Go to the Globe and Mail homepage

Jump to main navigationJump to main content

AdChoices
WestJet
WestJet

Research Report

Clear skies for WestJet stock Add to ...

Validea’s pick of the week provides a detailed report on a company that scores well in the stock-screening service’s model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.

Calgary-based WestJet Airlines offers scheduled service to 87 destinations in North America, Central America and the Caribbean. Earlier this year, WestJet launched a new regional airline, WestJet Encore. It has a $3.3-billion market cap.

WestJet has grown earnings at a 15-per-cent pace over long term and sales at a 10-per-cent pace (using averages of 3, 4, & 5 year EPS/sales growth rates).

Its 12.3 trailing 12 month P/E, 1.6-per-cent dividend, and 15-per-cent growth rate make for solid 0.75 yield adjusted P/E-to-growth ratio, part of why Peter Lynch model has strong interest.

WestJet's strong 86 relative strength over past year shows good momentum. It has 16.2-per-cent free cash flow yield and a reasonable 47-per-cent debt/equity ratio.

Its 17.1-per-cent return on capital and 15.4-per-cent earnings yield earn it some interest from the Joel Greenblatt model.

The Warren Buffett model likes WestJet's 15.8-per-cent return on retained earnings over past decade.


Click here for a complete breakdown of Validea’s investing guru report.

Read other research reports here.

Report Typo/Error

Follow us on Twitter: @GlobeInvestor

 

More Related to this Story

Topics

In the know

The Globe Recommends

loading

Most popular videos »

Highlights

More from The Globe and Mail

Most popular