Operating Margin

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Price: 14.13 USD 0.4%

Market Cap: $5.1B

2.3%

Declining

by 3.7%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.3%

Operating Income

CA$513m

Revenue

CA$22B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

2.3%

Operating Income

$513m

Revenue

CA$22B

Peer Comparison

Country		Company	Market Cap	Operating Margin
CA		Air Canada TSX:AC	5.8B CAD	Loading...
US		Delta Air Lines Inc NYSE:DAL	45B USD	Loading...
US		United Airlines Holdings Inc NASDAQ:UAL	35.3B USD	Loading...
UK		International Consolidated Airlines Group SA LSE:IAG	19.4B GBP	Loading...
CH		Kinarus Therapeutics Holding AG SIX:KNRS	19.5B CHF	Loading...
US		Southwest Airlines Co NYSE:LUV	22.3B USD	Loading...
CN		Air China Ltd SSE:601111	153B CNY	Loading...
IE	R	Ryanair Holdings PLC LSE:RYA	15.4B EUR	Loading...
CN		China Southern Airlines Co Ltd SSE:600029	139.2B CNY	Loading...
IN		Interglobe Aviation Ltd NSE:INDIGO	1.8T INR	Loading...
CN		China Eastern Airlines Corp Ltd SSE:600115	129.9B CNY	Loading...

Market Distribution

Min	-4 710 029.9%
30th Percentile	-65.8%
Median	-2.4%
70th Percentile	11%
Max	71 100%

Other Profitability Ratios

Air Canada
Glance View

Economic Moat

None

Market Cap

5.1B USD

Industry

Airlines

In the skies above the expansive Canadian landscape, Air Canada has carved a path as the nation's flag carrier, weaving its services across continents. Originating in 1937 as Trans-Canada Air Lines, the company soared through decades of aviation evolution, rebranding itself as Air Canada in 1965. Today, it stands as a robust player in the airline industry, providing passenger and cargo transport services. Anchored in Montreal, Quebec, Air Canada operates a vast network that spans over 200 destinations worldwide, making it a vital conduit for both international and domestic travel. It boasts a fleet of diverse aircraft, including Boeing, Airbus, and Embraer, allowing it to cater to varying demands from short hauls to long intercontinental routes. Air Canada's business model hinges on generating revenue from multiple streams. The passenger segment remains the core of its operations, offering tiers of service from economy to premium. This is supplemented by ancillary services such as seat selection, baggage fees, and in-flight purchases. Furthermore, the airline capitalizes on its Aeroplan loyalty program, fostering customer retention and engagement. Cargo transport plays a complementary role in its revenue structure, with increased focus on e-commerce shipments and vital freight services. Additionally, the airline benefits from cross-country partnerships and alliances, notably as a founding member of the Star Alliance, which enhances global connectivity and network reach. Through these endeavors, Air Canada seeks to pilot above turbulence and navigate towards financial sustainability.

View ACDVF Analysis

ACDVF Intrinsic Value

Undervaluation 76%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Air Canada
OTC:ACDVF

Peer Comparison

Market Distribution

Other Profitability Ratios

Air Canada
Glance View

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Air Canada OTC:ACDVF