Cathay Pacific Airways (CPCAY) AI Stock Analysis

• Market Cap: $8.91B
• Dividend Yield: 6.1%
• Average Volume (3M): 98.00
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.34
• Revenue Growth: 8.95%
• EPS Growth: 17.01%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 76
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.35
• Shares Outstanding: 1,287,881,800
• 10 Day Avg. Volume: 132
• 30 Day Avg. Volume: 98
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.83
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: 0.76
• 1Y Price Target: $7.50
• Price Target Upside: 8.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: $7.50 ▲(8.54% Upside)

Cathay Pacific Airways' overall stock score is driven by its strong financial recovery and attractive valuation. The financial performance indicates robust growth and operational efficiency, while the low P/E ratio and high dividend yield suggest the stock is undervalued. Technical analysis shows mixed signals, with the stock trading below its 50-day moving average but having potential for upward movement.

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 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: Neutral
• Last Price: 6.91
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 6.91 is below the 20-day moving average (MA) of 6.96, below the 50-day MA of 7.10, and above the 200-day MA of 6.37, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 80.85 is Negative, 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	$33.71B	10.43	27.70%	―	4.23%	13.13%
RYAAY	81 Outperform	$32.73B	15.60	27.12%	1.35%	10.61%	37.32%
DAL	80 Outperform	$39.93B	8.76	30.07%	1.04%	3.01%	-0.90%
CPCAY	72 Outperform	$8.91B	6.96	17.73%	6.10%	8.95%	17.01%
LTM	72 Outperform	$14.89B	12.46	161.29%	2.07%	5.64%	63.23%
VLRS	65 Neutral	$699.43M	12.09	-12.00%	―	-7.05%	-128.03%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%