Cathay Pacific Airways (0293) AI Stock Analysis

• Market Cap: $70.57B
• Dividend Yield: 6.53%
• Average Volume (3M): 6.55M
• Price to Earnings (P/E): 6.9
• Beta (1Y): 0.27
• Revenue Growth: 8.54%
• EPS Growth: 16.57%
• Country: HK
• Employees: 30,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.54
• Shares Outstanding: 6,676,495,000
• 10 Day Avg. Volume: 5,472,685
• 30 Day Avg. Volume: 6,550,675
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 1.23
• Enterprise Value/Gross Profit: 3.94
• Enterprise Value/Ebitda: 5.98
• 1Y Price Target: $9.72
• Price Target Upside: -8.01% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: HK$11.50 ▲(8.80% Upside)

Cathay Pacific Airways' strong financial recovery and attractive valuation are key strengths, making it appealing for value investors. However, technical indicators suggest caution, and leverage risks on the balance sheet should be monitored.

Positive Factors

Revenue Growth

The consistent revenue growth indicates expanding market reach and effective business strategies, enhancing long-term competitiveness in the airline industry.

Profitability Improvement

Improved gross profit margin reflects efficient cost management and operational effectiveness, supporting sustainable profitability in a competitive market.

Cash Flow Management

Efficient cash generation relative to net income ensures liquidity and financial flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Leverage Risks

High leverage can pose financial risks if market conditions worsen, potentially impacting the company's ability to invest in growth and maintain financial stability.

Free Cash Flow Decline

Declining free cash flow growth may limit the company's ability to fund new projects and pay down debt, affecting long-term financial health and strategic flexibility.

EBIT Margin Decline

A decline in EBIT margin suggests increased operational costs, which could pressure profitability and require strategic adjustments to maintain competitive advantage.

Cathay Pacific Airways Business Overview & Revenue Model

Company Description

Cathay Pacific Airways Limited, together with its subsidiaries, operates as a carrier of international passengers and air cargo. 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, information processing, aircraft ramp handling, laundry and dry cleaning, ground handling, aircraft engineering, cargo carriage, airport ground engineering support and equipment maintenance, and inventory technical management services. In addition, the company operates a computer network for interchange of air cargo related information; and offers repair and maintenance services for transportation companies. It operates in the Americas, Europe, Southeast Asia, Southwest Pacific, North Asia, South Asia, the Middle East, and Africa. As of December 31, 2021, it operated 234 aircraft directly connecting Hong Kong to 119 destinations in 35 countries worldwide, including 26 destinations in China. Cathay Pacific Airways Limited was founded in 1946 and is headquartered in Lantau Island, Hong Kong.

How the Company Makes Money

Cathay Pacific Airways generates revenue primarily through its passenger transportation services, which include ticket sales across different classes of service. The airline also earns substantial income from its cargo operations, transporting goods and freight across its extensive network. Ancillary services, such as in-flight sales of food and beverages, excess baggage fees, and travel-related services, contribute additional revenue. Cathay Pacific benefits from partnerships and code-sharing agreements with other airlines, expanding its reach and customer base. The company also leverages its membership in the Oneworld alliance to enhance its global connectivity and operational efficiencies, further boosting its earnings potential.

Cathay Pacific Airways Financial Statement Overview

Summary

Cathay Pacific Airways shows a strong recovery with revenue growth and improved profitability. The balance sheet indicates effective equity utilization but highlights leverage risks. Cash flow management is robust, though recent declines in free cash flow growth need attention.

Income Statement

The company shows a strong recovery with revenue growth of 10.43% from 2023 to 2024, and a significant improvement in gross profit margin to 31.2% in 2024. Net profit margin remains stable at 9.47%, reflecting solid profitability amidst a competitive industry. However, EBIT margin dropped slightly from 16% to 13.34% and EBITDA margin improved to 20.54%, indicating operational efficiency but also pointing to increased non-operational costs.

Balance Sheet

Cathay Pacific's balance sheet indicates a moderate debt-to-equity ratio of 1.3, showing reliance on leverage, which could pose risk if market conditions worsen. Return on equity (ROE) is healthy at 18.84%, suggesting effective use of equity financing to generate profits. The equity ratio is stable at 30.65%, indicating a balanced asset financing structure, but there's room for improving the equity base to enhance financial stability.

Cash Flow

The company demonstrates robust cash flow management with a strong operating cash flow to net income ratio of 2.38, indicating efficient cash generation relative to net income. Free cash flow is positive and growing, reflecting improved cash handling and operational performance. However, the free cash flow growth rate is negative at -26.92%, suggesting a reduction in free cash flow from the previous year.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	104.37B	94.48B	51.04B	45.59B	46.93B
Gross Profit	32.58B	20.70B	4.42B	836.00M	-5.55B
EBITDA	21.45B	20.47B	10.24B	9.21B	-3.74B
Net Income	9.89B	9.79B	-6.55B	-5.53B	-21.65B
Balance Sheet
Total Assets	171.24B	174.12B	180.91B	196.63B	204.57B
Cash, Cash Equivalents and Short-Term Investments	10.53B	15.53B	18.28B	19.28B	19.34B
Total Debt	68.47B	68.29B	77.63B	90.38B	93.13B
Total Liabilities	118.74B	114.08B	117.56B	124.90B	131.31B
Stockholders Equity	52.50B	60.03B	63.35B	71.72B	73.26B
Cash Flow
Free Cash Flow	14.33B	19.61B	15.20B	6.56B	-19.03B
Operating Cash Flow	23.54B	26.41B	18.93B	8.84B	-13.62B
Investing Cash Flow	-6.08B	-2.67B	-3.86B	493.00M	-12.43B
Financing Cash Flow	-19.83B	-23.18B	-16.24B	-6.93B	23.31B

