ASX:QAN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Second-rate dividend payer with imperfect balance sheet.


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


Market Performance


7 Day Return

-3.7%

ASX:QAN

-2.7%

AU Airlines

-2.5%

AU Market


1 Year Return

-16.5%

ASX:QAN

-18.8%

AU Airlines

-0.6%

AU Market

QAN outperformed the Airlines industry which returned -18.8% over the past year.

QAN underperformed the Market in Australia which returned -0.6% over the past year.


Share holder returns

QANIndustryMarket
7 Day-3.7%-2.7%-2.5%
30 Day-2.0%-2.7%-4.4%
90 Day3.4%0.6%-1.1%
1 Year-13.3%-16.5%-15.1%-18.8%5.1%-0.6%
3 Year82.1%64.6%56.7%35.6%30.2%13.1%
5 Year371.7%299.4%100.5%65.6%36.5%5.9%

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

Valuation

Is Qantas Airways undervalued based on future cash flows and its price relative to the stock market?

14%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Qantas Airways's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Qantas Airways's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Qantas Airways is overvalued based on earnings compared to the Global Airlines industry average.

Qantas Airways is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Qantas Airways earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Qantas Airways is overvalued based on assets compared to the Oceania Airlines industry average.


Next Steps

Future Growth

How is Qantas Airways expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

-2.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Qantas Airways's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).

Qantas Airways's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Qantas Airways's revenue growth is positive but not above the Australia market average.

Qantas Airways's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Qantas Airways's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Qantas Airways is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Qantas Airways performed over the past 5 years?

54.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Qantas Airways has delivered over 20% year on year earnings growth in the past 5 years.

Qantas Airways's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Qantas Airways's 1-year earnings growth is negative, it can't be compared to the Global Airlines industry average.


Return on Equity

Whilst Qantas Airways has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.


Return on Assets

Qantas Airways used its assets less efficiently than the Global Airlines industry average last year based on Return on Assets.


Return on Capital Employed

Qantas Airways's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Qantas Airways's financial position?


Financial Position Analysis

Qantas Airways's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Qantas Airways's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Qantas Airways's level of debt (111.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (90.1% vs 111.5% today).

Debt is well covered by operating cash flow (78.3%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 8.8x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

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

4.80%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Qantas Airways's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.67%).

Qantas Airways's dividend is below the markets top 25% of dividend payers in Australia (5.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.4x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).


Next Steps

Management

What is the CEO of Qantas Airways's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Alan Joyce (53yo)

10.8yrs

Tenure

AU$7,699,000

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

Alan's remuneration is higher than average for companies of similar size in Australia.

Alan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

The tenure for the Qantas Airways management team is about average.


Board Age and Tenure

6.0yrs

Average Tenure

62yo

Average Age

The tenure for the Qantas Airways board of directors is about average.


