Qantas Airways
Market Cap
AU$4.7b
Last Updated
2020/04/08 10:31 UTC
Data Sources
Company Financials +
Executive Summary
Qantas Airways Limited provides passenger and freight air transportation services in Australia and internationally.
Rewards
Risk Analysis
Snowflake Analysis
High growth potential, good value and pays a dividend.
Similar Companies
Share Price & News
How has Qantas Airways's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: QAN's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-3.8%
QAN
-1.7%
AU Airlines
4.0%
AU Market
1 Year Return
-43.4%
QAN
-46.3%
AU Airlines
-16.5%
AU Market
Return vs Industry: QAN exceeded the Australian Airlines industry which returned -46.3% over the past year.
Return vs Market: QAN underperformed the Australian Market which returned -16.5% over the past year.
Shareholder returns
| QAN | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.8% | -1.7% | 4.0% |
| 30 Day | -21.7% | -28.6% | -15.4% |
| 90 Day | -53.2% | -45.0% | -23.5% |
| 1 Year | -40.7%-43.4% | -45.1%-46.3% | -12.8%-16.5% |
| 3 Year | -8.3%-17.7% | -39.1%-42.7% | -0.9%-14.5% |
| 5 Year | 10.6%-10.2% | -39.7%-45.0% | 11.2%-13.9% |
Price Volatility Vs. Market
How volatile is Qantas Airways's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 weeks ago | Simply Wall St
Those Who Purchased Qantas Airways (ASX:QAN) Shares A Year Ago Have A 27% Loss To Show For It1 month ago | Simply Wall St
Here's What We Like About Qantas Airways Limited (ASX:QAN)'s Upcoming Dividend1 month ago | Simply Wall St
Qantas Airways Limited Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their ModelsValuation
Is Qantas Airways undervalued compared to its fair value and its price relative to the market?
0.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: QAN (A$3.25) is trading below our estimate of fair value (A$3.28)
Significantly Below Fair Value: QAN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: QAN is good value based on its PE Ratio (5.9x) compared to the Airlines industry average (6.7x).
PE vs Market: QAN is good value based on its PE Ratio (5.9x) compared to the Australian market (13.4x).
Price to Earnings Growth Ratio
PEG Ratio: QAN is good value based on its PEG Ratio (0.1x)
Price to Book Ratio
PB vs Industry: QAN is overvalued based on its PB Ratio (1.8x) compared to the XX Airlines industry average (0.8x).
Next Steps
Future Growth
How is Qantas Airways forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
44.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: QAN's forecast earnings growth (44.5% per year) is above the savings rate (1.1%).
Earnings vs Market: QAN's earnings (44.5% per year) are forecast to grow faster than the Australian market (10.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: QAN's revenue (6.7% per year) is forecast to grow faster than the Australian market (4.1% per year).
High Growth Revenue: QAN's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: QAN's Return on Equity is forecast to be high in 3 years time (29.3%)
Next Steps
Past Performance
How has Qantas Airways performed over the past 5 years?
26.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: QAN has high quality earnings.
Growing Profit Margin: QAN's current net profit margins (4.8%) are higher than last year (4.7%).
Past Earnings Growth Analysis
Earnings Trend: QAN has become profitable over the past 5 years, growing earnings by 26.9% per year.
Accelerating Growth: QAN's earnings growth over the past year (6.3%) is below its 5-year average (26.9% per year).
Earnings vs Industry: QAN earnings growth over the past year (6.3%) exceeded the Airlines industry 5.1%.
Return on Equity
High ROE: Whilst QAN's Return on Equity (31.91%) is high, this metric is skewed due to their high level of debt.
Next Steps
Financial Health
How is Qantas Airways's financial position?
Financial Position Analysis
Short Term Liabilities: QAN's short term assets (A$3.6B) do not cover its short term liabilities (A$8.7B).
Long Term Liabilities: QAN's short term assets (A$3.6B) do not cover its long term liabilities (A$8.9B).
Debt to Equity History and Analysis
Debt Level: QAN's debt to equity ratio (196.9%) is considered high.
Reducing Debt: QAN's debt to equity ratio has increased from 179.8% to 196.9% over the past 5 years.
Debt Coverage: QAN's debt is well covered by operating cash flow (52.9%).
Interest Coverage: QAN's interest payments on its debt are well covered by EBIT (8.8x coverage).
