Cathay Pacific Airways (CPCAY) AI Stock Analysis

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Cathay Pacific Airways

(Other OTC:CPCAY)

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Rating:77Outperform

Price Target:$11.00▲(13.54% Upside)

Action:reiterated

Date:11/07/26

The overall score of 77 is driven by a strong financial foundation and compelling valuation. The company's successful deleveraging, consistent profitability, and high dividend yield are the most significant positive factors. These are partially offset by technical indicators that suggest the stock is overbought in the short term and fundamental concerns around slowing revenue growth and margin pressure.

Positive Factors

Revenue and earnings growthStrong revenue and EPS growth indicates that Cathay Pacific has regained meaningful operating scale after the pandemic disruption. Continued top-line expansion can improve network utilization, support reinvestment in the fleet and customer proposition, and strengthen earnings power over the next several quarters.

Negative Factors

Meaningful leverageA debt-heavy capital structure reduces financial flexibility even though leverage improved versus 2024. Higher obligations can absorb cash that might otherwise support fleet investment or shareholder returns, and they leave Cathay Pacific more exposed if demand weakens or operating costs rise.

Cathay Pacific Airways (CPCAY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $11.92B
Dividend Yield: 5.88%
Average Volume (3M): 5,856
Price to Earnings (P/E): 7.3
Beta (1Y): 0.33
Revenue Growth: 19.31%
EPS Growth: 35.29%
Country: US
Employees: 33,369
Sector: Industrials
Sector Strength: 63
Industry: Airlines, Airports & Air Services

Cathay Pacific Airways Business Overview & Revenue Model

Company Description

Cathay Pacific Airways Limited, together with its subsidiaries, offers international passenger and air cargo transportation services. The company provides airline operations, including catering, cargo terminal operations, ground handling services, an...

How the Company Makes Money

Cathay Pacific primarily makes money by selling air transportation and related services across two main businesses: passenger and cargo. Passenger revenue is generated from ticket sales across different cabins (e.g., economy and premium cabins), with...

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific shows a strong financial recovery with consistent profitability, a significantly deleveraged balance sheet, and robust operating cash flow. However, slowing revenue growth and gross margin compression from 31.2% to 17.5% introduce caution, preventing a higher score.

Income Statement

78Positive

Balance Sheet

82Very Positive

Cash Flow

76Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	130.55B	116.57B	104.37B	94.48B	51.04B	45.59B
Gross Profit	21.30B	20.46B	32.58B	20.70B	20.41B	3.17B
EBITDA	27.22B	26.13B	25.24B	27.14B	15.66B	12.23B
Net Income	13.42B	10.81B	9.89B	9.79B	-6.62B	-5.53B
Balance Sheet
Total Assets	182.68B	177.03B	171.24B	174.12B	180.91B	196.63B
Cash, Cash Equivalents and Short-Term Investments	16.23B	12.29B	10.53B	15.53B	18.28B	19.28B
Total Debt	63.50B	59.10B	68.47B	68.29B	77.11B	89.85B
Total Liabilities	124.65B	116.92B	118.74B	114.08B	117.03B	124.38B
Stockholders Equity	58.02B	60.10B	52.50B	60.03B	63.88B	72.24B
Cash Flow
Free Cash Flow	18.73B	15.90B	14.33B	19.61B	14.11B	6.56B
Operating Cash Flow	28.17B	25.71B	23.54B	26.41B	17.84B	8.84B
Investing Cash Flow	-10.93B	-7.81B	-6.08B	-2.67B	-2.76B	493.00M
Financing Cash Flow	-13.70B	-15.43B	-19.83B	-23.18B	-16.24B	-6.93B

Cathay Pacific Airways Technical Analysis

Technical Analysis SentimentPositive

Last Price9.69

Price Trends

50DMA9.01Positive

100DMA8.91Positive

200DMA8.25Positive

Market Momentum

MACD0.27Negative

RSI67.62Neutral

STOCH80.71Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPCAY, the sentiment is Positive. The current price of 9.69 is above the 20-day moving average (MA) of 8.98, above the 50-day MA of 9.01, and above the 200-day MA of 8.25, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 67.62 is Neutral, neither overbought nor oversold. The STOCH value of 80.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPCAY.

Cathay Pacific Airways Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

CPCAY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CPA	79Outperform	$5.75B	9.26	22.40%	4.78%	14.80%	-1.39%
CPCAY	77Outperform	$11.85B	7.27	22.72%	5.88%	19.31%	35.29%
DAL	73Outperform	$56.74B	17.11	15.40%	0.93%	14.11%	-29.50%
LTM	69Neutral	$13.66B	8.51	87.28%	3.23%	21.07%	35.86%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
UAL	63Neutral	$35.51B	10.00	21.81%	―	12.31%	9.08%
AAL	46Neutral	$8.73B	-18.04	12.03%	―	12.32%	-179.51%

* Industrials Sector Average

Performance Comparison

CPCAY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CPCAY	Cathay Pacific Airways	9.69	2.35	32.08%
CPA	Copa Holdings S.A.	140.87	23.27	19.79%
DAL	Delta Air Lines Inc.	86.25	31.08	56.33%
UAL	United Airlines Holdings, Inc.	109.31	19.36	21.52%
AAL	American Airlines Group Inc	13.17	0.83	6.73%
LTM	LATAM Airlines Group SA Sponsored ADR	47.32	3.69	8.45%

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.

Date of analysis: Nov 07, 2026

Cathay Pacific Airways AI Stock Analysis