Cathay Pacific Airways (CPCAY) AI Stock Analysis

• Market Cap: $9.85B
• Dividend Yield: 6.29%
• Average Volume (3M): 34.00
• Price to Earnings (P/E): 8.0
• Beta (1Y): 0.40
• Revenue Growth: 8.95%
• EPS Growth: 17.01%
• Country: US
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 84
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.35
• Shares Outstanding: 1,287,881,800
• 10 Day Avg. Volume: 54
• 30 Day Avg. Volume: 34
• 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: 1.66
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: 0.76
• 1Y Price Target: $8.00
• Price Target Upside: 19.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $7.50 ▲(11.94% Upside)

Cathay Pacific Airways' overall stock score is driven by its strong financial recovery and attractive valuation. The company's low P/E ratio and high dividend yield make it appealing for value and income investors. However, technical indicators suggest a bearish trend, which may pose short-term risks.

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 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: Negative
• Last Price: 6.70
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 6.7 is below the 20-day moving average (MA) of 7.47, below the 50-day MA of 7.06, and above the 200-day MA of 6.24, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 31.26 is Neutral, neither overbought nor oversold. The STOCH value of 33.25 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
RYAAY	82 Outperform	$32.37B	15.04	27.12%	1.32%	10.61%	37.32%
DAL	81 Outperform	$34.52B	7.67	30.07%	1.19%	3.01%	-0.90%
UAL	80 Outperform	$28.38B	8.90	27.70%	―	4.23%	13.13%
LTM	72 Outperform	$12.93B	11.12	161.29%	2.33%	5.64%	63.23%
CPCAY	69 Neutral	$9.85B	8.00	17.73%	6.29%	8.95%	17.01%
VLRS	65 Neutral	$657.09M	12.09	-12.00%	―	-7.05%	-128.03%
Sector *	64 Neutral	$10.64B	16.01	5.48%	2.12%	2.72%	-24.90%