DB-B. CHR-DB-B was compared to 6 industry peers in the Passenger Airlines industry. CHR-DB-B has an average financial health and profitability rating. CHR-DB-B does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- CHR-DB-B had positive earnings in the past year.
- CHR-DB-B had a positive operating cash flow in the past year.
- In multiple years CHR-DB-B reported negative net income over the last 5 years.
- In the past 5 years CHR-DB-B always reported a positive cash flow from operatings.
1.2 Ratios
- CHR-DB-B has a Return On Assets of -1.91%. This is in the lower half of the industry: CHR-DB-B underperforms 75.00% of its industry peers.
- CHR-DB-B's Return On Equity of -4.82% is on the low side compared to the rest of the industry. CHR-DB-B is outperformed by 62.50% of its industry peers.
- CHR-DB-B has a better Return On Invested Capital (6.54%) than 87.50% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for CHR-DB-B is in line with the industry average of 4.35%.
- The last Return On Invested Capital (6.54%) for CHR-DB-B is above the 3 year average (5.30%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.91% | ||
| ROE | -4.82% | ||
| ROIC | 6.54% |
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-B's Operating Margin of 6.87% is in line compared to the rest of the industry. CHR-DB-B outperforms 50.00% of its industry peers.
- In the last couple of years the Operating Margin of CHR-DB-B has declined.
- CHR-DB-B has a better Gross Margin (65.48%) than 87.50% of its industry peers.
- In the last couple of years the Gross Margin of CHR-DB-B has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.87% | ||
| PM (TTM) | N/A | ||
| GM | 65.48% |
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
- CHR-DB-B 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, CHR-DB-B has less shares outstanding
- Compared to 5 years ago, CHR-DB-B has more shares outstanding
- The debt/assets ratio for CHR-DB-B has been reduced compared to a year ago.
2.2 Solvency
- CHR-DB-B has an Altman-Z score of 2.38. This is not the best score and indicates that CHR-DB-B is in the grey zone with still only limited risk for bankruptcy at the moment.
- CHR-DB-B's Altman-Z score of 2.38 is amongst the best of the industry. CHR-DB-B outperforms 87.50% of its industry peers.
- The Debt to FCF ratio of CHR-DB-B is 7.89, which is on the high side as it means it would take CHR-DB-B, 7.89 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CHR-DB-B (7.89) is better than 87.50% of its industry peers.
- CHR-DB-B has a Debt/Equity ratio of 0.54. This is a neutral value indicating CHR-DB-B is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.54, CHR-DB-B belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 7.89 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.75
WACC8.76%
2.3 Liquidity
- CHR-DB-B has a Current Ratio of 1.14. This is a normal value and indicates that CHR-DB-B is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.14, CHR-DB-B is doing worse than 62.50% of the companies in the same industry.
- CHR-DB-B has a Quick Ratio of 1.14. This is a bad value and indicates that CHR-DB-B is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CHR-DB-B (0.61) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 78.57% over the past year.
- The earnings per share for CHR-DB-B have been decreasing by -19.03% on average. This is quite bad
- Looking at the last year, CHR-DB-B shows a very negative growth in Revenue. The Revenue has decreased by -13.36% in the last year.
- CHR-DB-B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.56% yearly.
EPS 1Y (TTM)78.57%
EPS 3Y-16.46%
EPS 5Y-19.03%
EPS Q2Q%842.86%
Revenue 1Y (TTM)-13.36%
Revenue growth 3Y11.15%
Revenue growth 5Y0.56%
Sales Q2Q%-7.58%
3.2 Future
- CHR-DB-B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.21% yearly.
- Based on estimates for the next years, CHR-DB-B will show a decrease in Revenue. The Revenue will decrease by -5.14% on average per year.
EPS Next Y55.31%
EPS Next 2Y12.98%
EPS Next 3Y1.21%
EPS Next 5YN/A
Revenue Next Year-4.85%
Revenue Next 2Y-3.49%
Revenue Next 3Y-5.14%
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 44.62, CHR-DB-B can be considered very expensive at the moment.
- 62.50% of the companies in the same industry are cheaper than CHR-DB-B, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, CHR-DB-B is valued quite expensively.
- Based on the Price/Forward Earnings ratio of 52.09, the valuation of CHR-DB-B can be described as expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CHR-DB-B indicates a slightly more expensive valuation: CHR-DB-B is more expensive than 62.50% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. CHR-DB-B is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.62 | ||
| Fwd PE | 52.09 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHR-DB-B indicates a slightly more expensive valuation: CHR-DB-B is more expensive than 75.00% of the companies listed in the same industry.
- 62.50% of the companies in the same industry are more expensive than CHR-DB-B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.76 | ||
| EV/EBITDA | 13.62 |
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.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y12.98%
EPS Next 3Y1.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.42%, CHR-DB-B has a reasonable but not impressive dividend return.
- CHR-DB-B's Dividend Yield is a higher than the industry average which is at 0.95.
- Compared to the average S&P500 Dividend Yield of 1.81, CHR-DB-B is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
5.2 History
- The dividend of CHR-DB-B is nicely growing with an annual growth rate of 21.58%!
- CHR-DB-B 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
- CHR-DB-B has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- CHR-DB-B's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-34.57%
EPS Next 2Y12.98%
EPS Next 3Y1.21%
CHORUS AVIATION INC / CHR-DB-B.CA FAQ
Can you provide the ChartMill fundamental rating for CHORUS AVIATION INC?
ChartMill assigns a fundamental rating of 4 / 10 to CHR-DB-B.CA.
What is the valuation status for CHR-DB-B stock?
ChartMill assigns a valuation rating of 2 / 10 to CHORUS AVIATION INC (CHR-DB-B.CA). This can be considered as Overvalued.
How profitable is CHORUS AVIATION INC (CHR-DB-B.CA) stock?
CHORUS AVIATION INC (CHR-DB-B.CA) has a profitability rating of 4 / 10.
What is the financial health of CHORUS AVIATION INC (CHR-DB-B.CA) stock?
The financial health rating of CHORUS AVIATION INC (CHR-DB-B.CA) is 5 / 10.
What is the expected EPS growth for CHORUS AVIATION INC (CHR-DB-B.CA) stock?
The Earnings per Share (EPS) of CHORUS AVIATION INC (CHR-DB-B.CA) is expected to grow by 55.31% in the next year.