Swire Pacific (SWRAY) AI Stock Analysis

• Market Cap: $13.73B
• Dividend Yield: 5.04%
• Average Volume (3M): 5.90K
• Price to Earnings (P/E): 28.9
• Beta (1Y): -0.06
• Revenue Growth: 6.84%
• EPS Growth: -95.35%
• Country: US
• Employees: 87,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Conglomerates
• EPS (TTM): 0.20
• Shares Outstanding: 778,988,000
• 10 Day Avg. Volume: 3,156
• 30 Day Avg. Volume: 5,903
• PEG Ratio: -1.01
• Price to Book (P/B): 0.33
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 9.48
• Enterprise Value/Market Cap: 14.21
• Enterprise Value/Revenue: 2.16
• Enterprise Value/Gross Profit: 5.79
• Enterprise Value/Ebitda: 15.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.06
• Revenue Forecast (FY): $12.18B

• Rating: 71 Outperform
• Price Target: $12.00 ▲(41.51% Upside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by solid financial resilience (strong balance sheet and reliable cash generation) and supportive technical momentum. These positives are tempered by uneven profitability and a relatively high P/E multiple, while the latest earnings call was moderately constructive but flagged regional and profit headwinds.

Positive Factors

Robust equity ratio

A 54.2% equity ratio and modest leverage (debt-to-equity ~0.37) indicate a strong capital base. This durable financial strength gives Swire flexibility to fund development projects, absorb property valuation swings, maintain dividends and pursue opportunistic M&A without stressing liquidity over the medium term.

Strong cash generation

Sustained operating cash flow above $10 billion and an operating cash flow to net income ratio of 2.42 show durable cash conversion. Reliable cash generation supports a progressive dividend policy, funds capex for property and beverage expansions, and provides buffer against cyclical revenue dips.

Diversified, growth-focused portfolio

Broad exposure across property, aviation, beverages and marine, plus a committed HKD 100bn property program (67% committed and seven mainland projects underway) and beverage plant investments, creates multiple durable earnings engines and reduces single-market concentration risk over the medium term.

Negative Factors

Plummeting ROE

ROE collapsing to 1.67% signals a sharp deterioration in capital efficiency. Persistently low ROE can erode shareholder value, limit retained-earnings reinvestment appeal, and signal the need for structural changes or asset reallocations if margins and returns are not restored over several quarters.

Margin contraction

Material declines in net profit, EBIT and EBITDA margins reflect weaker operational profitability and one-off valuation effects. Sustained margin compression would reduce free cash flow, constrain reinvestment and dividend capacity, and leave earnings more vulnerable to revenue shocks over the medium term.

Beverages regional headwinds

Significant EBITDA declines in SE Asia, currency depreciation, competitive pressures, relocation expenses and sugar-tax impacts are structural risks in key markets. These factors can persist, reducing growth and margins in the beverages division and slowing overall group earnings recovery if not resolved.

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 key streams. Its property division, Swire Properties, earns income through leasing and selling residential and commercial properties, benefiting from the high demand in Hong Kong and mainland China. The aviation segment, represented by Cathay Pacific, contributes significantly through passenger and cargo transport services, though it can be affected by global travel trends and economic conditions. The beverages sector, under Swire Beverages, profits from the production and distribution of soft drinks, primarily Coca-Cola products in the Asia-Pacific region. Additionally, Swire Pacific engages in marine services and trading activities, providing further revenue diversification. Strategic partnerships with global brands and entities in various sectors enhance its market position and profitability, while investments in infrastructure and sustainable projects are aimed at long-term growth.

Swire Pacific Financial Statement Overview

Summary

Financial strength is anchored by a robust balance sheet (high equity base, moderating leverage) and consistently positive operating/free cash flow with improvement in 2024–2025. The main drag is an inconsistent earnings profile, including a sharp revenue decline in 2024 and a material step-down in profitability after an unusually strong 2023.

Income Statement

Revenue has been relatively stable over the cycle, with a sharp decline in 2024 followed by a modest rebound in 2025. Profitability is volatile: net income swung from a large loss in 2020 to an unusually strong 2023, then stepped down materially in 2024–2025. Gross profit has been steady in absolute terms, but overall earnings power appears inconsistent year-to-year, which limits confidence in the durability of margins.

Balance Sheet

The balance sheet is a clear strength, supported by a very large equity base relative to debt and substantial total assets. Leverage appears moderate and generally improving, with debt levels down meaningfully by 2025 versus prior years, which increases financial flexibility. The main weakness is that shareholder returns have been uneven (strong in 2023, much lower in other years), indicating the asset base has not consistently translated into steady profitability.

Cash Flow

Cash generation is solid: operating cash flow is consistently positive across all years and improved in 2024–2025, while free cash flow also remains positive and grew strongly in 2025 after a softer 2024. Free cash flow has generally covered a meaningful portion of earnings when profits are positive, supporting reinvestment and capital return capacity. The key drawback is variability in free cash flow growth and periods where profits and cash flow trends do not move in lockstep, underscoring some cyclicality and earnings-quality noise.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	90.31B	81.97B	94.82B	91.17B	90.80B
Gross Profit	33.68B	30.46B	35.15B	34.19B	35.28B
EBITDA	10.86B	14.62B	40.58B	16.07B	16.41B
Net Income	2.93B	4.32B	28.85B	4.20B	5.12B
Balance Sheet
Total Assets	476.37B	476.56B	447.75B	434.77B	436.32B
Cash, Cash Equivalents and Short-Term Investments	23.17B	21.03B	14.08B	11.61B	22.89B
Total Debt	27.01B	96.61B	74.90B	73.29B	66.89B
Total Liabilities	160.16B	157.89B	122.98B	118.83B	112.15B
Stockholders Equity	259.55B	258.30B	268.13B	258.46B	266.95B
Cash Flow
Free Cash Flow	8.94B	5.89B	6.32B	4.73B	7.45B
Operating Cash Flow	14.53B	10.46B	9.92B	8.16B	11.66B
Investing Cash Flow	-1.69B	-14.60B	13.03B	-17.54B	-6.34B
Financing Cash Flow	-12.30B	12.62B	-21.73B	-1.40B	-12.34B

Swire Pacific Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWRAY, the sentiment is Positive. The current price of 8.48 is below the 20-day moving average (MA) of 10.61, below the 50-day MA of 10.00, and below the 200-day MA of 8.91, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 71.35 is Negative, neither overbought nor oversold. The STOCH value of 99.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWRAY.

Swire Pacific Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMI	75 Outperform	$7.66B	23.29	20.28%	0.63%	1.23%	-22.77%
SWRAY	71 Outperform	$13.73B	28.91	1.14%	5.04%	6.84%	-95.35%
HON	69 Neutral	$140.80B	24.26	31.25%	2.24%	7.48%	9.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GFF	62 Neutral	$3.18B	12.77	38.69%	1.01%	-3.95%	-74.65%
MMM	55 Neutral	$74.37B	26.32	71.89%	1.82%	-13.09%	-20.63%
IEP	49 Neutral	$4.81B	-14.82	-10.91%	27.59%	-8.45%	27.66%