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International Consolidated Airlines Group, S.A. (ICAGY)
OTHER OTC:ICAGY
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International Consolidated Airlines
(OTC:ICAGY)
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Rating:81Outperform
Price Target:
$11.50
▲(10.58% Upside)
International Consolidated Airlines receives a strong overall score driven by robust financial performance and an encouraging earnings call. Valuation metrics are attractive, supporting investment potential. Technical indicators show positive momentum, albeit with some caution needed due to operational challenges highlighted in the earnings call.
International Consolidated Airlines (ICAGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.91B
Dividend Yield1.99%
Average Volume (3M)2.90K
Price to Earnings (P/E)7.4
Beta (1Y)1.02
Revenue Growth9.38%
EPS Growth21.02%
CountryUS
Employees52,762
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)0.56
Shares Outstanding2,302,963,600
10 Day Avg. Volume3,889
30 Day Avg. Volume2,902
Financial Highlights & Ratios
PEG Ratio3.80
Price to Book (P/B)3.30
Price to Sales (P/S)0.63
P/FCF Ratio5.73
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.91
Enterprise Value/Gross Profit3.73
Enterprise Value/Ebitda5.23
Forecast
1Y Price Target
$11.50Price Target Upside10.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
International Consolidated Airlines Business Overview & Revenue Model
Company DescriptionInternational Consolidated Airlines (ICAGY) is a leading global airline group that operates a diverse portfolio of airline brands across various sectors of the aviation industry. The company is primarily involved in the passenger air transport sector, offering both domestic and international flights. In addition to passenger services, ICAGY provides cargo transportation, aircraft maintenance, and ancillary services such as loyalty programs and in-flight sales, catering to a broad range of customer needs in the travel and logistics markets.
How the Company Makes MoneyICAGY generates revenue through multiple streams, with the primary source being ticket sales from passenger flights. The company offers various fare classes, including economy, premium economy, business, and first class, catering to different market segments. Ancillary revenue is also significant, comprising fees from baggage, seat selection, and in-flight services. Additionally, ICAGY earns money through its cargo services, transporting goods and freight globally. The company has established strategic partnerships and alliances with other airlines, enabling code-sharing agreements that expand its network and increase passenger load factors. Furthermore, loyalty programs and travel packages contribute to revenue, enhancing customer retention and encouraging repeat business. Economic factors, fuel prices, and travel demand also play critical roles in influencing the company's overall earnings.
International Consolidated Airlines Earnings Call Summary
Earnings Call Date:Aug 01, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong revenue growth, significant shareholder returns, and robust performance across several business segments. However, challenges such as the weakness in U.S. point-of-sale economy leisure, tax impacts in certain regions, and operational inefficiencies due to fleet changes temper the overall positivity.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Revenue grew by 8%, reflecting continued strong demand for our network and brands.
Operating Profit Surge
Operating profit reached EUR 1.9 billion, up 43.5% year-on-year, with Q2 delivering EUR 1.68 billion, an increase of 35.4%.
Shareholder Returns
EUR 1.5 billion of cash announced to be returned to shareholders through dividends and share buybacks.
Strong Balance Sheet
Net leverage at 0.7x, giving flexibility on capital allocation.
Aer Lingus Profit Growth
Aer Lingus increased its operating profit by EUR 71 million to EUR 80 million, with an operating margin of 6.8%.
British Airways Profit Improvement
British Airways' operating profit increased GBP 269 million to GBP 824 million, with margins improving by 3.5 percentage points to 11.7%.
Iberia's Strong Performance
Iberia delivered EUR 202 million increase in operating profit to EUR 564 million, with a 14.5% margin.
Positive Cash Flow
Generated EUR 2.1 billion in free cash in H1.
Sustainable Aviation Fuel Progress
Secured over 200,000 tonnes of sustainable aviation fuel for 2025, 25% more than last year.
Negative Updates
U.S. Point-of-Sale Economy Leisure Weakness
Continued softness in U.S. point-of-sale economy leisure, though partially offset by strong premium cabin demand.
Impact of Taxes in Netherlands
19% tax increase in the Netherlands impacted demand, resulting in difficulties passing taxes through to customers.
Mixed Fleet Complexity for Vueling
Introduction of Boeing 737s to Vueling will initially create a mixed fleet, leading to inefficiencies.
North America Revenue Growth Slowdown
North America unit revenue growth slowed from 13% in Q1 to 1% in Q2.
