Air Canada Vs. Southwest Airlines: Which Stock Is a Better Buy?
Air Canada Vs. Southwest Airlines: Which Stock Is a Better Buy?
![big](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240725/0-7c463ed1fcf70367bf9c820659e22fd0-0-07b55103c6a3d2fbc0db9bfab859dfb8.jpg/big)
Airline stocks trading in the U.S. and Canada are among the cheapest companies in 2024. Most airline stocks trade significantly below all-time highs due to higher interest rates, a debt-heavy balance sheet, inflation, volatile oil prices, and slower consumer spending.
美國和加拿大的航空股位於2024年最便宜的公司之一。由於利率上升、債務累積、通貨膨脹、油價波動和消費者支出減緩,大多數航空股票交易價格明顯低於歷史最高水平。
However, with interest rate cuts on the horizon, there is a chance for beaten-down, undervalued airline stocks to gain pace and stage a rebound in the next 12 months. So, letâs see which airline stock, between Air Canada (TSX:AC) and Southwest Airlines (NYSE:LUV), is a better buy right now.
然而,隨着有減息的跡象,有機會被打壓、低估的航空公司股票在未來12個月內走強反彈。那麼,讓我們看看現在在Air Canada(TSX:AC)和Southwest Airlines(NYSE:LUV)之間,哪個更值得購買。
Is Southwest Airlines stock a good buy?
西南航空股票值得購買嗎?
Valued at US$16 billion by market cap, Southwest Airlines has returned less than 4% in dividend-adjusted gains to shareholders in the past decade. Trading almost 60% below all-time highs, LUV stock has burned massive shareholder wealth since the COVID-19 pandemic.
西南航空公司的市值爲160億美元,過去十年股東獲得的分紅調整收益不到4%。LUV股票交易價格幾乎比歷史最高點低60%,自COVID-19大流行以來一直消耗着大量股東財富。
While Southwest reported record sales of US$6.33 billion in the first quarter (Q1) of 2024, it missed analyst revenue estimates of US$6.42 billion. Its loss per share of US$0.36 was also wider than estimates of US$0.34 per share.
雖然西南航空在2024年第一季度報告了創紀錄的63.3億美元銷售額,但它未能達到64.2億美元的分析師營收預期。每股虧損0.36美元,也比每股虧損0.34美元的預期虧損幅度更大。
During the Q1 earnings call, Southwest warned investors that Boeing's aircraft delays will hamper its top-line growth in the near term. For instance, it expects to grow capacity by 4% in 2024, lower than its previous estimates of 6%. Southwest Airlines said it expects to receive just 20 Boeing 737 Max 8 planes, much lower than initial estimates of 46 planes. This will force the airline company to delay retiring older Boeing aircraft.
在Q1的業績電話會議上,西南航空警告投資者,波音的飛機延誤將阻礙其短期內的頂線增長。例如,它預計2024年增加4%的產能,低於之前的6%的預期。西南航空表示,它預計只能收到20架波音737 Max 8飛機,遠低於最初的46架飛機的預期。這將迫使航空公司推遲退役舊波音飛機。
To shore up profit margins, Southwest has embarked on a cost-saving journey by offering its employees voluntary time off and shutting down operations at some airports.
爲了提高利潤率,西南航空通過向員工提供自願休假並關閉一些機場的運營來節省成本。
Wall Street expects Southwest Airlines to report adjusted earnings per share of US$0.72 in 2024, down from US$1.57 per share in 2023. So, priced at 38 times forward earnings, LUV stock trades at a hefty premium to other airline peers.
華爾街預計西南航空將在2024年報告每股調整後的收益爲0.72美元,低於2023年的1.57美元。因此,LUV股票以38倍的預期收益率交易,比其他航空同行的溢價高得多。
Out of the 19 analysts covering Southwest Airlines stock, 16 recommend âbuy,â and three recommend âhold.â The 12-month average target price for LUV stock is $27.18, which is marginally higher than its current trading price.
在覆蓋西南航空股票的19位分析師中,16位建議買入,3位建議持有。LUV股票的12個月平均目標價格爲27.18美元,略高於其當前交易價格。
Is Air Canada stock undervalued?
加拿大航空股票被低估嗎?
After rising over 3,000% in the decade prior to COVID-19, Air Canada stock trades 68% below all-time highs. In the March quarter, Air Canada reported an operating revenue of $5.2 billion, an increase of 7% year over year. Its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) rose roughly 10% to $453 million, indicating a margin of 8.7%.
在COVID-19之前的10年中,加拿大航空股票上漲了超過3000%,現在交易價格比歷史最高點低68%。在三月季度,加拿大航空報告了億5200萬美元的營業收入,同比增長了7%。其調整後的EBITDA(利潤前利息、稅、折舊和攤銷)大約增長了10%,達到了45300萬美元,表明其毛利率爲8.7%。
A widening earnings base enabled Air Canada to report $1 billion in free cash flow. The Canadian airline giant used its free cash flow to reduce net debt by $786 million to $3.78 billion in the last three months. Air Canada ended Q1 with a net-debt-adjusted EBITDA multiple of 0.9 times, resulting in a credit rating upgrade to âBBâ by S&P Global.
加拿大航空不斷擴大的收益通過自由現金流報告了10億美元。這家加拿大的航空巨頭利用其自由現金流在過去三個月中將淨債務減少了7.86億美元,達到了37.8億美元。加拿大航空以0.9倍的淨債務調整EBITDA倍數結束了Q1,獲得了S&P全球的“BB”信用評級。
In the last four quarters, the companyâs free cash flow totalled $2.82 billion. Priced at 2.2 times trailing free cash flow, Air Canada is extremely cheap and trades at a 35% discount to consensus price target estimates.
在過去的四個季度中,該公司的自由現金流總額爲28.2億美元。加拿大航空的股票以2.2倍的歷史自由現金流指標價格,極爲便宜,並以比共識目標價格估計低35%的價格交易。
The Foolish takeaway
愚蠢的帶走
Air Canada trades at a much lower multiple than Southwest Airlines and generates consistent free cash flow, making it a better investment in 2024.
與西南航空相比,加拿大航空交易倍數更低,且產生持續的自由現金流,使其在2024年成爲更好的投資。
The post Air Canada vs. Southwest Airlines: Which Stock Is a Better Buy? appeared first on The Motley Fool Canada.
《加拿大愚人報》:航空股是時候買了,比較加拿大航空和西南航空股票,哪個更值得購買?