AC CN

Air Canada

Industrial/Transportation


Presented:08/07/2013
Price:CA$2.12
Cap:$0.45B
Current Price:CA$17.23
Cap:$4.94B

Presented

Date08/07/2013
PriceCA$2.12
Market Cap$0.45B
Ent Value$1.83B
P/E Ratio42.57x
Book ValueCA$4.96
Div YieldN/A
Shares O/S264.19M
Ave Daily Vol2,090,000
Short IntN/A

Current

PriceCA$17.23
Market Cap$4.94B
Air Canada, a full-service airline, provides scheduled passenger services in the Canadian market, the Canada-U.S. transborder market, and in the international market to and from Canada. The company offers specialty charter service under the AC Jetz brand to professional sports teams, corporate incentive travelers, and executive groups; a range of leisure travel packages, including cruises, tours, car rentals, and excursions to various destinations in the Caribbean, Mexico, North America, Central and South America, South Pacific, Asia, Europe, and the United States; and air cargo services to freight forwarding companies and businesses. As of December 31, 2012, it operated a fleet of 205 aircraft comprised of 89 Airbus narrowbody aircraft, 56 Boeing and Airbus widebody aircraft, and 60 Embraer regional jets. The company was founded in 1937 and is headquartered in Saint-Laurent, Canada.

Highlights

Air Canada (AC) is trading at extremely depressed multiples relative to its peer group, and the presenter is long shares following its extensive restructuring. AC recently completed labor negotiations with all of its major unions (2012), and the new contracts run through 2016, providing a runway for the company to execute on its growth plan. In addition, AC was recently granted pension relief from the government up until 2020 (March, 2013); in addition to capped pension payments, rising interest rates – if the trend persists - could aid the company’s turnaround by materially reducing its pension shortfall.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.