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Qantas Airways

ASX:QAN
Snowflake Description

Second-rate dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
QAN
ASX
A$9B
Market Cap
  1. Home
  2. AU
  3. Transportation
Company description

Qantas Airways Limited provides passenger and freight air transportation services in Australia and internationally. The last earnings update was 152 days ago. More info.


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QAN Share Price and Events
7 Day Returns
-0.5%
ASX:QAN
-0.2%
Oceania Airlines
0%
AU Market
1 Year Returns
-15.9%
ASX:QAN
-16%
Oceania Airlines
4.8%
AU Market
QAN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Qantas Airways (QAN) -0.5% 4.3% 0.5% -15.9% 87.4% 302.7%
Oceania Airlines -0.2% 3.3% -1.2% -16% 52.7% 72.8%
AU Market 0% 0.4% 6.8% 4.8% 20% 12.2%
1 Year Return vs Industry and Market
  • QAN matched the Airlines industry (-16%) over the past year.
  • QAN underperformed the Market in Australia which returned 4.8% over the past year.
Price Volatility
QAN
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Qantas Airways to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Qantas Airways.

ASX:QAN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:QAN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.854 (1 + (1- 30%) (57.42%))
1.132
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.132 * 5.96%)
9.06%

Discounted Cash Flow Calculation for ASX:QAN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Qantas Airways is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:QAN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (AUD, Millions) Source Present Value
Discounted (@ 9.06%)
2020 884.00 Analyst x3 810.56
2021 1,002.00 Analyst x2 842.43
2022 810.00 Analyst x1 624.43
2023 773.00 Analyst x1 546.40
2024 753.05 Est @ -2.58% 488.08
2025 744.67 Est @ -1.11% 442.55
2026 744.03 Est @ -0.09% 405.44
2027 748.75 Est @ 0.63% 374.12
2028 757.26 Est @ 1.14% 346.94
2029 768.54 Est @ 1.49% 322.85
Present value of next 10 years cash flows A$5,203.82
ASX:QAN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= A$768.54 × (1 + 2.31%) ÷ (9.06% – 2.31%)
A$11,652.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$11,652.20 ÷ (1 + 9.06%)10
A$4,894.92
ASX:QAN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$5,203.82 + A$4,894.92
A$10,098.74
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$10,098.74 / 1,547.11
A$6.53
ASX:QAN Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$6.53
Current discount Discount to share price of A$5.64
= -1 x (A$5.64 - A$6.53) / A$6.53
13.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Qantas Airways is available for.
Intrinsic value
14%
Share price is A$5.64 vs Future cash flow value of A$6.53
Current Discount Checks
For Qantas Airways to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Qantas Airways's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Qantas Airways's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:QAN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.52
ASX:QAN Share Price ** ASX (2019-07-19) in AUD A$5.64
Global Airlines Industry PE Ratio Median Figure of 39 Publicly-Listed Airlines Companies 11.76x
Australia Market PE Ratio Median Figure of 545 Publicly-Listed Companies 16.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Qantas Airways.

ASX:QAN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:QAN Share Price ÷ EPS (both in AUD)

= 5.64 ÷ 0.52

10.82x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Qantas Airways is good value 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
Does Qantas Airways's expected growth come at a high price?
Raw Data
ASX:QAN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.82x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
-2.2%per year
Global Airlines Industry PEG Ratio Median Figure of 34 Publicly-Listed Airlines Companies 1.13x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

ASX:QAN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.82x ÷ -2.2%

-5.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What value do investors place on Qantas Airways's assets?
Raw Data
ASX:QAN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$2.02
ASX:QAN Share Price * ASX (2019-07-19) in AUD A$5.64
Oceania Airlines Industry PB Ratio Median Figure of 5 Publicly-Listed Airlines Companies 1.51x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.7x
ASX:QAN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:QAN Share Price ÷ Book Value per Share (both in AUD)

