QAN

Qantas AirwaysASX:QAN Stock Report

Market Cap

AU$10.2b

7D

2.4%

1Y

36.9%

Updated

16 Sep, 2021

Data

Company Financials +
QAN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth6/6
Past Performance0/6
Financial Health1/6
Dividends0/6

QAN Overview

Qantas Airways Limited provides passenger and freight air transportation services in Australia and internationally.

Rewards

Trading at 47.2% below our estimate of its fair value

Earnings are forecast to grow 71.74% per year

Risk Analysis

No risks detected for QAN from our risk checks.

Qantas Airways Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Qantas Airways
Historical stock prices
Current Share PriceAU$5.45
52 Week HighAU$3.67
52 Week LowAU$5.79
Beta1.24
1 Month Change23.86%
3 Month Change12.37%
1 Year Change36.94%
3 Year Change-9.47%
5 Year Change68.73%
Change since IPO138.03%

Recent News & Updates

May 15
Are Investors Undervaluing Qantas Airways Limited (ASX:QAN) By 31%?

Are Investors Undervaluing Qantas Airways Limited (ASX:QAN) By 31%?

How far off is Qantas Airways Limited ( ASX:QAN ) from its intrinsic value? Using the most recent financial data, we'll...

Apr 19
Does Qantas Airways (ASX:QAN) Have A Healthy Balance Sheet?

Does Qantas Airways (ASX:QAN) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Mar 19
Announcing: Qantas Airways (ASX:QAN) Stock Increased An Energizing 127% In The Last Year

Announcing: Qantas Airways (ASX:QAN) Stock Increased An Energizing 127% In The Last Year

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right...

Shareholder Returns

QANAU AirlinesAU Market
7D2.4%-2.4%0.8%
1Y36.9%7.5%28.0%

Return vs Industry: QAN exceeded the Australian Airlines industry which returned 6.9% over the past year.

Return vs Market: QAN exceeded the Australian Market which returned 27.3% over the past year.

Price Volatility

Is QAN's price volatile compared to industry and market?
QAN volatility
QAN Beta1.24
Industry Beta1.34
Market Beta1

Stable Share Price: QAN is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: QAN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
192020,000Alan Joycehttps://www.qantas.com

Qantas Airways Limited provides passenger and freight air transportation services in Australia and internationally. It operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. The company also offers air cargo and express freight services; and customer loyalty recognition programs.

Valuation

Is Qantas Airways undervalued compared to its fair value and its price relative to the market?

47.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QAN (A$5.45) is trading below our estimate of fair value (A$10.33)

Significantly Below Fair Value: QAN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: QAN is unprofitable, so we can't compare its PE Ratio to the Global Airlines industry average.

PE vs Market: QAN is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate QAN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: QAN is overvalued based on its PB Ratio (19.9x) compared to the XX Airlines industry average (2.1x).


Future Growth

How is Qantas Airways forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

71.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QAN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: QAN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: QAN's is expected to become profitable in the next 3 years.

Revenue vs Market: QAN's revenue (26% per year) is forecast to grow faster than the Australian market (5.1% per year).

High Growth Revenue: QAN's revenue (26% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QAN's Return on Equity is forecast to be very high in 3 years time (125.4%).


Past Performance

How has Qantas Airways performed over the past 5 years?

-59.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QAN is currently unprofitable.

Growing Profit Margin: QAN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: QAN is unprofitable, and losses have increased over the past 5 years at a rate of 59.9% per year.

Accelerating Growth: Unable to compare QAN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: QAN is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-22%).


Return on Equity

High ROE: QAN has a negative Return on Equity (-334.88%), as it is currently unprofitable.


Financial Health

How is Qantas Airways's financial position?


Financial Position Analysis

Short Term Liabilities: QAN's short term assets (A$3.4B) do not cover its short term liabilities (A$7.6B).

Long Term Liabilities: QAN's short term assets (A$3.4B) do not cover its long term liabilities (A$9.8B).


Debt to Equity History and Analysis

Debt Level: QAN's debt to equity ratio (1323.6%) is considered high.

Reducing Debt: QAN's debt to equity ratio has increased from 104% to 1323.6% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: QAN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if QAN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Qantas Airways's current dividend yield, its reliability and sustainability?

2.04%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate QAN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate QAN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if QAN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if QAN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: QAN is not paying a notable dividend for the Australian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of QAN's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Alan Joyce (55 yo)

12.83yrs

Tenure

AU$4,758,000

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 ($USD3.49M) is above average for companies of similar size in the Australian market ($USD2.31M).

Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: QAN's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: QAN's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 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$10.228b
  • Shares outstanding: 1.88b
  • Website: https://www.qantas.com

Number of Employees


Location

  • Qantas Airways Limited
  • 10 Bourke Road
  • Mascot
  • New South Wales
  • 2020
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 15:25
End of Day Share Price2021/09/16 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.