Risk factor
Negligible price volatility
Profitability factor
Undervalued vs peers
About
Cathay Pacific Airways Limited, along with its group of companies, operates as a prominent international airline, specializing in both passenger and cargo services. Its primary operational hub is Hong Kong, from which it conducts flights globally. Beyond its fundamental role in air travel, the company boasts a diverse portfolio of business segments. These encompass property investment, the management of a travel loyalty program, and operating as a travel tour provider. It also extends to financial services and the facilitation of aircraft leasing and acquisition. Furthermore, it delivers a comprehensive suite of aviation support services, including airline catering, information processing, aircraft ramp and ground handling, laundry and dry cleaning, and aircraft engineering. The company also offers specialized airport ground engineering support, equipment maintenance, and inventory technical management. Moreover, it maintains a sophisticated computer network for the interchange of air cargo-related data and provides repair and maintenance services to other transportation companies. Its extensive operational footprint spans the Americas, Europe, Southeast Asia, the Southwest Pacific, North Asia, South Asia, the Middle East, and Africa. By December 31, 2021, the company commanded a fleet of 234 aircraft, directly connecting Hong Kong to 119 destinations across 35 countries worldwide, with 26 of these being within China. Founded in 1946, Cathay Pacific's corporate headquarters are situated on Lantau Island, Hong Kong.
Company Valuation
From both historical and forecast perspectives, the stock is considerably underpriced compared to similar stocks. In particular, the stock is underpriced on P/E, 'cheap'
Target Price
The average target price of 0293.HK is 14 and suggests 17% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incre