ASX:QAN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Average dividend payer with mediocre 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

5.9%

QAN

3.4%

AU Airlines

0.7%

AU Market


1 Year Return

22.8%

QAN

11.6%

AU Airlines

11.0%

AU Market

Return vs Industry: QAN exceeded the Australian Airlines industry which returned 11.6% over the past year.

Return vs Market: QAN exceeded the Australian Market which returned 11% over the past year.


Shareholder returns

QANIndustryMarket
7 Day5.9%3.4%0.7%
30 Day9.5%4.3%-0.2%
90 Day18.8%11.1%-0.1%
1 Year28.1%22.8%17.4%11.6%17.4%11.0%
3 Year130.8%108.4%89.7%69.7%36.3%18.0%
5 Year445.0%353.6%133.3%95.3%51.4%17.3%

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 compared to its fair value and its price relative to the market?

12.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: QAN (A$6.69) is trading above our estimate of fair value (A$6.32)

Significantly Undervalued: QAN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: QAN is good value based on its PE Ratio (12.2x) compared to the Airlines industry average (12.5x).

PE vs Market: QAN is good value based on its PE Ratio (12.2x) compared to the Australian market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: QAN is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: QAN is overvalued based on its PB Ratio (3x) compared to the XO Airlines industry average (1.8x).


Next Steps

Future Growth

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

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QAN's forecast earnings growth (4.7% per year) is above the savings rate (2.3%).

Earnings vs Market: QAN's earnings (4.7% per year) are forecast to grow slower than the Australian market (10.2% per year).

High Growth Earnings: QAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: QAN's revenue (2.3% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: QAN's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: QAN's Return on Equity is forecast to be high in 3 years time (25.4%)


Next Steps

Past Performance

How has Qantas Airways performed over the past 5 years?

49.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: QAN has become profitable over the past 5 years, growing earnings by 49.8% per year.

Accelerating Growth: QAN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: QAN had negative earnings growth (-6.5%) over the past year, making it difficult to compare to the Airlines industry average (-11.3%).


Return on Equity

High ROE: Whilst QAN's Return on Equity (25.93%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: QAN has a higher Return on Assets than the Airlines industry average last year.


Return on Capital Employed

ROCE Improving: QAN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Qantas Airways's financial position?


Financial Position Analysis

Short Term Liabilities: QAN's short term assets (A$4.2B) do not cover its short term liabilities (A$8.6B)

Long Term Liabilities: QAN's short term assets (4.2B) do not cover its long term liabilities (7.4B)


Debt to Equity History and Analysis

Debt Level: QAN's debt to equity ratio (115.9%) is considered high

Reducing Debt: QAN's debt to equity ratio has reduced from 180.5% to 115.9% over the past 5 years.

Debt Coverage: QAN's debt is well covered by operating cash flow (70.5%).

Interest Coverage: QAN's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet

Inventory Level: QAN has a high level of physical assets or inventory.

Debt Coverage by Assets: QAN's debt is covered by short term assets (assets are 1.052720x debt).


Next Steps

Dividend

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

3.89%

Current Dividend Yield


Dividend Yield vs Market

company3.9%marketbottom25%2.5%markettop25%5.6%industryaverage2.6%forecastin3Years4.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: QAN's dividend (3.89%) is higher than the bottom 25% of dividend payers in the Australian market (2.49%).

High Dividend: QAN's dividend (3.89%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

Stable Dividend: QAN's dividend payments have been volatile in the past 10 years.

Growing Dividend: QAN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.8%), 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 (37.6% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Alan Joyce (53yo)

10.9yrs

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 ($USD4.44M) is about average for companies of similar size in the Australian market ($USD2.79M).

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


Management Age and Tenure

3.4yrs

Average Tenure

Experienced Management: QAN's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

6.2yrs

Average Tenure

62yo

Average Age

Experienced Board: QAN's board of directors are considered experienced (6.2 years average tenure).


Insider Trading

Insider Buying: QAN insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyAU$585,89430 Aug 19
Alan Joyce
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares97,768
Max PriceAU$5.99
SellAU$8,970,45330 Aug 19
Alan Joyce
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares1,519,012
Max PriceAU$5.91
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
Independent 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$5,68406 Jan 19
Antares Capital Partners Pty. Ltd.
EntityCompany
Shares981
Max PriceAU$5.79
BuyAU$6,49006 Jan 19
MLC Investment Management Limited
EntityCompany
Shares1,100
Max PriceAU$5.90
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

Ownership Breakdown


Management Team

  • Andrew David (58yo)

    Chief Executive Officer of Qantas Domestic & Freight

    • Tenure: 4.6yrs
    • Compensation: AU$2.37m
  • Alan Joyce (53yo)

    CEO, MD & Executive Director

    • Tenure: 10.9yrs
    • Compensation: AU$6.57m
  • Lesley Grant

    Group Executive of People

    • Tenure: 1.9yrs
    • Compensation: AU$1.38m
  • Gareth Evans

    Chief Executive Officer of Jetstar Group

    • Tenure: 2.2yrs
    • Compensation: AU$2.60m
  • Olivia Wirth

    Chief Executive Officer of Qantas Loyalty

    • Tenure: 2.2yrs
    • Compensation: AU$1.95m
  • Andrew Finch

    General Counsel

    • Tenure: 6.9yrs
  • Vanessa Hudson

    Chief Financial Officer

    • Tenure: 0yrs
  • Rob Marcolina

    Group Executive of Strategy

    • Tenure: 0yrs
  • Tino La Spina

    Chief Executive Officer of Qantas International

    • Tenure: 0yrs
    • Compensation: AU$2.33m
  • Frances Reyk

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Richard Goodmanson (71yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: AU$309.00k
  • Paul Rayner (65yo)

    Independent Non Executive Director

    • Tenure: 11.3yrs
    • Compensation: AU$317.00k
  • Richard James Goyder (59yo)

    Independent Chairman

    • Tenure: 1yrs
    • Compensation: AU$584.00k
  • Belinda Hutchinson (66yo)

    Independent Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: AU$283.00k
  • Barbara Ward (65yo)

    Independent Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: AU$320.00k
  • Alan Joyce (53yo)

    CEO, MD & Executive Director

    • Tenure: 10.9yrs
    • Compensation: AU$6.57m
  • Michael L'Estrange (66yo)

    Independent Non-Executive Director

    • Tenure: 3.5yrs
    • Compensation: AU$223.00k
  • Jacquie Hey (53yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: AU$211.00k
  • Maxine Brenner (57yo)

    Independent Non-Executive Director

    • Tenure: 6.2yrs
    • Compensation: AU$364.00k
  • Todd Sampson (48yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: AU$271.00k

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$10.342b
  • 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 Analysis2019/10/16 10:31
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.