International Consolidated Airlines (ICAGY) AI Stock Analysis

• Market Cap: $21.01B
• Dividend Yield: 0.59%
• Average Volume (3M): 2.01K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 1.03
• Revenue Growth: 9.05%
• EPS Growth: 3.58%
• Country: US
• Employees: 52,762
• Sector: Industrials
• Sector Strength: 90
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.05
• Shares Outstanding: 2,341,857,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 2,007
• PEG Ratio: -0.28
• Price to Book (P/B): 6.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.18
• 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

• Rating: 84 Outperform
• Price Target: $10.50 ▲(13.76%Upside)

International Consolidated Airlines is well-positioned with strong financial performance, bullish technical signals, and positive earnings call highlights. The low P/E ratio suggests undervaluation, making it an attractive investment. However, the high debt level remains a risk, requiring careful monitoring.

International Consolidated Airlines Business Overview & Revenue Model

Company Description

International Consolidated Airlines Group S.A. (ICAGY), commonly known as IAG, is a leading multinational airline holding company headquartered in Madrid, Spain, and registered in the UK. It operates primarily in the aviation sector, owning and managing several major airlines, including British Airways, Iberia, Aer Lingus, and Vueling. IAG provides a wide range of services, including passenger and cargo transportation, aircraft maintenance, and related ancillary services. The company is known for its extensive network of routes across Europe, the Americas, Africa, and Asia, offering both premium and low-cost travel options to its customers.

How the Company Makes Money

International Consolidated Airlines Group generates revenue primarily through the sale of airline tickets for passenger travel across its network of airlines. The company operates under multiple brands that cater to different market segments, from premium services to low-cost options, allowing it to capture a diverse customer base. In addition to passenger revenue, IAG earns money through its cargo operations, transporting goods and freight globally. Ancillary services such as in-flight sales, seat selection, and baggage fees further contribute to its income. Strategic partnerships and participation in international alliances, such as the Oneworld alliance, enhance its global connectivity and market reach, driving additional revenue through code-sharing and joint business agreements. Moreover, IAG benefits from economies of scale in its operations, leveraging its size to negotiate favorable terms with suppliers and optimize its cost structure.

International Consolidated Airlines Financial Statement Overview

Summary

International Consolidated Airlines shows strong revenue and profit growth, with robust profitability metrics. However, a high debt-to-equity ratio poses some risk, necessitating careful financial management.

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
0.00	43.80B	37.68B	39.30B	34.41B	30.26B
	Total Debt
0.00	17.34B	16.08B	19.98B	19.61B	15.68B
	Net Debt
6.23B	9.16B	10.64B	10.79B	11.72B	9.90B
	Total Liabilities
0.00	37.63B	34.40B	37.28B	33.56B	28.95B
	Stockholders Equity
6.72B	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: Positive
• Last Price: 9.23
• 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 ICAGY, the sentiment is Positive. The current price of 9.23 is above the 20-day moving average (MA) of 8.88, above the 50-day MA of 7.67, and above the 200-day MA of 6.97, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 68.89 is Neutral, neither overbought nor oversold. The STOCH value of 85.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICAGY.

International Consolidated Airlines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICAGY	84 Outperform	$21.01B	7.45	59.10%	0.59%	9.05%	3.58%
DAL	80 Outperform	$33.27B	9.03	27.52%	1.17%	4.91%	-27.21%
UAL	76 Outperform	$27.51B	7.61	33.57%	―	5.31%	35.95%
RYAAY	74 Outperform	$29.70B	18.41	22.41%	1.46%	5.39%	-15.92%
LUV	68 Neutral	$19.08B	39.76	5.63%	2.14%	3.26%	27.77%
Sector *	66 Neutral	$4.49B	12.34	5.40%	248.65%	4.13%	-12.33%
AAL	61 Neutral	$7.77B	13.58	-21.27%	―	1.92%	36.07%