Cargojet (CGJTF) AI Stock Analysis

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Cargojet

(Other OTC:CGJTF)

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Positive Factors

Resilient revenue growthRevenue growth and record quarterly sales indicate continuing demand for Cargojet’s time-sensitive freight network. This supports scale benefits, strengthens customer relationships, and provides a durable base for earnings even as the company manages changing fuel and operating conditions.

Negative Factors

Compressed profitabilityThe sharp decline in net margin shows that revenue growth is translating into less bottom-line earnings than in prior periods. Lower profitability reduces internal funding capacity and leaves less cushion to absorb crew costs, fuel effects, pricing limits, or weaker operating conditions.

Cargojet (CGJTF) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $1.14B
Dividend Yield: 1.41%
Average Volume (3M): 13.05K
Price to Earnings (P/E): 28.6
Beta (1Y): 1.26
Revenue Growth: 10.93%
EPS Growth: -51.68%
Country: US
Employees: 2,030
Sector: Industrials
Sector Strength: 63
Industry: Airlines, Airports & Air Services

Cargojet Business Overview & Revenue Model

Company Description

Cargojet Inc. specializes in express overnight air freight delivery, primarily serving Canada. The company's business activities include managing a domestic air cargo network that connects fourteen cities across North America. It also leases dedicate...

Cargojet Earnings Call Summary

Earnings Call Date:Nov 11, 2026(Q3-2026)|% Change Since:13.37%|Next Earnings Date:Mar 01, 2027

Earnings Call SentimentPositive

The call was strongly positive. Cargojet delivered record revenue and adjusted EBITDA, triple-digit net earnings growth, improved ROIC, lower leverage, strong operational reliability and substantial growth in its ACMI and charter businesses. Management also outlined international expansion and asset-utilization opportunities using the existing fleet. The main challenges were lower year-over-year free cash flow, fuel-related margin dilution, higher crew costs, the expected reduction in UPS supplementary flying, contractual limits on pricing and ongoing market uncertainty.

Positive Updates

Record Third-Quarter Financial Results

Cargojet reported record third-quarter revenue of CAD 286.5 million and record adjusted EBITDA of CAD 90.2 million. Net earnings increased 117% year-over-year to CAD 19.1 million, and free cash flow was CAD 62.1 million.

Negative Updates

Lower Free Cash Flow Versus Prior Year

Free cash flow was CAD 62.1 million in the third quarter compared with CAD 152 million in the third quarter of 2025. Management said the difference was primarily driven by increased proceeds from sale and leaseback transactions in the prior year.

Company Guidance

Cargojet expects peak season demand to be broadly comparable to 2025 peak, with a similar step-up in domestic revenue in Q4; hybrid ACMI performance is expected to continue delivering performance broadly consistent with the past 2 quarters; supplementary UPS capacity is expected to reduce significantly following the fourth quarter, with replacement flying expected to place returned assets within the first quarter; the Hamilton–Miami scheduled charter service will operate 3 times weekly beginning December 2, using the existing fleet with no CapEx coming to handle this new business; growth CapEx will be considered when opportunities generate the required ROIC, while leverage remains within the target range at the top end; and pilot-agreement productivity benefits will be implemented over the coming quarter as well, coming quarters, with more normalization expected in the first quarter.

Cargojet Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

CGJTF against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:CNR	80Outperform	CAD 109.09B	22.77	22.34%	2.00%	6.80%	8.05%
TSE:MTL	69Neutral	CAD 2.89B	23.66	10.58%	2.77%	11.69%	18.18%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TSE:AC	48Neutral	CAD 5.71B	21.99	12.10%	―	12.72%	―
TSE:TFII	47Neutral	CAD 11.23B	20.46	12.95%	1.92%	3.39%	12.07%
TSE:FLT	43Neutral	CAD 311.79M	-8.82	-33.80%	―	-5.43%	-9.92%

* Industrials Sector Average

Performance Comparison

CGJTF and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CGJTF	Cargojet (OTC)	76.96	24.84	47.67%
TSE:CNR	Canadian National Railway Company	181.29	50.33	38.43%
TSE:TFII	Tfi International Inc	136.93	20.31	17.42%
TSE:AC	Air Canada	22.65	4.76	26.61%
TSE:MTL	Mullen Group Ltd.	30.28	16.86	125.55%
TSE:FLT	Volatus Aerospace Inc.	0.41	-0.13	-23.58%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Cargojet AI Stock Analysis