= 5.64 ÷ 2.02

2.79x

* Primary Listing of Qantas Airways.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Qantas Airways is overvalued based on assets compared to the Oceania Airlines industry average.
X
Value checks
We assess Qantas Airways's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. Qantas Airways has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Qantas Airways expected to grow at an attractive rate?
  • 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%.
Growth vs Market Checks
  • Qantas Airways's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Qantas Airways's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:QAN Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:QAN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts -2.2%
ASX:QAN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 2.5%
Oceania Airlines Industry Earnings Growth Rate Market Cap Weighted Average 15.9%
Global Airlines Industry Revenue Growth Rate Market Cap Weighted Average 6.1%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.6%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:QAN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:QAN Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 19,979 2,789 798 1
2022-06-30 19,504 2,822 848 1
2021-06-30 18,822 2,915 988 6
2020-06-30 18,545 2,746 993 8
2019-06-30 17,994 2,685 930 8
ASX:QAN Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 17,567 2,933 883
2018-09-30 17,314 3,173 932
2018-06-30 17,060 3,413 980
2018-03-31 16,836 3,339 950
2017-12-31 16,572 3,265 932
2017-09-30 16,315 2,985 892
2017-06-30 16,057 2,704 852
2017-03-31 15,989 2,662 854
2016-12-31 15,921 2,619 856
2016-09-30 16,061 2,719 943
2016-06-30 16,200 2,819 1,029
2016-03-31 16,211 2,769 1,036

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Qantas Airways's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Qantas Airways's revenue is expected to grow by 2.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:QAN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Qantas Airways Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:QAN Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 0.53 0.53 0.53 1.00
2022-06-30 0.56 0.56 0.56 1.00
2021-06-30 0.64 0.73 0.59 3.00
2020-06-30 0.62 0.67 0.56 5.00
2019-06-30 0.57 0.59 0.53 5.00
ASX:QAN Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.52
2018-09-30 0.54
2018-06-30 0.56
2018-03-31 0.53
2017-12-31 0.52
2017-09-30 0.49
2017-06-30 0.46
2017-03-31 0.45
2016-12-31 0.44
2016-09-30 0.47
2016-06-30 0.49
2016-03-31 0.49

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Qantas Airways is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Qantas Airways's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Oceania market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Global market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Qantas Airways has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Qantas Airways performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Qantas Airways's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Qantas Airways's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Qantas Airways Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:QAN Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 17,567.00 883.00 633.00
2018-09-30 17,313.50 931.50 624.50
2018-06-30 17,060.00 980.00 616.00
2018-03-31 16,835.50 950.00 619.50
2017-12-31 16,572.00 932.00 623.00
2017-09-30 16,314.50 892.00 627.50
2017-06-30 16,057.00 852.00 632.00
2017-03-31 15,989.00 854.00 578.00
2016-12-31 15,921.00 856.00 524.00
2016-09-30 16,060.50 942.50 527.50
2016-06-30 16,200.00 1,029.00 531.00
2016-03-31 16,210.50 1,035.50 534.00
2015-12-31 16,221.00 1,042.00 537.00
2015-09-30 16,018.50 799.50 532.00
2015-06-30 15,816.00 557.00 527.00
2015-03-31 15,662.00 -924.00 524.50
2014-12-31 15,508.00 -2,405.00 522.00
2014-09-30 15,430.50 -2,624.00 545.50
2014-06-30 15,353.00 -2,843.00 569.00
2014-03-31 15,395.50 -1,593.00 705.50
2013-12-31 15,438.00 -343.00 842.00
2013-09-30 15,607.50 -171.00 691.00
2013-06-30 15,777.00 1.00 540.00
2013-03-31 15,910.00 -87.50 288.50
2012-12-31 15,918.00 -178.00 266.00
2012-09-30 15,821.00 -211.50 266.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • Qantas Airways used its assets more efficiently than the Global Airlines industry average last year based on Return on Assets.
  • Qantas Airways's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Qantas Airways's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Qantas Airways has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Qantas Airways's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Qantas Airways's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Qantas Airways's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Qantas Airways Company Filings, last reported 6 months ago.

