Air CanadaTSX:AC -1.49%85 Return-on-Tangible-Asset is 0.70% as of Mar. 2026, which is 84% below its 10-year median of 4.44. GuruFocus rates TSX:AC with a GF Score™ of 85/100 and a GF Value™ of C$24.26 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,009 Transportation companies, Air Canada ranks worse than 56.79% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Air Canada's annualizedNet Income for the quarter that ended in Mar. 2026 was C$192 Mil. Air Canada's average total tangible assets for the quarter that ended in Mar. 2026 was C$27,617 Mil. Therefore, Air Canada's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 0.70%.
The historical rank and industry rank for Air Canada's Return-on-Tangible-Asset or its related term are showing as below:
TSX:AC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -19.37 Med: 4.44 Max: 11.77
Current: 2.92
During the past 13 years, Air Canada's highest Return-on-Tangible-Asset was 11.77%. The lowest was -19.37%. And the median was 4.44%.
TSX:AC's Return-on-Tangible-Asset is ranked worse than 56.79% of 1009
companies
in the Transportation industry
Industry Median: 3.78
vs TSX:AC: 2.92
Air Canada (TSX:AC) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Air Canada Return-on-Tangible-Asset Related Terms
Air Canada Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Air Canada's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:AC vs DAL, UAL, LUV: Return-on-Tangible-Asset Comparison
For the Airlines subindustry, Air Canada's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air Canada Return-on-Tangible-Asset vs Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Air Canada's Return-on-Tangible-Asset falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 0.70% mean?
Air Canada (TSX:AC) has a Return-on-Tangible-Asset of 0.70% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Air Canada and its competitors. This is 84% below median its historical median of 4.44. According to the industry distribution chart, Air Canada ranks #573 out of 1009 companies in the Transportation industry, placing it in the top 56.8%.
Is Air Canada's Return-on-Tangible-Asset too high?
Air Canada's current Return-on-Tangible-Asset of 0.70% is 84% below median its 10-year median of 4.44. The Transportation industry median Return-on-Tangible-Asset is 3.78. Air Canada's value of 0.70% is 81.5% below this industry median. Based on the distribution chart, Air Canada ranks #573 out of 1009 companies in the Transportation industry, which is below the industry midpoint. Overall, Air Canada has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Return-on-Tangible-Asset compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #573 out of 1009 companies for Return-on-Tangible-Asset. This places Air Canada in the lower half of its industry. The industry median Return-on-Tangible-Asset is 3.78. Air Canada's value of 0.70% is 81.5% below this benchmark. While the company's 10-year median is 4.44 vs. the industry median of 3.78, Air Canada has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Transportation company?
The median Return-on-Tangible-Asset among Transportation companies is 3.78, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air Canada's current Return-on-Tangible-Asset of 0.70% is 81.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Air Canada and its competitors. For the Transportation industry, the median Return-on-Tangible-Asset is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Canada's current Return-on-Tangible-Asset is 0.70%, which is 84% below median its own 10-year median of 4.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air Canada stock overvalued right now?
Based on GuruFocus' analysis, Air Canada (TSX:AC) is currently considered Fairly Valued. The stock's GF Value™ is C$24.26, compared to a current price of C$24.45 — trading 0.8% above its estimated fair value. The current Return-on-Tangible-Asset is 0.70%, which is 84% below median its 10-year median of 4.44 and 81.5% below the Transportation industry median of 3.78. Air Canada's overall GF Score™ is 85/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Air Canada (TSX:AC), the current Return-on-Tangible-Asset is 0.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air Canada (TSX:AC) Overvalued in 2026?
Based on GuruFocus' analysis, Air Canada stock appears to be overvalued.
The current stock price of C$24.45 is trading 0.8% above its estimated GF Value™ of C$24.26.
GuruFocus considers Air Canada to be Fairly Valued.
Key valuation signals for TSX:AC:
Return-on-Tangible-Asset: 0.70% (84% below median its 10-year median of 4.44)
GF Value™: C$24.26 vs. price of C$24.45 (0.8% above fair value)
Industry Position: 81.5% below the Transportation median (#573 of 1009)
No single metric tells the full story. See the TSX:AC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air Canada is Canada's largest airline, serving nearly 50 million passengers each year, together with its low-cost subbrand, Rouge, and contracts for regional connection flights into its network. Air Canada is a sixth-freedom airline, which flies many passengers on long-haul trips to and from the US with a layover in Canada.
85GF Score
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