Swire Pacific (SWRAY) AI Stock Analysis

• Market Cap: $10.80B
• Dividend Yield: 5.24%
• Average Volume (3M): 5.90K
• Price to Earnings (P/E): 71.2
• Beta (1Y): -0.04
• Revenue Growth: 6.84%
• EPS Growth: -95.35%
• Country: US
• Employees: 87,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.51
• Shares Outstanding: 778,988,000
• 10 Day Avg. Volume: 3,156
• 30 Day Avg. Volume: 5,903
• PEG Ratio: -0.27
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 16.98
• Enterprise Value/Market Cap: 2.69
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 0.89
• Enterprise Value/Ebitda: 1.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: $9.50 ▲(13.37% Upside)

Swire Pacific's overall stock score is driven by its strong financial stability and positive earnings call insights, particularly in the Property and Aviation sectors. However, high valuation metrics and mixed technical indicators temper the score. The company's robust dividend yield and strategic investments provide a positive outlook, but challenges in profitability and certain market segments remain.

Swire Pacific Business Overview & Revenue Model

Company Description

Swire Pacific Limited engages in property, aviation, beverages, marine, and trading and industrial businesses in Hong Kong, Mainland China, rest of Asia, the United States, and internationally. The company's Property division develops, owns, and operates mixed-use properties. This division's property investment portfolio comprises office and retail premises, serviced apartments, other luxury residential accommodations, and commercial mixed-use developments; and trading portfolio consists of residential properties. It also owns and manages two hotels in Hong Kong and four hotels in Mainland China, as well as owns interests in the Mandarin Oriental hotel in the United States. The company's Aviation division provides flight catering and ramp, passenger and cargo services, and aircraft maintenance and modification services. As of December 31, 2021, it had a fleet of 234 aircraft. Its Beverages division owns rights to manufacture, market, and distribute refreshing soft drinks to consumers. The company's Trading & Industrial division retails and distributes footwear, apparel, and accessories through its 164 retail outlets; sells passenger cars, commercial vehicles, motorcycles, and scooters; operates a chain of 538 bakery stores; packages and sells sugar products under the Taikoo Sugar brand; and offers waste management services. The company was founded in 1816 and is based in Central, Hong Kong.

How the Company Makes Money

Swire Pacific generates revenue through multiple streams across its diversified business sectors. Primarily, the company makes money from its property segment, which includes rental income from commercial and residential properties and profits from property sales. Its aviation sector contributes significantly through its stake in Cathay Pacific Airways, earning money from passenger and cargo services. The beverages segment, through its partnership with Coca-Cola, generates revenue from the production and distribution of soft drinks. Other revenue streams include marine services, which provide logistics and operational support, and trading and industrial activities. Key partnerships, particularly in the beverage sector, enhance its distribution capabilities and market reach, contributing to the overall earnings of the company.

Swire Pacific Financial Statement Overview

Summary

Swire Pacific maintains a solid financial position with a strong balance sheet and consistent cash flows. However, the income statement shows challenges with declining profitability and revenue, which are mitigated by the company's balance sheet strength and adequate cash flow.

Income Statement

Swire Pacific's income statement reflects stable performance with a slight decline in revenue from 2023 to 2024. Gross profit margin is strong at around 37.2%, but net profit margin dipped significantly to 5.27% in 2024 from a higher 30.42% in 2023. The EBIT and EBITDA margins have also contracted from 32.29% and 42.80% in 2023 to 5.17% and 17.84% in 2024, indicating decreased operational efficiency.

Balance Sheet

The balance sheet shows a robust equity ratio of 54.20% in 2024, demonstrating financial stability with strong shareholder equity. However, the debt-to-equity ratio increased slightly to 0.37, indicating a manageable level of leverage. The return on equity has dropped significantly from 10.76% in 2023 to 1.67% in 2024, reflecting lower profitability.

Cash Flow

Operating cash flow remains healthy at over $10 billion, with a consistent free cash flow, though it decreased slightly in 2024. The operating cash flow to net income ratio is strong at 2.42, indicating efficient cash management. However, the free cash flow to net income ratio shows a decline as net income reduced significantly.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.18B	81.97B	94.82B	91.17B	90.80B	78.36B
Gross Profit	32.69B	30.46B	35.15B	34.19B	35.28B	30.50B
EBITDA	15.69B	14.62B	40.58B	16.07B	16.41B	13.79B
Net Income	1.22B	4.32B	28.85B	4.20B	5.12B	-11.00B
Balance Sheet
Total Assets	480.03B	476.56B	447.75B	434.77B	436.32B	433.11B
Cash, Cash Equivalents and Short-Term Investments	26.84B	21.03B	14.08B	11.61B	22.89B	29.26B
Total Debt	103.84B	96.61B	74.90B	73.29B	66.89B	73.32B
Total Liabilities	165.94B	157.89B	122.98B	118.83B	112.15B	113.96B
Stockholders Equity	257.88B	258.30B	268.13B	258.46B	266.95B	262.69B
Cash Flow
Free Cash Flow	8.25B	5.89B	6.32B	4.73B	7.45B	8.46B
Operating Cash Flow	13.39B	10.46B	9.92B	8.16B	11.66B	11.46B
Investing Cash Flow	-9.40B	-14.60B	13.03B	-17.54B	-6.34B	1.73B
Financing Cash Flow	5.02B	12.62B	-21.73B	-1.40B	-12.34B	-5.69B

Swire Pacific Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWRAY, the sentiment is Negative. The current price of 8.38 is above the 20-day moving average (MA) of 8.36, below the 50-day MA of 8.50, and below the 200-day MA of 8.45, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 46.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SWRAY.

Swire Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HON	―	$136.13B	22.59	35.85%	2.11%	7.48%	9.55%
VMI	―	$8.24B	35.92	14.90%	0.63%	1.23%	-22.77%
SWRAY	―	$10.80B	71.19	0.47%	5.24%	6.84%	-95.35%
MMM	―	$89.51B	26.93	73.38%	1.73%	-13.09%	-20.63%
GFF	―	$3.57B	57.24	48.69%	0.94%	-3.37%	-61.83%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
IEP	―	$4.68B	―	-21.56%	24.48%	-11.23%	-6.85%

Swire Pacific Corporate Events

Swire Pacific’s 2025 Interim Report: Resilience Amid Challenges

Swire Pacific Limited is a Hong Kong-based international conglomerate with a diversified portfolio, focusing on property, beverages, and aviation sectors, primarily in Greater China and Southeast Asia. The company’s interim report for 2025 highlights a challenging yet resilient performance amidst uncertain economic conditions. Swire Pacific reported a 16% increase in revenue to HK$45,774 million, though profit attributable to shareholders fell by 79% to HK$815 million due to higher fair value losses on investment properties. The company maintained a strong balance sheet with HK$52.6 billion in available liquidity and a gearing ratio of 22.7%. Key strategic developments include significant investments in property and aviation, with Swire Properties advancing its HK$100 billion investment plan and the Cathay group expanding its fleet and services. Looking ahead, Swire Pacific remains optimistic about long-term growth, focusing on core markets and sustainable development, despite short-term challenges in the macroeconomic environment.

Swire Pacific’s Earnings Call: Cautious Optimism Amid Challenges

Swire Pacific’s recent earnings call conveyed a cautiously optimistic sentiment, highlighting strong performances in its Property division and Aviation sector. The company celebrated successful residential sales in the Chinese Mainland and maintained a robust dividend policy. However, challenges in the Southeast Asia beverage market and softness in the Hong Kong office market were noted as significant concerns. Overall, the positive aspects slightly outweigh the negatives, indicating a cautiously optimistic outlook.