KLSE:AIRASIA

Stock Analysis Report

Executive Summary

AirAsia Group Berhad, an investment holding company, provides commercial air transportation services in Malaysia, Thailand, Indonesia, the Philippines, India, and Japan under the AirAsia brand.


Snowflake Analysis

Mediocre balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has AirAsia Group Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

10.3%

AIRASIA

-3.7%

MY Airlines

1.1%

MY Market


1 Year Return

-69.9%

AIRASIA

-41.5%

MY Airlines

-22.5%

MY Market

Return vs Industry: AIRASIA underperformed the MY Airlines industry which returned -41.5% over the past year.

Return vs Market: AIRASIA underperformed the MY Market which returned -22.5% over the past year.


Shareholder returns

AIRASIAIndustryMarket
7 Day10.3%-3.7%1.1%
30 Day-21.1%-19.1%-13.6%
90 Day-52.4%-33.6%-21.3%
1 Year-55.9%-69.9%-40.3%-41.5%-19.6%-22.5%
3 Year-48.7%-73.8%-29.5%-33.4%-21.2%-30.7%
5 Year-27.5%-64.1%-42.1%-46.9%-18.0%-32.4%

Price Volatility Vs. Market

How volatile is AirAsia Group Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is AirAsia Group Berhad undervalued compared to its fair value and its price relative to the market?

11.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AIRASIA (MYR0.81) is trading below our estimate of fair value (MYR0.91)

Significantly Below Fair Value: AIRASIA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: AIRASIA is unprofitable, so we can't compare its PE Ratio to the Airlines industry average.

PE vs Market: AIRASIA is unprofitable, so we can't compare its PE Ratio to the MY market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIRASIA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AIRASIA is good value based on its PB Ratio (0.6x) compared to the XA Airlines industry average (0.7x).


Next Steps

Future Growth

How is AirAsia Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

81.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AIRASIA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.4%).

Earnings vs Market: AIRASIA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AIRASIA's is expected to become profitable in the next 3 years.

Revenue vs Market: AIRASIA's revenue (3.7% per year) is forecast to grow slower than the MY market (4.9% per year).

High Growth Revenue: AIRASIA's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIRASIA's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has AirAsia Group Berhad performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIRASIA is currently unprofitable.

Growing Profit Margin: AIRASIA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AIRASIA is unprofitable, but has reduced losses over the past 5 years at a rate of 11.9% per year.

Accelerating Growth: Unable to compare AIRASIA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AIRASIA is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-2.7%).


Return on Equity

High ROE: AIRASIA has a negative Return on Equity (-10.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is AirAsia Group Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: AIRASIA's short term assets (MYR5.0B) do not cover its short term liabilities (MYR8.1B).

Long Term Liabilities: AIRASIA's short term assets (MYR5.0B) do not cover its long term liabilities (MYR14.2B).


Debt to Equity History and Analysis

Debt Level: AIRASIA's debt to equity ratio (17.2%) is considered satisfactory.

Reducing Debt: AIRASIA's debt to equity ratio has reduced from 268.1% to 17.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: AIRASIA's debt is covered by short term assets (assets are 10.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AIRASIA has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: AIRASIA has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is AirAsia Group Berhad's current dividend yield, its reliability and sustainability?

29.81%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIRASIA's dividend (29.81%) is higher than the bottom 25% of dividend payers in the MY market (2.6%).

High Dividend: AIRASIA's dividend (29.81%) is in the top 25% of dividend payers in the MY market (6.8%)


Stability and Growth of Payments

Stable Dividend: AIRASIA has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: AIRASIA's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: AIRASIA is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: AIRASIA's dividends in 3 years are forecast to be well covered by earnings (29.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Tony Fernandes (55yo)

0.083

Tenure

RM22,511,564

Compensation

Tan Sri Dr. Anthony Francis Fernandes, also known as Tony, Ph.D., CBE, serves as Chief Executive Officer of AirAsia Group Berhad since March, 2020. He served as Chief Executive Officer of AirAsia Berhad an ...


