Air China (AIRYY) AI Stock Analysis

• Market Cap: $17.47B
• Dividend Yield: N/A
• Average Volume (3M): 349.00
• Price to Earnings (P/E): 131.0
• Beta (1Y): 0.76
• Revenue Growth: 16.65%
• EPS Growth: 64.66%
• Country: US
• Employees: 104,909
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.04
• Shares Outstanding: 247,780,530
• 10 Day Avg. Volume: 949
• 30 Day Avg. Volume: 349
• PEG Ratio: 4.13
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 5.36
• Enterprise Value/Market Cap: 2.27
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 8.05
• 1Y Price Target: $14.50
• Price Target Upside: 2.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: $14.50 ▲(2.62% Upside)

The overall stock score is primarily influenced by financial performance challenges, including profitability and cash flow issues. Technical analysis shows positive momentum, but the high P/E ratio suggests overvaluation concerns. The absence of earnings call and corporate events data limits additional insights.

Air China Business Overview & Revenue Model

Company Description

Air China Limited, together with its subsidiaries, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, Europe, North America, Japan, Korea, the Asia Pacific, and internationally. The company operates through Airline Operations and Other Operations segments. It provides aircraft engineering and airport ground handling services. The company is also involved in the import and export trading activities; and provision of cabin, airline catering, air ticketing, human resources, aircraft overhaul and maintenance, and financial services. As of December 31, 2021, it owned and operated 746 passenger aircraft, including business jets. The company was founded in 1988 and is based in Beijing, the People's Republic of China. Air China Limited is a subsidiary of China National Aviation Holding Corporation Limited.

How the Company Makes Money

Air China generates revenue primarily through the sale of passenger tickets for its flights, which constitutes the majority of its earnings. The airline also earns significant income from cargo services, transporting goods domestically and internationally. Ancillary services, including baggage fees, in-flight sales, and premium services, further contribute to its revenue. Additionally, partnerships within the Star Alliance provide opportunities for code-sharing and joint marketing initiatives, increasing passenger traffic and optimizing capacity. Seasonal travel trends, business travel demand, and international tourism also play crucial roles in shaping the airline's revenue streams.

Air China Financial Statement Overview

Summary

Air China's financial performance is challenged by negative net profit margins and high leverage. Despite revenue recovery, profitability remains a concern with consistent losses. The balance sheet shows high debt levels, and cash flow issues highlight the need for improved cash management.

Income Statement

Air China has faced challenges in achieving profitability, as reflected in negative net profit margins over the recent periods. Despite a substantial recovery in revenue from 2022 to 2023, the company still operates at a loss, with negative EBIT and EBITDA margins. However, the revenue growth is a positive sign, indicating potential recovery momentum.

Balance Sheet

The balance sheet shows a high level of debt relative to equity, indicating significant leverage, which is common in the airline industry but poses risks. The equity ratio is relatively low, suggesting limited asset backing by equity. However, the company's net debt has decreased over the past year, indicating improving financial stability.

Cash Flow

The cash flow analysis reveals a decline in free cash flow, primarily due to high capital expenditures. Operating cash flow has decreased significantly year-on-year, and the free cash flow to net income ratio is negative, highlighting cash flow challenges. The company needs to improve its cash generation to sustain operations and reduce debt.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	167.94B	166.70B	141.10B	52.90B	74.53B	69.50B
Gross Profit	8.87B	8.51B	7.09B	-29.91B	-11.31B	-6.13B
EBITDA	4.92B	33.90B	32.40B	-18.16B	4.61B	7.05B
Net Income	739.51M	-237.31M	-1.05B	-38.62B	-16.64B	-14.41B
Balance Sheet
Total Assets	347.56B	345.77B	335.30B	295.01B	298.42B	284.07B
Cash, Cash Equivalents and Short-Term Investments	28.08B	22.51B	15.63B	11.44B	16.71B	6.58B
Total Debt	171.91B	162.86B	175.39B	214.18B	182.87B	159.63B
Total Liabilities	309.31B	304.82B	300.01B	273.45B	232.55B	200.26B
Stockholders Equity	42.64B	45.15B	37.23B	23.61B	61.40B	77.58B
Cash Flow
Free Cash Flow	792.75M	14.44B	12.65B	-24.40B	6.81B	-10.63B
Operating Cash Flow	17.83B	34.55B	35.42B	-16.76B	12.89B	1.41B
Investing Cash Flow	-17.02B	-17.86B	-15.25B	-6.87B	-4.45B	-15.87B
Financing Cash Flow	-12.22B	-10.56B	-15.85B	18.10B	1.71B	11.46B

Air China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIRYY, the sentiment is Positive. The current price of 14.13 is above the 20-day moving average (MA) of 14.07, above the 50-day MA of 13.74, and above the 200-day MA of 13.09, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 41.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AIRYY.

Air China Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAL	82 Outperform	$31.30B	9.69	27.70%	―	4.23%	13.13%
DAL	78 Outperform	$37.53B	8.10	28.52%	1.11%	4.33%	-1.58%
RYAAY	75 Outperform	$30.74B	14.28	27.12%	1.65%	10.61%	37.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
LTM	61 Neutral	$12.11B	10.70	161.29%	2.43%	5.64%	63.23%
AAL	58 Neutral	$7.60B	14.81	-21.27%	―	1.50%	―
AIRYY	55 Neutral	$17.47B	130.95	1.93%	―	16.65%	64.66%