Air travel conditions have normalized. Pent-up demand has exhausted, previously constrained industry capacity has eased, and price competition has returned. Qantas’ underlying profit before tax declined 16% to AUD 2.1 billion—about 3% above our forecast. We maintain our AUD 6.10 fair value estimate, and at current prices, shares in Qantas screen as slightly overvalued.
Qantas' earnings are highly leveraged to improving macroeconomic conditions and unrestricted air travel.
Qantas is exposed to cyclical factors outside management's control, including passenger demand, fuel prices, and exchange rates.
|
Metric
|
QAN
|
01055
|
AIR
|
|---|---|---|---|
Price/Earnings (Normalized) | 8.97 | — | 10.65 |
Price/Book Value | 40.26 | 1.48 | 0.89 |
Price/Sales | 0.57 | 0.30 | 0.26 |
Price/Cash Flow | 3.60 | 1.45 | 2.20 |
|
Metric
|
QAN
|
01055
|
AIR
|
|---|---|---|---|
Quick Ratio | 0.27 | 0.16 | 0.48 |
Current Ratio | 0.34 | 0.23 | 0.68 |
Interest Coverage | 6.56 | 1.02 | 1.37 |
|
Metric
|
QAN
|
01055
|
AIR
|
|---|---|---|---|
Return on Assets (Normalized) | 6.19% | −0.57% | 1.65% |
Return on Equity (Normalized) | 909.05% | −4.80% | 7.18% |
Return on Invested Capital (Normalized) | 20.78% | −0.06% | 3.29% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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United States