CEO Compensation Analysis

Compensation vs Market: Tony's total compensation ($USD5.16M) is above average for companies of similar size in the MY market ($USD569.92K).

Compensation vs Earnings: Insufficient data to compare Tony's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Kamarudin Bin Meranun
Executive Chairman0.083yrRM19.63m0.060% MYR1.6m
Anthony Fernandes
CEO & Executive Director0.083yrRM22.51m0.048% MYR1.3m
Pattra Boosarawongse
Group Chief Financial Officer3.58yrsno datano data
Adrian Jenkins
Group Chief Operations Officer2.33yrsno datano data
Aireen Omar
Deputy Group Chief Executive Officer of Technology & Digitalno datano datano data
Esme Law
Head of Investor Relationsno datano datano data
Elina Effendi
Group Head of Corporate Developmentno datano datano data
Tassapon Bijleveld
Executive Chairman of Thailandno datano datano data
Chang Jean
Executive Vice President of Greater China & North Asia Operationsno datano datano data
Nyok San Chin
Group Head of Cargo6.67yrsno datano data

2.3yrs

Average Tenure

52yo

Average Age

Experienced Management: AIRASIA's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kamarudin Bin Meranun
Executive Chairman0.083yrRM19.63m0.060% MYR1.6m
Anthony Fernandes
CEO & Executive Director0.083yrRM22.51m0.048% MYR1.3m
Tassapon Bijleveld
Executive Chairman of Thailandno datano datano data
Mohamed Bin Merican
Independent Non Executive Director4.17yrsRM229.11k0.0075% MYR201.2k
Lee Fam
Senior Independent Non-Executive Director5.67yrsRM255.33kno data
Abdul Bin Abu Bakar
Non-Independent Non-Executive Director15yrsRM255.33k0.030% MYR796.6k
Chan Fong
Director of Airasia Global Shared Services Sdn. Bhd.6.92yrsno datano data
Stuart Lounsbury Dean
Independent Non-Executive Director4.83yrsRM234.75k0.0012% MYR32.3k
Noor Neelofa Binti Mohd Noor
Independent Non Executive Director2.33yrsRM170.25kno data

5.3yrs

Average Tenure

58yo

Average Age

Experienced Board: AIRASIA's board of directors are considered experienced (5.3 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

AirAsia Group Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AirAsia Group Berhad
  • Ticker: AIRASIA
  • Exchange: KLSE
  • Founded: 2001
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: RM2.690b
  • Shares outstanding: 3.34b
  • Website: https://www.airasia.com

Number of Employees


Location

  • AirAsia Group Berhad
  • RedQ, Jalan Pekeliling 5
  • Lapangan Terbang
  • Kuala Lumpur
  • 64000
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AIAB.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2004
AIRASIAKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRNov 2004

Biography

AirAsia Group Berhad, an investment holding company, provides commercial air transportation services in Malaysia, Thailand, Indonesia, the Philippines, India, and Japan under the AirAsia brand. It also offers management, tour operating, aircraft leasing, ground handling, shared and outsourcing, central depository, financial and other related, event ticketing, and consultancy services, as well as services in the areas of information technology design, development, and implementation; facilitates business transactions for AirAsia Group with non-resident goods and service providers; and trades in coffee and tea related products, and multimedia content and equipment. In addition, the company provides inflight meal products; manages customer loyalty points; deals in capital market; operates charter and private unscheduled business jets; and offers logistics, inflight magazine content, inflight shop, aviation and commercial, airport related, food and beverages, and research and development services, as well as supporting services to air transport. Further, it is involved in owning, leasing, and financing of aircraft; and marketing and development of loyalty programs. The company operates 205 aircraft, including 183 Airbus A320ceo and 22 Airbus A320ne. The company was formerly known as AirAsia Berhad and changed its name to AirAsia Group Berhad in April 2018. AirAsia Group Berhad was founded in 2001 and is headquartered in Kuala Lumpur, Malaysia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 14:31
End of Day Share Price2020/04/02 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.