Cathay Pacific Airways (CPCAY) AI Stock Analysis

• Market Cap: $10.09B
• Dividend Yield: 5.54%
• Average Volume (3M): 21.00
• Price to Earnings (P/E): 7.6
• Beta (1Y): 0.37
• 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: 1,343,439,200
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 21
• PEG Ratio: 1.28
• Price to Book (P/B): 1.37
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 5.03
• Enterprise Value/Market Cap: 1.62
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: 0.75
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.83
• Revenue Forecast (FY): $13.98B

• Rating: 73 Outperform
• Price Target: $8.50 ▲(20.74% Upside)

Cathay Pacific Airways demonstrates a strong financial recovery with improved profitability and operational efficiency. The stock's valuation is attractive, supported by a low P/E ratio and high dividend yield. However, technical indicators suggest caution due to overbought conditions.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a successful recovery strategy and increased demand for services, strengthening market position.

Profitability

Strong profit margins reflect operational efficiency and effective cost management, ensuring sustainable profitability.

Cash Generation

Robust cash generation supports financial stability and provides flexibility for strategic investments and debt management.

Negative Factors

Leverage

Moderate leverage suggests potential vulnerability to interest rate changes, which could impact financial flexibility and risk profile.

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to reinvest in growth opportunities and manage debt effectively.

Equity Ratio

A lower equity ratio suggests a higher reliance on debt, which could pose risks if market conditions worsen or interest rates rise.

Cathay Pacific Airways Business Overview & Revenue Model

Company Description

Cathay Pacific Airways (CPCAY) is a Hong Kong-based international airline that provides passenger and cargo transportation services. Founded in 1946, the airline operates scheduled flights to various destinations across Asia, Europe, North America, and Australia. Cathay Pacific is known for its premium service offerings, including First, Business, and Economy classes, and is a member of the Oneworld alliance, enhancing its global reach and connectivity. The company also operates a cargo division, Cathay Pacific Cargo, which plays a significant role in its operations by transporting goods across the globe.

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 improved margins. The balance sheet indicates moderate leverage, and cash flow generation remains robust despite a 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	109.08B	104.37B	94.48B	51.04B	45.59B	46.93B
Gross Profit	32.80B	32.58B	20.70B	20.41B	3.17B	-8.57B
EBITDA	21.75B	21.45B	27.14B	10.24B	6.38B	-3.35B
Net Income	9.93B	9.89B	9.79B	-6.62B	-5.53B	-21.65B
Balance Sheet
Total Assets	170.30B	171.24B	174.12B	180.91B	196.63B	204.57B
Cash, Cash Equivalents and Short-Term Investments	8.91B	10.53B	15.53B	18.28B	19.28B	19.34B
Total Debt	65.25B	68.47B	68.29B	77.11B	89.85B	93.13B
Total Liabilities	118.64B	118.74B	114.08B	117.03B	124.38B	131.31B
Stockholders Equity	51.65B	52.50B	60.03B	63.88B	72.24B	73.26B
Cash Flow
Free Cash Flow	13.69B	14.33B	19.61B	14.11B	6.56B	-19.71B
Operating Cash Flow	24.08B	23.54B	26.41B	17.84B	8.84B	-14.29B
Investing Cash Flow	-6.27B	-6.08B	-2.67B	-2.76B	493.00M	-11.76B
Financing Cash Flow	-24.18B	-19.83B	-23.18B	-16.24B	-6.93B	23.31B

Cathay Pacific Airways Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.04
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 7.04 is below the 20-day moving average (MA) of 7.53, below the 50-day MA of 7.13, and above the 200-day MA of 6.66, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 54.11 is Neutral, neither overbought nor oversold. The STOCH value of 3.82 is Positive, 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
RYAAY	83 Outperform	$33.17B	12.52	28.67%	1.46%	14.75%	71.73%
DAL	78 Outperform	$40.58B	8.76	28.52%	1.05%	4.33%	-1.58%
CPCAY	73 Outperform	$10.09B	7.62	17.73%	5.54%	8.95%	17.01%
UAL	68 Neutral	$32.02B	9.91	25.59%	―	4.24%	20.29%
LTM	67 Neutral	$12.86B	11.45	135.74%	2.14%	6.81%	58.22%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AAL	57 Neutral	$8.88B	16.18	―	―	1.27%	118.64%