Qantas Airways Limited
Qantas Airways Limited Fundamental Analysis
Qantas Airways Limited (QUBSF) shows moderate financial fundamentals with a PE ratio of 9.81, profit margin of 6.74%, and ROE of 2.12%. The company generates $23.6B in annual revenue with strong year-over-year growth of 10.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze QUBSF's fundamental strength across five key dimensions:
Efficiency Score
WeakQUBSF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentQUBSF trades at attractive valuation levels.
Growth Score
ExcellentQUBSF delivers strong and consistent growth momentum.
Financial Health Score
WeakQUBSF carries high financial risk with limited liquidity.
Profitability Score
ModerateQUBSF maintains healthy but balanced margins.
Key Financial Metrics
Is QUBSF Expensive or Cheap?
P/E Ratio
QUBSF trades at 9.81 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, QUBSF's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Qantas Airways Limited at 20.25 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.39 times EBITDA. This is generally considered low.
How Well Does QUBSF Make Money?
Net Profit Margin
For every $100 in sales, Qantas Airways Limited keeps $6.74 as profit after all expenses.
Operating Margin
Core operations generate 32.44 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.12 in profit for every $100 of shareholder equity.
ROA
Qantas Airways Limited generates $6.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Qantas Airways Limited produces operating cash flow of $4.22B, showing steady but balanced cash generation.
Free Cash Flow
Qantas Airways Limited generates weak or negative free cash flow of $332.01M, restricting financial flexibility.
FCF Per Share
Each share generates $0.22 in free cash annually.
FCF Yield
QUBSF converts 2.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.25
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
10.23
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
2.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.73
vs 25 benchmark
How QUBSF Stacks Against Its Sector Peers
| Metric | QUBSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.81 | 26.71 | Better (Cheaper) |
| ROE | 211.74% | 1311.00% | Weak |
| Net Margin | 6.74% | -29317.00% (disorted) | Weak |
| Debt/Equity | 10.23 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.36 | 10.53 | Weak Liquidity |
| ROA | 6.87% | -1537638.00% (disorted) | Weak |
QUBSF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Qantas Airways Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
66.52%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
180.28%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
303.66%
Industry Style: Cyclical, Value, Infrastructure
High Growth