Cargojet (TSX:CJT) is a Mississauga-based company that provides time sensitive air cargo services in Canada. Shares of this growth stock have dropped 4% month-over-month as of close on April 27. The stock has plunged 13% so far in 2023.
The deterioration of macroeconomic conditions is expected to lead to a decline in activity for air freight in the weeks and months ahead. However, Cargojet has made strides in reducing operating costs that should bolster its ability to weather the turbulence on the horizon. This is a growth stock I’m still a big fan of as we move into the month of May.
This company released its fourth quarter and full year fiscal 2022 earnings on March 6, 2023. In Q4 2022, the company reported total revenues of $267 million – up from $235 million in the fourth quarter of fiscal 2021. Meanwhile, adjusted EBITDA fell to $82.9 million compared to $90.5 million in the previous year and adjusted free cash flow dropped to $33.6 million.
For the full year, Cargojet achieved total revenue growth of 29% to $979 million. Meanwhile, adjusted EBTIDA increased 12% compared to the previous year to $329 million. Adjusted free cash flow rose to $165 million – also up 12% compared to fiscal 2021.
Shares of Cargojet currently possess a favourable price-to-earnings ratio of 10. The stock offers a quarterly dividend of $0.286 per share, which represents a modest 1.1% yield. Cargojet offers solid value and it is geared up for strong earnings growth once it passes through a tough macroeconomic climate.