Cargojet Inc

Cargojet's capital structure is marked by a debt-to-equity ratio of 1.0, indicating a balanced mix of debt and equity financing. The company's liquidity position is assessed as medium, with a current ratio of 0.59, suggesting limited short-term liquidity to cover immediate liabilities. Despite a net cash outflow of $35.7 million in free cash flow, the company reported $128.8 million in operating cash flow, which may support ongoing operations and debt servicing.

Profitability metrics for Cargojet are weak, with a return on equity of -3.54% and a return on assets of -1.35%, both significantly below industry norms. The company reported a net loss of $25 million and an operating loss of $13.4 million, indicating a challenging operating environment. Gross profit of $45.1 million suggests some margin resilience, but it is insufficient to offset operating costs.

Cargojet's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification may expose the company to regional economic or regulatory risks. The company's capital expenditures of $60.9 million indicate ongoing investment in infrastructure or fleet, which could support future growth.

Looking ahead, the company's revenue outlook is uncertain, with no specific numeric guidance provided in the input data. Analysts have assigned a mean price target of $116.23 CAD and a median of $120.00 CAD, with a mean recommendation of 2.00 (indicating a "buy" rating). The company's operating cash flow and capital expenditures suggest a focus on maintaining operational capacity rather than aggressive expansion.

Risk factors for Cargojet include its negative net income and operating income, which may limit its ability to service debt or invest in growth. The company's liquidity risk is moderate, with a current ratio below 1.0, and its credit risk is influenced by its leverage position. No dilution risk is currently flagged, and the company's capital structure appears stable.

Recent events, including analyst price targets and recommendations, suggest a generally positive sentiment among market participants. However, the company's financial performance, particularly its net loss and operating loss, indicates ongoing challenges that may require strategic adjustments or cost optimization.

Analysts project 37.2% upside to a mean price target of $116.23, reflecting strong buy consensus among 13 analysts.

Revenue demonstrated a 7.0% CAGR over four years, indicating long-term top-line growth despite recent volatility.

Net income reached $108.4 million in FY2025, showing significant profitability recovery from the $37.3 million low in FY2024.

Free cash flow improved to a near-neutral -$3.2 million in FY2025, a substantial recovery from the -$285.8 million deficit in FY2023.

Operating income rebounded to $137.7 million in FY2025, up from $51.7 million in FY2024, signaling operational leverage.

Long-term debt is projected to rise to $994.6 million in FY2026, increasing leverage and credit risk significantly.

Profitability metrics rank in the bottom quartile of the logistics cohort, with negative net margins and ROE.

The company faces high credit risk and medium liquidity risk, complicating its financial stability outlook.

Revenue C$254.7M, +1,9% YoY; Operating income −86,4% YoY.

• ▍Revenue C$254.7M, +1,9% YoY
• ▍Operating income −86,4% YoY
• ▍Net income −91,5% YoY
• ▍Free cash flow +103,7% YoY
• ▍Net margin 1.6%

Revenue C$284.7M, −2,9% YoY; Operating income −57,4% YoY.

• ▍Revenue C$284.7M, −2,9% YoY
• ▍Operating income −57,4% YoY
• ▍Net income −62,6% YoY
• ▍Free cash flow +148,3% YoY
• ▍Net margin 9.3%

Revenue C$219.9M, −10,5% YoY; Operating income −73,2% YoY.

• ▍Revenue C$219.9M, −10,5% YoY
• ▍Operating income −73,2% YoY
• ▍Net income −70,4% YoY
• ▍Free cash flow −279,6% YoY
• ▍Net margin 4.0%

Revenue C$238.2M, +3,2% YoY; Operating income +115,7% YoY.

• ▍Revenue C$238.2M, +3,2% YoY
• ▍Operating income +115,7% YoY
• ▍Net income +87,2% YoY
• ▍Free cash flow −81,0% YoY
• ▍Net margin -1.3%

Revenue C$249.9M; Operating income C$49.9M.

• ▍Revenue C$249.9M
• ▍Operating income C$49.9M
• ▍Net margin 19.2%

Revenue C$293.2M; Operating income C$77.3M.

• ▍Revenue C$293.2M
• ▍Operating income C$77.3M
• ▍Net margin 24.3%

Revenue C$245.6M; Operating income C$36.2M.

• ▍Revenue C$245.6M
• ▍Operating income C$36.2M
• ▍Net margin 12.1%

Revenue C$230.8M; Operating income -C$13.4M.

• ▍Revenue C$230.8M
• ▍Operating income -C$13.4M
• ▍Net margin -10.8%

Revenue C$992.7M, −0,8% YoY; Operating income −31,3% YoY.

• ▍Revenue C$992.7M, −0,8% YoY
• ▍Operating income −31,3% YoY
• ▍Net income −26,0% YoY
• ▍Free cash flow −2 546,9% YoY
• ▍Net margin 8.1%

Revenue C$1.00B, +14,1% YoY; Operating income +166,3% YoY.

• ▍Revenue C$1.00B, +14,1% YoY
• ▍Operating income +166,3% YoY
• ▍Net income +190,6% YoY
• ▍Free cash flow +88,6% YoY
• ▍Net margin 10.8%

Revenue C$877.5M, −10,4% YoY; Operating income −76,5% YoY.

• ▍Revenue C$877.5M, −10,4% YoY
• ▍Operating income −76,5% YoY
• ▍Net income −80,4% YoY
• ▍Free cash flow +90,2% YoY
• ▍Net margin 4.3%

Revenue C$979.9M, +29,3% YoY; Operating income +9,6% YoY.

• ▍Revenue C$979.9M, +29,3% YoY
• ▍Operating income +9,6% YoY
• ▍Net income +13,9% YoY
• ▍Free cash flow −2 522,0% YoY
• ▍Net margin 19.5%