Cathay Pacific Airways (CPCAY) AI Stock Analysis

• Market Cap: $9.08B
• Dividend Yield: 6.15%
• Average Volume (3M): 1.26K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.34
• Revenue Growth: 8.95%
• EPS Growth: 17.01%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.35
• Shares Outstanding: 1,335,299,100
• 10 Day Avg. Volume: 550
• 30 Day Avg. Volume: 1,256
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.80
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: 0.76
• 1Y Price Target: $7.50
• Price Target Upside: 10.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $7.50 ▲(10.29% Upside)

Cathay Pacific Airways' strong financial recovery and attractive valuation are the primary drivers of its score. Technical indicators suggest some caution due to lack of momentum, but the stock's valuation metrics provide a compelling case for investment.

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 the sale of passenger tickets and cargo services. The airline's passenger revenue constitutes the bulk of its earnings, derived from both international and domestic flights. Key revenue streams include ticket sales, ancillary services such as baggage fees and in-flight purchases, and premium cabin upgrades. Additionally, Cathay Pacific's cargo operations contribute significantly to its revenue, transporting a wide range of goods, including perishables, electronics, and pharmaceuticals. The airline also benefits from partnerships and codeshare agreements with other airlines, which expand its network and customer base. Strategic alliances, such as its membership in the Oneworld alliance, allow Cathay Pacific to offer a broader range of services and capture additional market share, thereby enhancing its overall profitability.

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific Airways shows a strong recovery in revenue and profitability with a significant improvement in net profit margin and operational efficiency. However, moderate leverage and a decrease in free cash flow growth require attention.

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
EBITDA	21.45B	27.14B	9.10B	6.38B	-5.20B
Net Income	9.89B	9.79B	-6.55B	-5.53B	-21.65B
Balance Sheet
Total Assets	171.24B	174.12B	180.91B	196.63B	204.57B
Cash, Cash Equivalents and Short-Term Investments	10.53B	15.53B	18.28B	19.28B	19.34B
Total Debt	68.47B	68.29B	77.11B	89.85B	93.13B
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: Neutral
• Last Price: 6.80
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 6.8 is above the 20-day moving average (MA) of 6.78, below the 50-day MA of 6.99, and above the 200-day MA of 6.39, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 63.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CPCAY.

Cathay Pacific Airways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAL	82 Outperform	34.42B	10.65	24.74%	―	4.23%	13.13%
DAL	80 Outperform	39.02B	8.63	25.72%	1.07%	3.01%	-0.90%
RYAAY	75 Outperform	28.44B	13.42	27.99%	1.79%	10.61%	37.32%
LTM	72 Outperform	14.03B	12.24	128.15%	2.14%	5.64%	63.23%
CPCAY	71 Outperform	$9.08B	6.90	17.73%	6.15%	8.95%	17.01%
AAL	58 Neutral	8.21B	16.01	-14.65%	―	1.50%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%