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Cathay Pacific Airways

DB:CTY
Snowflake Description

Fair value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CTY
DB
HK$47B
Market Cap
  1. Home
  2. DE
  3. Transportation
Company description

Cathay Pacific Airways Limited, together with its subsidiaries, operates as a carrier of international passengers and air cargo. The last earnings update was 41 days ago. More info.


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CTY Share Price and Events
7 Day Returns
-4.4%
DB:CTY
-0.2%
Europe Airlines
-0.2%
DE Market
1 Year Returns
-2%
DB:CTY
-25.5%
Europe Airlines
-10.3%
DE Market
CTY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cathay Pacific Airways (CTY) -4.4% -12.5% 0.2% -2% -0.7% -1.1%
Europe Airlines -0.2% -13.8% -14.5% -25.5% 0.6% 13.8%
DE Market -0.2% -2.4% 4% -10.3% 11.2% 10.8%
1 Year Return vs Industry and Market
  • CTY outperformed the Airlines industry which returned -25.5% over the past year.
  • CTY outperformed the Market in Germany which returned -10.3% over the past year.
Price Volatility
CTY
Industry
5yr Volatility vs Market

Value

 Is Cathay Pacific 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 Cathay Pacific 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 Cathay Pacific Airways.

DB:CTY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

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 DB:CTY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6.7%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.848 (1 + (1- 25%) (156.02%))
1.563
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.56
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.563 * 6.65%)
10.62%

Discounted Cash Flow Calculation for DB:CTY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Cathay Pacific 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.

DB:CTY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 10.62%)
2019 666.67 Analyst x3 602.64
2020 2,346.50 Analyst x2 1,917.41
2021 5,527.67 Analyst x3 4,083.03
2022 8,659.97 Est @ 56.67% 5,782.35
2023 12,100.98 Est @ 39.73% 7,303.91
2024 15,475.05 Est @ 27.88% 8,443.34
2025 18,506.03 Est @ 19.59% 9,127.30
2026 21,055.93 Est @ 13.78% 9,387.51
2027 23,101.21 Est @ 9.71% 9,310.17
2028 24,687.77 Est @ 6.87% 8,993.98
Present value of next 10 years cash flows HK$64,951.64
DB:CTY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$24,687.77 × (1 + 0.23%) ÷ (10.62% – 0.23%)
HK$237,993.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$237,993.93 ÷ (1 + 10.62%)10
HK$86,703.35
DB:CTY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$64,951.64 + HK$86,703.35
HK$151,654.99
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$151,654.99 / 3,933.84
HK$38.55
DB:CTY Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:CTY represents 0.11238x of SEHK:293
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.11238x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (HKD) x Listing Adjustment Factor
= HK$ 38.55 x 0.11238
€4.33
Value per share (EUR) From above. €4.33
Current discount Discount to share price of €1.35
= -1 x (€1.35 - €4.33) / €4.33
68.8%

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

Current Discount
Amount off the current price Cathay Pacific Airways is available for.
Intrinsic value
>50%
Share price is €1.35 vs Future cash flow value of €4.33
Current Discount Checks
For Cathay Pacific Airways to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Cathay Pacific Airways's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Cathay Pacific Airways's share price is below the future cash flow value, and 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 Cathay Pacific Airways's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cathay Pacific Airways's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:CTY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.60
SEHK:293 Share Price ** SEHK (2019-05-20) in HKD HK$12.04
Europe Airlines Industry PE Ratio Median Figure of 14 Publicly-Listed Airlines Companies 8.72x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.17x

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

** Primary Listing of Cathay Pacific Airways.

DB:CTY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:293 Share Price ÷ EPS (both in HKD)

= 12.04 ÷ 0.60

20.2x

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

  • Cathay Pacific Airways is overvalued based on earnings compared to the Europe Airlines industry average.
  • Cathay Pacific Airways is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Cathay Pacific Airways's expected growth come at a high price?
Raw Data
DB:CTY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.2x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
17%per year
Europe Airlines Industry PEG Ratio Median Figure of 12 Publicly-Listed Airlines Companies 0.57x
Germany Market PEG Ratio Median Figure of 273 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

