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Qantas Airways (QABSY)
OTHER OTC:QABSY
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Qantas Airways
(OTC:QABSY)
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Rating:60Neutral
Price Target:
$36.00
▲(16.96% Upside)
Qantas Airways' overall stock score is primarily influenced by its financial performance and valuation. While the company shows strong revenue growth and an attractive dividend yield, high leverage and weak technical indicators pose significant risks. Investors should be cautious of the bearish technical signals and focus on the company's ability to manage debt and improve cash flow.
Qantas Airways (QABSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.96B
Dividend Yield5.14%
Average Volume (3M)3.52K
Price to Earnings (P/E)9.8
Beta (1Y)0.69
Revenue Growth7.09%
EPS Growth37.26%
CountryUS
Employees20,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.52
Shares Outstanding302,639,860
10 Day Avg. Volume480
30 Day Avg. Volume3,520
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)21.26
Price to Sales (P/S)0.71
P/FCF Ratio36.91
Enterprise Value/Market Cap1.46
Enterprise Value/Revenue0.61
Enterprise Value/Gross Profit1.83
Enterprise Value/Ebitda3.52
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Qantas Airways Business Overview & Revenue Model
Company DescriptionQantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers passenger flying, and air cargo and express freight services; and customer loyalty recognition programs. As of June 30, 2022, the company operated a fleet of 322 aircraft under the Qantas and Jetstar brands. Qantas Airways Limited was founded in 1920 and is based in Mascot, Australia.
How the Company Makes MoneyQantas Airways generates revenue primarily through passenger ticket sales for both domestic and international flights, which constitutes the largest share of its earnings. Additionally, the airline earns revenue from cargo services, freight transport, and ancillary services such as baggage fees, in-flight services, and seat selections. Qantas also benefits significantly from its Frequent Flyer program, which allows members to earn points that can be redeemed for flights and other rewards, creating a steady stream of income through membership fees and partnerships with various retail and service providers. Furthermore, strategic partnerships and alliances with other airlines, such as the oneworld alliance, help expand its reach and enhance its revenue through code-sharing agreements. Overall, Qantas's revenue model is diversified across various channels, contributing to its financial stability.
Qantas Airways Earnings Call Summary
Earnings Call Date:Aug 27, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in financial performance, fleet renewal, and operational improvements, particularly for Jetstar and Qantas Loyalty. However, these were offset by challenges in the international segment and increased statutory costs. Overall, the company remains optimistic about future growth and fleet investments.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Qantas reported an underlying profit of $2.08 billion for FY 2024, with an underlying EPS of $0.88 per share, showcasing the strength of its dual airline brands and Qantas Loyalty.
Record Result for Jetstar
Jetstar achieved a record underlying EBIT of $497 million, up 23% from the previous year, driven by strong demand for low-fare travel and new fleet benefits.
Qantas Loyalty Growth
Qantas Loyalty achieved an underlying EBIT of $511 million, with total points earned and redeemed growing at double-digit rates. Memberships increased by 8%, and active members grew by 19%.
Fleet Renewal Progress
Investment in fleet renewal saw 16 aircraft join the fleet this year, with plans for over 40 new aircraft in the next two years, enhancing cash generation and customer experience.
Improved Operational Performance
On-time performance and customer satisfaction significantly improved, with Jetstar's on-time performance up by ten points and NPS increasing by 24 points for Qantas Domestic.
Negative Updates
Decline in Qantas International EBIT
Qantas International, including freight, recorded a decline in underlying EBIT to $556 million, affected by declining freight yields and market capacity restoration.
Statutory Profit Decrease
Statutory profit after tax fell to $1.25 billion, down $493 million from the previous year, due to one-off impacts from ACCC settlements and legal provisions.
Challenges with Same Job Same Pay Costs
The Same Job Same Pay policy is expected to add $60 million in costs for FY 2025, posing a challenge to mitigate these without immediate productivity offsets.
