Cathay Pacific Airways Limited
Cathay Pacific Airways Limited Fundamental Analysis
Cathay Pacific Airways Limited (CPCAF) shows moderate financial fundamentals with a PE ratio of 8.55, profit margin of 9.10%, and ROE of 19.06%. The company generates $105.5B in annual revenue with strong year-over-year growth of 10.46%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CPCAF's fundamental strength across five key dimensions:
Efficiency Score
WeakCPCAF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCPCAF trades at attractive valuation levels.
Growth Score
ModerateCPCAF shows steady but slowing expansion.
Financial Health Score
WeakCPCAF carries high financial risk with limited liquidity.
Profitability Score
ModerateCPCAF maintains healthy but balanced margins.
Key Financial Metrics
Is CPCAF Expensive or Cheap?
P/E Ratio
CPCAF trades at 8.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CPCAF's PEG of 0.12 indicates potential undervaluation.
Price to Book
The market values Cathay Pacific Airways Limited at 1.64 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.73 times EBITDA. This is generally considered low.
How Well Does CPCAF Make Money?
Net Profit Margin
For every $100 in sales, Cathay Pacific Airways Limited keeps $9.10 as profit after all expenses.
Operating Margin
Core operations generate 12.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.06 in profit for every $100 of shareholder equity.
ROA
Cathay Pacific Airways Limited generates $5.83 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Cathay Pacific Airways Limited produces operating cash flow of $23.28B, showing steady but balanced cash generation.
Free Cash Flow
Cathay Pacific Airways Limited generates strong free cash flow of $13.23B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.05 in free cash annually.
FCF Yield
CPCAF converts 16.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.12
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.64
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CPCAF Stacks Against Its Sector Peers
| Metric | CPCAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.55 | 26.71 | Better (Cheaper) |
| ROE | 19.06% | 1311.00% | Weak |
| Net Margin | 9.10% | -29317.00% (disorted) | Weak |
| Debt/Equity | 1.26 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.35 | 10.53 | Weak Liquidity |
| ROA | 5.83% | -1537638.00% (disorted) | Weak |
CPCAF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Cathay Pacific Airways Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-31.56%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
310.17%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
4.94%
Industry Style: Cyclical, Value, Infrastructure
Growing