ASX:QAN Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,359.00 3,746.00 1,494.00
2018-09-30 3,359.00 3,746.00 1,494.00
2018-06-30 3,959.00 3,460.00 1,694.00
2018-03-31 3,959.00 3,460.00 1,694.00
2017-12-31 3,753.00 4,882.00 1,787.00
2017-09-30 3,753.00 4,882.00 1,787.00
2017-06-30 3,540.00 3,474.00 1,775.00
2017-03-31 3,540.00 3,474.00 1,775.00
2016-12-31 3,677.00 5,092.00 1,668.00
2016-09-30 3,677.00 5,092.00 1,668.00
2016-06-30 3,260.00 3,393.00 1,980.00
2016-03-31 3,260.00 3,393.00 1,980.00
2015-12-31 3,292.00 5,456.00 2,291.00
2015-09-30 3,292.00 5,456.00 2,291.00
2015-06-30 3,447.00 4,064.00 2,908.00
2015-03-31 3,447.00 4,064.00 2,908.00
2014-12-31 2,733.00 6,375.00 2,892.00
2014-09-30 2,733.00 6,375.00 2,892.00
2014-06-30 2,866.00 5,173.00 3,001.00
2014-03-31 2,866.00 5,173.00 3,001.00
2013-12-31 5,663.00 5,075.00 2,395.00
2013-09-30 5,663.00 5,075.00 2,395.00
2013-06-30 5,840.00 5,204.00 2,829.00
2013-03-31 5,954.00 5,204.00 2,829.00
2012-12-31 5,994.00 5,512.00 3,058.00
2012-09-30 5,994.00 5,512.00 3,058.00
  • Qantas Airways's level of debt (149.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (111.5% vs 149.2% today).
  • Debt is well covered by operating cash flow (58.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.8x coverage).
X
Financial health checks
We assess Qantas Airways's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Qantas Airways has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.26%
Current annual income from Qantas Airways dividends. Estimated to be 4.71% next year.
If you bought A$2,000 of Qantas Airways shares you are expected to receive A$85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Qantas Airways's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).
  • Qantas Airways's dividend is below the markets top 25% of dividend payers in Australia (5.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:QAN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
Global Airlines Industry Average Dividend Yield Market Cap Weighted Average of 29 Stocks 2.8%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.4%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:QAN Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.21 1.00
2022-06-30 0.23 1.00
2021-06-30 0.28 7.00
2020-06-30 0.26 9.00
2019-06-30 0.24 9.00
ASX:QAN Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-20 0.240 4.308
2018-08-31 0.200 3.471
2018-08-22 0.200 3.085
2018-02-21 0.140 2.240
2017-08-24 0.140 2.509
2017-02-22 0.140 2.988
2016-09-02 0.070 2.148
2016-08-23 0.070 2.111
2010-09-02 0.000 0.000
2010-08-11 0.000 0.000
2010-02-18 0.000 0.000
2009-09-21 0.000 0.000
2009-08-18 0.000 0.000
2009-02-05 0.245 11.942
2008-08-21 0.373 12.989

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Qantas Airways's earnings are paid to the shareholders as a dividend.
  • 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).
X
Income/ dividend checks
We assess Qantas Airways's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Qantas Airways afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Qantas Airways has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alan Joyce
COMPENSATION A$7,699,000
AGE 53
TENURE AS CEO 10.7 years
CEO Bio

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 and its Executive Director since July 28, 2008. He has been the Chief Executive Officer and Managing Director at Qantas Airways Limited - New Zealand Branch since November 2008. Mr. Joyce has been the Chief Executive Officer and Managing Director of Qantas Airways Limited since November 28, 2008 and Director since July 28, 2008. He served as the Chief Executive Officer of Qantas Group at Qantas Frequent Flyer Limited and Jetset Travelworld Ltd since November 2012. He served as the Chief Executive Officer of Jetstar Airways Pty Ltd., a subsidiary of Qantas Airways Ltd. from October 2003 to 2008. He spent over 15 years in leadership positions for Ansett, Aer Lingus and Qantas. At both Qantas and Ansett, he led the network planning, schedules planning and network strategy functions. He spent eight years at Aer Lingus where he held roles in sales, marketing, IT, network planning, operations research, revenue management and fleet planning. He served as an Executive General Manager of Jetstar Airways. He serves as a Director of Qantas Group at Qantas Freight Enterprises Ltd and Qantas Airways Limited - New Zealand Branch. He served as a Director of Jetstar Pacific Airlines Aviation Joint Stock Company. He is a Director of the Business Council of Australia. He is also a Director of a number of controlled entities of the Qantas Group. He served as the Chairman of International Air Transport Association from 2012 to 2013. Mr. Joyce serves as a Member of the Board of Governors at International Air Transport Association (IATA).

