Is it a good company at a reasonable price? A lot of the ratios for this company are quite high. For instance, the 10 year low, median, and high P/E Ratios of 18.73, 22.20 and 26.83. I guess the question is, is this stock a still a growth company? If it is still a growth company, then it is cheap. If it is not, there perhaps it is not. Most analysts think it still is a growth company, but there is the odd dissent from this opinion. A positive is that the company raised the dividends by 11.25% in 2024. It is testing as relatively cheap.
I do not own this stock of Cargojet Inc (TSX-CJT, OTC-CGJTF). I read about this stock on Motley Fool in an article by Joey Frenette. See article. Cargojet Inc (CJT) operates a domestic overnight air cargo co-load network between fourteen Canadian cities.
When I was updating my spreadsheet, I noticed that the company had a good year in 2024 and a good second quarter of 2025, but the stock price went down. Maybe because analysts expect the rest of the year to be not good? Stock prices are based on what people believe will happen.
If you had invested in this company in December 2014, for $1,017.50 you would have bought 37 shares at $27.50 per share. In December 2024, after 10 years you would have received $339.51 in dividends. The stock would be worth $3,991.19. Your total return would have been $4,330.70. This would be a total return of 16.43% per year with 14.65% from capital gain and 1.79% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $27.50 | $1,017.50 | 37 | 10 | $339.51 | $3,991.19 | $4,330.70 |
The current dividend yield is low with dividend growth low. The current dividend yield is low (below 2%) at 1.40%. The 5 and 10 year median dividend yields are also low at 0.85% and 1.08%. The historical median dividend yield is moderate (2% to 4% ranges) at 2.67%. The dividends are increasing at a low rate (below 8% per year) at 7.2% per year over the past 5 years. The last dividend increase was in 2024 and it was for 11.3%.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 19% with 5 year coverage at 24%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 24% with 5 year coverage at 23%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 6% with 5 year coverage at 6%. The DPR for 2024 for Free Cash Flow (FCF) is good at 17% with 5 year coverage non-calculable due to negative FCF. There is not agreement on FCF and for 2024 it varies from $38.4M to $183.7M.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 19.37% | 23.95% |
| AEPS | 24.32% | 22.46% |
| CFPS | 6.10% | 6.01% |
| FCF | 16.83% | -40.11% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.37 and currently at 0.48. The Liquidity Ratio for 2024 is too low at 0.58 and 0.77 currently. If you added in Cash Flow after dividends, the ratios are fine at 2.14 and currently at 1.84. The Debt Ratio for 2024 is good at 1.62 and 1.55 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.61 and 1.61 and currently at 2.83 and 1.83.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.37 | 0.48 |
| Intang/GW | 0.03 | 0.03 |
| Liquidity | 0.58 | 0.77 |
| Liq. + CF | 2.14 | 1.84 |
| Debt Ratio | 1.62 | 1.55 |
| Leverage | 2.61 | 2.83 |
| D/E Ratio | 1.61 | 1.83 |
The Total Return per year is shown below for years of 5 to 19 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 7.20% | 1.90% | 0.86% | 1.04% |
| 2014 | 10 | 8.05% | 16.43% | 14.65% | 1.79% |
| 2009 | 15 | 6.75% | 20.93% | 17.89% | 3.03% |
| 2005 | 19 | 2.84% | 17.40% | 13.58% | 3.82% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 11.02, 14.87 and 20.96. The corresponding 10 year ratios are 18.73, 22.20 and 26.83. The corresponding historical ratios are 12.65, 15.41 and 19.36. The current P/E Ratio is 17.89 based on a stock price of $100.00 and EPS estimate for 2025 of $5.59. This ratio is below the low ratio for the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This stock has 10 year ratios indicative of a growth stock.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 26.09, 21.72 and 27.35. The corresponding 10 year ratios are 20.67, 24.51 and 33.46. The corresponding historical ratios are 13.79, 19.65 and 26.32. The current P/E Ratio is 18.38 based on a stock price of $100.00 and EPS estimate for 2025 of $5.41. This stock price testing suggests that the stock price is relatively cheap. This ratio is below the low ratio for the 10 year median ratio.