Balance Sheet
Next Steps
Dividend
What is Qantas Airways's current dividend yield, its reliability and sustainability?
8.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: QAN's dividend (8.31%) is higher than the bottom 25% of dividend payers in the Australian market (3.01%).
High Dividend: QAN's dividend (8.31%) is in the top 25% of dividend payers in the Australian market (7.94%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, QAN has been paying a dividend for less than 10 years.
Growing Dividend: QAN's dividend payments have increased, but the company has only paid a dividend for 4 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (47.7%), QAN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: QAN's dividends in 3 years are forecast to be well covered by earnings (34% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Alan Joyce (53yo)
11.42s
Tenure
AU$6,565,000
Compensation
Mr. Alan Joseph Joyce, AC, BApplSc(Phy)(Math)(Hons), MSc(MgtSc), MA, FRAeS, FTSE has been the Chief Executive Officer and President of Qantas Group at Qantas Freight Enterprises Ltd. since November 2008 an ...
CEO Compensation Analysis
Compensation vs Market: Alan's total compensation ($USD4.06M) is above average for companies of similar size in the Australian market ($USD2.52M).
Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 11.42yrs | AU$6.57m | 0.20% A$9.5m | |
| Chief Executive Officer of Qantas Loyalty | 2.67yrs | AU$1.95m | no data | |
| Chief Executive Officer of Qantas Domestic & Freight | 5.08yrs | AU$2.37m | no data | |
| Chief Executive Officer of Jetstar Group | 2.67yrs | AU$2.60m | no data | |
| Chief Executive Officer of Qantas International | 0.50yr | AU$2.33m | no data | |
| Chief Financial Officer | 0.50yr | no data | no data | |
| Group Executive | no data | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| General Counsel | 7.42yrs | no data | no data | |
| Head of Fuel & Environment | 7.58yrs | no data | no data |
3.9yrs
Average Tenure
53yo
Average Age
Experienced Management: QAN's management team is considered experienced (3.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 11.42yrs | AU$6.57m | 0.20% A$9.5m | |
| Independent Non Executive Director | 11.75yrs | AU$317.00k | 0.020% A$915.7k | |
| Independent Chairman | 1.5yrs | AU$584.00k | 0.0089% A$413.6k | |
| Independent Non-Executive Director | 2yrs | AU$283.00k | 0.0011% A$51.3k | |
| Independent Non-Executive Director | 1.5yrs | AU$162.00k | 0.0036% A$165.5k | |
| Independent Non-Executive Director | 11.83yrs | AU$320.00k | 0.0031% A$142.2k | |
| Independent Non-Executive Director | 4yrs | AU$223.00k | 0.0010% A$47.6k | |
| Independent Non-Executive Director | 6.67yrs | AU$211.00k | 0.0026% A$121.2k | |
| Independent Non-Executive Director | 6.67yrs | AU$364.00k | 0.0021% A$95.6k | |
| Independent Non-Executive Director | 5.17yrs | AU$271.00k | 0.00096% A$44.8k |
5.9yrs
Average Tenure
61yo
Average Age
Experienced Board: QAN's board of directors are considered experienced (5.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: QAN insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Qantas Airways Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Qantas Airways Limited
- Ticker: QAN
- Exchange: ASX
- Founded: 1920
- Industry: Airlines
- Sector: Transportation
- Market Cap: AU$4.662b
- Shares outstanding: 1.47b
- Website: https://www.qantas.com
Number of Employees
Location
- Qantas Airways Limited
- 10 Bourke Road
- Mascot
- New South Wales
- 2020
- Australia
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| QUBS.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Aug 1995 |
| QAN | ASX (Australian Securities Exchange) | Yes | Ordinary Shares | AU | AUD | Aug 1995 |
| QAN | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Aug 1995 |
| QAN | CHIA (Chi-X Australia) | Yes | Ordinary Shares | AU | AUD | Aug 1995 |
| QABS.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR NE | US | USD | Apr 2014 |
Biography
Qantas Airways Limited provides passenger and freight air transportation services in Australia and internationally. The company also offers air cargo and express freight services; and customer loyalty programs. As of June 30, 2019, it operated a fleet of 314 aircraft. The company was founded in 1920 and is headquartered in Mascot, Australia.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/08 10:31 |
| End of Day Share Price | 2020/04/08 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.