Cathay Pacific AirwaysHAM:CTY +2.66%80 Return-on-Tangible-Equity is 34.46% as of Dec. 2025, which is 3416% above its 10-year median of 0.98. GuruFocus rates HAM:CTY with a GF Score™ of 80/100 and a GF Value™ of €1.54. The stock has 4 warning signs investors should review. Among 977 Transportation companies, Cathay Pacific Airways ranks better than 85.06% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Cathay Pacific Airways's annualized net income for the quarter that ended in Dec. 2025 was €1,575 Mil. Cathay Pacific Airways's average shareholder tangible equity for the quarter that ended in Dec. 2025 was €4,572 Mil. Therefore, Cathay Pacific Airways's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 34.46%.
The historical rank and industry rank for Cathay Pacific Airways's Return-on-Tangible-Equity or its related term are showing as below:
HAM:CTY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -40.92 Med: 0.98 Max: 26.81
Current: 26.81
During the past 13 years, Cathay Pacific Airways's highest Return-on-Tangible-Equity was 26.81%. The lowest was -40.92%. And the median was 0.98%.
HAM:CTY's Return-on-Tangible-Equity is ranked better than 85.06% of 977
companies
in the Transportation industry
Industry Median: 9.02
vs HAM:CTY: 26.81
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Cathay Pacific Airways Return-on-Tangible-Equity Related Terms
Cathay Pacific Airways Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Cathay Pacific Airways's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Airlines subindustry, Cathay Pacific Airways's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Transportation Industry
For the Transportation industry and Industrials sector, Cathay Pacific Airways's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Cathay Pacific Airways's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.46% mean?
Cathay Pacific Airways (HAM:CTY) has a Return-on-Tangible-Equity of 34.46% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cathay Pacific Airways and its competitors. This is 3416% above median its historical median of 0.98. According to the industry distribution chart, Cathay Pacific Airways ranks #146 out of 977 companies in the Transportation industry, placing it in the top 14.9%.
Is Cathay Pacific Airways' Return-on-Tangible-Equity too high?
Cathay Pacific Airways' current Return-on-Tangible-Equity of 34.46% is 3416% above median its 10-year median of 0.98. The Transportation industry median Return-on-Tangible-Equity is 9.02. Cathay Pacific Airways' value of 34.46% is 282% above this industry median. Based on the distribution chart, Cathay Pacific Airways ranks #146 out of 977 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. 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' Return-on-Tangible-Equity compare to DAL and UAL?
According to the Transportation industry distribution chart, Cathay Pacific Airways ranks #146 out of 977 companies for Return-on-Tangible-Equity. This places Cathay Pacific Airways in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.02. Cathay Pacific Airways' value of 34.46% is 282% above this benchmark. While the company's 10-year median is 0.98 vs. the industry median of 9.02, 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 Return-on-Tangible-Equity for a Transportation company?
The median Return-on-Tangible-Equity among Transportation companies is 9.02, based on 977 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cathay Pacific Airways's current Return-on-Tangible-Equity of 34.46% is 282% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Cathay Pacific Airways and its competitors. For the Transportation industry, the median Return-on-Tangible-Equity is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Pacific Airways's current Return-on-Tangible-Equity is 34.46%, which is 3416% above median its own 10-year median of 0.98. 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 Return-on-Tangible-Equity of 34.46%. The stock's GF Value™ is €1.54, compared to a current price of €1.53 — trading 0.9% below its estimated fair value. The current Return-on-Tangible-Equity is 34.46%, which is 3416% above median its 10-year median of 0.98 and 282% above the Transportation industry median of 9.02. Cathay Pacific Airways' overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Cathay Pacific Airways (HAM:CTY), the current Return-on-Tangible-Equity is 34.46% 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 €1.53 is trading 0.9% below its estimated GF Value™ of €1.54.
Key valuation signals for HAM:CTY:
Return-on-Tangible-Equity: 34.46% (3416% above median its 10-year median of 0.98)
GF Value™: €1.54 vs. price of €1.53 (0.9% below fair value)
Industry Position: 282% above the Transportation median (#146 of 977)
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.
80GF Score
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