Cathay Pacific AirwaysHAM:CTY -0.93%80 Pretax Margin % is 12.79% as of Dec. 2025, which is 1032% above its 10-year median of 1.13. GuruFocus rates HAM:CTY with a GF Score™ of 80/100 and a GF Value™ of €1.39. The stock has 2 warning signs investors should review. Among 997 Transportation companies, Cathay Pacific Airways ranks better than 62.59% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Cathay Pacific Airways Pretax Margin % Related Terms
Cathay Pacific Airways Pretax Margin % Historical Data
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The historical data trend for Cathay Pacific Airways's Pretax 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.
HAM:CTY vs DAL, UAL, LUV: Pretax Margin % Comparison
For the Airlines subindustry, Cathay Pacific Airways's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Cathay Pacific Airways's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Cathay Pacific Airways's Pretax Margin % falls into.
* 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 (HAM:CTY) has a Pretax Margin % of 12.79% as of Dec. 2025. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cathay Pacific Airways and its competitors. This is 1032% above median its historical median of 1.13. According to the industry distribution chart, Cathay Pacific Airways ranks #373 out of 997 companies in the Transportation industry, placing it in the top 37.4%.
Is Cathay Pacific Airways' Pretax Margin % too high?
Cathay Pacific Airways' current Pretax Margin % of 12.79% is 1032% above median its 10-year median of 1.13. The Transportation industry median Pretax Margin % is 6.77. Cathay Pacific Airways' value of 12.79% is 88.9% above this industry median. Based on the distribution chart, Cathay Pacific Airways ranks #373 out of 997 companies in the Transportation industry, which is above the industry midpoint. Overall, Cathay Pacific Airways has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Cathay Pacific Airways' Pretax Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Cathay Pacific Airways ranks #373 out of 997 companies for Pretax Margin %. This puts Cathay Pacific Airways in the upper half of its industry. The industry median Pretax Margin % is 6.77. Cathay Pacific Airways' value of 12.79% is 88.9% above this benchmark. While the company's 10-year median is 1.13 vs. the industry median of 6.77, 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 Pretax Margin % for a Transportation company?
The median Pretax Margin % among Transportation companies is 6.77, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cathay Pacific Airways's current Pretax Margin % of 12.79% is 88.9% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cathay Pacific Airways and its competitors. For the Transportation industry, the median Pretax Margin % is 6.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Pacific Airways's current Pretax Margin % is 12.79%, which is 1032% above median its own 10-year median of 1.13. 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?
Cathay Pacific Airways (HAM:CTY) has a current Pretax Margin % of 12.79%. The stock's GF Value™ is €1.39, compared to a current price of €1.33 — trading 4.1% below its estimated fair value. The current Pretax Margin % is 12.79%, which is 1032% above median its 10-year median of 1.13 and 88.9% above the Transportation industry median of 6.77. Cathay Pacific Airways' overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Cathay Pacific Airways (HAM:CTY), the current Pretax Margin % is 12.79% 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 (HAM:CTY) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Pacific Airways stock appears to be undervalued.
The current stock price of €1.33 is trading 4.1% below its estimated GF Value™ of €1.39.
Key valuation signals for HAM:CTY:
Pretax Margin %: 12.79% (1032% above median its 10-year median of 1.13)
GF Value™: €1.39 vs. price of €1.33 (4.1% below fair value)
Industry Position: 88.9% above the Transportation median (#373 of 997)
No single metric tells the full story. See the HAM: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.
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