Cathay Pacific AirwaysSTU:CTY -1.22%76 ROE % is 25.61% as of Dec. 2025, which is 3183% above its 10-year median of 0.78. GuruFocus rates STU:CTY with a GF Score™ of 76/100 and a GF Value™ of €1.44 (Fairly Valued). The stock has 2 warning signs investors should review. Among 991 Transportation companies, Cathay Pacific Airways ranks better than 85.07% on this metric.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
* 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.
For the Airlines subindustry, Cathay Pacific Airways's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Transportation Industry
For the Transportation industry and Industrials sector, Cathay Pacific Airways's ROE % distribution charts can be found below:
* The bar in red indicates where Cathay Pacific Airways's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Cathay Pacific Airways (STU:CTY) has a ROE % of 25.61% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cathay Pacific Airways and its competitors. This is 3183% above median its historical median of 0.78. According to the industry distribution chart, Cathay Pacific Airways ranks #148 out of 991 companies in the Transportation industry, placing it in the top 14.9%.
Is Cathay Pacific Airways' ROE % too high?
Cathay Pacific Airways' current ROE % of 25.61% is 3183% above median its 10-year median of 0.78. The Transportation industry median ROE % is 7.62. Cathay Pacific Airways' value of 25.61% is 236.1% above this industry median. Based on the distribution chart, Cathay Pacific Airways ranks #148 out of 991 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 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cathay Pacific Airways' ROE % compare to DAL and UAL?
According to the Transportation industry distribution chart, Cathay Pacific Airways ranks #148 out of 991 companies for ROE %. This places Cathay Pacific Airways in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 7.62. Cathay Pacific Airways' value of 25.61% is 236.1% above this benchmark. While the company's 10-year median is 0.78 vs. the industry median of 7.62, 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 ROE % for a Transportation company?
The median ROE % among Transportation companies is 7.62, based on 991 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cathay Pacific Airways's current ROE % of 25.61% is 236.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Cathay Pacific Airways and its competitors. For the Transportation industry, the median ROE % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Pacific Airways's current ROE % is 25.61%, which is 3183% above median its own 10-year median of 0.78. 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 €1.44, compared to a current price of €1.38 — trading 4.4% below its estimated fair value. The current ROE % is 25.61%, which is 3183% above median its 10-year median of 0.78 and 236.1% above the Transportation industry median of 7.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Cathay Pacific Airways (STU:CTY), the current ROE % is 25.61% 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 €1.38 is trading 4.4% below its estimated GF Value™ of €1.44.
GuruFocus considers Cathay Pacific Airways to be Fairly Valued.
Key valuation signals for STU:CTY:
ROE %: 25.61% (3183% above median its 10-year median of 0.78)
GF Value™: €1.44 vs. price of €1.38 (4.4% below fair value)
Industry Position: 236.1% above the Transportation median (#148 of 991)
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
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