DB:CTY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.2x ÷ 17%

1.19x

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

  • Cathay Pacific Airways is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Cathay Pacific Airways's assets?
Raw Data
DB:CTY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$16.25
SEHK:293 Share Price * SEHK (2019-05-20) in HKD HK$12.04
Europe Airlines Industry PB Ratio Median Figure of 17 Publicly-Listed Airlines Companies 1.61x
Germany Market PB Ratio Median Figure of 576 Publicly-Listed Companies 1.78x
DB:CTY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:293 Share Price ÷ Book Value per Share (both in HKD)

= 12.04 ÷ 16.25

0.74x

* Primary Listing of Cathay Pacific Airways.

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

  • Cathay Pacific Airways is good value based on assets compared to the Europe Airlines industry average.
X
Value checks
We assess Cathay Pacific 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. Cathay Pacific Airways has a total score of 3/6, 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 Cathay Pacific Airways expected to perform in the next 1 to 3 years based on estimates from 17 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
17%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cathay Pacific Airways expected to grow at an attractive rate?
  • Cathay Pacific Airways's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Cathay Pacific Airways's earnings growth is expected to exceed the Germany market average.
  • Cathay Pacific Airways's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:CTY Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:CTY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 17%
DB:CTY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 4%
Europe Airlines Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Europe Airlines Industry Revenue Growth Rate Market Cap Weighted Average 6.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 13.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.9%

*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
DB:CTY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:CTY Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 125,097 16,395 5,484 12
2020-12-31 119,862 15,643 5,090 17
2019-12-31 114,394 14,524 4,653 17
DB:CTY Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 111,060 14,525 2,345
2018-09-30 107,782 12,278 1,437
2018-06-30 104,504 10,030 529
2018-03-31 100,894 7,177 -365
2017-12-31 97,284 4,323 -1,259
2017-09-30 95,105 4,130 -2,119
2017-06-30 92,926 3,937 -2,979
2017-03-31 92,839 5,023 -1,777
2016-12-31 92,751 6,108 -575
2016-09-30 95,194 9,139 1,903
2016-06-30 97,637 12,169 4,381
2016-03-31 99,990 14,082 5,191

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Cathay Pacific Airways's earnings are expected to grow by 17% yearly, however this is not considered high growth (20% yearly).
  • Cathay Pacific Airways's revenue is expected to grow by 4% 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
DB:CTY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Cathay Pacific Airways Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CTY Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.46 1.91 1.15 8.00
2020-12-31 1.30 1.92 0.83 16.00
2019-12-31 1.19 1.57 0.87 16.00
DB:CTY Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.60
2018-09-30 0.37
2018-06-30 0.13
2018-03-31 -0.09
2017-12-31 -0.32
2017-09-30 -0.54
2017-06-30 -0.76
2017-03-31 -0.45
2016-12-31 -0.15
2016-09-30 0.48
2016-06-30 1.11
2016-03-31 1.32

*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.
  • Cathay Pacific Airways is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Cathay Pacific 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 Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe 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.
Cathay Pacific Airways has a total score of 2/6, 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 Cathay Pacific 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 Cathay Pacific 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.
  • Cathay Pacific Airways's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Cathay Pacific Airways has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Cathay Pacific Airways has become profitable in the last year making it difficult to compare the Europe Airlines industry average.
Earnings and Revenue History
Cathay Pacific 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 Cathay Pacific Airways Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:CTY Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 111,060.00 2,345.00 2,075.00
2018-09-30 107,782.00 1,437.00 2,028.00
2018-06-30 104,504.00 529.00 1,981.00
2018-03-31 100,894.00 -365.00 1,911.00
2017-12-31 97,284.00 -1,259.00 1,841.00
2017-09-30 95,105.00 -2,119.00 1,790.50
2017-06-30 92,926.00 -2,979.00 1,740.00
2017-03-31 92,838.50 -1,777.00 1,763.00
2016-12-31 92,751.00 -575.00 1,786.00
2016-09-30 95,194.00 1,903.00 1,813.00
2016-06-30 97,637.00 4,381.00 1,840.00
2016-03-31 99,989.50 5,190.50 1,827.00
2015-12-31 102,342.00 6,000.00 1,814.00
2015-09-30 103,940.50 5,387.50 1,810.50
2015-06-30 105,539.00 4,775.00 1,807.00
2015-03-31 105,765.00 3,962.50 1,813.50
2014-12-31 105,991.00 3,150.00 1,820.00
2014-09-30 104,365.50 3,046.50 1,827.00
2014-06-30 102,740.00 2,943.00 1,834.00
2014-03-31 101,612.00 2,781.50 1,790.50
2013-12-31 100,484.00 2,620.00 1,747.00
2013-09-30 99,791.50 2,217.50 1,702.50
2013-06-30 99,099.00 1,815.00 1,658.00
2013-03-31 99,237.50 1,338.50 1,646.00
2012-12-31 99,376.00 862.00 1,634.00
2012-09-30 99,926.00 1,343.00 1,613.50
2012-06-30 100,476.00 1,764.00 1,593.00