Insider Trading

More shares have been bought than sold by Qantas Airways individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyAU$17,04018 Jun 19
Michael L'Estrange
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares3,000
Max PriceAU$5.68
SellAU$341,813,22906 Jun 19
Pendal Group Limited
EntityCompany
Shares60,499,691
Max PriceAU$5.96
BuyAU$360,495,76806 Jun 19
Pendal Group Limited
EntityCompany
Shares63,841,783
Max PriceAU$5.65
BuyAU$171,90004 Mar 19
Richard James Goyder
EntityIndividual
Role
Chairman of the Board
Chairman
Shares30,000
Max PriceAU$5.73
BuyAU$2,675,19311 Jan 19
MLC Investments Limited
EntityCompany
Shares461,480
Max PriceAU$5.80
BuyAU$1,341,34609 Jan 19
MLC Investments Limited
EntityCompany
Shares233,434
Max PriceAU$5.75
BuyAU$6,49006 Jan 19
MLC Investment Management Limited
EntityCompany
Shares1,100
Max PriceAU$5.90
BuyAU$5,68406 Jan 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares981
Max PriceAU$5.79
BuyAU$49,399,04802 Jan 19
MLC Investments Limited
EntityCompany
Shares8,476,678
Max PriceAU$6.18
BuyAU$16,426,29902 Jan 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares2,940,434
Max PriceAU$5.59
BuyAU$13,418,87602 Jan 19
MLC Investment Management Limited
EntityCompany
Shares2,291,622
Max PriceAU$5.86
SellAU$136,35312 Dec 18
BlackRock, Inc.
EntityCompany
Shares40,736,080
Max PriceAU$6.77
BuyAU$012 Dec 18
BlackRock, Inc.
EntityCompany
Shares20,817,925
Max PriceAU$6.85
SellAU$9,041,39631 Aug 18
Alan Joyce
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares1,437,738
Max PriceAU$6.29
BuyAU$997,32831 Aug 18
Alan Joyce
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares154,118
Max PriceAU$6.47
BuyAU$406,76227 Aug 18
Richard James Goyder
EntityIndividual
Role
Chairman of the Board
Chairman
Shares63,500
Max PriceAU$6.41

Ownership Breakdown


Management Team

  • Naren Kumar

    Acting Chief Executive Officer of Qantas International

    • Tenure: 0.3yrs
  • Andrew David (58yo)

    Chief Executive Officer of Qantas Domestic & Freight

    • Tenure: 4.4yrs
    • Compensation: AU$2.59m
  • Alan Joyce (53yo)

    CEO, MD & Executive Director

    • Tenure: 10.8yrs
    • Compensation: AU$7.70m
  • Lesley Grant

    Group Executive of People

    • Tenure: 1.8yrs
    • Compensation: AU$1.38m
  • Gareth Evans

    Chief Executive Officer of Jetstar Group

    • Tenure: 2.0yrs
    • Compensation: AU$2.95m
  • Olivia Wirth

    Chief Executive Officer of Qantas Loyalty

    • Tenure: 2.0yrs
    • Compensation: AU$1.35m
  • Andrew Finch

    General Counsel

    • Tenure: 6.8yrs
  • Rob Marcolina

    Group Executive of Strategy

    • Tenure: 0.0yrs
  • Tino La Spina

    Chief Financial Officer

    • Tenure: 4.4yrs
    • Compensation: AU$2.59m
  • Frances Reyk

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Richard Goodmanson (71yo)

    Independent Non-Executive Director

    • Tenure: 11.2yrs
    • Compensation: AU$318.00k
  • Paul Rayner (65yo)

    Independent Non Executive Director

    • Tenure: 11.1yrs
    • Compensation: AU$318.00k
  • Richard James Goyder (59yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: AU$155.00k
  • Belinda Hutchinson (66yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$54.00k
  • Barbara Ward (65yo)

    Independent Non-Executive Director

    • Tenure: 11.2yrs
    • Compensation: AU$312.00k
  • Alan Joyce (53yo)

    CEO, MD & Executive Director

    • Tenure: 10.8yrs
    • Compensation: AU$7.70m
  • Michael L'Estrange (66yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$206.00k
  • Jacquie Hey (53yo)

    Independent Non-Executive Director

    • Tenure: 6.0yrs
    • Compensation: AU$234.00k
  • Maxine Brenner (57yo)

    Independent Non-Executive Director

    • Tenure: 6.0yrs
    • Compensation: AU$313.00k
  • Todd Sampson (48yo)

    Independent Non-Executive Director

    • Tenure: 4.5yrs
    • Compensation: AU$274.00k

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$8.556b
  • Shares outstanding: 1.55b
  • Website: https://www.qantas.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
QUBS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 1995
QANASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 1995
QANDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 1995
QANCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 1995
QABS.YOTCPK (Pink Sheets LLC)SPONSORED ADR NEUSUSDApr 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 prog ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 10:32
End of Day Share Price2019/08/16 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.