International Consolidated Airlines (ICAGY) AI Stock Analysis

• Market Cap: $14.34B
• Dividend Yield: 0.89%
• Average Volume (3M): 16.31K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.07
• Revenue Growth: 9.05%
• EPS Growth: 3.58%
• Country: US
• Employees: 52,762
• Sector: Industrials
• Sector Strength: 61
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 1.21
• Shares Outstanding: 2,384,762,200
• 10 Day Avg. Volume: 48,927
• 30 Day Avg. Volume: 16,309
• PEG Ratio: 1.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.55
• Price to Cash Flow (P/CF): 1.80
• P/FCF Ratio: 2.40
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

International Consolidated Airlines receives a well-rounded score of 73.0. The company shows strong financial recovery and profitability, supported by effective cash flow management. Although technical indicators suggest bearish trends, the stock is undervalued with a strong earnings outlook. Challenges such as high debt levels and operational issues at Aer Lingus require careful management.

International Consolidated Airlines Business Overview & Revenue Model

Company Description

International Consolidated Airlines Group, S.A. (ICAGY) is a leading global airline holding company, based in Spain and the United Kingdom. The group operates through its principal airline brands, including British Airways, Iberia, Aer Lingus, Vueling, and LEVEL. ICAGY offers passenger and cargo air transportation services across Europe, the Americas, Africa, and Asia, catering to both business and leisure travelers. The company's portfolio of airlines provides a range of flight options from low-cost to premium services, contributing to its extensive market reach and customer base.

How the Company Makes Money

International Consolidated Airlines Group (ICAGY) generates revenue primarily through the sale of passenger tickets, which constitute the bulk of its earnings. The company offers a variety of fare classes and services, from budget-friendly options to premium cabins, allowing it to cater to a diverse customer base. Additionally, ICAGY earns money through ancillary services, including baggage fees, seat selection, and in-flight purchases, which enhance the overall travel experience and increase revenue per passenger. Cargo operations, facilitated by its extensive flight network, also contribute a significant portion of the group's income. Strategic partnerships and alliances, such as membership in the oneworld alliance, play a crucial role in expanding its global reach and customer offerings, boosting both passenger and cargo revenues. The group's financial performance is further supported by its focus on operational efficiency and cost management, which helps maintain profitability amid fluctuating demand and market conditions.

International Consolidated Airlines Financial Statement Overview

Summary

International Consolidated Airlines has demonstrated a strong financial recovery with remarkable revenue and profit growth, supported by effective cash flow management. The high debt-to-equity ratio suggests a need for prudent financial management to ensure long-term stability, but the company's financial performance positions it well within the transportation industry.

Income Statement

International Consolidated Airlines has demonstrated a substantial recovery in its financial performance, with total revenue growing from $29.45 billion in 2023 to $32.1 billion in 2024, resulting in a revenue growth rate of 8.73%. The gross profit margin stands at 23.61%, while the net profit margin is 8.51%, indicating strong profitability relative to revenue. The EBIT margin of 13.34% and EBITDA margin of 21.27% further highlight efficient operations and cost management. These metrics reflect robust profitability and a positive growth trajectory, positioning the company strongly in the transportation sector.

Balance Sheet

The company's balance sheet is marked by a relatively high debt-to-equity ratio of 2.81, reflecting significant leverage, which poses potential risks in terms of financial stability. However, the return on equity (ROE) is impressive at 44.26%, signaling effective use of equity to generate profits. The equity ratio of 14.09% indicates a moderate level of shareholder equity in relation to total assets. The company's ability to manage its liabilities and equity efficiently is evident, though the high leverage warrants careful monitoring to mitigate risks.

Cash Flow

International Consolidated Airlines showcases strong cash flow management, with a free cash flow growth rate of 169.39% from 2023 to 2024. The operating cash flow to net income ratio is 2.33, reflecting robust cash generation relative to net income, while the free cash flow to net income ratio of 1.30 indicates healthy cash flow available for investment and debt repayment. These metrics underscore the company's strong cash position and ability to support its operations and strategic initiatives.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
21.95B	32.10B	29.45B	23.07B	8.46B	7.81B
	Gross Profit
5.30B	7.58B	7.91B	5.36B	164.00M	-1.10B
	EBIT
1.88B	4.28B	3.51B	1.39B	-2.94B	-4.34B
	EBITDA
2.60B	6.83B	4.43B	2.20B	-2.25B	-5.08B
	Net Income Common Stockholders
1.41B	2.73B	2.65B	431.00M	-2.93B	-6.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.23B	9.80B	6.81B	9.57B	7.91B	5.88B
	Total Assets
28.03B	43.80B	37.68B	39.30B	34.41B	30.26B
	Total Debt
7.51B	17.34B	16.08B	19.98B	19.61B	15.68B
	Net Debt
3.71B	9.16B	10.64B	10.79B	11.72B	9.90B
	Total Liabilities
21.31B	37.63B	34.40B	37.28B	33.56B	28.95B
	Stockholders Equity
6.71B	6.17B	3.27B	2.02B	840.00M	1.31B
Cash Flow		Free Cash Flow
1.77B	3.56B	1.32B	960.00M	-885.00M	-5.24B
	Operating Cash Flow
5.20B	6.37B	4.86B	4.83B	-141.00M	-3.30B
	Investing Cash Flow
-1.27B	-2.50B	-3.42B	-3.46B	-181.00M	1.56B
	Financing Cash Flow
-4.45B	-1.18B	-5.19B	-56.00M	2.23B	3.67B

International Consolidated Airlines Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICAGY, the sentiment is Negative. The current price of 6.37 is below the 20-day moving average (MA) of 6.98, below the 50-day MA of 7.82, and above the 200-day MA of 6.21, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of -0.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ICAGY.

International Consolidated Airlines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAL	77 Outperform	$23.19B	7.51	28.63%	―	6.23%	20.08%
DAL	75 Outperform	$28.60B	7.85	27.52%	1.24%	4.91%	-27.21%
ICAGY	73 Outperform	$14.34B	4.96	59.10%	0.89%	9.05%	3.58%
RYAAY	73 Outperform	$21.43B	13.37	21.21%	1.91%	5.39%	-15.92%
LUV	64 Neutral	$16.39B	37.85	4.50%	2.52%	5.34%	-6.20%
Sector *	62 Neutral	$7.68B	13.06	3.21%	3.34%	3.62%	-14.40%
AAL	52 Neutral	$7.31B	10.03	-21.27%	―	2.70%	2.20%