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Qantas Airways (QABSY)
OTHER OTC:QABSY
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Qantas Airways
(OTC:QABSY)
Rating:63Neutral
Price Target:―
Qantas Airways (QABSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.95B
Dividend Yield1.41%
Average Volume (3M)132.00
Price to Earnings (P/E)11.8
Beta (1Y)0.92
Revenue Growth8.64%
EPS Growth-8.14%
CountryUS
Employees20,000
SectorIndustrials
Sector Strength90
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)1.97
Shares Outstanding302,639,860
10 Day Avg. Volume397
30 Day Avg. Volume132
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)47.77
Price to Sales (P/S)0.00
P/FCF Ratio19.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Qantas Airways Business Overview & Revenue Model
Company DescriptionQantas Airways, listed as QABSY, is Australia's flagship carrier and one of the world's oldest airlines. It operates both domestically and internationally, offering passenger and freight transportation services. The airline is known for its comprehensive network, premium service offerings, and commitment to safety and sustainability. Qantas operates through its mainline service and a low-cost subsidiary, Jetstar Airways, catering to a wide range of travel needs.
How the Company Makes MoneyQantas Airways generates revenue primarily through passenger ticket sales for both domestic and international flights. Additional income streams include freight and cargo services, loyalty programs through its Qantas Frequent Flyer program, and ancillary services such as in-flight food and beverages, seating upgrades, and travel packages. The company also benefits from strategic alliances with other airlines, allowing it to expand its network and offer more destinations. Furthermore, Qantas earns revenue through its engineering services, providing maintenance and support to other airlines. The airline's financial performance is influenced by factors such as fuel costs, currency exchange rates, and global travel demand.
Qantas Airways Financial Statement Overview
Summary
Qantas Airways has shown strong revenue growth and improved profitability post-pandemic. However, financial stability risks are present due to high leverage and reliance on debt financing.Income Statement
Qantas Airways has shown a strong recovery in revenue and profit margins after the pandemic, with the gross profit margin improving to 53.0% and a positive net profit margin of 5.8%. The revenue growth rate has rebounded impressively over the past few years, notably from 2022 to 2023. However, the EBIT margin has declined to 8.7% in the latest period, indicating some pressure on operating efficiency.72
Positive
Balance Sheet
The balance sheet reflects high leverage with a debt-to-equity ratio of 22.81, indicating potential financial risk. While return on equity has improved to 434.6% due to reduced equity, this is unsustainable and a result of low equity levels. The equity ratio is also low at 1.4%, highlighting a reliance on debt financing.48
Neutral
Cash Flow
The cash flow statement shows positive trends, with robust operating cash flow to net income ratio of 2.67 and a significant free cash flow to net income ratio of 0.54, indicating strong cash generation relative to profits. However, free cash flow growth has been volatile, reflecting fluctuating capital expenditures.65
Positive
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 21.62B | 19.52B | 8.70B | 5.72B | 14.05B | Gross Profit |
| 11.46B | 4.85B | 4.52B | 3.33B | 7.64B | EBIT |
| 1.87B | 2.71B | -1.52B | -1.49B | -390.00M | EBITDA |
| 3.90B | 4.52B | 278.00M | 440.00M | 1.66B | Net Income Common Stockholders |
| 1.25B | 1.75B | -860.00M | -1.73B | -1.96B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.98B | 3.17B | 3.98B | 2.40B | 3.74B | Total Assets |
| 20.56B | 20.35B | 19.65B | 17.88B | 20.03B | Total Debt |
| 6.59B | 6.73B | 7.23B | 8.23B | 8.54B | Net Debt |
| 4.87B | 3.56B | 3.89B | 6.01B | 5.01B | Total Liabilities |
| 20.27B | 20.34B | 19.84B | 17.36B | 18.50B | Stockholders Equity |
| 289.00M | 5.00M | -197.00M | 513.00M | 1.52B |
| Cash Flow | Free Cash Flow | |||
| 680.00M | 2.49B | 1.75B | -1.15B | -514.00M | Operating Cash Flow |
| 3.44B | 5.05B | 2.65B | -407.00M | 1.03B | Investing Cash Flow |
| -2.89B | -2.59B | -240.00M | -722.00M | -1.57B | Financing Cash Flow |
| -2.01B | -2.63B | -1.31B | -181.00M | 1.85B |
Qantas Airways Technical Analysis
Positive
32.97
Price Trends
28.86
Positive
28.65
Positive
26.58
Positive
Market Momentum
1.33
Negative
68.00
Neutral
90.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QABSY, the sentiment is Positive. The current price of 32.97 is above the 20-day moving average (MA) of 30.72, above the 50-day MA of 28.86, and above the 200-day MA of 26.58, indicating a bullish trend. The MACD of 1.33 indicates Negative momentum. The RSI at 68.00 is Neutral, neither overbought nor oversold. The STOCH value of 90.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QABSY.
