Air China (AIRYY) AI Stock Analysis

• Market Cap: $18.89B
• Dividend Yield: N/A
• Average Volume (3M): 160.00
• Price to Earnings (P/E): 153.4
• Beta (1Y): 0.75
• Revenue Growth: 4.48%
• EPS Growth: N/A
• Country: US
• Employees: 104,909
• Sector: Industrials
• Sector Strength: 72
• Industry: Airlines, Airports & Air Services
• EPS (TTM): 0.62
• Shares Outstanding: 247,780,530
• 10 Day Avg. Volume: 40
• 30 Day Avg. Volume: 160
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.23
• Revenue Forecast (FY): $24.04B

• Rating: 51 Neutral
• Price Target: $14.50 ▼(-9.66% Downside)

Air China's stock score is primarily impacted by its financial performance challenges, including negative profitability and high leverage. While technical indicators show strong momentum, the overbought condition suggests caution. The high P/E ratio indicates overvaluation, further weighing on the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a recovering demand for air travel, suggesting potential for future profitability as market conditions improve.

Network and Alliances

Global alliances enhance market reach and customer base, providing strategic advantages and increasing sales opportunities.

Government Support

Government support can provide financial stability and a competitive edge, helping to mitigate industry volatility and economic downturns.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially limiting flexibility and increasing vulnerability to economic shifts.

Negative Profit Margins

Persistent negative margins highlight ongoing profitability challenges, impacting long-term financial health and investor confidence.

Cash Flow Challenges

Weak cash generation limits ability to invest in growth and reduce debt, posing risks to operational sustainability.

Air China Business Overview & Revenue Model

Company Description

Air China (AIRYY) is the flag carrier and one of the major airlines of the People's Republic of China, operating both domestic and international flights. Established in 1988, the airline is headquartered in Beijing and serves as a key player in the aviation industry, offering passenger and cargo transport services. Air China is known for its extensive network connecting China to various global destinations, providing a range of services including economy, business, and first-class travel options, as well as cargo services.

How the Company Makes Money

Air China generates revenue primarily through the sale of passenger tickets for domestic and international flights, which constitutes a significant portion of its income. Additionally, the airline earns money from cargo services, transporting goods and freight on its flights. Ancillary revenue streams include fees from extra services such as baggage handling, in-flight sales, and seat selection. Partnerships with other airlines and participation in global airline alliances, such as Star Alliance, enhance its reach and customer base, contributing to increased sales. Furthermore, Air China benefits from government support and subsidies, which can also play a role in its overall profitability.

Air China Financial Statement Overview

Summary

Air China faces financial challenges with negative net profit margins and high leverage. Despite revenue recovery, profitability remains a concern, 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	6.56B	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: 16.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 16.05 is below the 20-day moving average (MA) of 16.61, above the 50-day MA of 15.42, and above the 200-day MA of 13.75, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 16.67 is Positive, 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
RYAAY	83 Outperform	$34.22B	12.75	28.67%	1.51%	14.75%	71.73%
DAL	78 Outperform	$43.81B	9.46	28.52%	1.01%	4.33%	-1.58%
UAL	72 Outperform	$33.98B	10.51	25.59%	―	4.24%	20.29%
LTM	67 Neutral	$14.87B	12.23	135.74%	1.99%	6.81%	58.22%
AAL	64 Neutral	$9.78B	17.80	―	―	1.27%	118.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AIRYY	51 Neutral	$18.89B	153.38	1.93%	―	4.48%	―

Air China Corporate Events

Air China Reports Modest Revenue Growth and Profit Surge

Air China Limited, a major player in the aviation industry, operates as a joint stock limited company in the People’s Republic of China, providing air transportation services for passengers and cargo.

Air China Reports Revenue Growth Amid Continued Losses

Air China, a major airline company based in the People’s Republic of China, operates in the aviation sector providing passenger and cargo services both domestically and internationally.