SEHK:293

Stock Analysis Report

Cathay Pacific Airways

Executive Summary

Cathay Pacific Airways Limited, together with its subsidiaries, operates as a carrier of international passengers and air cargo.


Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Share Price & News

How has Cathay Pacific Airways's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 293's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.9%

293

-6.1%

HK Airlines

0.2%

HK Market


1 Year Return

-40.5%

293

-44.7%

HK Airlines

-22.0%

HK Market

Return vs Industry: 293 exceeded the Hong Kong Airlines industry which returned -44.7% over the past year.

Return vs Market: 293 underperformed the Hong Kong Market which returned -22% over the past year.


Shareholder returns

293IndustryMarket
7 Day0.9%-6.1%0.2%
30 Day-20.5%-22.0%-10.8%
90 Day-28.2%-34.5%-16.5%
1 Year-39.4%-40.5%-43.6%-44.7%-19.1%-22.0%
3 Year-23.8%-27.1%-31.9%-35.5%-3.7%-13.4%
5 Year-53.7%-57.7%-44.6%-49.2%-15.2%-28.8%

Price Volatility Vs. Market

How volatile is Cathay Pacific Airways's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Cathay Pacific Airways undervalued compared to its fair value and its price relative to the market?

36.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 293 (HK$8.19) is trading below our estimate of fair value (HK$12.79)

Significantly Below Fair Value: 293 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 293 is poor value based on its PE Ratio (19.1x) compared to the Airlines industry average (9x).

PE vs Market: 293 is poor value based on its PE Ratio (19.1x) compared to the Hong Kong market (9.1x).


Price to Earnings Growth Ratio

PEG Ratio: 293 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 293 is good value based on its PB Ratio (0.5x) compared to the XA Airlines industry average (0.7x).


Next Steps

Future Growth

How is Cathay Pacific Airways forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

29.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 293's forecast earnings growth (29.1% per year) is above the savings rate (1.6%).

Earnings vs Market: 293's earnings (29.1% per year) are forecast to grow faster than the Hong Kong market (11.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 293's revenue (2.4% per year) is forecast to grow slower than the Hong Kong market (9.9% per year).

High Growth Revenue: 293's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 293's Return on Equity is forecast to be low in 3 years time (4.8%).


Next Steps

Past Performance

How has Cathay Pacific Airways performed over the past 5 years?

-20.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 293 has high quality earnings.

Growing Profit Margin: 293's current net profit margins (1.6%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: 293's earnings have declined by -20.4% per year over the past 5 years.

Accelerating Growth: 293's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 293 had negative earnings growth (-27.9%) over the past year, making it difficult to compare to the Airlines industry average (-2.7%).


Return on Equity

High ROE: 293's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Cathay Pacific Airways's financial position?


Financial Position Analysis

Short Term Liabilities: 293's short term assets (HK$27.3B) do not cover its short term liabilities (HK$56.9B).

Long Term Liabilities: 293's short term assets (HK$27.3B) do not cover its long term liabilities (HK$94.9B).


Debt to Equity History and Analysis

Debt Level: 293's debt to equity ratio (90.4%) is considered high.

Reducing Debt: 293's debt to equity ratio has increased from 65% to 90.4% over the past 5 years.

Debt Coverage: 293's debt is well covered by operating cash flow (27%).

Interest Coverage: 293's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet

Inventory Level: 293 has a high level of physical assets or inventory.

Debt Coverage by Assets: 293's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

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

1.74%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 293's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 293's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 293's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 293's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 293 is not paying a notable dividend for the Hong Kong market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 293's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Augustus Tang (60yo)

0.67

Tenure

Mr. Kin Wing Tang, also known as Augustus, has been Chief Executive Officer and Director of Cathay Pacific Airways Limited since August 19, 2019. He has been the Chief Executive Officer and Director of Hon ...


Leadership Team

NamePositionTenureCompensationOwnership
Martin Murray
CFO & Executive Directorno dataHK$7.45mno data
Gregory Thomas Hughes
Chief Operations & Service Delivery Officer and Executive Director2.83yrsHK$7.49mno data
Patrick Healy
Executive Chairman0.42yrno datano data
Kin Wing Tang
CEO & Executive Director0.67yrno datano data
Keith Fung
General Manager of Corporate Financeno datano datano data
Koon Ying Chow
Group General Counsel & Company Secretary0.75yrno datano data
Tom Owen
Director of People4.67yrsHK$6.02mno data
Philippe Lacamp
Senior Vice President of Americas4.5yrsno datano data
Alexander Kinloch
Head of Financial Servicesno datano datano data
Siu Por Lam
Executive Director0.67yrno datano data

1.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: 293's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Martin Murray
CFO & Executive Directorno dataHK$7.45mno data
Gregory Thomas Hughes
Chief Operations & Service Delivery Officer and Executive Director2.83yrsHK$7.49mno data
Patrick Healy
Executive Chairman0.42yrno datano data
Kin Wing Tang
CEO & Executive Director0.67yrno datano data
Siu Por Lam
Executive Director0.67yrno datano data
Jianjiang Cai
Deputy Chairman6.08yrsHK$575.00kno data
Xiaohang Zhao
Non-Executive Director8.83yrsHK$575.00kno data
Merlin Bingham Swire
Non-Executive Director9.83yrsno datano data
Zhiyong Song
Non-Executive Director6.08yrsHK$575.00kno data
Kwok Leung Chu
Non-Executive Director9.08yrsno datano data

6.1yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 293's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Cathay Pacific Airways Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cathay Pacific Airways Limited
  • Ticker: 293
  • Exchange: SEHK
  • Founded: 1946
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: HK$32.218b
  • Shares outstanding: 3.93b
  • Website: https://www.cathaypacific.com

Number of Employees


Location

  • Cathay Pacific Airways Limited
  • Hong Kong International Airport
  • 8 Scenic Road
  • Lantau
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPCA.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
293SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJan 1992
CTYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
293SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
293SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJan 1992
CPCA.YOTCPK (Pink Sheets LLC)ADR EACH REP 5 HKD0.20(BNY)USUSDJun 1994
CTYADB (Deutsche Boerse AG)ADR EACH REP 5 HKD0.20(BNY)DEEURJun 1994

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 13:17
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.