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Cathay Pacific Airways
(0293)
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Rating:79Outperform
Price Target:
HK$17.00
â–²(14.94% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by solid financial performance (strong profitability and cash generation, though with leverage and margin volatility risk), supported by strong technical uptrend signals. Attractive valuation (low P/E and high dividend yield) further boosts the overall score.
Positive Factors
Cash generation
Cathay generated substantial operating (~25.8B) and free cash flow (~15.9B) in 2025, showing durable cash conversion ability. Strong cash generation supports fleet reinvestment, working capital needs, and gives the company flexibility to reduce debt or fund strategic initiatives through industry cycles.
Negative Factors
Elevated leverage
Debt roughly matching equity (debt-to-equity ~1.0) leaves leverage elevated for a cyclical airline. This reduces financial flexibility, increases interest expense sensitivity, and constrains the company’s ability to absorb demand shocks or invest without raising external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Cathay generated substantial operating (~25.8B) and free cash flow (~15.9B) in 2025, showing durable cash conversion ability. Strong cash generation supports fleet reinvestment, working capital needs, and gives the company flexibility to reduce debt or fund strategic initiatives through industry cycles.
Read all positive factors
Cathay Pacific Airways (0293) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$87.69B
Dividend Yield6.24%
Average Volume (3M)24.58M
Price to Earnings (P/E)6.9
Beta (1Y)0.23
Revenue Growth19.66%
EPS Growth35.67%
CountryHK
Employees33,369
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)2.09
Shares Outstanding6,081,128,000
10 Day Avg. Volume51,920,726
30 Day Avg. Volume24,583,012
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)1.35
Price to Sales (P/S)0.70
P/FCF Ratio5.11
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$17.23Price Target Upside16.48% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)1.72
Revenue Forecast (FY)HK$135.88B
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,...
How the Company Makes Money
Cathay Pacific primarily makes money by selling air transportation and related services. Key revenue streams include: (1) Passenger revenue: ticket sales across cabin classes (e.g., economy, premium economy, business, first where offered) on sched...
Cathay Pacific Airways Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
66
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 130.52B | 116.77B | 104.37B | 94.48B | 51.04B | 45.59B |
| Gross Profit | 21.30B | 20.49B | 32.58B | 20.70B | 4.42B | 836.00M |
| EBITDA | 27.22B | 27.05B | 21.45B | 20.47B | 16.02B | 9.21B |
| Net Income | 13.42B | 10.83B | 9.89B | 9.79B | -6.62B | -5.53B |
Balance Sheet | ||||||
| Total Assets | 182.66B | 177.05B | 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 | 63.49B | 59.10B | 68.47B | 68.29B | 77.11B | 89.85B |
| Total Liabilities | 124.64B | 116.93B | 118.74B | 114.08B | 117.56B | 124.90B |
| Stockholders Equity | 58.02B | 60.11B | 52.50B | 60.03B | 63.80B | 71.72B |
Cash Flow | ||||||
| Free Cash Flow | 18.73B | 15.93B | 14.33B | 19.61B | 15.20B | 6.56B |
| Operating Cash Flow | 28.18B | 25.76B | 23.54B | 26.41B | 18.93B | 8.84B |
| Investing Cash Flow | -10.93B | -7.82B | -6.08B | -2.67B | -3.86B | 493.00M |
| Financing Cash Flow | -13.71B | -15.45B | -19.83B | -23.18B | -16.24B | -6.93B |
Cathay Pacific Airways Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | HK$87.69B | 6.90 | 22.72% | 6.24% | 19.66% | 35.67% | |
74 Outperform | HK$98.79B | 9.78 | 9.43% | 12.83% | -8.09% | -52.15% | |
67 Neutral | HK$48.84B | 12.22 | 9.26% | 7.02% | -3.80% | 0.22% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
46 Neutral | HK$140.16B | -44.46 | -4.67% | 1.03% | 10.90% | -354.38% | |
41 Neutral | HK$93.32B | -60.68 | -3.74% | 1.05% | 12.27% | 33.88% | |
40 Underperform | HK$82.78B | -32.89 | -6.17% | 1.87% | 13.21% | -12.05% |
* Industrials Sector Average
HK:0293
Cathay Pacific Airways
14.42
4.55
46.11%
HK:0753
Air China
3.82
-1.34
-25.92%
HK:0316
Orient Overseas (International)
149.60
21.96
17.21%
HK:0598
Sinotrans
4.77
0.24
5.37%
HK:1055
China Southern Airlines Company Limited Class H
3.04
-0.82
-21.24%
HK:0670
China Eastern Airlines Corporation Limited Class H
2.71
-0.30
-9.97%
Cathay Pacific Airways Corporate Events
Cathay Pacific updates board and committee roles in governance disclosure
Aug 5, 2026
Cathay Pacific Airways has updated its corporate governance disclosure with a detailed list of its Board of Directors, distinguishing executive, non-executive and independent non-executive members. The board is chaired by Guy Martin Coutts Bradley...
