Cathay Pacific Airways (0293) AI Stock Analysis

• Market Cap: $81.85B
• Dividend Yield: 5.67%
• Average Volume (3M): 7.02M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.27
• Revenue Growth: 8.54%
• EPS Growth: 16.57%
• Country: HK
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.54
• Shares Outstanding: 6,719,891,600
• 10 Day Avg. Volume: 4,754,519
• 30 Day Avg. Volume: 7,020,184
• PEG Ratio: 1.09
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 4.28
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.18
• Enterprise Value/Gross Profit: 3.91
• Enterprise Value/Ebitda: 5.90
• 1Y Price Target: $10.28
• Price Target Upside: -15.64% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 10.09
• Revenue Forecast (FY): $841.06B

• Rating: 67 Neutral
• Price Target: HK$13.00 ▲(6.73% Upside)

Cathay Pacific Airways' stock score is driven by strong financial performance and attractive valuation. The company is recovering well with improved profitability and efficient cash flow management. However, technical indicators suggest caution due to overbought conditions, which may lead to short-term volatility.

Positive Factors

Revenue Growth

Cathay Pacific's strong revenue growth indicates successful market expansion and increased demand for its services, supporting long-term business sustainability.

Profitability

Improved gross profit margin suggests enhanced operational efficiency and cost management, contributing to sustained profitability in a competitive industry.

Cash Flow Management

Efficient cash generation relative to net income highlights Cathay Pacific's robust cash flow management, ensuring liquidity and financial flexibility.

Negative Factors

Leverage Risks

Reliance on leverage could pose financial risks if market conditions worsen, potentially affecting the company's ability to manage debt obligations.

Free Cash Flow Decline

A decline in free cash flow growth suggests potential challenges in maintaining cash reserves, which could impact future investment and expansion plans.

EBIT Margin Decline

A decrease in EBIT margin indicates rising non-operational costs, which may affect overall profitability and necessitate strategic cost management.

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 generates revenue primarily through its passenger and cargo operations. The airline earns money by selling tickets for its flights, with revenue heavily influenced by passenger demand, ticket pricing, and route efficiency. The cargo division also contributes significantly to revenue by transporting goods and freight. Additional revenue streams include ancillary services such as excess baggage fees, in-flight sales, and partnerships with hotels and car rental companies, which provide customers with added value. Strategic alliances and membership in the Oneworld airline alliance enhance revenue opportunities through code-sharing agreements and increased market access. Factors like operational efficiency, fuel management, and customer loyalty programs also play crucial roles in optimizing earnings.

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific Airways shows a strong recovery with revenue growth and improved profitability. The balance sheet is stable but highlights leverage risks. Cash flow management is robust, though recent declines in free cash flow growth need attention.

Income Statement

The company shows a strong recovery with revenue growth of 10.43% from 2023 to 2024, and a significant improvement in gross profit margin to 31.2% in 2024. Net profit margin remains stable at 9.47%, reflecting solid profitability amidst a competitive industry. However, EBIT margin dropped slightly from 16% to 13.34% and EBITDA margin improved to 20.54%, indicating operational efficiency but also pointing to increased non-operational costs.

Balance Sheet

Cathay Pacific's balance sheet indicates a moderate debt-to-equity ratio of 1.3, showing reliance on leverage, which could pose risk if market conditions worsen. Return on equity (ROE) is healthy at 18.84%, suggesting effective use of equity financing to generate profits. The equity ratio is stable at 30.65%, indicating a balanced asset financing structure, but there's room for improving the equity base to enhance financial stability.

Cash Flow

The company demonstrates robust cash flow management with a strong operating cash flow to net income ratio of 2.38, indicating efficient cash generation relative to net income. Free cash flow is positive and growing, reflecting improved cash handling and operational performance. However, the free cash flow growth rate is negative at -26.92%, suggesting a reduction in free cash flow from the previous year.