Company Guidance
In the Qantas Q4 2024 earnings call, the company reported an underlying profit of $2.08 billion and an underlying EPS of $0.88 per share. The statutory profit after tax was $1.25 billion, with notable investments including $230 million in customer improvements and $3.1 billion in capital expenditures, resulting in a group operating margin of 10.4%. Jetstar achieved a record underlying EBIT of $497 million, supported by the delivery of 13 new A321LRs. Qantas Domestic recorded an EBIT of $1.06 billion, while Qantas International, including freight, reported $556 million. The group's net debt stood at $4.1 billion, and they announced a $400 million share buyback. Looking forward, Qantas anticipates stable travel demand and aims for a 10% EBIT growth in its Loyalty segment, while projecting $400 million in transformation initiatives for FY '25 to offset inflationary pressures.Qantas Airways Financial Statement Overview
Summary
Qantas Airways shows strong revenue growth and improving profitability, but faces challenges with high leverage and cash flow volatility. The company needs to manage its debt levels and improve cash flow generation to ensure long-term financial stability.Income Statement
Qantas Airways has shown consistent revenue growth over the past few years, with a notable increase in gross profit margin, indicating improved operational efficiency. The net profit margin has also improved, reflecting better profitability. However, the EBIT and EBITDA margins have been fluctuating, suggesting some volatility in operational performance.72
Positive
Balance Sheet
The company has a high debt-to-equity ratio, which poses a risk of financial instability. Although the return on equity has improved, it remains low due to the high leverage. The equity ratio is weak, indicating a heavy reliance on debt financing, which could be a concern in times of economic downturn.55
Neutral
Cash Flow
Operating cash flow has been positive and growing, which is a positive sign for liquidity. However, the free cash flow growth rate has been negative recently, indicating challenges in generating cash after capital expenditures. The ratios of operating and free cash flow to net income suggest that cash generation is not fully aligned with reported earnings.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 23.82B | 23.41B | 21.62B | 19.82B | 9.11B | 5.93B |
| Gross Profit | 7.95B | 12.76B | 11.46B | 7.00B | 1.91B | 1.57B |
| EBITDA | 4.12B | 4.54B | 3.90B | 4.52B | -70.00M | -176.00M |
| Net Income | 1.60B | 1.60B | 1.25B | 1.75B | -860.00M | -1.73B |
Balance Sheet | ||||||
| Total Assets | 23.36B | 23.36B | 20.56B | 20.35B | 19.65B | 17.88B |
| Cash, Cash Equivalents and Short-Term Investments | 2.36B | 2.36B | 1.98B | 3.25B | 3.98B | 2.22B |
| Total Debt | 7.96B | 7.96B | 6.59B | 6.73B | 7.23B | 8.23B |
| Total Liabilities | 22.57B | 22.57B | 20.27B | 20.34B | 19.84B | 17.36B |
| Stockholders Equity | 778.00M | 778.00M | 289.00M | 5.00M | -197.00M | 513.00M |
Cash Flow | ||||||
| Free Cash Flow | 335.00M | 448.00M | 680.00M | 2.49B | 1.75B | -1.15B |
| Operating Cash Flow | 4.25B | 4.25B | 3.44B | 5.05B | 2.65B | -407.00M |
| Investing Cash Flow | -3.81B | -3.81B | -2.89B | -2.59B | -240.00M | -722.00M |
| Financing Cash Flow | 42.00M | 42.00M | -2.01B | -2.63B | -1.31B | -181.00M |
Qantas Airways Technical Analysis
Negative
30.78
Price Trends
35.73
Negative
35.27
Negative
32.19
Negative
Market Momentum
-0.91
Positive
24.07
Positive
0.09
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QABSY, the sentiment is Negative. The current price of 30.78 is below the 20-day moving average (MA) of 34.30, below the 50-day MA of 35.73, and below the 200-day MA of 32.19, indicating a bearish trend. The MACD of -0.91 indicates Positive momentum. The RSI at 24.07 is Positive, neither overbought nor oversold. The STOCH value of 0.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QABSY.
Qantas Airways Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $37.75B | 8.15 | 28.52% | 1.15% | 4.33% | -1.58% | |
69 Neutral | $12.61B | 11.23 | 161.29% | 2.29% | 5.07% | 62.83% | |
68 Neutral | $30.99B | 9.76 | 25.59% | ― | 4.24% | 20.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $8.68B | 16.41 | ― | ― | 1.27% | 118.64% | |
61 Neutral | $16.30B | 48.02 | 4.22% | 2.22% | 0.65% | ― | |
60 Neutral | $9.96B | 9.77 | 296.72% | 5.14% | 7.09% | 37.26% |
* Industrials Sector Average
QABSY
Qantas Airways
30.78
4.16
15.63%
DAL
Delta Air Lines
58.88
-3.93
-6.26%
LUV
Southwest Airlines
32.45
0.53
1.66%
UAL
United Airlines Holdings
97.43
8.00
8.95%
AAL
American Airlines
13.65
-0.51
-3.60%
LTM
LATAM Airlines Group SA Sponsored ADR
44.02
17.56
66.36%
Qantas Airways Corporate Events
Qantas Airways Reports Strong Financial Growth
Aug 28, 2025
Qantas Airways Limited, a major player in the aviation industry, is renowned for its comprehensive domestic and international flight services, as well as its loyalty program and freight operations.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.