Company Guidance
During the call, International Airlines Group (IAG) reported robust financial results for the first half of 2025, showcasing an 8% increase in revenue to nearly EUR 16 billion, driven by strong demand across its network and brands. The operating profit surged by 43.5% year-on-year to EUR 1.9 billion, with the second quarter contributing EUR 1.68 billion, a 35.4% rise. The company achieved an 11.8% operating margin, up 2.9 percentage points, thanks to its transformation program. Passenger revenue rose 5.6%, with a 2.7% increase in capacity and a 3.9% rise in yields, countering a slight decline in load factors. Aer Lingus, British Airways, and Iberia all reported significant improvements in operating profit, with notable increases in margins. The group also highlighted a 70% growth in adjusted earnings per share and announced EUR 1.5 billion in shareholder returns through dividends and buybacks. IAG maintained a strong balance sheet with net leverage at 0.7x, providing flexibility for capital allocation and future growth.International Consolidated Airlines Financial Statement Overview
Summary
International Consolidated Airlines has demonstrated strong financial performance with significant revenue and profit growth, and effective cash flow management. The high debt-to-equity ratio is a concern but is offset by impressive return on equity and efficient operations.Income Statement
International Consolidated Airlines has demonstrated a substantial recovery in its financial performance, with total revenue growing from $29.45 billion in 2023 to $32.1 billion in 2024, resulting in a revenue growth rate of 8.73%. The gross profit margin stands at 23.61%, while the net profit margin is 8.51%, indicating strong profitability relative to revenue. The EBIT margin of 13.34% and EBITDA margin of 21.27% further highlight efficient operations and cost management. These metrics reflect robust profitability and a positive growth trajectory, positioning the company strongly in the transportation sector.85
Very Positive
Balance Sheet
The company's balance sheet is marked by a relatively high debt-to-equity ratio of 2.81, reflecting significant leverage, which poses potential risks in terms of financial stability. However, the return on equity (ROE) is impressive at 44.26%, signaling effective use of equity to generate profits. The equity ratio of 14.09% indicates a moderate level of shareholder equity in relation to total assets. The company's ability to manage its liabilities and equity efficiently is evident, though the high leverage warrants careful monitoring to mitigate risks.72
Positive
Cash Flow
International Consolidated Airlines showcases strong cash flow management, with a free cash flow growth rate of 169.39% from 2023 to 2024. The operating cash flow to net income ratio is 2.33, reflecting robust cash generation relative to net income, while the free cash flow to net income ratio of 1.30 indicates healthy cash flow available for investment and debt repayment. These metrics underscore the company's strong cash position and ability to support its operations and strategic initiatives.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 33.28B | 32.10B | 29.45B | 23.07B | 8.46B | 7.81B |
| Gross Profit | 8.13B | 7.58B | 7.91B | 5.36B | 164.00M | -1.10B |
| EBITDA | 5.80B | 6.83B | 4.43B | 2.20B | -2.25B | -3.56B |
| Net Income | 3.13B | 2.73B | 2.65B | 431.00M | -2.93B | -6.93B |
Balance Sheet | ||||||
| Total Assets | 43.99B | 43.80B | 37.68B | 39.30B | 34.41B | 30.26B |
| Cash, Cash Equivalents and Short-Term Investments | 9.35B | 9.80B | 6.81B | 9.57B | 7.91B | 5.88B |
| Total Debt | 14.81B | 17.34B | 16.08B | 19.98B | 19.61B | 15.68B |
| Total Liabilities | 38.03B | 37.63B | 34.40B | 37.28B | 33.56B | 28.95B |
| Stockholders Equity | 5.95B | 6.17B | 3.27B | 2.02B | 840.00M | 1.60B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 3.56B | 1.32B | 960.00M | -885.00M | -5.24B |
| Operating Cash Flow | 0.00 | 6.37B | 4.86B | 4.83B | -141.00M | -3.30B |
| Investing Cash Flow | 0.00 | -2.50B | -3.42B | -3.46B | -181.00M | 1.56B |
| Financing Cash Flow | 0.00 | -1.18B | -5.19B | -56.00M | 2.23B | 3.81B |
International Consolidated Airlines Technical Analysis
Positive
10.40
Price Trends
10.32
Positive
9.74
Positive
8.63
Positive
Market Momentum
>-0.01
Positive
51.99
Neutral
72.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICAGY, the sentiment is Positive. The current price of 10.4 is above the 20-day moving average (MA) of 10.38, above the 50-day MA of 10.32, and above the 200-day MA of 8.63, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 72.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICAGY.
International Consolidated Airlines Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $30.86B | 9.55 | 27.70% | ― | 4.23% | 13.13% | |
81 Outperform | $23.91B | 7.41 | 56.20% | 1.99% | 9.38% | 21.02% | |
80 Outperform | $37.39B | 8.31 | 30.07% | 1.11% | 3.01% | -0.90% | |
75 Outperform | $30.30B | 14.07 | 27.12% | 1.68% | 10.61% | 37.32% | |
68 Neutral | $17.08B | 48.90 | 4.30% | 2.21% | 1.64% | 284.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $7.64B | 14.89 | -21.27% | ― | 1.50% | ― |
* Industrials Sector Average
ICAGY
International Consolidated Airlines
10.40
5.46
110.53%
DAL
Delta Air Lines
57.26
8.37
17.12%
RYAAY
Ryanair Holdings
59.50
18.22
44.14%
LUV
Southwest Airlines
32.52
2.17
7.15%
UAL
United Airlines Holdings
95.33
36.15
61.08%
AAL
American Airlines
11.58
0.05
0.43%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.