Air China (AIRYY) AI Stock Analysis

• Market Cap: $16.40B
• Dividend Yield: N/A
• Average Volume (3M): 47.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: 16.65%
• EPS Growth: 64.66%
• Country: US
• Employees: 104,909
• Sector: Industrials
• Sector Strength: 90
• Industry: Airlines, Airports & Air Services
• EPS (TTM): -0.33
• Shares Outstanding: 247,780,530
• 10 Day Avg. Volume: 10
• 30 Day Avg. Volume: 47
• PEG Ratio: 1.69
• Price to Book (P/B): 3.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.62
• 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: $13.50
• Price Target Upside: -3.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: $15.00 ▲(7.14%Upside)

Air China's overall stock score is driven by financial challenges, including ongoing losses and high leverage, which significantly impact its valuation. Although technical indicators suggest positive momentum, the financial and valuation concerns weigh heavily on the stock's attractiveness.

Air China Business Overview & Revenue Model

Company Description

Air China (AIRYY) is a leading airline company based in Beijing, China. It is part of the Star Alliance network and operates in the aviation sector, providing both passenger and cargo transportation services. Air China offers domestic and international flights, serving destinations across Asia, Europe, North America, and other regions. The airline is known for its extensive route network, high service standards, and modern fleet, catering to both individual travelers and corporate clients.

How the Company Makes Money

Air China generates revenue primarily through passenger ticket sales, which account for the majority of its income. The company offers a range of ticket classes and fare options, catering to different customer segments. In addition to passenger services, Air China also earns revenue from its cargo operations, transporting goods and freight across its network. Ancillary services, such as baggage fees, in-flight sales, and loyalty programs, provide additional income streams. Strategic partnerships and code-sharing agreements with other airlines, as well as its membership in the Star Alliance, enhance its operational reach and contribute to its earnings. Furthermore, Air China benefits from its government connections, which can provide favorable conditions and opportunities for growth in the competitive aviation market.

Air China Financial Statement Overview

Summary

Air China's financial performance is challenged by ongoing losses despite revenue recovery, high leverage, and cash flow difficulties. Improving cash management and operational efficiency is crucial.

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

Air China Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.00
• 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 is below the 20-day moving average (MA) of 14.04, above the 50-day MA of 13.61, and above the 200-day MA of 12.43, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 34.59 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	80 Outperform	$29.86B	9.24	27.70%	―	4.23%	13.13%
DAL	79 Outperform	$36.75B	8.17	30.07%	1.06%	3.01%	-0.90%
RYAAY	73 Outperform	$28.52B	17.87	22.41%	1.65%	3.12%	-13.82%
LUV	66 Neutral	$20.81B	43.36	5.63%	1.97%	3.26%	27.77%
Sector *	65 Neutral	$10.94B	15.63	5.18%	1.91%	3.14%	-27.13%
AAL	64 Neutral	$8.25B	14.44	-21.27%	―	1.92%	36.07%
AIRYY	49 Neutral	$16.40B	―	-0.53%	―	16.65%	64.66%