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Highlights
- WestJet struck a tentative agreement with Unifor on Sunday, July 24
- Onex posted a net profit of US$ 164 million in the first three months of FY2022
- The ONEX stock plummeted by over 29 per cent in 52 weeks
WestJet struck a tentative agreement with Unifor on Sunday, July 24, after the strike authorization vote announced last week on July 20. The agreement, which stopped the union from striking, is subject to a ratification vote scheduled to be held later this week on Thursday, July 28, at YYC Calgary International Airport and Vancouver International Airport.
In the light of the Canadian airline’s move to avert a strike amid the current travelling challenges, WestJet’s owner Onex (TSX: ONEX) could be a stock that investors may explore.
On that note, let us find out more about Onex and assess its financial and stock performance.
Onex Corporation’s Q1 FY2022 financial results
Onex is an investment and asset management company with a market capitalization of C$ 5.68 billion. Founded in 1984, the midcap company has mainly two businesses, private equity and credit.
On the financial front, Onex posted a net profit of US$ 164 million in the first three months of FY2022, relatively lower than US$ 415 million in Q1 2021. However, the financial service company reported distributable earnings of US$ 25 million in the latest quarter relative to a loss of C$ 3 million a year ago. The Canadian company is set to disburse a quarterly dividend of C$ 0.10 on July 31.
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Onex’s stock performance
The ONEX stock plummeted by over 29 per cent in 52 weeks. However, this midcap stock zoomed by nearly seven per cent from a 52-week low of C$ 61.99 as seen on July 14. According to EODHD/Others data, ONEX stocks held a Relative Strength Index (RSI) value of 50.38 as of writing on July 25.
Onex recorded a return on equity (ROE) of almost 15 per cent, which generally reflects profitability. Also, the financial company had a debt-to-equity (D/E) ratio of 0.39, which might mean comparatively lower financial risk.
Bottom line
Investors could explore Onex as WestJet and Unifor work together to reach an agreement that recognizes wage and working condition improvements for its airport employees.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
