Cargojet Inc (CJT-T)

CJT was under tremendous pressure in FY2023 as the industry experienced a cyclical downturn while CJT invested heavily in capital expenditures. CJT’s profitability and cash flow were significantly affected in FY2023, which was reflected in its share price. That being said, the company has started to show signs of a turnaround as CJT downsized its capex investment, sold off assets to pay down debt, and aggressively repurchased shares. Given what CJT’s management has done, we think CJT could be a solid turnaround candidate, and the company’s prospects are better now than ever before. CJT is expected to grow its topline by around 6% over the next few years. We would be comfortable holding CJT here or adding some as the company continues to execute.
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The street targets 27% upside, though CJT has never met the street's target. Earnings tripled in the past year, though. Interest rate cuts really helped it. but the CEO warns that geopolitical uncertainty is effecting the entire transportation industry and CJT is not impervious to serious cost increases. Scores 6/10 fundamentally. 

Likes the company (good market position), but stock is over valued. Also, capital intensive business - returns are not great. 

Better than FedEx, better growth profile. They have a deal with DHL and a deal with China. Good potential here.

Favoring industrial side of economy. Expecting strength through the rest of the year. Trend during from down to up. Expecting a share price of $160. Would recommend buying. 

Good company, but trades aggressively. Right now, chart looks pretty bullish. If it gets through its old resistance level of around $140 from 2022, it will have other levels to try to break through.

Choppy business, considerable earnings volatility. Recent contract with Temu in e-commerce sector, improves growth profile. Profitability below industry average, more debt than he wants. 45x trailing PE, 30x forward PE, but the market only trades at 15.3x. Yield is less than 1%.

More interesting if drops to less than $100 a share.

Moving up the rankings of RSI in Canada. One to take a look at.

Wonderful CEO. Very capital intensive, at whims of economy. He believes there's going to be a major downshift in Canadian economy, so its business is going to ebb to downside over next 18-24 months. No value here.

He likes the business and its dominant market position. He hasn't owned it because of its premium valuation. His favourite in the sector is TIF International (TFII-T), a trucking business which gives much higher returns and may be broken into two parts.

Still has a monopoly for overnight delivery. Bloom's off the rose as growth has slowed tremendously. Cancelled plane orders. Fairly valued now, range bound. Doesn't see catalysts for a return to former highs. Off lows, stabilized.

He feels pretty positive about the stock - it has had a nice bounce but is still cheap. E-commerce is still growing in Canada and Cargojet does all the overnight shipping. He expects higher free cash flow and lower debt.

It has good forward guidance with 25% earnings growth predicted. It is technically a little overbought so it may pull back $10 to $15.

Would not invest in company right now. Good company, but very capital intensive & if there is economic slowdown - will not be good for business. Does not own shares. Better options for investors in the markets. 

Come off since Covid, but has now had a nice pop. Founder is well respected. Relies on freight and deliveries. In a potentially slowing economy, less volume demand. A recession would definitely impact it, similar to a FDX.