OTCPK:CPCA.F

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Undervalued established dividend payer.


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


Market Performance


7 Day Return

0%

CPCA.F

1.8%

US Airlines

1.0%

US Market


1 Year Return

n/a

CPCA.F

0.5%

US Airlines

8.0%

US Market

Return vs Industry: Insufficient data to determine how CPCA.F performed against the US Airlines industry.

Return vs Market: Insufficient data to determine how CPCA.F performed against the US Market.


Shareholder returns

CPCA.FIndustryMarket
7 Day0%1.8%1.0%
30 Day-2.3%-1.5%-0.07%
90 Dayn/a-6.8%-1.0%
1 Yearn/a1.9%0.5%10.4%8.0%
3 Year-4.4%-4.4%30.1%25.1%46.2%36.7%
5 Year-26.3%-26.3%52.6%43.8%64.3%46.2%

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

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPCA.F ($1.29) is trading below our estimate of fair value ($9.59)

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


Price To Earnings Ratio

PE vs Industry: CPCA.F is poor value based on its PE Ratio (9.8x) compared to the Airlines industry average (8.8x).

PE vs Market: CPCA.F is good value based on its PE Ratio (9.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CPCA.F is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CPCA.F is good value based on its PB Ratio (0.6x) compared to the US Airlines industry average (1.7x).


Next Steps

Future Growth

How is Cathay Pacific Airways forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPCA.F's forecast earnings growth (22.3% per year) is above the savings rate (2.7%).

Earnings vs Market: CPCA.F's earnings (22.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: CPCA.F's revenue (4.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CPCA.F's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPCA.F's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

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

-24.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CPCA.F's earnings have declined by -24.4% per year over the past 5 years.

Accelerating Growth: CPCA.F's earnings growth over the past year (647.6%) exceeds its 5-year average (-24.4% per year).

Earnings vs Industry: CPCA.F earnings growth over the past year (647.6%) exceeded the Airlines industry -30.9%.


Return on Equity

High ROE: CPCA.F's Return on Equity (6.7%) is considered low.


Return on Assets

ROA vs Industry: CPCA.F's Return on Assets is below or equal to the Airlines industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Cathay Pacific Airways's financial position?


Financial Position Analysis

Short Term Liabilities: CPCA.F's short term assets (HK$26.6B) do not cover its short term liabilities (HK$54.1B)

Long Term Liabilities: CPCA.F's short term assets (26.6B) do not cover its long term liabilities (89.7B)


Debt to Equity History and Analysis

Debt Level: CPCA.F's debt to equity ratio (82.2%) is considered high

Reducing Debt: CPCA.F's debt to equity ratio has increased from 45.8% to 82.2% over the past 5 years.

Debt Coverage: CPCA.F's debt is well covered by operating cash flow (30.9%).

Interest Coverage: CPCA.F's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: CPCA.F'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?

4.04%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CPCA.F's dividend (4.04%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CPCA.F's dividend (4.04%) is in the top 25% of dividend payers in the US market (3.68%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.8%), CPCA.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPCA.F's dividends in 3 years are forecast to be well covered by earnings (30.1% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Augustus Tang (60yo)

0.2yrs

Tenure

0

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 ...


Management Age and Tenure

2.3yrs

Average Tenure

55yo

Average Age

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


Board Age and Tenure

5.6yrs

Average Tenure

56yo

Average Age

Experienced Board: CPCA.F's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Augustus Tang (60yo)

    CEO & Executive Director

    • Tenure: 0.2yrs
  • Raymond Fung

    General Manager of Corporate Finance

    • Tenure: 0yrs
  • Paul Chow

    Group General Counsel

    • Tenure: 0.3yrs
  • John Robert Slosar (62yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: HK$2.00m
  • Martin Murray (52yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$7.45m
  • Tom Owen (50yo)

    Director of People

    • Tenure: 4.2yrs
    • Compensation: HK$6.02m
  • Ronald Lam (46yo)

    Executive Director

    • Tenure: 0.2yrs
  • Alexander Kinloch

    Head of Financial Services

    • Tenure: 0yrs
  • Philippe Lacamp

    Senior Vice President of Americas

    • Tenure: 4yrs
  • Greg Hughes (58yo)

    Chief Operations & Service Delivery Officer and Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$7.49m

Board Members

  • Augustus Tang (60yo)

    CEO & Executive Director

    • Tenure: 0.2yrs
  • Jianjiang Cai (55yo)

    Deputy Chairman

    • Tenure: 5.6yrs
    • Compensation: HK$575.00k
  • Xiaohang Zhao (57yo)

    Non-Executive Director

    • Tenure: 8.3yrs
    • Compensation: HK$575.00k
  • Merlin Bingham Swire (45yo)

    Non-Executive Director

    • Tenure: 9.3yrs
  • Zhiyong Song (54yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: HK$575.00k
  • John Robert Slosar (62yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: HK$2.00m
  • Ivan Chu (57yo)

    Non-Executive Director

    • Tenure: 8.6yrs
  • Martin Murray (52yo)

    CFO & Executive Director

    • Tenure: 0yrs
    • Compensation: HK$7.45m
  • Ronald Lam (46yo)

    Executive Director

    • Tenure: 0.2yrs
  • Greg Hughes (58yo)

    Chief Operations & Service Delivery Officer and Executive Director

    • Tenure: 2.3yrs
    • Compensation: HK$7.49m

Company Information

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


Key Information

  • Name: Cathay Pacific Airways Limited
  • Ticker: CPCA.F
  • Exchange: OTCPK
  • Founded: 1946
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: HK$38.945b
  • Listing Market Cap: HK$4.965b
  • 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 Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:47
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.