*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.
  • Cathay Pacific Airways has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cathay Pacific Airways used its assets less efficiently than the Europe Airlines industry average last year based on Return on Assets.
  • Cathay Pacific Airways's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Cathay Pacific 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.
Cathay Pacific Airways has a total score of 0/6, 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 Cathay Pacific 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 Cathay Pacific Airways's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cathay Pacific Airways's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Cathay Pacific Airways's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Cathay Pacific 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 0.4x 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 Cathay Pacific Airways Company Filings, last reported 4 months ago.

DB:CTY Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 63,939.00 73,896.00 15,150.00
2018-09-30 63,939.00 73,896.00 15,150.00
2018-06-30 65,235.00 70,666.00 15,231.00
2018-03-31 65,235.00 70,666.00 15,231.00
2017-12-31 61,272.00 78,394.00 18,932.00
2017-09-30 61,272.00 78,394.00 18,932.00
2017-06-30 53,226.00 72,303.00 17,096.00
2017-03-31 53,226.00 72,303.00 17,096.00
2016-12-31 55,526.00 70,169.00 20,116.00
2016-09-30 55,526.00 70,169.00 20,116.00
2016-06-30 50,822.00 63,034.00 20,831.00
2016-03-31 50,822.00 63,034.00 20,831.00
2015-12-31 48,067.00 63,105.00 20,310.00
2015-09-30 48,067.00 63,105.00 20,310.00
2015-06-30 54,965.00 63,441.00 18,917.00
2015-03-31 54,965.00 63,441.00 18,917.00
2014-12-31 51,853.00 65,096.00 20,436.00
2014-09-30 51,853.00 65,096.00 20,436.00
2014-06-30 60,978.00 61,689.00 19,611.00
2014-03-31 60,978.00 61,689.00 19,611.00
2013-12-31 63,013.00 67,052.00 26,028.00
2013-09-30 63,013.00 67,052.00 26,028.00
2013-06-30 58,050.00 58,168.00 21,694.00
2013-03-31 58,050.00 58,168.00 21,694.00
2012-12-31 56,138.00 59,546.00 22,361.00
2012-09-30 57,306.00 59,546.00 22,361.00
2012-06-30 53,514.00 49,574.00 18,184.00
  • Cathay Pacific Airways's level of debt (115.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (106.4% vs 115.6% today).
  • Debt is not well covered by operating cash flow (19.7%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Cathay Pacific 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. Cathay Pacific Airways has a total score of 0/6, 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 Cathay Pacific 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
3.32%
Current annual income from Cathay Pacific Airways dividends. Estimated to be 3.72% next year.
If you bought €2,000 of Cathay Pacific Airways shares you are expected to receive €66 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?
  • Cathay Pacific Airways's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.45%).
  • Cathay Pacific Airways's dividend is below the markets top 25% of dividend payers in Germany (3.81%).
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
DB:CTY 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 17 Analyst Estimates (S&P Global) See Below
Europe Airlines Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 5.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

