Cargojet (TSX: CJT) Revenue Rises 34%: A Stock To Buy & Hold In 2021

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Cargojet Inc. (TSX: CJT) posted a strong top line for the fourth quarter of 2020 on the back of unprecedented delivery volume last year.

The company registered C$ 187.1-million revenues for the last quarter of 2020, against C$ 139.7 million in Q4 2019. For the full-year 2020, it posted revenues of C$ 668.5 million, up from C$ 486.6 million in 2019. This rise in high revenue came from the domestic overnight freight segment.

The cargo airline stock gained more than four per cent on Friday, and it could maintain the same momentum today as well. Investors were already expecting healthy financial earnings from the logistic corporation.

The company holds current liquidity of C$ 525 million from its five-year revolving credit facility worth C$ 600 million credit facility. The complete credit facility is available to use as of March 1, 2021.

Cargojet fleet has 28 freight aircrafts. Its flights operated the highest 52,225 block hours in 2020, up 46.3 per cent from 35,704 block hours in 2019.

Let us have a glance at its stock performance and outlook:

 

Cargojet Inc. (TSX: CJT)

 

The carrier stock is up nearly 88 per cent in one year, with a price-to-book ratio of 16.68. Its market cap is C$ 3.3 billion.

Its current share price is C$ 191.07, against a 52-week high of C$ 250.01 per share. The stock has the potential to rise on the back of strong quarterly earnings.

Its quarterly dividend stands at C$ 0.234 per common share and its dividend yield is 0.49 per cent.

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Cargojet Outlook

 

Cargojet’s President & CEO Ajay Virmani expects the company to further rise as it gears up to meet the growing demand in e-commerce shipments. With the market gradually re-opening, the CEO also expects the B2B e-commerce to rebound to its pre-COVID levels. The company is now planning to expand its footprints globally.

 


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