Cargojet

L'entreprise

Cargojet is Canada's leading provider of time-sensitive overnight air cargo, operating a fleet of freighter aircraft that move packages and freight between major Canadian cities overnight. It is effectively the backbone of domestic e-commerce and express delivery, with long-term contracts with major logistics and e-commerce customers.

Beyond its core domestic network, Cargojet runs ACMI (aircraft, crew, maintenance, insurance) and charter operations that lease capacity to other carriers and shippers, and it has international routes. The domestic overnight network, however, is the crown jewel — a near-monopoly position that would be extremely costly for a competitor to replicate.

Recent results have shown modest top-line growth with strong free cash flow emphasis, though reported earnings fell sharply year over year, reflecting the operating leverage and comparison effects inherent in the business.

Les avantages concurrentiels

A dominant, hard-to-replicate overnight domestic air-cargo network with the fleet, crews, overnight sort infrastructure and customer contracts to match.

Long-term, often take-or-pay style customer contracts provide revenue visibility and share aircraft-cost risk.

High capital and regulatory barriers make new entry into scheduled overnight air cargo extremely difficult.

Aperçu financier

Période déclarée la plus récente : Q1 2026. Les chiffres reflètent la date de révision — confirmez les chiffres actuels avant d'agir.

Rendement du flux de trésorerie disponible et croissance durable

Rendement du flux de trésorerie disponible : ≈2.6% (est.)High-30s trailing P/E (~2.6% earnings yield) on a sharply-lower earnings year; management emphasizes strong underlying free cash flow, so true FCF yield is likely higher.

Revenue growth has been modest in the low single digits recently, but management highlights robust free cash flow generation as the fleet-expansion cycle matures and capex moderates. Air cargo is capital-intensive, so free cash flow swings with aircraft investment timing.

The longer-term growth drivers are continued e-commerce penetration, ACMI/charter expansion and international routes, layered on a domestic network that generates steady, contracted cash flow.

Voir le classement complet du rendement du flux de trésorerie disponible →

Valorisation et points à surveiller

Cargojet trades at a high-30s trailing P/E, elevated in part because earnings dropped sharply year over year, which inflates the multiple. Management has emphasized strong free cash flow even as reported net income fell, so the earnings multiple overstates how expensive the cash-generating core is.

For a capital-intensive but franchise-quality network business, the more relevant lenses are free cash flow after fleet capex and the contracted revenue base; on those measures the near-monopoly domestic network is the value anchor.

Dividende

Pays a dividend yielding roughly 1.7%.

Risques et scénario baissier

• Reported earnings have fallen sharply year over year, and the business has meaningful operating and financial leverage.
• Heavy dependence on a small number of large customers and their contract renewals.
• Fuel costs, aircraft capex and maintenance can pressure margins and cash flow.
• Cargo volumes are tied to e-commerce and economic activity, which are cyclical.

Faits récents

As of 2026-08-05, this profile reflects Cargojet's Q1 2026; consult the company's latest filings and the linked sources for any developments since.

Verdict

A franchise-quality near-monopoly in Canadian overnight air cargo with strong free-cash-flow emphasis, but customer concentration, leverage and a recent earnings decline temper it. Attractive moat; moderate conviction pending clearer earnings and cash-flow stabilization.