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

DB:CTY Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.44 10.00
2020-12-31 0.47 15.00
2019-12-31 0.43 15.00
DB:CTY Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-09 0.400 3.048
2019-03-13 0.400 2.942
2018-08-23 0.100 0.874
2018-08-08 0.100 0.826
2018-04-03 0.050 0.393
2018-03-14 0.050 0.361
2017-08-31 0.050 0.404
2017-08-16 0.050 0.427
2017-04-05 0.000 0.000
2017-03-15 0.000 0.000
2016-04-06 0.540 4.778
2016-03-09 0.540 4.018
2015-04-08 0.360 2.332
2015-03-18 0.360 2.022
2014-04-02 0.320 2.087
2014-03-12 0.320 2.135
2013-08-29 0.120 0.773
2013-08-15 0.120 0.863
2013-04-02 0.080 0.585
2013-03-13 0.080 0.589
2012-08-23 0.000 0.000
2012-08-08 0.000 0.000
2012-03-14 0.520 4.006
2011-08-10 0.960 6.801
2011-03-09 1.110 6.035
2010-08-17 0.660 3.146
2010-03-10 0.100 0.622
2009-08-18 0.000 0.000
2009-08-05 0.000 0.000

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

  • Cathay Pacific Airways has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Cathay Pacific Airways only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Cathay Pacific Airways's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Cathay Pacific Airways's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Cathay Pacific Airways afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cathay Pacific 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 Cathay Pacific 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
Rupert Bruce Grantham Hogg
COMPENSATION HK$9,177,000
AGE 56
TENURE AS CEO 2 years
CEO Bio

Mr. Rupert Bruce Grantham Trower Hogg has been Chief Executive Officer of Cathay Pacific Airways Limited since May 1, 2017 and has been its Executive Director since March 14, 2014. Mr. Hogg served as Chief Operating Officer of Cathay Pacific Airways Limited from March 14, 2014 to May 1, 2017. Mr. Hogg served as the Managing Director of James Finlay Ltd. until May 2008. Mr. Hogg served as a Director of Cargo of Cathay Pacific Airways Limited from September 2008 to 2010 and served as its Director of Sales & Marketing from August 2010 to March 2014. He served as Managing Director of Finlay Group Ltd. until May 2008. He joined the Swire group in 1986 and has worked with the Swire in Hong Kong, Southeast Asia, Australia and the United Kingdom. He serves as a Director of John Swire & Sons. He serves as a Director of John Swire & Sons (H.K.) Limited. He worked with Cathay Pacific from 1988 to 1997 in various marketing, commercial and revenue management roles in Hong Kong, Korea, Thailand and India. He serves as Chairman of AHK Air Hong Kong Limited. He has been Chairman at Hong Kong Dragon Airlines Limited since May 01, 2017. He has been Executive Director of Cathay Pacific Airways Limited - New Zealand Branch since March 2014 and serves as its Chief Executive Officer since May 2017. He served as a Non-Executive Director of Finlays Colombo PLC from February 2002 to September 22, 2008. Mr. Hogg served as Non-Executive Director of Hapugastenne Plantations PLC and Udapussellawa Plantations Ltd. until September 22, 2008. He holds Master of Arts Degree in history from The University of Edinburgh.

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

Average tenure and age of the Cathay Pacific Airways management team in years:

3.6
Average Tenure
54
Average Age
  • The tenure for the Cathay Pacific Airways management team is about average.
Management Team

John Robert Slosar

TITLE
Chairman
COMPENSATION
HK$2M
AGE
61

Rupert Bruce Grantham Hogg

TITLE
CEO & Executive Director
COMPENSATION
HK$9M
AGE
56
TENURE
2 yrs

Martin Murray

TITLE
CFO & Executive Director
COMPENSATION
HK$7M
AGE
51
TENURE
7.5 yrs

Greg Hughes

TITLE
Chief Operations & Service Delivery Officer and Executive Director
COMPENSATION
HK$5M
AGE
57
TENURE
1.9 yrs

Paul Loo

TITLE
Chief Customer & Commercial Officer and Executive Director
COMPENSATION
HK$2M
AGE
49
TENURE
1.9 yrs

