Qantas Airways Limited (QAN) AI Stock Analysis

• Market Cap: $16.54B
• Dividend Yield: 4.64%
• Average Volume (3M): 5.53M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 1.12
• Revenue Growth: 8.29%
• EPS Growth: 38.28%
• Country: AU
• Employees: 20,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.47
• Shares Outstanding: 1,513,199,200
• 10 Day Avg. Volume: 5,635,541
• 30 Day Avg. Volume: 5,528,728
• PEG Ratio: 0.27
• Price to Book (P/B): 21.30
• Price to Sales (P/S): 0.70
• P/FCF Ratio: 49.48
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.94
• Enterprise Value/Gross Profit: 2.78
• Enterprise Value/Ebitda: 5.37
• 1Y Price Target: $12.61
• Price Target Upside: 15.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 60 Neutral
• Price Target: AU$12.00 ▲(9.59% Upside)

Qantas Airways' stock score is primarily influenced by its financial performance and valuation. While the company shows signs of recovery, high leverage and cash flow challenges pose risks. The stock's technical indicators suggest a stable trend, and its valuation is reasonable with a decent dividend yield.

Positive Factors

Negative Factors

Qantas Airways Limited Business Overview & Revenue Model

Company Description

Qantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers passenger flying, and air cargo and express freight services; and customer loyalty recognition programs. As of June 30, 2022, the company operated a fleet of 322 aircraft under the Qantas and Jetstar brands. Qantas Airways Limited was founded in 1920 and is based in Mascot, Australia.

How the Company Makes Money

Qantas Airways Limited generates revenue primarily through the sale of passenger tickets for domestic and international flights. This is the largest component of its income, driven by its extensive network and service offerings. The company also earns significant revenue from its freight division, Qantas Freight, which handles cargo transportation. Another key revenue stream comes from its loyalty program, Qantas Frequent Flyer, which offers points redemption options and partnerships with various businesses. Ancillary services, such as on-board sales and baggage fees, also contribute to its earnings. Moreover, Qantas benefits from its Jetstar subsidiary, which taps into the budget travel market. Strategic partnerships and alliances with other airlines further enhance its revenue potential by expanding its market reach.

Qantas Airways Limited Financial Statement Overview

Summary

Qantas Airways shows revenue growth and improved net profit margins, indicating recovery. However, high leverage and declining free cash flow present significant financial risks. Operational efficiency needs improvement.

Income Statement

Qantas Airways has shown a positive revenue growth rate of 3.85% in the latest year, indicating a recovery trend. The gross profit margin has decreased from 53.01% to 33.36%, which suggests increased cost pressures. The net profit margin improved slightly to 6.74%, reflecting better profitability. However, the EBIT and EBITDA margins have declined, indicating operational challenges.

Balance Sheet

The company has a high debt-to-equity ratio of 10.23, indicating significant leverage, which poses a financial risk. The return on equity is low at 2.06%, suggesting limited returns for shareholders. The equity ratio is weak, reflecting a heavy reliance on debt financing.

Cash Flow

Operating cash flow has improved, but free cash flow has decreased significantly by 76.51%, highlighting cash management challenges. The operating cash flow to net income ratio is moderate at 0.33, while the free cash flow to net income ratio is low at 0.08, indicating limited cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.65B	23.82B	21.62B	19.52B	8.70B	5.38B
Gross Profit	7.95B	7.95B	11.46B	10.97B	4.52B	-991.00M
EBITDA	4.12B	4.12B	3.90B	4.52B	928.00M	-176.00M
Net Income	1.60B	1.60B	1.25B	1.75B	-860.00M	-1.69B
Balance Sheet
Total Assets	23.36B	23.36B	20.56B	20.35B	19.65B	17.81B
Cash, Cash Equivalents and Short-Term Investments	2.21B	2.21B	1.98B	3.17B	3.34B	2.22B
Total Debt	7.96B	7.96B	6.59B	6.73B	7.23B	8.23B
Total Liabilities	22.57B	22.57B	20.27B	20.34B	19.84B	17.36B
Stockholders Equity	778.00M	778.00M	289.00M	5.00M	-197.00M	440.00M
Cash Flow
Free Cash Flow	335.00M	335.00M	680.00M	2.49B	1.75B	-1.15B
Operating Cash Flow	4.25B	4.25B	3.35B	5.05B	2.65B	-407.00M
Investing Cash Flow	-3.70B	-3.81B	-2.89B	-2.59B	-225.00M	-701.00M
Financing Cash Flow	42.00M	42.00M	-2.01B	-2.63B	-1.31B	-181.00M