Cathay Pacific Airways Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0293, the sentiment is Positive. The current price of 10.57 is above the 20-day moving average (MA) of 10.56, below the 50-day MA of 10.79, and above the 200-day MA of 10.00, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 50.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:0293.

Cathay Pacific Airways Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0316	71 Outperform	83.93B	3.99	19.46%	12.56%	28.91%	150.66%
0293	66 Neutral	$70.57B	6.88	17.73%	6.53%	8.54%	16.57%
0019	63 Neutral	84.60B	71.96	1.67%	5.15%	6.44%	-95.37%
1055	54 Neutral	106.83B	-29.32	-4.88%	―	1.42%	―
0670	50 Neutral	91.89B	-21.95	-10.43%	―	4.61%	38.36%
0753	45 Neutral	134.65B	132.46	-0.53%	―	4.08%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Cathay Pacific Airways Corporate Events

Cathay Pacific Reports Strong July 2025 Traffic Growth

Cathay Pacific Airways Limited reported a significant increase in passenger and cargo traffic for July 2025, with a 24% rise in passengers compared to the previous year and a 30% increase in Available Seat Kilometres. The growth was driven by strong demand for long-haul travel and regional leisure destinations, resulting in a load factor of 86%. The company anticipates continued growth with new routes and upcoming holiday travel, indicating a positive outlook for the coming months.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Renews Services Agreement with JS&SHK

Cathay Pacific Airways Limited has announced the renewal of its Services Agreement with JS&SHK, a connected entity, for a three-year term starting January 2026. This agreement, which involves the provision of various services including regulatory advice and staff support from the Swire Group, will continue to impact the company’s operational costs and strategic positioning. The renewal ensures continuity in service provision and financial arrangements, with service fees calculated based on a percentage of the company’s adjusted consolidated profit. This move is expected to support Cathay Pacific’s ongoing business operations and provide flexibility for future growth.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Adjusts Convertible Bond Conversion Price Following Dividend Declaration

Cathay Pacific Airways Limited has announced an adjustment to the conversion price of its HK$6,740,000,000 2.75% Guaranteed Convertible Bonds due 2026, following the declaration of a 2025 interim dividend. The conversion price will be adjusted from HK$7.55 per share to HK$7.42 per share, effective from September 6, 2025. This adjustment will increase the maximum number of shares to be issued upon full conversion of the outstanding convertible bonds from 233,112,582 shares to 237,196,765 shares. This move reflects the company’s ongoing financial strategies and could impact its market positioning by potentially increasing shareholder value.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Airways Declares Interim Dividend for 2025

Cathay Pacific Airways announced an interim ordinary dividend of HKD 0.2 per share for the financial year ending December 31, 2025. The ex-dividend date is set for September 3, 2025, with the payment date scheduled for October 9, 2025. This announcement reflects the company’s financial health and commitment to returning value to its shareholders. The dividend decision may positively impact investor sentiment and reinforce Cathay Pacific’s position in the market as it continues to recover and grow post-pandemic.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Expands Fleet with Boeing 777-9 Acquisition

Cathay Pacific Airways has announced a major transaction involving the purchase of 14 Boeing 777-9 aircraft, with an option to acquire up to 7 additional aircraft. This acquisition is part of the company’s strategy to enhance its fleet with more fuel-efficient planes, supporting its sustainability goals and operational cost efficiency. The transaction, valued at approximately US$8.1 billion, is expected to be financed through a combination of commercial bank loans, finance leases, sale and leaseback arrangements, and cash from operations. The new aircraft will replace part of the existing long-haul fleet, serving both long-haul and selected regional routes, and are expected to be delivered by 2034.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.

Cathay Pacific Reports Revenue Growth in 2025 Interim Results

Cathay Pacific Airways Limited announced its 2025 interim results, reporting a 9.5% increase in revenue to HK$54,309 million and a slight rise in profit attributable to shareholders by 1.1% to HK$3,651 million. The company showed improvements in operational metrics, including a 15.9% increase in available tonne kilometers and a 20% rise in aircraft utilization, indicating a recovery and growth in its operations. However, there were declines in passenger and cargo yields, reflecting competitive pressures in the market.

The most recent analyst rating on (HK:0293) stock is a Hold with a HK$11.00 price target. To see the full list of analyst forecasts on Cathay Pacific Airways stock, see the HK:0293 Stock Forecast page.