CEO Compensation
  • Alan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alan's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Qantas Airways management team in years:

3.1
Average Tenure
  • The tenure for the Qantas Airways management team is about average.
Management Team

Alan Joyce

TITLE
CEO, MD & Executive Director
COMPENSATION
A$8M
AGE
53
TENURE
10.7 yrs

Tino La Spina

TITLE
Chief Financial Officer
COMPENSATION
A$3M
TENURE
4.3 yrs

Lesley Grant

TITLE
Group Executive of People
COMPENSATION
A$1M
TENURE
1.7 yrs

Olivia Wirth

TITLE
Chief Executive Officer of Qantas Loyalty
COMPENSATION
A$1M
TENURE
1.9 yrs

Andrew David

TITLE
Chief Executive Officer of Qantas Domestic & Freight
COMPENSATION
A$3M
AGE
58
TENURE
4.3 yrs

Gareth Evans

TITLE
Chief Executive Officer of Jetstar Group
COMPENSATION
A$3M
TENURE
1.9 yrs

Rob Marcolina

TITLE
Group Executive of Strategy

Frances Reyk

TITLE
Head of Investor Relations

Andrew Finch

TITLE
General Counsel
TENURE
6.7 yrs

Naren Kumar

TITLE
Acting Chief Executive Officer of Qantas International
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Qantas Airways board of directors in years:

5.9
Average Tenure
62
Average Age
  • The tenure for the Qantas Airways board of directors is about average.
Board of Directors

Richard James Goyder

TITLE
Chairman
COMPENSATION
A$155K
AGE
59
TENURE
0.8 yrs

Alan Joyce

TITLE
CEO, MD & Executive Director
COMPENSATION
A$8M
AGE
53
TENURE
11 yrs

Barbara Ward

TITLE
Independent Non-Executive Director
COMPENSATION
A$312K
AGE
65
TENURE
11.1 yrs

Paul Rayner

TITLE
Independent Non Executive Director
COMPENSATION
A$318K
AGE
65
TENURE
11 yrs

Richard Goodmanson

TITLE
Independent Non-Executive Director
COMPENSATION
A$318K
AGE
71
TENURE
11.1 yrs

Maxine Brenner

TITLE
Independent Non-Executive Director
COMPENSATION
A$313K
AGE
57
TENURE
5.9 yrs

Jacquie Hey

TITLE
Independent Non-Executive Director
COMPENSATION
A$234K
AGE
53
TENURE
5.9 yrs

Todd Sampson

TITLE
Independent Non-Executive Director
COMPENSATION
A$274K
AGE
48
TENURE
4.4 yrs

Michael L'Estrange

TITLE
Independent Non-Executive Director
COMPENSATION
A$206K
AGE
66
TENURE
3.3 yrs

Belinda Hutchinson

TITLE
Independent Non-Executive Director
COMPENSATION
A$54K
AGE
66
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Qantas Airways individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
18. Jun 19 Buy Michael L'Estrange Individual 14. Jun 19 14. Jun 19 3,000 A$5.68 A$17,040
04. Mar 19 Buy Richard James Goyder Individual 28. Feb 19 28. Feb 19 30,000 A$5.73 A$171,900
11. Jan 19 Buy MLC Investments Limited Company 07. Jan 19 07. Jan 19 461,480 A$5.80 A$2,675,193
09. Jan 19 Buy MLC Investments Limited Company 03. Jan 19 03. Jan 19 233,434 A$5.75 A$1,341,346
06. Jan 19 Buy Antares Capital Partners Pty. Ltd. Company 28. Dec 18 02. Jan 19 981 A$5.79 A$5,684
06. Jan 19 Buy MLC Investment Management Limited Company 02. Jan 19 02. Jan 19 1,100 A$5.90 A$6,490
02. Jan 19 Buy MLC Investments Limited Company 28. Aug 18 27. Dec 18 8,476,678 A$6.18 A$49,399,048
02. Jan 19 Buy Antares Capital Partners Pty. Ltd. Company 30. Aug 18 21. Dec 18 2,940,434 A$5.59 A$16,426,299
02. Jan 19 Buy MLC Investment Management Limited Company 31. Aug 18 20. Dec 18 2,291,622 A$5.86 A$13,418,876
12. Dec 18 Sell BlackRock, Inc. Company 09. Mar 18 11. Dec 18 -40,736,080 A$6.77 A$-136,353
12. Dec 18 Buy BlackRock, Inc. Company 09. Mar 18 11. Dec 18 20,817,925 A$6.85 A$0
31. Aug 18 Sell Alan Joyce Individual 24. Aug 18 27. Aug 18 -1,437,738 A$6.29 A$-9,041,396
31. Aug 18 Buy Alan Joyce Individual 30. Aug 18 30. Aug 18 154,118 A$6.47 A$997,328
27. Aug 18 Buy Richard James Goyder Individual 27. Aug 18 27. Aug 18 63,500 A$6.41 A$406,762
02. Aug 18 Sell AllianceBernstein L.P. Company 24. Jul 18 31. Jul 18 -677,673 A$6.74 A$-4,563,329
02. Aug 18 Buy AllianceBernstein L.P. Company 24. Jul 18 31. Jul 18 417,505 A$6.81 A$2,810,769
25. Jul 18 Buy AllianceBernstein L.P. Company 28. Mar 18 23. Jul 18 10,940,403 A$7.00 A$73,725,840
X
Management checks
We assess Qantas Airways's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Qantas Airways has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Qantas Airways Limited (ASX:QAN) Is A Dividend Rockstar

Could Qantas Airways Limited (ASX:QAN) be an attractive dividend share to own for the long haul? … For the purpose of this article, we only scrutinise the last decade of Qantas Airways's dividend payments. … Conclusion When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable.

