Cathay Pacific AirwaysSTU:CTY +2.63%76 Operating Margin % is 13.04% as of Dec. 2025, which is 310% above its 10-year median of 3.18. GuruFocus rates STU:CTY with a GF Score™ of 76/100 and a GF Value™ of €1.40 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,007 Transportation companies, Cathay Pacific Airways ranks better than 65.44% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Cathay Pacific Airways Operating Margin % Related Terms
Cathay Pacific Airways Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cathay Pacific Airways's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:CTY vs DAL, UAL, LUV: Operating Margin % Comparison
For the Airlines subindustry, Cathay Pacific Airways's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cathay Pacific Airways Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Cathay Pacific Airways's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cathay Pacific Airways's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Cathay Pacific Airways's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cathay Pacific Airways (STU:CTY) has a Operating Margin % of 13.04% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Cathay Pacific Airways and its competitors. This is 310% above median its historical median of 3.18. According to the industry distribution chart, Cathay Pacific Airways ranks #348 out of 1007 companies in the Transportation industry, placing it in the top 34.6%.
Is Cathay Pacific Airways' Operating Margin % too high?
Cathay Pacific Airways' current Operating Margin % of 13.04% is 310% above median its 10-year median of 3.18. The Transportation industry median Operating Margin % is 7.36. Cathay Pacific Airways' value of 13.04% is 77.2% above this industry median. Based on the distribution chart, Cathay Pacific Airways ranks #348 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Cathay Pacific Airways has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cathay Pacific Airways' Operating Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Cathay Pacific Airways ranks #348 out of 1007 companies for Operating Margin %. This puts Cathay Pacific Airways in the upper half of its industry. The industry median Operating Margin % is 7.36. Cathay Pacific Airways' value of 13.04% is 77.2% above this benchmark. While the company's 10-year median is 3.18 vs. the industry median of 7.36, Cathay Pacific Airways has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cathay Pacific Airways's current Operating Margin % of 13.04% is 77.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Cathay Pacific Airways and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Pacific Airways's current Operating Margin % is 13.04%, which is 310% above median its own 10-year median of 3.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Pacific Airways stock overvalued right now?
Based on GuruFocus' analysis, Cathay Pacific Airways (STU:CTY) is currently considered Fairly Valued. The stock's GF Value™ is €1.40, compared to a current price of €1.35 — trading 3.8% below its estimated fair value. The current Operating Margin % is 13.04%, which is 310% above median its 10-year median of 3.18 and 77.2% above the Transportation industry median of 7.36. Cathay Pacific Airways' overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Cathay Pacific Airways (STU:CTY), the current Operating Margin % is 13.04% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cathay Pacific Airways (STU:CTY) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Pacific Airways stock appears to be undervalued.
The current stock price of €1.35 is trading 3.8% below its estimated GF Value™ of €1.40.
GuruFocus considers Cathay Pacific Airways to be Fairly Valued.
Key valuation signals for STU:CTY:
Operating Margin %: 13.04% (310% above median its 10-year median of 3.18)
GF Value™: €1.40 vs. price of €1.35 (3.8% below fair value)
Industry Position: 77.2% above the Transportation median (#348 of 1007)
No single metric tells the full story. See the STU:CTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Pacific is Hong Kong's largest airline group, operating a fleet of 237 aircraft as of December 2025 and serving over 100 destinations globally. As of March 2026, its largest shareholders remain Swire Pacific and Air China, with stakes of 45% and 29%, respectively. The group operates the full-service carrier Cathay Pacific, low-cost carrier HK Express, and cargo operator Air Hong Kong.
76GF Score
Get the complete analysis for STU:CTY
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:CTY has been successfully added to your 
