CHORUS AVIATION INC (CHR.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CHR - CA17040T8885 - Common Stock
21.64 CAD
-0.56 (-2.52%)
Overall CHR gets a fundamental rating of 5 out of 10. We evaluated CHR against 6 industry peers in the Passenger Airlines industry. Both the profitability and the financial health of CHR get a neutral evaluation. Nothing too spectacular is happening here. CHR has a bad growth rate and is valued cheaply. These ratings would make CHR suitable for value investing!
1. Profitability
1.1 Basic Checks
- CHR had positive earnings in the past year.
- CHR had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: CHR reported negative net income in multiple years.
- CHR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of CHR (-2.62%) is comparable to the rest of the industry.
- CHR's Return On Equity of -6.31% is amongst the best of the industry. CHR outperforms 83.33% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 6.40%, CHR belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CHR is in line with the industry average of 4.35%.
- The last Return On Invested Capital (6.40%) for CHR 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
- Looking at the Operating Margin, with a value of 6.81%, CHR belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- CHR's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 65.68%, CHR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- CHR'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 is destroying value.
- Compared to 1 year ago, CHR has less shares outstanding
- CHR has more shares outstanding than it did 5 years ago.
- Compared to 1 year ago, CHR has an improved debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.90, we must say that CHR is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.90, CHR perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- The Debt to FCF ratio of CHR is 10.63, which is on the high side as it means it would take CHR, 10.63 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 10.63, CHR belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.50 indicates that CHR is somewhat dependend on debt financing.
- CHR has a better Debt to Equity ratio (0.50) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 10.63 | ||
| Altman-Z | 0.9 |
ROIC/WACC0.78
WACC8.18%
2.3 Liquidity
- CHR has a Current Ratio of 1.22. This is a normal value and indicates that CHR is financially healthy and should not expect problems in meeting its short term obligations.
- CHR has a better Current ratio (1.22) than 66.67% of its industry peers.
- CHR has a Quick Ratio of 1.22. This is a bad value and indicates that CHR is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of CHR (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.22 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
- CHR 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 shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.03% on average per year.
- CHR shows a decrease in Revenue. In the last year, the revenue decreased by -8.40%.
- CHR 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
- Based on estimates for the next years, CHR will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.09% on average per year.
- The Revenue is expected to decrease by -4.52% on average over the next years.
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.
- 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
- A Price/Earnings ratio of 8.91 indicates a reasonable valuation of CHR.
- Compared to the rest of the industry, the Price/Earnings ratio of CHR indicates a rather cheap valuation: CHR is cheaper than 100.00% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. CHR is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 10.82, the valuation of CHR can be described as reasonable.
- 83.33% of the companies in the same industry are more expensive than CHR, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of CHR to the average of the S&P500 Index (25.83), we can say CHR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CHR indicates a rather cheap valuation: CHR is cheaper than 83.33% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of CHR indicates a somewhat cheap valuation: CHR is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.6 | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
- CHR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of CHR may justify a higher PE ratio.
- A more expensive valuation may be justified as CHR's earnings are expected to grow with 14.09% in the coming years.
PEG (NY)0.14
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 has a reasonable but not impressive dividend return.
- CHR's Dividend Yield is a higher than the industry average which is at 0.95.
- Compared to the average S&P500 Dividend Yield of 1.82, CHR is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
5.2 History
- The dividend of CHR is nicely growing with an annual growth rate of 21.58%!
- CHR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)21.58%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- The earnings of CHR are negative and hence is the payout ratio. CHR will probably not be able to sustain this dividend level.
- CHR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP-5.89%
EPS Next 2Y15.08%
EPS Next 3Y14.09%
CHORUS AVIATION INC / CHR.CA FAQ
What is the fundamental rating for CHR stock?
ChartMill assigns a fundamental rating of 5 / 10 to CHR.CA.
Can you provide the valuation status for CHORUS AVIATION INC?
ChartMill assigns a valuation rating of 8 / 10 to CHORUS AVIATION INC (CHR.CA). This can be considered as Undervalued.
Can you provide the profitability details for CHORUS AVIATION INC?
CHORUS AVIATION INC (CHR.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for CHR stock?
The Price/Earnings (PE) ratio for CHORUS AVIATION INC (CHR.CA) is 8.91 and the Price/Book (PB) ratio is 0.91.
How financially healthy is CHORUS AVIATION INC?
The financial health rating of CHORUS AVIATION INC (CHR.CA) is 5 / 10.