(AC) Air Canada - Ratings and Ratios

Air Canada, the largest domestic and international airline in Canada, offers extensive passenger and cargo services across North America and globally. Established in 1937 and headquartered in Saint-Laurent, Canada, the airline operates under several brands, including Air Canada, Air Canada Rouge, and Air Canada Express. As of December 31, 2024, its fleet comprises 212 aircraft under the Air Canada brand, 40 under Air Canada Rouge, and 118 under Air Canada Express, catering to diverse route requirements. The airline provides scheduled passenger services in domestic, transborder, and international markets, and has a significant presence in air cargo services, connecting major regions worldwide. Additionally, Air Canada offers vacation packages, cruise deals, and loyalty programs, enhancing its customer value proposition.

Technically, Air Canadas stock (TO:AC) shows a declining trend with its 20-day SMA at 13.89, below the 50-day SMA of 15.26, and significantly below the 200-day SMA of 18.21. The ATR of 0.52 indicates moderate volatility. Over the next three months, the stock is expected to trade between 13.50 and 15.50, with potential resistance at the 50-day SMA and support near the 20-day SMA.

Fundamentally, with a market cap of 4,791.73M CAD and a P/E ratio of 2.99, Air Canadas valuation appears attractive, especially considering its high return on equity of 72.03. The forward P/E of 6.62 suggests anticipation of earnings growth. The price-to-book ratio of 1.99 indicates the stock is fairly valued relative to its book value. The price-to-sales ratio of 0.22 reflects undervaluation relative to its revenue generation. These metrics collectively suggest that Air Canadas stock is undervalued, with potential upside driven by earnings growth and operational efficiency improvements.