there is two part of the assignment. Look into the Requirement for assignement 3.
Part A: Look into Air Canada CFRA Report.
Part B: Look into Westject CFRA Report
QUANTITATIVE STOCK REPORT | December 13, 2019 | TSX : WJA WestJet Airlines Ltd. Recommendation [as of December 12, 2019]: STRONG BUY Risk Evaluation: LOW Price: 30.99 (Dec 13, 2019 close) Trading Currency: CAD Country: Canada GICS Sector: Industrials SPGMI's Quality Ranking: B GICS Industry: Airlines Business Summary: WestJet Airlines Ltd. provides scheduled airline services and travel packages. The company offers scheduled flights, as well as cargo and charter services. It also operates WestJet Vacations that provides air, hotel, car, and excursion packages; WestJet Encore, a regional airline with a fleet of turboprop contd... [as of December 12, 2019]Quantitative Model Drivers Recommendation: STRONG BUY Valuation Quality Growth Street Sentiment Price Momentum Posit ive Posit ive Neutral Posit ive Posit ive Price Performance Risk Evaluation : LOW Asset/Market Size Risk Low Financial Leverage Risk Moderate Price Volatility Risk Low Liquidity Risk Low Relative Strength vs Index As Reported Earnings vs Previous Year 40-Week Mov. Avg. Up Down No Change Volume Quantitative Ranking Below Avg. Above Avg. Quantitative Rankings: SB = Strong Buy, H = Hold, SS = Strong Sell Past performance is not an indication of future performance and should not be relied upon as such. Source: CFRA, S&P Global Market Intelligence (SPGMI) Total Return[%CAGR] YTD 1Yr 3Yr 5Yr TSX:WJA 79.8 72.7 13.4 .5 Peer Average -2.7 -4.0 1.2 -.5 S&P/TSX Composite Index 23.1 18.5 6.4 7.5 Model Ranking Commentary TSX: WJA's STRONG BUY recommendation is based on its score from CFRA's quantitative model for Canada. Valuation and Price Momentum model sub-categories are the two largest drivers of TSX: WJA's STRONG BUY recommendation. Valuation includes factors such as price to earnings, price to cash flow, and enterprise value to book value. Price Momentum includes factors such as a stock's relative strength and its price volatility. TSX: WJA's overall score ranked in the 2nd percentile of all stocks in the model universe (1 = best and 100 = worst). Dividend Data Currency: CAD 5Yr Low 5Yr Hi Indicated Rate/ Share 0.56 Yield [%] 1.8 1.4 3.7 Payout Ratio [%] 30.5 18.1 70 Payment Details Amount [CAD] Ex Div Date Record Date Payment Date 0.14 Dec 17 Dec 18 Dec 31, 2019 0.14 Sep 10 Sep 11 Sep 30, 2019 0.14 Jun 11 Jun 12 Jun 28, 2019 0.14 Mar 12 Mar 13 Mar 29, 2019 Key Statistics Market Cap (Mln of USD) 2,718 52-Wk Range (CAD) 16.71 - 31.00 Value of CAD 10K Invested 5 Yrs ago 10,265 Beta vs S&P/TSX Composite Index 0.21 Common Shares Outstanding(Mln) 115.76 Average Daily Volume (Mln) 0.323 Insider Ownership(%) 0.84 Compound Annual Growth Rates Revenue - %CAGR 1Yr 3Yr 5Yr Company 8.4 7.5 5.3 Peer Average 7.0 7.4 5.8 Operating EPS - %CAGR Company 55.3 -9.5 -1.9 Peer Average 10.9 -12.9 10.6 5 year P/E Ratio Comparisons [forward 12-month Diluted EPS estimates] Current TSX:WJA 16.4 Peer Average 16.2 S&P/TSX Composite Index 17.5 5-Year Average TSX:WJA 12.9 Peer Average 14.7 S&P/TSX Composite Index 15.7 Source: CFRA, S&P Global Market Intelligence (SPGMI) This document is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Refer to important disclosures at the end of this report. 