Qantas Airways Limited provides passenger and freight air transportation services in Australia and internationally.
Undervalued with moderate growth potential.
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.
7 Day Return
1 Year Return
Return vs Industry: QAN exceeded the Australian Airlines industry which returned -2.7% over the past year.
Return vs Market: QAN underperformed the Australian Market which returned 10.9% over the past year.
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
11 hours ago | Simply Wall StHere's What We Like About Qantas Airways Limited (ASX:QAN)'s Upcoming Dividend
5 days ago | Simply Wall StQantas Airways Limited Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models
1 week ago | Simply Wall StWhy Qantas Airways Limited (ASX:QAN) Looks Like A Quality Company
Is Qantas Airways undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: QAN (A$5.72) is trading below our estimate of fair value (A$10.55)
Significantly Below Fair Value: QAN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: QAN is good value based on its PE Ratio (10.3x) compared to the Airlines industry average (10.5x).
PE vs Market: QAN is good value based on its PE Ratio (10.3x) compared to the Australian market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: QAN is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: QAN is overvalued based on its PB Ratio (3.2x) compared to the XO Airlines industry average (1.7x).
How is Qantas Airways forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: QAN's forecast earnings growth (14.9% per year) is above the savings rate (1.1%).
Earnings vs Market: QAN's earnings (14.9% per year) are forecast to grow faster than the Australian market (9.5% per year).
High Growth Earnings: QAN's earnings are forecast to grow, but not significantly.
Revenue vs Market: QAN's revenue (3.1% per year) is forecast to grow slower than the Australian market (4.1% per year).
High Growth Revenue: QAN's revenue (3.1% 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 very high in 3 years time (55.2%).
How has Qantas Airways performed over the past 5 years?
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%) underperformed the Airlines industry 6.3%.
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.
Return on Assets
Return on Capital Employed
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).
Inventory Level: QAN has a high level of physical assets or inventory.
Debt Coverage by Assets: QAN's debt is not covered by short term assets (assets are 0.7x debt).
What is Qantas Airways's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Purchase Qantas Airways before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: QAN's dividend (4.72%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).
High Dividend: QAN's dividend (4.72%) is low compared to the top 25% of dividend payers in the Australian market (5.53%).
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 (40.9% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Alan Joyce (53yo)
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 ($USD4.33M) is above average for companies of similar size in the Australian market ($USD2.71M).
Compensation vs Earnings: Alan's compensation has been consistent with company performance over the past year.
|CEO, MD & Executive Director||11.3yrs||AU$6.57m||0.20% A$17.0m|
|Chief Executive Officer of Qantas Loyalty||2.5yrs||AU$1.95m||no data|
|Chief Executive Officer of Qantas Domestic & Freight||4.9yrs||AU$2.37m||no data|
|Chief Executive Officer of Jetstar Group||2.5yrs||AU$2.60m||no data|
|Chief Executive Officer of Qantas International||0.3yrs||AU$2.33m||no data|
|Chief Financial Officer||0.3yrs||no data||no data|
|Group Executive||0yrs||no data||no data|
|Head of Investor Relations||0yrs||no data||no data|
|General Counsel||7.3yrs||no data||no data|
|Head of Fuel & Environment||7.4yrs||no data||no data|
Experienced Management: QAN's management team is considered experienced (3.7 years average tenure).
|CEO, MD & Executive Director||11.3yrs||AU$6.57m||0.20% A$17.0m|
|Independent Non Executive Director||11.6yrs||AU$317.00k||0.020% A$1.6m|
|Independent Chairman||1.3yrs||AU$584.00k||0.0089% A$743.9k|
|Independent Non-Executive Director||1.8yrs||AU$283.00k||0.0011% A$92.3k|
|Independent Non-Executive Director||1.3yrs||AU$162.00k||no data|
|Independent Non-Executive Director||11.7yrs||AU$320.00k||0.0031% A$255.8k|
|Independent Non-Executive Director||3.8yrs||AU$223.00k||0.0010% A$85.5k|
|Independent Non-Executive Director||6.5yrs||AU$211.00k||0.0026% A$218.1k|
|Independent Non-Executive Director||6.5yrs||AU$364.00k||0.0021% A$171.9k|
|Independent Non-Executive Director||5yrs||AU$271.00k||0.00096% A$80.5k|
Experienced Board: QAN's board of directors are considered experienced (5.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Qantas Airways Limited's company bio, employee growth, exchange listings and data sources
- Name: Qantas Airways Limited
- Ticker: QAN
- Exchange: ASX
- Founded: 1920
- Industry: Airlines
- Sector: Transportation
- Market Cap: AU$8.387b
- Shares outstanding: 1.47b
- Website: https://www.qantas.com
Number of Employees
- Qantas Airways Limited
- 10 Bourke Road
- New South Wales
|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|
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||2020/02/26 10:33|
|End of Day Share Price||2020/02/26 00:00|
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.