Cathay Pacific Overtakes Singapore Airlines as Stock Winner
August 10, 2023
☀️Trending News
Singapore Airlines ($SGX:C6L), Singapore’s national carrier, has long been a highly respected name in the international aviation industry. The company has been able to maintain and grow its competitive edge despite stiff competition in the aviation industry. It is renowned for providing excellent customer service, has a strong network of destinations, and maintains an extensive fleet of aircraft.
However, in recent months, the aviation industry has seen Hong Kong’s Cathay Pacific emerge as the stock market winner. In the past year, Cathay Pacific’s stock has seen a significant jump in value while Singapore Airlines’ stock has remained relatively stagnant. This shift in the performance of the two stocks has put Cathay Pacific firmly in the lead and propelled them to the top of the stock market. This shift in market performance serves as a reminder of the ever-changing nature of the aviation industry. It also highlights the need for Singapore Airlines to continue to strive for excellence in order to remain competitive and attractive to investors.
Market Price
Singapore Airlines (SIA) has been overtaken by Cathay Pacific as the biggest stock winner on Friday. SIA opened at SG$7.1 and closed at the same price, rising by 0.3% from the last closing price of 7.1. This marks the first time that SIA has been surpassed by Cathay Pacific in terms of stock price in recent times. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Singapore Airlines. More…
| Total Revenues | Net Income | Net Margin |
| 18.33k | 2.52k | 13.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Singapore Airlines. More…
| Operations | Investing | Financing |
| 9.13k | -134 | -6.21k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Singapore Airlines. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 46.06k | 46.06k | 5.78 |
Key Ratios Snapshot
Some of the financial key ratios for Singapore Airlines are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.9% | 157.4% | 18.1% |
| FCF Margin | ROE | ROA |
| 40.6% | 11.2% | 4.5% |
Analysis
At GoodWhale, we have analyzed the financials of SINGAPORE AIRLINES, as classified by our Star Chart as a ‘cheetah’. This type of company is found to have achieved high revenue or earnings growth but is considered less stable due to lower profitability. As such, potential investors looking at the company should consider the risks associated with investing in a less stable company. Our analysis also revealed that SINGAPORE AIRLINES has an intermediate health score of 6/10 with regard to its cashflows and debt, suggesting that it is likely to safely ride out any crisis without the risk of bankruptcy. In terms of strength, SINGAPORE AIRLINES is strong in growth, medium in asset, profitability and weak in dividend. As such, investors who are looking for potentially high returns from growth but are not necessarily looking for dividend income should take a closer look at this company. More…
Peers
In the airline industry, there is intense competition between Singapore Airlines Ltd and its competitors: AirAsia X Bhd, Capital A Bhd, Grupo Aeromexico SAB de CV. Each company is striving to offer the best products and services to their customers at the most competitive prices. This competition benefits consumers as it leads to lower fares and improved services.
– AirAsia X Bhd ($KLSE:5238)
AirAsia X Bhd is a Malaysian low-cost airline that operates long-haul flights. The company has a market cap of 163.85M as of 2022 and a return on equity of 123.04%. AirAsia X was founded in 2007 and is headquartered in Kuala Lumpur, Malaysia. The company operates scheduled passenger services to destinations in Asia, Australia, and the Middle East.
– Capital A Bhd ($KLSE:5099)
Capital A Bhd is a Malaysian investment holding company with interests in banking, insurance, and other financial services. As of 2022, the company had a market capitalization of 2.39 billion Malaysian ringgit and a return on equity of 42.62%. Capital A was founded in 1967 and is headquartered in Kuala Lumpur.
– Grupo Aeromexico SAB de CV ($OTCPK:GRPAF)
Grupo Aeromexico SAB de CV is a Mexican airline company that provides air transportation services in Mexico and internationally. The company has a fleet of 119 aircraft and operates more than 600 daily flights. Grupo Aeromexico SAB de CV has a market cap of 1.26B as of 2022 and a Return on Equity of 67.02%. The company’s main focus is on providing excellent customer service and offering a comfortable and safe travel experience.
Summary
In a recent investment analysis, Singapore Airlines (SIA) has been unseated by Cathay Pacific Airways Ltd. as the stock winner. This has resulted in a reduction of its profits, along with that of other airlines in the region. Nevertheless, SIA is taking steps to manage the current situation and investors should keep an eye on the company’s actions to better assess its long-term prospects.
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