Air CanadaTSX:AC -0.73%86 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates TSX:AC with a GF Score™ of 86/100 and a GF Value™ of C$24.19 (Fairly Valued). The stock has 5 warning signs investors should review. Among 974 Transportation companies, Air Canada ranks better than 99.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Air Canada's annualized net income for the quarter that ended in Mar. 2026 was C$192 Mil. Air Canada's average shareholder tangible equity for the quarter that ended in Mar. 2026 was C$-1,879 Mil. Therefore, Air Canada's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Air Canada's Return-on-Tangible-Equity or its related term are showing as below:
TSX:AC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.56 Med: 127.09 Max: 5309.09
Current: Negative Tangible Equity
During the past 13 years, Air Canada's highest Return-on-Tangible-Equity was 5,309.09%. The lowest was 1.56%. And the median was 127.09%.
TSX:AC's Return-on-Tangible-Equity is ranked better than 99.9% of 974
companies
in the Transportation industry
Industry Median: 8.985
vs TSX:AC: Negative Tangible Equity
Air Canada (TSX:AC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Air Canada Return-on-Tangible-Equity Related Terms
Air Canada Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Air Canada's Return-on-Tangible-Equity 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-Equity Comparison
For the Airlines subindustry, Air Canada's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, Air Canada's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Air Canada's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Air Canada (TSX:AC) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air Canada and its competitors. Over the past decade, Air Canada's Return-on-Tangible-Equity has ranged from 1.56 to 5,309.09. According to the industry distribution chart, Air Canada ranks #1 out of 974 companies in the Transportation industry, placing it in the top 0.099999999999994%.
Is Air Canada's Return-on-Tangible-Equity too high?
Air Canada's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 1.56 to a high of 5,309.09. Based on the distribution chart, Air Canada ranks #1 out of 974 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Air Canada has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Air Canada's Return-on-Tangible-Equity compare to DAL and UAL?
According to the Transportation industry distribution chart, Air Canada ranks #1 out of 974 companies for Return-on-Tangible-Equity. This places Air Canada in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.99. Historically, Air Canada's own Return-on-Tangible-Equity has ranged from 1.56 to 5,309.09 over the past decade. 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-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 8.99, based on 974 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Air Canada and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 8.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air Canada's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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$24.19, compared to a current price of C$24.56 — trading 1.5% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Air Canada's overall GF Score™ is 86/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Air Canada (TSX:AC), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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$24.56 is trading 1.5% above its estimated GF Value™ of C$24.19.
GuruFocus considers Air Canada to be Fairly Valued.
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.
86GF Score
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