Cathay Pacific Profit Jumps 71% on Strong Passenger and Cargo Demand
Aug 5, 2026
Cathay Pacific Airways reported a strong interim performance for the six months ended 30 June 2026, with revenue rising 25.3% to HK$68.1 billion and profit attributable to shareholders surging 71% to HK$6.24 billion, lifting profit margin to 9.2%....
Cathay Pacific Flags Price-Sensitive H1 2026 Figures and Investor Caution
Jul 22, 2026
Cathay Pacific Airways has released an announcement summarising June 2026 traffic figures and unaudited consolidated financial results for the first half of 2026. The company stresses that this information may be price sensitive and is derived fro...
Cathay Pacific Sets August Board Meeting to Review Interim Results and Dividend
Jun 29, 2026
Cathay Pacific Airways has scheduled a board meeting for 5 August 2026 to approve the interim results for the six months ending 30 June 2026. The board will also consider declaring a first interim dividend for 2026, a decision that could signal ma...
Cathay Pacific Posts Double-Digit Traffic Growth and Expands Network
Jun 23, 2026
The Cathay Group reported strong traffic performance for May 2026, with Cathay Pacific and HK Express together carrying more than 3.3 million passengers, a 14% year-on-year increase, and Cathay Cargo transporting over 150,000 tonnes of freight, up...
Cathay Pacific Names New CFO as Part of Planned Leadership Transition
Jun 4, 2026
Cathay Pacific Airways has announced that Executive Director and Chief Financial Officer Rebecca Sharpe will step down on 1 October 2026 to take early retirement from the Swire group, after serving as CFO since January 2021 and holding multiple se...
Cathay Pacific posts strong April traffic but reshapes network amid fuel pressures
May 20, 2026
The Cathay Group reported robust passenger and cargo demand for April 2026, with Cathay Pacific carrying 17% more passengers year-on-year and Available Seat Kilometres up 15%. Strong leisure travel over Easter, event-related long-haul traffic link...
Cathay Pacific Wins Strong Shareholder Backing for Board, Capital Moves at 2026 AGM
May 13, 2026
Cathay Pacific Airways reported that all resolutions at its 13 May 2026 annual general meeting were approved by shareholders, confirming the re-election of seven directors, the election of Liu Tiexiang to the board and the reappointment of KPMG as...
Cathay Pacific Updates Board and Committee Structure
May 13, 2026
Cathay Pacific Airways has disclosed the latest composition of its Board of Directors, which includes five executive directors led by Chair Guy Bradley and CEO Ronald Lam, along with a group of non-executive and independent non-executive directors...
Cathay Pacific Reshapes Board as Swire Veteran Guy Bradley Becomes Chair
May 13, 2026
Cathay Pacific Airways announced a series of board changes to take effect after its annual general meeting on 13 May 2026, including the retirement of Chair and Executive Director Patrick Healy following his retirement from the Swire group, and th...
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.