I get a Graham Price of $75.10. The 10-year low, median, and high median Price/Graham Price Ratios are 2.33, 2.83 and 3.55. The current P/GP Ratio is 133 based on a stock price of $100.00. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. These ratios are also very high ones.
I get a 10-year median Price/Book Value per Share Ratio of 4.31. The current ratio is 2.16 based on Book Value of $731.7M, Book Value per Share of $46.33 and stock price of $100.00. The current ratio is 50% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. These ratios are also very high ones.
I also have Book Value per Share estimate for 2025 of $47.57. This implies a ratio of 2.10 and Book Value of $751M with a stock price of $100.00. This ratio is 51% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. These ratios are also very high ones.
I get a 10-year median Price/Cash Flow per Share Ratio of 8.60. The current P/CF Ratio is 4.98 based on Cash Flow per Share estimate for 2025 of $20.07, Cash Flow of $316.9M and a stock price of $100.00. The current ratio is 42% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 2.67%. The current dividend yield is 1.40% based on dividends of $1.40 and a stock price of $100.00. The current dividend yield is 48% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive.
I get a 10 year median dividend yield of 1.08%. The current dividend yield is 1.40% based on dividends of $1.40 and a stock price of $100.00. The current dividend yield is 30% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 2.09. The current P/S Ratio is 1.54 based on Revenue estimate for 2025 of $1,026M, Revenue per Share of $64.97 and a stock price of $100.00. The current ratio is 27% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably relatively cheap. The 10 year dividend yield test says this and it is confirmed by the P/S Ratio test. Most of the rest of the testing says the same thing. It is interesting that the Historical Dividend yield test says that the stock is relatively expensive.
When I look at analysts’ recommendations, I find Strong Buy (7), Buy (5) and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $143.85 with a high of $170.00 and low of $98.00. The consensus stock price of $143.85 implies a total return of 45.25% with 43.85% from capital gains and 1.40% from dividends.
Last year when I look at analysts’ recommendations, I found Strong Buy (6), Buy (3) and Hold (2). The consensus would be a Strong Buy. The 12 months stock price consensus is $162.27 with a high of $189.00 and low of $120.00. The consensus stock price of $162.27 implies a total return of 30.95% with 29.83% from capital gains and 1.12% from dividends based on a current price of $124.99. What happened was a decline of the stock price to $100.00 from $124.99 and so a loss of 18.87% with a capital loss of 19.99% and dividends of 1.12%.
Most analysts on Stock Chase like this stock, but one analyst thinks that it has little room to grow more. Sneha Nahata on Stock Chase that this stock’s current cheapness is a buying opportunity. Daniel Da Costa on Motley Fool thinks this is a ultra cheap growth stock. The company put out a press release via newswire about this their fourth quarter of 2024 results. The company put out a press release via Newswire about their second quarter of 2025.
Simply Wall Street via Yahoo Finance reviews this stock. They like their high ROE, but are concerned about the debt level. Simply Wall Street has two warnings on this stock of interest payments are not well covered by earnings; and earnings are forecast to decline by an average of 6.5% per year for the next 3 years.
Cargojet Inc operates a domestic air cargo co-load network between several Canadian cities The company also provides dedicated aircraft to customers on an Aircraft, Crew, Maintenance, and Insurance basis, operating between points in Canada, USA, South America, Europe, and Asia. In addition, it operates scheduled international routes for multiple cargo customers between USA and Bermuda, between Canada, UK, and Germany, between Canada and Asia, and between Canada and Mexico. Its web site is here Cargojet Inc.
The last stock I wrote about was about was SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more. The next stock I will write about will be Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more on Monday, September 15, 2025 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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