Air China Limited
Air China Limited Fundamental Analysis
Air China Limited (AICAF) shows weak financial fundamentals with a PE ratio of 207.19, profit margin of 0.44%, and ROE of 1.73%. The company generates $146.5B in annual revenue with strong year-over-year growth of 18.14%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AICAF's fundamental strength across five key dimensions:
Efficiency Score
WeakAICAF struggles to generate sufficient returns from assets.
Valuation Score
ModerateAICAF shows balanced valuation metrics.
Growth Score
ExcellentAICAF delivers strong and consistent growth momentum.
Financial Health Score
WeakAICAF carries high financial risk with limited liquidity.
Profitability Score
ModerateAICAF maintains healthy but balanced margins.
Key Financial Metrics
Is AICAF Expensive or Cheap?
P/E Ratio
AICAF trades at 207.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, AICAF's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Air China Limited at 3.59 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -1.57 times EBITDA. This is generally considered low.
How Well Does AICAF Make Money?
Net Profit Margin
For every $100 in sales, Air China Limited keeps $0.44 as profit after all expenses.
Operating Margin
Core operations generate -1.71 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.73 in profit for every $100 of shareholder equity.
ROA
Air China Limited generates $0.21 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Air China Limited produces operating cash flow of $15.56B, showing steady but balanced cash generation.
Free Cash Flow
Air China Limited produces free cash flow of $12.11B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.58 in free cash annually.
FCF Yield
AICAF converts 10.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
207.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.59
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
4.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How AICAF Stacks Against Its Sector Peers
| Metric | AICAF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 207.19 | 26.71 | Worse (Expensive) |
| ROE | 1.73% | 1311.00% | Weak |
| Net Margin | 0.44% | -29317.00% (disorted) | Weak |
| Debt/Equity | 4.03 | 0.75 | Weak (High Leverage) |
| Current Ratio | 0.38 | 10.53 | Weak Liquidity |
| ROA | 0.21% | -1537638.00% (disorted) | Weak |
AICAF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Air China Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.98%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-102.93%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-28.59%
Industry Style: Cyclical, Value, Infrastructure
Declining