Qantas Airways Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.95
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:QAN, the sentiment is Negative. The current price of 10.95 is below the 20-day moving average (MA) of 11.20, below the 50-day MA of 11.04, and above the 200-day MA of 9.70, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 35.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:QAN.

Qantas Airways Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AQZ	62 Neutral	AU$367.14M	6.40	12.23%	1.32%	19.82%	-5.32%
QAN	60 Neutral	$16.54B	10.46	296.72%	4.64%	8.29%	38.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Qantas Airways Limited Corporate Events

Qantas Announces Director’s Interest Change

Qantas Airways Limited announced a change in the interests of its director, John Patrick Mullen, involving the conversion of rights under the Non-Executive Director Fee Sacrifice Share Plan to restricted ordinary shares. This change, effective from September 2025, reflects the company’s ongoing engagement in equity-based compensation plans for its executives, which may impact shareholder value and director alignment with company performance.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$11.60 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

Qantas Director Increases Stake in Company

Qantas Airways Limited announced a change in the director’s interest, specifically involving Dr. Nora Lia Scheinkestel. The change involved the acquisition of 2,108 ordinary shares through an on-market trade, increasing the total number of shares held by Scheinkestel Superannuation Pty Ltd to 52,867. This update reflects the director’s increased stake in the company, potentially signaling confidence in Qantas’s future performance.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$11.60 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

Qantas CEO Sells Shares to Cover Tax Obligations

Qantas Airways Limited announced that its CEO and Managing Director, Vanessa Hudson, has sold 125,000 shares to meet an income tax liability from the vesting of shares in FY24. The transaction was approved by the Qantas Board and complies with the company’s Share Trading Policy and Minimum Shareholding Guidelines. Despite the sale, Ms. Hudson still holds shares exceeding the minimum requirements, indicating continued confidence in the company’s prospects.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$11.60 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

Qantas Airways Issues New Equity Securities

Qantas Airways Limited announced the issuance and conversion of unquoted equity securities, specifically 18,475 ordinary fully paid shares, as of September 1, 2025. This move signifies a strategic financial adjustment, potentially impacting the company’s capital structure and shareholder value, while reflecting Qantas’s ongoing efforts to optimize its financial operations and maintain competitive positioning in the airline industry.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$11.60 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

Qantas Airways Releases 2025 Sustainability Report

Qantas Airways Limited has released its 2025 Sustainability Report, highlighting the company’s ongoing commitment to environmental and social governance. This report underscores Qantas’s efforts to integrate sustainable practices into its operations, which is crucial for maintaining its competitive edge and meeting stakeholder expectations in an increasingly eco-conscious industry.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$11.60 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

Qantas Releases 2025 Corporate Governance Statement

Qantas Airways Limited has released its Appendix 4G and 2025 Corporate Governance Statement in compliance with ASX Listing Rules. This announcement underscores Qantas’s commitment to transparency and adherence to corporate governance standards, potentially reinforcing its reputation among investors and stakeholders.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$11.60 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.

Qantas Airways Releases 2025 Annual Report

Qantas Airways Limited has released its 2025 Annual Report in compliance with ASX Listing Rules. This release is significant as it provides stakeholders with comprehensive insights into the company’s financial performance and strategic direction for the year, potentially impacting its market positioning and operational strategies.

The most recent analyst rating on (AU:QAN) stock is a Hold with a A$11.60 price target. To see the full list of analyst forecasts on Qantas Airways Limited stock, see the AU:QAN Stock Forecast page.