Cathay Pacific Airways (CPCAY) AI Stock Analysis

• Market Cap: $7.41B
• Dividend Yield: 7.09%
• Average Volume (3M): 1.36K
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.29
• Revenue Growth: 10.83%
• EPS Growth: 6.34%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 78
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.96
• Shares Outstanding: 1,287,881,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 1,365
• PEG Ratio: 0.95
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• 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 exhibits a solid recovery in financial performance with strong profitability and cash flow, despite moderate leverage. While the valuation is compelling due to a low P/E ratio and high dividend yield, technical analysis suggests a cautious outlook with bearish indicators. The overall score reflects these strengths and the need to monitor technical signals closely.

Cathay Pacific Airways Business Overview & Revenue Model

Company Description

Cathay Pacific Airways Limited, together with its subsidiaries, operates as a carrier of international passengers and air cargo. The company conducts airline operations principally to and from Hong Kong. It also provides property investment, travel reward program, travel tour operator, financial, aircraft leasing and acquisition facilitation, airline catering, information processing, aircraft ramp handling, laundry and dry cleaning, ground handling, aircraft engineering, cargo carriage, airport ground engineering support and equipment maintenance, and inventory technical management services. In addition, the company operates a computer network for interchange of air cargo related information; and offers repair and maintenance services for transportation companies. It operates in the Americas, Europe, Southeast Asia, Southwest Pacific, North Asia, South Asia, the Middle East, and Africa. As of December 31, 2021, it operated 234 aircraft directly connecting Hong Kong to 119 destinations in 35 countries worldwide, including 26 destinations in China. Cathay Pacific Airways Limited was founded in 1946 and is headquartered in Lantau Island, Hong Kong.

How the Company Makes Money

Cathay Pacific Airways generates revenue primarily through its passenger airline services, which include ticket sales and ancillary services such as baggage fees and in-flight purchases. A significant portion of its earnings also comes from cargo operations, where the airline transports a range of goods across its extensive global network. The company benefits from codeshare agreements and partnerships with other airlines, enhancing its reach and connectivity. Additionally, Cathay Pacific earns revenue from its loyalty program, Marco Polo Club, and Asia Miles, which engage frequent flyers and drive repeat business. The airline's financial performance is influenced by factors such as fuel prices, geopolitical events, and global economic conditions.

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific Airways displays a promising financial recovery with strong revenue and profit growth. However, moderate leverage on the balance sheet and a recent decline in free cash flow growth necessitate careful management.

Income Statement

Cathay Pacific Airways has demonstrated a strong recovery in revenue and profitability. The gross profit margin for the latest year is approximately 31.21%, with a notable improvement in net profit margin to 9.47% from a loss in previous years. Revenue growth rate is 10.47%, highlighting a positive trend post-pandemic recovery. Both EBIT and EBITDA margins have improved significantly, indicating operational efficiency.

Balance Sheet

Cathay Pacific's balance sheet shows a Debt-to-Equity ratio of 1.30, reflecting moderate leverage. The Return on Equity (ROE) stands at 18.83%, showcasing efficient use of equity to generate profits. However, the equity ratio is 30.66%, indicating a reliance on liabilities for financing. The company appears to have a stable financial position but should monitor its leverage.

Cash Flow

Cash flow analysis reveals a decrease in free cash flow growth, but the company maintains a solid operating cash flow to net income ratio of 2.38, indicating strong cash generation from operations. The free cash flow to net income ratio of 1.45 suggests good cash management. However, the drop in free cash flow compared to previous years warrants attention.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
104.37B	94.48B	51.04B	45.59B	46.93B
	Gross Profit
32.58B	20.70B	8.06B	3.17B	-8.57B
	EBIT
13.93B	15.13B	-2.97B	-2.36B	-12.77B
	EBITDA
21.45B	27.14B	9.10B	6.38B	-5.20B
	Net Income Common Stockholders
9.89B	9.79B	-6.55B	-5.53B	-21.65B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.44B	15.53B	18.28B	19.28B	19.34B
	Total Assets
171.24B	174.12B	180.91B	196.63B	204.57B
	Total Debt
68.47B	68.29B	77.11B	89.85B	93.13B
	Net Debt
63.03B	60.40B	109.05B	81.28B	86.96B
	Total Liabilities
118.74B	114.08B	117.03B	124.38B	131.31B
	Stockholders Equity
52.50B	60.03B	63.88B	72.24B	73.26B
Cash Flow		Free Cash Flow
14.33B	19.61B	14.11B	6.56B	-19.71B
	Operating Cash Flow
23.54B	26.41B	17.84B	8.84B	-14.29B
	Investing Cash Flow
-6.08B	-2.67B	-2.76B	493.00M	-11.76B
	Financing Cash Flow
-19.83B	-23.18B	-16.24B	-6.93B	23.31B

Cathay Pacific Airways Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 5.91 is above the 20-day moving average (MA) of 5.75, below the 50-day MA of 6.16, and above the 200-day MA of 5.55, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 41.12 is Neutral, neither overbought nor oversold. The STOCH value of 72.83 is Neutral, 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	$9.53B	8.83	138.69%	0.84%	6.41%	49.58%
UAL	76 Outperform	$21.53B	6.97	33.57%	―	5.31%	35.95%
DAL	75 Outperform	$26.69B	7.25	27.52%	1.32%	4.91%	-27.21%
RYAAY	74 Outperform	$22.80B	13.45	21.21%	1.75%	5.39%	-15.92%
CPCAY	67 Neutral	$7.41B	6.02	17.64%	7.09%	10.83%	6.34%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
VLRS	60 Neutral	$430.37M	9.84	14.19%	―	-7.43%	-62.49%