Cathay Pacific Airways (CPCAY) AI Stock Analysis

• Market Cap: $7.76B
• Dividend Yield: 6.26%
• Average Volume (3M): 3.90K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.38
• Revenue Growth: 10.83%
• EPS Growth: 6.34%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 63
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.96
• Shares Outstanding: 1,287,881,800
• 10 Day Avg. Volume: 2,437
• 30 Day Avg. Volume: 3,901
• PEG Ratio: 0.99
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.96
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Cathay Pacific Airways shows strong financial recovery and attractive valuation metrics. While the technical analysis indicates stability, the moderate leverage and declining free cash flow growth require attention. The absence of recent earnings call and corporate events information focuses the evaluation on existing financial and market data.

Cathay Pacific Airways Business Overview & Revenue Model

Company Description

Cathay Pacific Airways, headquartered in Hong Kong, is a leading international airline operating scheduled passenger and cargo services to numerous destinations worldwide. The company is a member of the oneworld global airline alliance, which enhances its global network reach. Cathay Pacific is renowned for its high-quality in-flight service and premium travel experiences, offering a range of classes including First, Business, Premium Economy, and Economy. It also operates a cargo division, Cathay Pacific Cargo, which provides air freight services across a wide range of industries.

How the Company Makes Money

Cathay Pacific Airways generates revenue primarily through passenger ticket sales, which account for the lion's share of its income. The airline offers various classes of service, allowing it to cater to different market segments, from luxury travelers to budget-conscious passengers. Additional revenue is derived from ancillary services such as extra baggage fees, seat selection, and in-flight sales. Cathay Pacific also makes money from its cargo operations, transporting goods globally for businesses and individuals. Partnerships, such as its membership in the oneworld alliance, expand its network and offer code-sharing opportunities, further enhancing its revenue potential. The company is also involved in joint ventures and partnerships with other airlines to optimize route efficiency and capacity utilization, contributing to its overall earnings.

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific Airways exhibits a strong financial recovery with significant revenue and profitability improvements. The balance sheet is stable with moderate leverage, and cash flow management is strong. However, there is room for enhancing shareholder value, as reflected in the moderate ROE.

Income Statement

Cathay Pacific Airways has shown a significant recovery in revenue and profitability. The revenue growth rate was robust at 85.1% from 2022 to 2023, indicating strong operational recovery. Gross profit margin improved to 21.9% in 2023, and the net profit margin turned positive at 10.4%, reflecting improved cost management and operational efficiency. Both EBIT and EBITDA margins also saw substantial improvements, showing enhanced operational profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.14, indicating moderate leverage. The equity ratio stands at 34.5%, showing a balanced capital structure. However, the return on equity is relatively moderate at 16.3%, suggesting room for improvement in shareholder returns despite recent profitability gains.

Cash Flow

Cathay Pacific Airways has demonstrated strong cash flow management. The free cash flow growth of 39% from 2022 to 2023 underlines effective capital expenditure control and improved operational cash flows. The operating cash flow to net income ratio is 2.70, indicating strong cash generation relative to earnings. The free cash flow to net income ratio at 2.00 further supports robust cash profitability.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
100.50B	94.48B	51.04B	45.59B	46.93B	106.97B
	Gross Profit
25.15B	20.70B	8.06B	3.17B	-8.57B	9.10B
	EBIT
11.99B	15.13B	-2.97B	-2.36B	-12.77B	5.31B
	EBITDA
21.73B	27.14B	9.10B	6.38B	-5.20B	19.64B
	Net Income Common Stockholders
9.13B	9.79B	-6.55B	-5.53B	-21.65B	1.69B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.31B	15.53B	18.28B	19.28B	19.34B	14.86B
	Total Assets
190.29B	174.12B	180.91B	196.63B	204.57B	214.52B
	Total Debt
73.90B	68.29B	77.11B	89.85B	93.13B	97.26B
	Net Debt
66.22B	60.40B	109.05B	81.28B	86.96B	88.38B
	Total Liabilities
126.36B	114.08B	117.03B	124.38B	131.31B	151.74B
	Stockholders Equity
63.94B	60.03B	63.88B	72.24B	73.26B	62.77B
Cash Flow		Free Cash Flow
10.29B	19.61B	14.11B	6.56B	-19.71B	3.17B
	Operating Cash Flow
18.01B	26.41B	17.84B	8.84B	-14.29B	15.34B
	Investing Cash Flow
-2.45B	-2.67B	-2.76B	493.00M	-11.76B	-11.60B
	Financing Cash Flow
-16.42B	-23.18B	-16.24B	-6.93B	23.31B	-2.47B

Cathay Pacific Airways Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPCAY, the sentiment is Negative. The current price of 6.02 is below the 20-day moving average (MA) of 6.44, below the 50-day MA of 6.36, and above the 200-day MA of 5.47, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of -0.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPCAY.

Cathay Pacific Airways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTM	77 Outperform	$9.13B	8.92	166.51%	0.92%	10.24%	68.75%
CPCAY	74 Outperform	$7.76B	6.29	17.64%	6.26%	10.83%	6.34%
UAL	72 Outperform	$18.88B	6.12	28.63%	―	6.23%	20.08%
DAL	70 Outperform	$24.06B	6.98	26.19%	1.48%	6.19%	-25.26%
RYAAY	69 Neutral	$21.00B	12.22	21.21%	2.09%	5.39%	-15.92%
VLRS	62 Neutral	$559.21M	4.44	41.49%	―	-3.62%	1459.83%
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%