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	4.42B	836.00M	-5.55B
EBITDA	21.75B	21.45B	20.47B	16.02B	9.21B	-3.74B
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	117.56B	124.90B	131.31B
Stockholders Equity	51.65B	52.50B	60.03B	63.80B	71.72B	73.26B
Cash Flow
Free Cash Flow	13.69B	14.33B	19.61B	15.20B	6.56B	-19.03B
Operating Cash Flow	24.08B	23.54B	26.41B	18.93B	8.84B	-13.62B
Investing Cash Flow	-6.44B	-6.08B	-2.67B	-3.86B	493.00M	-12.43B
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: 12.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0293, the sentiment is Positive. The current price of 12.18 is above the 20-day moving average (MA) of 12.01, above the 50-day MA of 11.32, and above the 200-day MA of 10.48, indicating a bullish trend. The MACD of 0.23 indicates Positive momentum. The RSI at 62.40 is Neutral, neither overbought nor oversold. The STOCH value of 84.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0293.

Cathay Pacific Airways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0316	78 Outperform	$88.56B	4.21	21.38%	11.95%	28.91%	150.66%
0293	67 Neutral	$81.85B	7.93	17.73%	5.67%	8.54%	16.57%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
0019	63 Neutral	HK$84.84B	72.29	0.47%	5.13%	6.44%	-95.37%
0753	56 Neutral	£147.00B	153.70	0.20%	―	4.08%	―
1055	55 Neutral	HK$123.24B	-35.98	-6.44%	―	1.42%	3.33%
0670	54 Neutral	HK$113.52B	-29.65	-7.13%	―	4.61%	38.36%

Cathay Pacific Airways Corporate Events

Cathay Pacific Schedules Board Meeting to Announce 2025 Financial Results

Cathay Pacific Airways Limited has announced a board meeting scheduled for March 11, 2026, to discuss the annual financial results for 2025 and consider a second interim dividend payment. During the period leading up to this meeting, directors are restricted from trading company securities, reflecting compliance with stock exchange regulations.

Cathay Pacific Delays Circular for Share Buy-Back Plan

Cathay Pacific Airways has announced a delay in the dispatch of a circular related to a proposed off-market share buy-back. The delay, now extended to January 14, 2026, is due to the need for additional time to finalize financial information and advisory letters, as well as the upcoming holiday period. Shareholders and potential investors are advised to exercise caution, as the buy-back is subject to conditions that may affect its execution.

Cathay Pacific Reports Strong October Traffic Growth

Cathay Pacific Airways Limited reported significant growth in its October 2025 traffic figures, with a 21% increase in passengers and a 12% rise in cargo compared to the previous month. The company is enhancing its global network by adding new destinations and increasing flight frequencies, which is expected to strengthen its market position and cater to the rising travel demand, especially during the upcoming holiday season.

Cathay Pacific Announces Potential Off-Market Share Buy-Back

Cathay Pacific Airways has announced a possible off-market share buy-back involving 643,076,181 shares owned by Qatar Airways, representing approximately 9.57% of its issued shares. The buy-back is contingent upon approval from independent shareholders and regulatory bodies. If completed, the buy-back will increase the proportional interest of other shareholders and reduce the company’s public float to approximately 20.53%, below the minimum required by the Listing Rules. The company has received a Public Float Waiver from the Stock Exchange, conditional on disclosing the details and rationale for the waiver.

Cathay Pacific Reports Growth in September 2025 Traffic and Expands Network

Cathay Pacific Airways reported a significant increase in passenger and cargo traffic for September 2025, with a 20% rise in passengers compared to the previous year and a slight increase in cargo tonnage. The company is expanding its network with new non-stop flights between Hong Kong and Changsha and increasing frequencies on existing routes in the Chinese Mainland, positioning itself strongly in the region. The announcement highlights the company’s strategic focus on capturing travel demand, particularly in premium cabins and key markets like Japan and the UK, while also preparing for the air cargo peak season.