Cathay Pacific Airways (CPCAY) AI Stock Analysis

• Market Cap: $9.68B
• Dividend Yield: 8.37%
• Average Volume (3M): 16.00
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.43
• Revenue Growth: 10.83%
• EPS Growth: 6.34%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 91
• Industry: Airlines, Airports & Air Services
• EPS (TTM): N/A
• Shares Outstanding: 1,287,881,800
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 16
• PEG Ratio: -2.36
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.35
• 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: $7.50
• Price Target Upside: -0.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: $8.00 ▲(6.38%Upside)

Cathay Pacific Airways' overall stock score is driven by its strong financial performance and attractive valuation. The company has shown significant recovery in revenue and profitability, complemented by a low P/E ratio and high dividend yield. While technical indicators show bullish momentum, caution is advised due to potential short-term corrections as indicated by overbought signals.

Cathay Pacific Airways Business Overview & Revenue Model

Company Description

Cathay Pacific Airways (CPCAY) is a Hong Kong-based international airline offering passenger and cargo services to various destinations worldwide. The company operates in the aviation sector and provides high-quality air travel experiences with a focus on safety, comfort, and customer service. Cathay Pacific's fleet comprises wide-body aircraft, serving major business and leisure destinations across Asia, Europe, North America, and other regions.

How the Company Makes Money

Cathay Pacific Airways generates revenue primarily through the sale of passenger tickets and cargo transportation services. Passenger ticket sales constitute the largest portion of its income, driven by both economy and premium class offerings. The cargo division complements this by transporting goods globally, leveraging the airline's extensive network. Additional revenue streams include ancillary services such as in-flight sales, baggage fees, and partnerships with travel-related businesses. The company also benefits from code-sharing agreements and strategic alliances, which expand its reach and operational efficiency. Factors like fuel prices, regulatory changes, and economic conditions can significantly impact its earnings.

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific Airways demonstrates a strong financial recovery with improved profitability and operational efficiency. The income statement reveals robust growth, but the balance sheet indicates moderate leverage that needs careful management. Cash flow generation is strong, though there's a recent decline in free cash flow growth.

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: Positive
• Last Price: 7.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPCAY, the sentiment is Positive. The current price of 7.52 is above the 20-day moving average (MA) of 6.87, above the 50-day MA of 6.60, and above the 200-day MA of 6.00, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 80.55 is Negative, neither overbought nor oversold. The STOCH value of 100.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPCAY.

Cathay Pacific Airways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAL	79 Outperform	$36.99B	8.22	30.07%	1.06%	3.01%	-0.90%
UAL	78 Outperform	$28.64B	7.99	33.57%	―	5.31%	35.95%
LTM	74 Outperform	$12.75B	11.72	138.69%	1.52%	6.41%	49.58%
RYAAY	73 Outperform	$29.99B	18.29	22.41%	1.61%	3.12%	-13.82%
CPCAY	73 Outperform	$9.68B	7.86	17.64%	8.37%	10.83%	6.34%
VLRS	65 Neutral	$557.19M	13.51	14.19%	―	-7.43%	-62.49%
Sector *	65 Neutral	$10.85B	15.47	5.22%	1.89%	3.09%	-26.84%