1 QUANTITATIVE STOCK REPORT | December 13, 2019 | TSX : WJA WestJet Airlines Ltd. Recommendation [as of December 12, 2019]: STRONG BUY Risk Evaluation: LOW Price: 30.99 (Dec 13, 2019 close) Trading Currency: CAD Country: Canada Key Profitability Ratios 2014 2015 2016 2017 2018 LTM % Operating Margin 12.0 14.1 10.7 9.7 3.2 5.7 Peer Average 4.3 8.5 11.1 9.5 7.6 7.0 % Net Margin 7.1 9.1 7.2 6.2 1.9 4.2 Peer Average -1.4 -1.2 5.5 8.9 0.5 2.3 % Return on Capital 10.9 11.6 7.6 6.5 2.2 4.0 Peer Average 5.5 8.5 11.6 9.7 4.8 2.3 % Cash Flow to Sales 14.5 21.8 17.1 22.4 16.0 NA Peer Average 9.3 11.6 14.2 13.3 14.4 NA Key Valuation Ratios 2014 2015 2016 2017 2018 Current Fwrd P/E - High 13.9 11.8 10.2 11.6 33.4 15.8 Fwrd P/E - Low 11.8 8.1 7.8 9.1 23.6 12.2 Peer Average 15.8 NM NM 19.6 NM 11.8 Avg EV/EBITDA 7.6 4.5 4.6 5.3 6.2 5.9 Peer Average 24.5 33.2 46.3 19.7 14.3 21.2 Avg Price to Sales NM NM NM NM NM NM Peer Average NM NM NM NM NM NM Avg Price to Book 2.1 1.5 1.1 1.2 0.9 1.2 Peer Average 1.1 NM 1.1 0.7 0.7 0.6 EPS Per Share and Revenues [Millions CAD, except per share] Fiscal year ends Dec 31 EPS Quarterly - Actual & Estimated Q4'18 Q1'19 Q2'19 Q3'19 Q4'19E %Yr.-Yr. Chg. -38.1 25 311.1 155 100 % Surprise 85.5 30.7 539.6 33.7 - No. of Analysts 15 16 11 9 1 EPS Annual - Actual & Estimated 2016 2017 2018 2019E 2020E %Yr.-Yr. Chg. -16.1 -2.9 -66.4 145 -3.4 No. of Analysts 16 18 16 1 5 Revenues Quarterly - Actual & Estimated Q4'18 Q1'19 Q2'19 Q3'19 Q4'19E %Yr.-Yr. Chg. 6.8 5.5 11.5 10.5 9.6 No. of Analysts 13 12 8 7 2 Revenues Annual - Actual & Estimated 2016 2017 2018 2019E 2020E %Yr.-Yr. Chg. 2.3 9.2 5.1 7.5 8.7 No. of Analysts 15 15 15 4 4 Source: S&P Global Market Intelligence Note: EPS & Revenues in graphs above may represent analyst-adjusted actuals and estimates and therefore may not match numbers in the financial data presentation below. Income Statement, Cash Flow and Balance Sheet Data (Millions CAD, except per share) Fiscal Year Ending: Dec. 31 . 2011 2012 2013 2014 2015 2016 2017 2018 Revenue 3,072 3,427 3,662 3,977 4,029 4,123 4,512 4,728 Operating Income 250 369 400 475 569 441 439 150 Net Income 149 242 269 284 368 295 279 91 Operating Cash Flow 566 723 608 577 876 705 1,012 759 Capital Expenditures 118 269 715 741 957 925 930 646 Earnings Per Share 1.06 1.78 2.03 2.20 2.92 2.45 2.38 0.80 Dividends Per Share 0.20 0.28 0.40 0.48 0.56 0.56 0.56 0.56 Dividend Payout Ratio 19% 16% 20% 22% 19% 23% 24% 70% Free Cash Flow Per Share 3.19 3.33 -0.81 -1.27 -0.64 -1.83 0.70 0.98 Cash and Short Term