Simply Wall St -

Is Qantas Airways (ASX:QAN) Using Too Much Debt?

Debt assists a business until the business has trouble paying it off, either with new capital or with free cash flow. … Because it carries more debt than cash, we think it's worth watching Qantas Airways's balance sheet over time. … During the last three years, Qantas Airways generated free cash flow amounting to a very robust 84% of its EBIT, more than we'd expect.

Simply Wall St -

Is Qantas Airways Limited's (ASX:QAN) 26% ROE Better Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Qantas Airways: 26% = AU$883m ÷ AU$3.4b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Qantas Airways Have A Good Return On Equity? … Combining Qantas Airways's Debt And Its 26% Return On Equity Qantas Airways clearly uses a significant amount of debt to boost returns, as it has a debt to equity ratio of 1.49.

Simply Wall St -

What Kind Of Shareholders Own Qantas Airways Limited (ASX:QAN)?

Every investor in Qantas Airways Limited (ASX:QAN) should be aware of the most powerful shareholder groups. … Insider Ownership Of Qantas Airways The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … General Public Ownership The general public, who are mostly retail investors, collectively hold 53% of Qantas Airways shares.

Simply Wall St -

Is Qantas Airways Limited's (ASX:QAN) CEO Pay Justified?

At the time of writing our data says that Qantas Airways Limited has a market cap of AU$8.4b, and is paying total annual CEO compensation of AU$7.7m. … Thus we can conclude that Alan Joyce receives more in total compensation than the median of a group of companies in the same market, and of similar size to Qantas Airways Limited. … We compared total CEO remuneration at Qantas Airways Limited with the amount paid at companies with a similar market capitalization.

Simply Wall St -

Read This Before You Buy Qantas Airways Limited (ASX:QAN) Because Of Its P/E Ratio

Based on the last twelve months, Qantas Airways's P/E ratio is 10.03. … View our latest analysis for Qantas Airways How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Qantas Airways: P/E of 10.03 = A$5.23 ÷ A$0.52 (Based on the year to December 2018.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Is There An Opportunity With Qantas Airways Limited's (ASX:QAN) 29% Undervaluation?

by taking the expected future cash flows and discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Is Qantas Airways Limited's (ASX:QAN) Capital Allocation Ability Worth Your Time?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

How Much Are Qantas Airways Limited (ASX:QAN) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Qantas Airways Limited (ASX:QAN). … That means that an insider was selling shares at around the current price of AU$5.70. … Alan Joyce was the only individual insider to sell shares in the last twelve months.

Simply Wall St -

What Should We Expect From Qantas Airways Limited's (ASX:QAN) Earnings In The Next 12 Months?

In December 2018, Qantas Airways Limited (ASX:QAN) announced its earnings update. … as a 13% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 54%

Simply Wall St -

Company Info

Description

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, 2018, it operated a fleet of 313 aircraft. The company was founded in 1920 and is headquartered in Mascot, Australia.

Details
Name: Qantas Airways Limited
QAN
Exchange: ASX
Founded: 1920
A$8,725,715,526
1,547,112,682
Website: http://www.qantas.com
Address: Qantas Airways Limited
10 Bourke Road,
Mascot,
New South Wales, 2020,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX QAN Ordinary Shares Australian Securities Exchange AU AUD 01. Aug 1995
OTCPK QUBS.F Ordinary Shares Pink Sheets LLC US USD 01. Aug 1995
DB QAN Ordinary Shares Deutsche Boerse AG DE EUR 01. Aug 1995
CHIA QAN Ordinary Shares Chi-X Australia AU AUD 01. Aug 1995
OTCPK QABS.Y SPONSORED ADR NE Pink Sheets LLC US USD 08. Apr 2014
Number of employees
Current staff
Staff numbers
29,359
Qantas Airways employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/22 00:44
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.