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Opinions Fabrice Taylor
Cargojet IncCJT.TOCOMMENTMay 08, 2018
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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It has good forward guidance with 25% earnings growth predicted. It is technically a little overbought so it may pull back $10 to $15.
David Burrows
There is little or no risk with solid long-term contracts with large companies like Amazon. It is managing costs well but volumes are weaker. It has good management along with good margins. It trades at 7X EBITDA which is the best price in a long time. He sold it as a tax loss but plans to buy back later in the year.
Out of favour right now, lumped in with slowing e-commerce. Monopoly for overnight air cargo delivery. Long-term contracts, and they get paid even if volumes are low. Very good EBITDA margins. At some point it will stabilize, better days ahead. Good time to start buying.
Terrific company. Will be around for the long haul, and will find a profitable niche. Hard to know how competitive the space will get. When passenger flights aren't full, they pick up cargo capacity, which steals CJT's lunch. He's waiting for an entry point to re-enter.
Cargojet did well over the pandemic and generally is doing better than the industry. It is now at 20 X earnings down from 30 X before. However it is facing some headwinds since the passenger airlines are recovering and they carry a lot of cargo as well as passengers,.
Short vs. long really matters to a company like this. Economic and e-commerce slowdowns really affect it. Not filling planes, so revenue is hurt. Excellent time to add a high quality company. Monopoly in Canada. Adding new routes. Planes are expensive. Short-term bumpy, long term you'll be just fine.
(A Top Pick May 10/22, Down 29%)
It has pulled back along with its international expansion plans. Cargo capacity has increased worldwide so there is too much supply. However it has a near monopoly on overnight cargo in Canada. He may add more.
Robert Lauzon
This has one of the best charts that he’s seen in a long time. He believes that companies that hit new 52-week highs keep hitting new ones. The valuation is not a bargain, but people will buy expensive stocks if they like the story. He doesn’t own it but wishes he did. He wouldn’t buy it now because he feels like he missed the right time to buy when he sees a chart like this. Buying now might be a good idea, but he can’t bring himself to do it.