Investments 1,271 1,441 1,291 1,393 1,224 1,558 1,411 1,322 Long Term Debt 670 574 689 1,034 1,042 1,907 1,906 1,444 Total Debt 832 740 882 1,196 1,188 2,056 2,061 1,981 Common Equity 1,370 1,472 1,590 1,778 1,960 2,061 2,259 2,303 Note: Data may be restated; before results of discontinued operations/special items. Per share data adjusted for stock dividends as of ex-dividend date. NA = Not Available. NM = Not Meaningful. Source: S&P Global Market Intelligence (SPGMI) 2 QUANTITATIVE STOCK REPORT | December 13, 2019 | TSX : WJA WestJet Airlines Ltd. Recommendation [as of December 12, 2019]: STRONG BUY Risk Evaluation: LOW Price: 30.99 (Dec 13, 2019 close) Trading Currency: CAD Country: Canada Peer Group Comparison Peer Group Stock Symbol Stk.Mkt.Cap (Mln USD) Beta Recent Stock Price[CAD] 52 Week Low/High[CAD] Dividend Yield[%] Fwrd P/E P/B Ratio Ranking 1 Return On Revenue[%] Return On Equity[%] LTD to Cap[%] WestJet Airlines Ltd. TSX:WJA 2,717.58 0.21 30.99 16.71/30.99 1.8 15.8 1.5 Strong Buy 4.2 9.1 39.4 Gol Linhas AeÌreas Inteligentes S.A. BOVESPA:GOLL4 3,082.87 NA 11.62 6.59/14.07 Nil 10.5 NM NA 2.4 -0.5 154.5 Hawaiian Holdings, Inc. NasdaqGS:HA 1,376.32 1.67 39.0 30.65/44.25 1.6 8.7 1.7 Strong Buy 7.3 20.1 48.5 JetBlue Airways Corporation NasdaqGS:JBLU 5,363.94 0.78 24.53 20.05/26.09 Nil 12.8 1.5 7.2 12.6 28.3 SkyWest, Inc. NasdaqGS:SKYW 3,155.37 1.56 82.61 56.61/84.9 .8 13.2 2.0 11.0 16.5 52.8 Spirit Airlines, Inc. NYSE:SAVE 2,617.47 0.37 50.48 43.7/83.25 Nil 10.8 1.6 9.3 17.2 53.7 Virgin Australia Holdings Limited ASX:VAH 869.34 0.73 0.14 0.14/0.19 Nil NM 2.0 Hold -5.4 -41.5 61.9 Quantitative Rankings : Strong Buy , Buy , Hold , Sell , Strong Sell ; Qualitative Rankings(STARS) : 5 = Strong Buy , 4 = Buy , 3 = Hold , 2 = Sell , 1 = Strong Sell1 Rankings are not predictive of future performance. For full definitions of Rankings, see the glossary section of this report. Note: Peer Group selection is performed using CFRA's proprietary peer ranking system. Peers are selected based on factors such as similarity of analyst coverage, industry, size, and region. The subject company is ranked against a universe of companies ( the "Universe") which has been compiled by CFRA and consists of a list of companies with similar characteristics, but may not include all the companies within the same industry and/or that engage in the same line of business. The subject company and some of the companies in the Peer Group may be ranked by two different ranking systems. For the purpose of the overall ranking/recommendation, the subject company is ranked against all the companies in the Universe and not necessarily against the companies listed in the Peer Group. Wall Street Consensus Estimates Estimates 2018 2019 2020 Fiscal Years Avg Est. High Est Low Est. # of Est. Est. P/E 2020 2.05 2.81 1.44 6 15.1 2019 2.14 2.32 1.96 2 14.5 2020 vs. 2019 -4% 21% -27% 200% 4% Source: S&P Global Market Intelligence