Qantas Airways Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.63B | 8.86 | 27.52% | 1.14% | 4.91% | -27.21% | |
77 Outperform | $11.16B | 10.36 | 138.69% | 1.74% | 6.41% | 49.58% | |
75 Outperform | $24.82B | 6.93 | 33.57% | ― | 5.31% | 35.95% | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
63 Neutral | $9.95B | 11.83 | 321.42% | 1.41% | 8.64% | -8.14% | |
62 Neutral | $7.68B | 12.98 | -21.27% | ― | 1.92% | 36.07% | |
59 Neutral | $18.52B | 38.59 | 5.63% | 2.27% | 3.26% | 27.77% |
* Industrials Sector Average
Performance Comparison
QABSY
Qantas Airways
32.59
12.75
64.26%
DAL
Delta Air Lines
48.50
-2.10
-4.15%
LUV
Southwest Airlines
31.21
5.18
19.90%
UAL
United Airlines Holdings
76.00
24.24
46.83%
AAL
American Airlines
11.40
-2.42
-17.51%
LTM
LATAM Airlines Group SA Sponsored ADR
36.88
12.16
49.19%
Qantas Airways Earnings Call Summary
Earnings Call Date:Feb 26, 2025
(Q4-2024)
| % Change Since: 20.77%|
Next Earnings Date:Aug 28, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in financial performance, fleet renewal, and operational improvements, particularly for Jetstar and Qantas Loyalty. However, these were offset by challenges in the international segment and increased statutory costs. Overall, the company remains optimistic about future growth and fleet investments.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Qantas reported an underlying profit of $2.08 billion for FY 2024, with an underlying EPS of $0.88 per share, showcasing the strength of its dual airline brands and Qantas Loyalty.
Record Result for Jetstar
Jetstar achieved a record underlying EBIT of $497 million, up 23% from the previous year, driven by strong demand for low-fare travel and new fleet benefits.
Qantas Loyalty Growth
Qantas Loyalty achieved an underlying EBIT of $511 million, with total points earned and redeemed growing at double-digit rates. Memberships increased by 8%, and active members grew by 19%.
Fleet Renewal Progress
Investment in fleet renewal saw 16 aircraft join the fleet this year, with plans for over 40 new aircraft in the next two years, enhancing cash generation and customer experience.
Improved Operational Performance
On-time performance and customer satisfaction significantly improved, with Jetstar's on-time performance up by ten points and NPS increasing by 24 points for Qantas Domestic.
Negative Updates
Decline in Qantas International EBIT
Qantas International, including freight, recorded a decline in underlying EBIT to $556 million, affected by declining freight yields and market capacity restoration.
Statutory Profit Decrease
Statutory profit after tax fell to $1.25 billion, down $493 million from the previous year, due to one-off impacts from ACCC settlements and legal provisions.
Challenges with Same Job Same Pay Costs
The Same Job Same Pay policy is expected to add $60 million in costs for FY 2025, posing a challenge to mitigate these without immediate productivity offsets.
Company Guidance
In the Qantas Q4 2024 earnings call, the company reported an underlying profit of $2.08 billion and an underlying EPS of $0.88 per share. The statutory profit after tax was $1.25 billion, with notable investments including $230 million in customer improvements and $3.1 billion in capital expenditures, resulting in a group operating margin of 10.4%. Jetstar achieved a record underlying EBIT of $497 million, supported by the delivery of 13 new A321LRs. Qantas Domestic recorded an EBIT of $1.06 billion, while Qantas International, including freight, reported $556 million. The group's net debt stood at $4.1 billion, and they announced a $400 million share buyback. Looking forward, Qantas anticipates stable travel demand and aims for a 10% EBIT growth in its Loyalty segment, while projecting $400 million in transformation initiatives for FY '25 to offset inflationary pressures.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.