Air China (AIRYY) AI Stock Analysis

• Market Cap: $18.21B
• Dividend Yield: N/A
• Average Volume (3M): 139.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: 16.65%
• EPS Growth: 64.66%
• Country: US
• Employees: 104,909
• Sector: Industrials
• Sector Strength: 87
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.33
• Shares Outstanding: 247,780,530
• 10 Day Avg. Volume: 305
• 30 Day Avg. Volume: 139
• PEG Ratio: >-0.01
• Price to Book (P/B): 3.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.65
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 57 Neutral
• Price Target: $14.00 ▼(-4.44%Downside)

The overall stock score for Air China reflects a challenging financial situation, with consistent losses and high leverage being significant concerns. Technical analysis provides a more positive outlook, indicating potential for price recovery. However, poor valuation metrics due to negative earnings and no dividend yield weigh down the overall assessment.

Air China Business Overview & Revenue Model

Company Description

Air China Limited (AIRYY) is the flag carrier and one of the major airlines of the People's Republic of China. It operates primarily in the airline transportation sector, offering both passenger and cargo services. With its headquarters located in Beijing, Air China provides domestic and international flights, connecting major cities across the globe. The airline is part of the Star Alliance network, which enhances its global reach and connectivity.

How the Company Makes Money

Air China makes money primarily through its passenger and cargo transportation services. The majority of its revenue comes from passenger ticket sales, which are influenced by factors such as route demand, ticket pricing strategies, and seasonal travel trends. Additionally, the airline earns revenue from its cargo operations, which involve the transportation of goods and merchandise. Key revenue streams also include ancillary services such as in-flight sales, baggage fees, and loyalty programs. Strategic partnerships, such as code-sharing agreements with other airlines within the Star Alliance, and its subsidiary operations, contribute to its financial performance by expanding its network and service offerings.

Air China Financial Statement Overview

Summary

Air China's financial performance is challenged, with consistent losses and high leverage posing risks. Revenue growth is a positive sign, but profitability and cash flow issues require improvement.

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
166.66B	166.70B	141.10B	52.90B	74.53B	69.50B
	Gross Profit
7.38B	8.51B	7.09B	-29.91B	-11.31B	-6.13B
	EBIT
-4.00B	-3.43B	-3.32B	-46.08B	-21.85B	-18.50B
	EBITDA
4.06B	33.90B	32.40B	-18.16B	4.61B	7.05B
	Net Income Common Stockholders
-606.84M	-237.31M	-1.05B	-38.62B	-16.64B	-14.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.45B	22.51B	15.63B	11.44B	16.71B	6.58B
	Total Assets
345.16B	345.77B	335.30B	295.01B	298.42B	284.07B
	Total Debt
172.20B	162.86B	175.39B	214.18B	182.87B	159.63B
	Net Debt
148.89B	140.39B	159.76B	202.74B	166.16B	153.06B
	Total Liabilities
306.83B	304.82B	300.01B	273.45B	232.55B	200.26B
	Stockholders Equity
43.02B	45.15B	37.23B	23.61B	61.40B	77.58B
Cash Flow		Free Cash Flow
-3.99B	14.44B	12.65B	-24.40B	6.81B	-10.63B
	Operating Cash Flow
5.89B	34.55B	35.42B	-16.76B	12.89B	1.41B
	Investing Cash Flow
-19.57B	-17.86B	-15.25B	-6.87B	-4.45B	-15.87B
	Financing Cash Flow
-14.00B	-10.56B	-15.85B	18.10B	1.71B	11.46B

Air China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 14.65 is above the 20-day moving average (MA) of 13.47, above the 50-day MA of 12.54, and above the 200-day MA of 11.76, indicating a bullish trend. The MACD of 0.55 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.67 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	79 Outperform	$25.68B	7.06	33.57%	―	5.31%	35.95%
DAL	78 Outperform	$32.11B	8.72	27.52%	1.23%	4.91%	-27.21%
RYAAY	74 Outperform	$29.28B	17.58	22.41%	1.65%	5.39%	-15.92%
LUV	68 Neutral	$18.57B	37.68	5.63%	2.21%	3.26%	27.77%
Sector *	66 Neutral	$4.51B	12.22	5.40%	3.63%	4.14%	-12.01%
AAL	61 Neutral	$7.29B	12.58	-21.27%	―	1.92%	36.07%
AIRYY	57 Neutral	$18.21B	―	-0.53%	―	16.65%	64.66%