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Highlights
- Market cap stands at C$7.87 billion with a PE ratio of 4.90.
- Debt-to-equity ratio recorded at 1,070.99, indicating financial leverage.
- One-year stock range between C$14.47 and C$26.18.
Air Canada (TSX:AC) operates within the highly competitive airline industry, which is characterized by fluctuating demand, significant operational costs, and sensitivity to economic conditions. The sector plays a crucial role in global transportation, connecting various regions and facilitating both passenger and cargo movement.
Stock Performance
As of Monday, Air Canada’s stock opened at C$21.96. The company's shares reflect its standing in the market, with a current price situated between its fifty-day moving average of C$22.25 and its two-hundred day moving average of C$18.53. This positioning provides insight into the stock's recent trading behavior and relative stability within the market context.
Financial Metrics
Air Canada holds a market capitalization of C$7.87 billion, underscoring its size and presence in the airline sector. The price-to-earnings (PE) ratio is reported at 4.90, while the price-to-earnings-growth (PEG) ratio stands at 0.02. These ratios offer a glimpse into the company's valuation relative to its earnings and growth rate.
The debt-to-equity ratio is notably high at 1,070.99, indicating a significant level of financial leverage. This ratio suggests that the company relies heavily on debt to finance its operations, which is a critical factor in assessing its financial health. Additionally, the current ratio is recorded at 0.85, and the quick ratio is at 1.06, providing further details on the company’s liquidity and ability to meet short-term obligations.
Moving Averages
The stock's fifty-day moving average is C$22.25, while the two-hundred day moving average is C$18.53. These moving averages serve as indicators of the stock’s long-term and short-term price trends. The relationship between the current stock price and these moving averages can offer perspective on the stock's performance trajectory over different time frames.
Yearly Range
Over the past year, Air Canada’s stock has experienced a range from a low of C$14.47 to a high of C$26.18. This range highlights the volatility and the extent of price movement the stock has undergone within a twelve-month period. Understanding this range is essential for assessing the stock’s historical performance and market behavior over the past year.
Liquidity Ratios
Air Canada’s current ratio of 0.85 and quick ratio of 1.06 provide insight into the company’s liquidity position. The current ratio below 1 suggests potential challenges in covering short-term liabilities with current assets. Conversely, the quick ratio above 1 indicates that, excluding inventory, the company has sufficient liquid assets to meet its short-term obligations.
Beta Value
The stock's beta is recorded at 2.39, reflecting its volatility in relation to the overall market. A beta value greater than 1 indicates that the stock tends to be more volatile than the market, which can have implications for its risk profile and sensitivity to market movements.
