WestJet (WJA)

By March 3, 2015 No Comments


Last week, we rebalanced StockPointer’s Canadian portfolio. One of the companies we added to the portfolio is Wesjet Airlines (WJA). The company ranks fifth in the Canadian Industrial Large Cap category with a current SP Score of 61%.  Download

 Westjet’s intrinsic value has been increasing since the summer of 2012 and the stock currently trades at a discount of about 30%. WJA’s return on capital has risen above 10% over the same period giving investors a little more breathing room on the performance spread (return on capital less cost of capital). EVA and Net Operating Profit continue to display nice upward trends. At Tuesday’s closing price of $28.64 the market value of the company’s capital is slightly lower than the current operating value (COV), this indicates that no future NOPAT growth is anticipated by the market.