Raymond Fung

TITLE
General Manager of Corporate Finance

Tom Owen

TITLE
Director of People
COMPENSATION
HK$6M
AGE
49
TENURE
3.8 yrs

Philippe Lacamp

TITLE
Senior Vice President of Americas
TENURE
3.6 yrs

Alexander Kinloch

TITLE
Head of Financial Services

David Fu

TITLE
Company Secretary
AGE
54
TENURE
13.3 yrs
Board of Directors Tenure

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

5.2
Average Tenure
56
Average Age
  • The tenure for the Cathay Pacific Airways board of directors is about average.
Board of Directors

John Robert Slosar

TITLE
Chairman
COMPENSATION
HK$2M
AGE
61
TENURE
5.2 yrs

Rupert Bruce Grantham Hogg

TITLE
CEO & Executive Director
COMPENSATION
HK$9M
AGE
56
TENURE
5.2 yrs

Jianjiang Cai

TITLE
Deputy Chairman
COMPENSATION
HK$575K
AGE
54
TENURE
5.2 yrs

Martin Murray

TITLE
CFO & Executive Director
COMPENSATION
HK$7M
AGE
51

Greg Hughes

TITLE
Chief Operations & Service Delivery Officer and Executive Director
COMPENSATION
HK$5M
AGE
57
TENURE
1.9 yrs

Paul Loo

TITLE
Chief Customer & Commercial Officer and Executive Director
COMPENSATION
HK$2M
AGE
49
TENURE
1.9 yrs

Irene Lee

TITLE
Independent Non-Executive Director
COMPENSATION
HK$915K
AGE
64
TENURE
9.3 yrs

Ivan Chu

TITLE
Non-Executive Director
COMPENSATION
HK$6M
AGE
56
TENURE
8.2 yrs

Merlin Bingham Swire

TITLE
Non-Executive Director
AGE
44
TENURE
8.9 yrs

Xiaohang Zhao

TITLE
Non-Executive Director
COMPENSATION
HK$575K
AGE
56
TENURE
7.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Cathay Pacific 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. Cathay Pacific 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

Company Info

Description

Cathay Pacific Airways Limited, together with its subsidiaries, operates as a carrier of international passengers and air cargo. It operates in two segments, Airline Business and Non-Airline Business. The company conducts airline operations principally to and from Hong Kong. It also provides property investment, travel reward program, travel tour operator, financial, aircraft leasing and acquisition facilitation, airline catering, food processing, information processing, aircraft ramp handling, laundry and dry cleaning, ground handling, and aircraft engineering services. In addition, the company operates a computer network for interchange of air cargo related information; and scheduled airline services and cargo terminals. It has operations in Hong Kong, Mainland China, Japan, Korea, Taiwan, the Americas, Europe, Southeast Asia, Southwest Pacific, South Asia, the Middle East, and Africa. As of December 31, 2018, it operated 212 aircraft directly connecting Hong Kong to 109 destinations in 35 countries worldwide, including 26 destinations in Mainland China. Cathay Pacific Airways Limited was founded in 1946 and is headquartered in Lantau, Hong Kong.

Details
Name: Cathay Pacific Airways Limited
CTY
Exchange: DB
Founded: 1946
HK$5,400,974,669
3,933,844,572
Website: http://www.cathaypacific.com
Address: Cathay Pacific Airways Limited
Hong Kong International Airport,
8 Scenic Road,
Lantau,
Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 293 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
OTCPK CPCA.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB CTY Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SHSC 293 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 02. Jan 1992
SZSC 293 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 02. Jan 1992
OTCPK CPCA.Y ADR EACH REP 5 HKD0.20(BNY) Pink Sheets LLC US USD 29. Jun 1994
DB CTYA ADR EACH REP 5 HKD0.20(BNY) Deutsche Boerse AG DE EUR 29. Jun 1994
Number of employees
Current staff
Staff numbers
32,400
Cathay Pacific Airways employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 21:10
End of day share price update: 2019/05/20 00:00
Last estimates confirmation: 2019/05/14
Last earnings filing: 2019/04/09
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


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.