Cargojet (CJT) jumped 10% on its Q3 beat, with 88% Y/Y growth in charter revenue driving a near-30% increase in the cargo & passenger business…

… which flowed through to profit, more than offsetting margin compression from elevated fuel costs…

… and resulting in stronger free cash flow generation, enabling the company to bring the leverage profile within its target 1.5-2.5x range…

… which could open the door for resumed buyback activity, with the stock still trading meaningfully below its long-term average multiple.

About Bullpen: Bullpen Finance Inc. publishes content on Canadian markets and provides paid research coverage of select Canadian issuers. Bullpen is paid in cash by covered issuers, does not accept stock or options, does not hold positions in covered securities, and does not conduct investment banking business. Bullpen and LodeRock Advisors Inc. are affiliated; LodeRock provides investor relations services to issuers, some of whom are covered by Bullpen Research. When a post discusses a covered issuer, a specific disclosure appears at the top of the post. This post is published for general information purposes. It is not personalized investment advice and is not tailored to any individual reader’s circumstances. Bullpen is not a registered investment adviser or dealer. For full disclosures, including analyst certification, jurisdictional statements, and conflict of interest policies, please see our Legal & Disclosures section on our website.

You might be interested in…