International Consolidated Airlines (ICAGY) AI Stock Analysis

• Market Cap: $24.27B
• Dividend Yield: 1.96%
• Average Volume (3M): 9.03K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 1.05
• Revenue Growth: 9.38%
• EPS Growth: 21.02%
• Country: US
• Employees: 52,762
• Sector: Industrials
• Sector Strength: 74
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.56
• Shares Outstanding: 2,313,013,700
• 10 Day Avg. Volume: 4,816
• 30 Day Avg. Volume: 9,030
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 5.99
• 1Y Price Target: $11.50
• Price Target Upside: 8.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: $11.50 ▲(8.80% Upside)

International Consolidated Airlines receives a strong overall score driven by robust financial performance and an encouraging earnings call. Valuation metrics are attractive, supporting investment potential. Technical indicators show positive momentum, albeit with some caution needed due to operational challenges highlighted in the earnings call.

International Consolidated Airlines Business Overview & Revenue Model

Company Description

International Consolidated Airlines Group, S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the United Kingdom, Spain, Ireland, the United States, and rest of the world. The company operates under the British Airways, Iberia, Vueling, Aer Lingus, and LEVEL brands. It operates a fleet of 531 aircraft. The company was incorporated in 2009 and is based in Madrid, Spain.

How the Company Makes Money

ICAGY generates revenue through multiple streams, with the primary source being ticket sales from passenger flights. The company offers various fare classes, including economy, premium economy, business, and first class, catering to different market segments. Ancillary revenue is also significant, comprising fees from baggage, seat selection, and in-flight services. Additionally, ICAGY earns money through its cargo services, transporting goods and freight globally. The company has established strategic partnerships and alliances with other airlines, enabling code-sharing agreements that expand its network and increase passenger load factors. Furthermore, loyalty programs and travel packages contribute to revenue, enhancing customer retention and encouraging repeat business. Economic factors, fuel prices, and travel demand also play critical roles in influencing the company's overall earnings.

International Consolidated Airlines Financial Statement Overview

Summary

International Consolidated Airlines has demonstrated strong financial performance with significant revenue and profit growth, and effective cash flow management. The high debt-to-equity ratio is a concern but is offset by impressive return on equity and efficient operations.

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	32.72B	32.10B	29.45B	23.07B	8.46B	7.81B
Gross Profit	8.31B	7.58B	7.91B	5.36B	164.00M	-1.10B
EBITDA	5.07B	6.83B	4.43B	2.20B	-2.25B	-5.08B
Net Income	2.91B	2.73B	2.65B	431.00M	-2.93B	-6.93B
Balance Sheet
Total Assets	0.00	43.80B	37.68B	39.30B	34.41B	30.26B
Cash, Cash Equivalents and Short-Term Investments	9.80B	9.80B	6.81B	9.57B	7.91B	5.88B
Total Debt	0.00	17.34B	16.08B	19.98B	19.61B	15.68B
Total Liabilities	-6.18B	37.63B	34.40B	37.28B	33.56B	28.95B
Stockholders Equity	6.18B	6.17B	3.27B	2.02B	840.00M	1.31B
Cash Flow
Free Cash Flow	3.20B	3.56B	1.32B	960.00M	-885.00M	-5.24B
Operating Cash Flow	4.62B	6.37B	4.86B	4.83B	-141.00M	-3.30B
Investing Cash Flow	0.00	-2.50B	-3.42B	-3.46B	-181.00M	1.56B
Financing Cash Flow	0.00	-1.18B	-5.19B	-56.00M	2.23B	3.67B

International Consolidated Airlines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.57
• 50DMA: Positive
• 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 ICAGY, the sentiment is Positive. The current price of 10.57 is above the 20-day moving average (MA) of 10.43, above the 50-day MA of 10.10, and above the 200-day MA of 8.25, indicating a bullish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 66.85 is Neutral, 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
UAL	82 Outperform	$34.33B	10.63	27.70%	―	4.23%	13.13%
ICAGY	81 Outperform	$24.27B	7.48	56.20%	1.96%	9.38%	21.02%
DAL	80 Outperform	$39.54B	8.89	30.07%	1.04%	3.01%	-0.90%
RYAAY	75 Outperform	$29.63B	14.69	27.12%	1.40%	10.61%	37.32%
AAL	66 Neutral	$8.49B	16.53	-21.27%	―	1.50%	―
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
LUV	58 Neutral	$16.34B	46.80	4.30%	2.29%	1.64%	284.24%