Cargojet Inc. (TSE:CJT) Stock: Should You Jump In Now?

Ladies and gentlemen, let me tell you something: Cargojet Inc. (TSE:CJT) has been on a rollercoaster ride lately, but its financials are as strong as ever! The question on everyone's mind is, "Should you make the leap and invest in CJT now?" Let's dive in and find out!

First things first, let's talk about the elephant in the room: Cargojet's recent stock performance. The stock has shown weakness, with a year-to-date decline of 22.14%. But here's the thing: the market is a fickle beast, and sometimes it gets things wrong. CJT's recent financial performance is a testament to its strength and resilience.

Cargojet just announced its fourth-quarter and full-year 2024 financial results, and they are nothing short of spectacular! The company reached a record and historic milestone of over $1 billion in revenues for the first time in its history. That's right, folks, $1 BILLION! This is a 14.1% increase from the previous year, and it's a clear indication that Cargojet's diversified business model is working.

But that's not all! Cargojet's adjusted EBITDA for the full year 2024 was $331.4 million, a 10.1% increase from the previous year. And its net earnings for the full year 2024 were $108.4 million, a 190.62% increase from the previous year. These numbers are off the charts, and they show that Cargojet is not only growing but also becoming more profitable.

Now, let's talk about the potential risks and opportunities that could impact Cargojet's stock price in the near future. The company's business model is economically sensitive, and any downturn in the economy could negatively impact its financial performance. Additionally, Cargojet has a debt-to-equity ratio of 88.3%, which indicates a high level of leverage. This could make it more vulnerable to economic fluctuations and interest rate changes.

But here's the thing: Cargojet's strong financial performance and growth prospects more than make up for these risks. The company's earnings are expected to double over the next few years, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.



So, should you make the leap and invest in Cargojet now? The answer is a resounding YES! But here's the catch: you need to be patient and wait for the right opportunity. The stock is currently priced at CA$86.05, which is considered overvalued by 30% based on a discounted cash flow valuation. This overvaluation could lead to a correction in the stock price, making it less attractive for new investors.

But don't worry, folks! If you're a long-term investor with a high risk tolerance, this could be the perfect opportunity for you. Cargojet's strong financial performance, growth prospects, and strategic expansion make it a compelling investment. And with a cash dividend of $0.35 per common voting share, you'll also get a steady income stream.

So, what are you waiting for? Do your due diligence, and if you believe in Cargojet's future, make the leap and invest in CJT now! But remember, the market is a fickle beast, and you need to be patient and wait for the right opportunity. This is a no-brainer, folks! Cargojet is the real deal, and it's time to make your move!